Microsoft's top engineer predicts vertical blockchain scaling: Which industries could take the lead?

• Chris Li predicts that the blockchain will soon shift from the horizontal to vertical scaling.
• vertical scaling could increase efficiency in online casinos and improve the user experience.
• progressive solutions such as atomic swaps can replace packaged assets and thus preserve decentralization.

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

According to Li, the focus of blockchain development will shift from the horizontal to vertical scaling within the next five years. This transition is expected to redefine the way different industries use blockchain technology, especially with regard to efficiency, user experience and decentralization.

horizontally scaling solutions reach their saturation

The horizontal scaling, i.e. increasing the number of node or expanding the network capacity, was the most important method to improve blockchain performance. However, Li believes that this approach has reached its limits.

The saturation of horizontal scaling solutions such as Ethereum Layer 2 solutions and ZK-Rollups indicates an urgent need for new strategies.

The vertical scaling, on the other hand, aims to improve the skills of individual transactions, to make them faster and cheaper and at the same time maintain decentralization.

online gaming will benefit significantly from vertical scaling

An industry that is significantly benefited from the vertical scaling is online gaming, in particular Online casinos .

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

The vertical scaling could further revolutionize this sector by enables more complex transactions and interactions within game platforms. Improved smart wallets and multi-signature solutions could optimize the user experience and make it easier for players to manage their assets and to carry out safe, immediate transactions.

li emphasized the boundaries of Packed digital assets despite their usefulness in the bridging of assets across various blockchains, centralization risks and trust dependencies bring again.

For online casinos, this means that the current dependence on deposit banks in asset management could be replaced by more decentralized solutions such as atomic swaps and cross-chain bridges.

promise these technologies to preserve the decentralized ethos of the blockchain and at the same time improve functionality and security.

Balance between security, scalability and decentralization

In addition, the vertical scaling could be the Blockchain trilemma -Balance between security, scalability and decentralization.

Through a more efficient resource assignment and improved transaction options, vertical scaling could offer industries such as online casinos robust, scalable solutions that do not compromise on security or decentralization.

The vertical scaling offers a promising future, changes the use of blockchain technology in various sectors and paves the way for more efficient and user-friendly applications.