In the evolving landscape of blockchain technology, wrapped digital assets have been instrumental in expanding the utility of assets. However, according to Chris Li, founder and CTO of Ava Protocol, the need for custodianship associated with wrapped assets reintroduces centralization risks and trust dependencies, which go against the decentralized ethos of blockchain technology. Li sees wrapped assets as transitional solutions, predicting that emerging technologies like atomic swaps, cross-chain bridges, and zero-proof technology will likely surpass wrapped assets in achieving the core principles of decentralization and trustlessness.
As blockchain technology continues to progress, efforts are being made to simplify blockchain processes and enhance user experience. Li acknowledges the significant progress that has been made in making protocols faster and more affordable to use. However, he believes that there is still room for improvement in building the entire infrastructure. Looking ahead, Li predicts a shift from horizontal scaling to vertical scaling in the next five years, highlighting the development of smart wallets and multi-signature solutions as key areas to watch for in the blockchain space.
Despite the advancements in blockchain scalability and transaction speeds, challenges remain in achieving a balance between security, scalability, and decentralization, as highlighted by the blockchain trilemma. Li discusses how Ava Protocol addresses this challenge by leveraging the network of EigenLayer’s trusted operators to achieve scalability through the addition of computational and storage resources. This approach aims to make transactions more cost-effective and enhance functionality for users, allowing them to build custom workflows triggered by various events.
The necessity for users to understand technical aspects of blockchain technology, such as private keys, has been a barrier to adoption for many. Li emphasizes the importance of developing efficient blockchain protocols that reduce complexities for users. He discusses the concept of smart wallets, which are designed to manage user accounts with minimal authorized access, allowing users to interact with various applications without the need for extensive technical knowledge. By focusing on smart wallets, Ava Protocol aims to provide a seamless user experience for Web3 users while maintaining security and control over their assets.
The interview with Chris Li also delves into the motivations behind the creation of Ava Protocol and the vision for its widespread adoption across the blockchain and wider technological ecosystem. Li shares that the inspiration for Ava Protocol came from observing the first generation of automation solutions in Web3 and their limitations in delivering a user-friendly experience. By leveraging on-chain data storage and designing a workflow engine, Ava Protocol aims to simplify the process of creating custom workflows for developers and users, enabling them to build DeFi, NFT, or RWA workflows without the need for coding experience.
In conclusion, the interview with Chris Li sheds light on the challenges and opportunities in the blockchain space, particularly in terms of enhancing decentralization, improving user experience, and achieving mass adoption of blockchain technologies. As the industry continues to evolve, solutions like smart wallets, atomic swaps, and zero-proof technology are expected to play a key role in preserving the core principles of decentralization while providing users with more efficient and secure blockchain experiences.
