In his argument, Erick de Moura boldly asserts that decentralized applications on blockchain networks with exorbitant fees face a grim fate. He contends that users are only willing to part with their hard-earned cash for a select few types of applications. This notion is explored in Episode 36 of Hashing It Out, where Elisha Owusu Akyaw engages in a riveting discussion with Cartesi co-founders Colin Steil and Erick de Moura.
The Cartesi team unveils their ingenious solution to the limitations of computational scalability and programmability by introducing app-specific rollup protocols. These protocols empower developers to create exclusive rollup chains tailored to their applications. By doing so, they aim to tackle the scalability issues that plague blockchain networks during peak periods.
De Moura delves deeper into the significance of app-specific rollups and their role in addressing scalability concerns. He elucidates that when multiple applications vie for block space and numerous users attempt to secure transactions into the sequencer or blockchain, fees skyrocket and become unpredictable. This predicament makes it arduous for certain applications to attract and retain users. De Moura cites games as a prime example of applications unsuited for such environments, as most of their functionalities occur off-chain, with only the game economy operating on-chain.
Regarding the proliferation of layer-2 networks on the Ethereum blockchain, the Cartesi team argues that there are more protocols than the world truly needs. However, they believe this situation will be temporary, as specific protocols will eventually establish network effects, leading the masses to migrate towards them.
In summary, Erick de Moura contends that high fees on blockchain networks hinder the survival of certain decentralized applications. The introduction of app-specific rollup protocols by Cartesi aims to address scalability issues and provide developers with the means to create tailored rollup chains. This, in turn, enables applications to better compete for block space and attract users. The Cartesi team also predicts that the surplus of layer-2 networks will eventually dwindle as specific protocols gain prominence and draw the masses towards them.