Are High Fees Killing Crypto Apps? Cartesi Explains on Hashing It Out

Crypto World: Exploring the Difference between Web 1.0, 2.0, 3.0, and 4.0

As the competition among Ethereum layer-2 networks intensifies, users are left with questions about the distinct features, use cases, and strategies for attracting more users to Web3. In Episode 36 of Hashing It Out, Elisha Owusu Akyaw (GhCryptoGuy) talks to Cartesi co-founders Colin Steil and Erick de Moura about app-specific rollup protocols.

The Cartesi team created the network to tackle the limitations of computational scalability and programmability, enabling developers to construct exclusive rollup chains for their applications. They maintain that exclusive utility is the solution to scalability issues experienced during peak periods.

De Moura delves into the utility of app-specific rollups and why they are essential in addressing scalability issues. He states that when different applications and users compete for block space and try to get their transactions into the sequencer or the blockchain, the fees tend to become exorbitant and unpredictable. De Moura gives games as examples of apps that should not be deployed in such environments since most of the functionalities take place off-chain, and only the game economy runs on-chain.

The Cartesi team believes that there are currently too many layer-2 protocols operating on the Ethereum blockchain. They argue that these protocols will eventually create network effects and the majority of users will migrate to them.

To learn more about web 3.0, crypto apps, the difference between web 1.0, 2.0, 3.0 and 4.0, and the world of crypto, tune in to the Hashing It Out podcast on Spotify or Apple Podcasts. You can also find more informative podcasts about crypto on the Cointelegraph Podcasts page.