Bryan Pellegrino: Blockchain’s decline is hindered by storage layer constraints, node computation inefficiencies drive up costs, and the shift to databases threatens fragmentation.

Important takeaways

• Blockchain scalability is greatly constrained by the storage layer.
• Layer Zero Labs has developed a storage layer capable of 3,000,000 updates per second, which represents a significant improvement in scalability.
• Current blockchain inefficiencies come from the duplication of node computation, which leads to excessive costs.
• Layer Zero’s new blockchain, Zero, aims to reduce computational duplication to improve competition.
• Existing blockchain solutions struggle between being too focused or failing to scale effectively.
• The trend towards increased centralization in blockchain development appears to be dangerous.
• Standardized, permissionless systems at scale are essential to meet real-world needs.
• Switching from MPT to log-based databases improves the performance of verified information.
• The Aptos system achieves one million transactions per second in one place, highlighting advances in transaction processing.
• Active computing in blockchain networks involves generating proof verified by all nodes.
• Institutional adoption has led to a decline in blockchain technology.
• Shifting to centralized blockchain building institutions is frowned upon.
• Global off-the-shelf markets will emerge to allow 24/7 trading across various asset classes.
• Layer Zero is designed to be 100% immutable, compared to most scalable contracts.
• Recent changes in administrative costs and clarifications indicate a shift towards institutional blockchain adoption.

Guest introduction

Bryan Pellegrino is the founder and CEO of LayerZero Labs. He founded the company in 2021 with college friends Ryan Zarick and Caleb Banister to create a cross-chain interoperability protocol that enables secure messaging between blockchains. Under his leadership, LayerZero Labs achieved a valuation of 3 billion dollars in 18 months and consolidated the power of partners such as PayPal’s PYUSD.

The impact of the storage layer on blockchain growth

• “The storage layer is the main barrier to blockchain scalability.” – Bryan Pellegrino
• LayerZero Labs has developed a storage layer capable of 3,000,000 updates per second.
• Understanding storage solutions is critical to addressing blockchain scalability issues.
• “It’s like the storage layer is one of the main pressures on almost every chain.” – Bryan Pellegrino
• Storage solutions are essential to overcome the technical limitations of blockchain.
• The higher update rates of storage layers reflect the development of scaling solutions.
• The efficiency of the storage layer directly affects the performance of the blockchain network.
• Addressing the latter issues is critical to the future growth of blockchain technology.

Node computation inefficiency in current blockchains

• “The main problem with any blockchain today is the inefficiency of node computation.” – Bryan Pellegrino
• Each node repeating the same computation leads to excessive costs.
• Reducing computational complexity is key to making blockchain systems competitive.
• The new Layer Zero blockchain aims to address this inefficiency.
• Understanding the node count is essential to improving blockchain stability.
• “You’re effectively paying a million times more than the cost of making the computer itself.” – Bryan Pellegrino
• The efficient computation of nodes can significantly reduce the operational cost of the blockchain.
• Improving the efficiency of node computation is essential to the competitive edge of blockchain.

Centralization versus scalability in blockchain development

• Current blockchain solutions are either too centralized or fail to scale effectively.
• “The last few years have moved forward on the middle ground road map.” – Bryan Pellegrino
• Increased centralization in blockchain development is seen as limiting.
• Scalable distributed systems are needed in real-world applications.
• Decentralization and scalability are key challenges in blockchain.
• “We don’t think any of this is how you want to scale the program long term.” – Bryan Pellegrino
• The blockchain space needs to achieve decentralized, permissionless systems at scale.
• Addressing centralization concerns is critical to the future of blockchain.

Advances in blockchain database performance

• Switching from MPT to a log-based database improves performance.
• “100 times more performance than state of the art database architecture.” – Bryan Pellegrino
• Log-based databases greatly improve the performance of a verifiable database.
• Understanding database architecture is critical to blockchain scalability.
• The Aptos system achieves a million sales per second in one place.
• The EVM head does not impede the processing power of the Aptos system.
• Improved data processing is critical to the future growth of blockchain.
• Technical efficiency in data repositories is key to the scalability of the blockchain.

Active calculation by verifying evidence

• Successful computation involves generating proofs verified by all nodes.
• “All the nodes only need to confirm the proof, they have successfully made it free.” – Bryan Pellegrino
• Proof verification improves blockchain network efficiency and resilience.
• Understanding proof generation is essential to blockchain design.
• Active computation reduces the need for replication of nodes.
• Proof verification is the main starting point in blockchain technology.
• Improving computing efficiency is critical to blockchain’s competitive edge.
• Active computing is essential to the measurement and performance of the blockchain.

Institutional adoption and its impact on blockchain

• The world’s rapid changes have led to a decline in blockchain technology.
• “We started making a bunch of really bad compromises.” – Bryan Pellegrino
• Institutional adoption has changed the fundamentals of blockchain development.
• The practice of institutions that build centralized blockchains is bad.
• Understanding institutional interest is critical to the future of blockchain.
• Institutional adoption influences blockchain’s goals for decentralization.
• Measuring innovation and institutional acceptance is a major challenge.
• Institutional involvement influences the path of blockchain development.

The emergence of unlicensed global markets

• The global over-the-counter markets will allow 24/7 trading in all asset classes.
• “Markets will go from seven-five to twenty-four-seven.” – Bryan Pellegrino
• Continued trade will change market access and processes.
• Understanding market structures is critical to the impact of blockchain.
• Over-the-counter markets promote trading in various commodities.
• The evolution of markets influences the role of blockchain in finance.
• 24/7 trading is reshaping financial market dynamics.
• Blockchain technology is driving the evolution of global markets.

Layer Zero’s commitment to consistency and decentralization

• Layer Zero is designed to be 100% immutable, compared to scalable contracts.
• “We built it 100% irreversible.” – Bryan Pellegrino
• Immutability is a fundamental principle in Bryan’s blockchain approach.
• Understanding the importance of immutability is essential to blockchain security.
• Layer Zero prioritizes decentralized, permissionless systems.
• “Our goal with Layer Zero is to bring that to the space.” – Bryan Pellegrino
• A commitment to core values ​​drives Layer Zero’s strategic vision.
• Decentralization and consistency are key to Layer Zero’s success.

Zero OS and its impact on blockchain performance

• Zero OS enables smart contracting and global markets at scale.
• “The Zero OS paper we just published with Dan Bone.” – Bryan Pellegrino
• Understanding the capabilities of Zero OS is important for the future of blockchain.
• Zero OS improves the functionality of the blockchain ecosystem.
• The new functionality of Zero OS has implications for blockchain technology.
• Zero OS supports various blockchain applications.
• The power of Zero OS influences the stability and efficiency of the blockchain.
• Zero OS is driving advancements in blockchain technology.

Layer Zero’s market dominance and strategic focus

• Layer Zero has achieved 82-85% market share with billions built on it.
• “Layer Zero is 82-85% of the market share.” – Bryan Pellegrino
• Market dominance highlights Layer Zero’s success in the blockchain space.
• Understanding the importance of market share is important for blockchain stakeholders.
• A focus on real systems drives Layer Zero’s strategic partnerships.
• “We care about real programs that will drive adoption.” – Bryan Pellegrino
• Strategic focus influences Layer Zero’s development approach.
• Layer Zero’s success is driven by its commitment to real-world applications.