Original source: @0xAlexon

It's been a few months since I wrote anything, so I’m sharing this on the day Megaeth is going for its public sale. The concentration of crypto punks has visibly diminished over the past year. It's hard to imagine that in most Google Meetings, discussions revolve around how to gain support from the White House and the Trump family. Unlike most complaining artistic youths, we have found a new spark and are building it.

It's not hard to understand that before reaching physical limits, any infrastructure has a latecomer advantage. This is often seen in the development of mobile internet; we have the latecomer advantage of 4G and 5G networks (the ROI is very low when investing in a complete 5G network in the U.S. without recouping infrastructure costs), which has led to innovations in Chinese mobile internet apps that surpass those in the U.S.

Is it due to innovation capability? That is part of it, but the more significant reason is that the underlying architecture has changed, performance has improved, and the boundaries for applications to explore have expanded.

To put it more plainly, the increase in network speed has allowed us to evolve from making landline calls to mobile phones, then to texting loved ones in real-time, and later to using WhatsApp and WeChat to send various multimedia, emojis, and voice messages.

This is akin to the development of blockchain; after a long journey, many excellent forms have emerged. AMM is a brilliant design that greatly addresses the issue of how to trade under performance constraints and the cold start problem when there are few on-chain users. I want to emphasize that I do not believe AMM is an outdated trading form; its composability is excellent, and in some cases, it can be smoother than order books in terms of liquidation.

However, this is not the endgame. In high-performance scenarios, we have seen the rise of on-chain order books, which is what a certain explosive-haired individual, who is already in a predicament, desires most. I must mention that in my thoughts on high performance over the past few months, I found that he had considered them all. I increasingly feel that extreme wisdom can lead to harm.

If discussing high-performance scenarios seems abstract, let’s simplify it further: Memecoin is actually the first high-performance trading scenario. Is the profit from Pumpfun really coming from a large number of retail investors?

Not at all; it comes from these blockchain-native "HFTs" doing MEV on-chain.

In the past, demands for high concurrency and high speed were met by CEX, and the arms race for HFT focused on dedicated lines and how to maintain Binance's VIP9 status. For the first time, in memecoin trading, everyone began to ramp up their hardware.

I admit that memecoin is a unique cultural financial product; previous cultural financial products could only rely on a physical object, like Labubu, to price and monetize.

But what insight does Memecoin give us? Is it endless PVP? No, it’s that people have already begun to use high-speed blockchain scenarios.

Try to recall: after buying Memecoin on Gmgn and Axiom, would you still trade memecoin on the Ethereum mainnet? I love Ethereum, but it is indeed not suitable for high-speed trading.

So, as practitioners, we ponder: what will the next high-speed trading scenario be?

Stocks? Commodities? Foreign exchange?

Whoever can support the next batch of high-speed trading scenarios on-chain may shine brightly. If blockchain has a last mile, then taking over world assets is the last mile.

It can take the form of TVL, with enough money placed in sufficiently safe places; or it can take the form of turnover, with enough money turning over frequently.

This is not a cult; this is science.

- Solana has made many optimizations to reduce latency for ICM, such as Doublezero. I really like Doublezero, even though its token performance is very poor. How to do a good token is not within the scope of our discussion today.

- The issues I previously complained about on BNBChain in the first half of the year (link attached) were strongly resolved by CZ's return with an administrative order, making this month's BNBChain Memecoin season possible at the infrastructure level. Perhaps the exploration of high-performance chains has been left to Aster as a political task.

- Hyperliquid has also begun to retrace Binance's path, leveraging the ecological traffic brought by centralized advantages. I have great respect for Hyperliquid because, looking at it from a startup perspective two years ago, this not-so-decentralized solution was basically the only path.

In this cycle, successful examples have all chosen to sacrifice decentralization for extreme performance, but there needs to be a bottom line: it still has to be a blockchain. Of course, I understand very well that building a high-performance chain is significantly more challenging than developing applications.

However, architecture determines the upper limit, and as mentioned at the beginning, the latecomer advantage in high-performance chains means that even with money and resources, massive engineering time is still required. The path Megaeth is taking, sacrificing decentralization for performance, is almost the only solution while retaining blockchain characteristics. If you're interested in some popular science, you can check out the link below:
https://x.com/0xAlexon/status/1830954594580734172…

I have encountered several friends who told me that the debate between L1 and L2 is meaningless. The question we are discussing is how to enable trillions of transactions to occur frequently on-chain in scenarios that require high-performance trading. Whether it’s L1 or L2 does not matter in solving this practical problem.
It reminds me of a quote from an excellent Chinese politician: "A black cat or a white cat, as long as it catches mice, it’s a good cat."
https://x.com/0xAlexon/status/1830954594580734172…

I asked Yilong and Lei what Megaeth's North Star is, and they have always told me: how to create the fastest chain in the world and find every possible way to achieve it. Note, the emphasis is on: the fastest.

Let’s throw out a few questions:

- The global foreign exchange trading market has a daily trading volume of trillions of dollars; how much of that will go on-chain in the future?

- How can we ensure that Wall Street trading institutions can quickly deploy strategies on-chain without understanding blockchain?

- Why can’t gas fees be designed to have two sets of accounts for institutions and retail users?

These are all questions we must face and solve.

The birth of Megaeth will undoubtedly encounter various problems, just like other giants at their inception, even experiencing downtime. But the underlying architecture is different, and the species that grow up will also be different. Let’s see what new species will emerge within this time window won through technology.

Sometimes, everyone doesn’t realize that such an ordinary day is indeed this day.

This day marks the beginning of Megaeth's journey: taking over world assets.

Original link: https://x.com/0xAlexon/status/1978402071906017510

This article is from a submission and does not represent the views of BlockBeats.

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