Top Microsoft Engineer Predicts Blockchain Vertical Upscale: Which Industries Might Lead the Charge?

Chris Li predicts blockchain will shift from horizontal to vertical scaling soon.
Vertical scaling could enhance efficiency in online casinos and improve user experience.
Advanced solutions like atomic swaps may replace wrapped assets, preserving decentralisation.

Chris Li, a former Microsoft engineer and the founder and CTO of Ava Protocol, has made a bold prediction for the future of blockchain technology. 

According to Li, the focus of blockchain development is set to shift from horizontal scaling towards vertical scaling within the next five years. This transition is anticipated to redefine how various industries utilise blockchain technology, particularly in terms of efficiency, user experience, and decentralisation.

Horizontal scaling solutions reach saturation

Horizontal scaling, which involves increasing the number of nodes or expanding network capacity, has been the primary method for improving blockchain performance. However, Li suggests that this approach has reached its limits. 

The saturation of horizontal scaling solutions, such as Ethereum’s layer-2 solutions and zk-rollups, indicates a pressing need for new strategies. 

Vertical scaling, on the other hand, aims to enhance the capabilities of individual transactions, making them faster and more cost-effective while maintaining decentralisation.

Online gaming set to benefit significantly from vertical scaling

One industry poised to benefit significantly from vertical scaling is online gaming, specifically online casinos.

The integration of blockchain technology in online casinos has already shown promise in terms of transparency, security, and fair play. 

Vertical scaling could further revolutionise this sector by enabling more complex transactions and interactions within gaming platforms. Enhanced smart wallets and multi-signature solutions could streamline the user experience, making it easier for players to manage their assets and engage in secure, instant transactions.

Li highlighted the limitations of wrapped digital assets, which, despite their utility in bridging assets across different blockchains, reintroduce centralisation risks and trust dependencies. 

For online casinos, this means that the current reliance on custodians for asset management could be replaced by more decentralised solutions such as atomic swaps and cross-chain bridges. 

These technologies promise to preserve the decentralised ethos of blockchain while enhancing functionality and security.

Balancing between security, scalability and decentralisation

Moreover, vertical scaling could address the blockchain trilemma — balancing security, scalability, and decentralisation. 

By allocating resources more efficiently and enhancing transaction capabilities, vertical scaling could provide industries like online casinos with robust, scalable solutions that do not compromise on security or decentralisation.

Vertical scaling offers a promising future, transforming how blockchain technology is applied across various sectors and paving the way for more efficient and user-friendly applications.