Dragonfly: Which is Faster in Terms of AMM Trading Efficiency, L1 Public Chains or L2 Solutions?

(This article is authorized to be reprinted from Foresight News. Please refer to the link for the original English version.)

So, what is the conclusion of all this?

First of all, don't assume that all this data is correct, you can calculate it yourself.

Secondly, remember that all these blockchains are evolving. They are constantly being optimized, and the technology is rapidly advancing, and any benchmark is a "real-time snapshot." We hope to see more independent organizations creating standardized benchmarks, and the benchmarks proposed in this article are the best solutions we can think of.

Third, please note that the performance differences between these blockchains are not as significant as advertised. The performance difference between Ethereum and the best chains is roughly 10-25 times, not 100 times or 1000 times. No one can achieve such outstanding performance from linearized virtual machine transactions. More work and optimization may be needed in the future.

Fourth, if you want truly high performance, you have to give up the EVM. We only benchmarked Solana here, but there are other non-EVM Layer 1 public chains, such as NEAR and Terra, which have also achieved higher performance. However, like Solana, they cannot benefit from the tools and ecosystem built around EVM. (Although NEAR has Aurora, which is compatible with EVM, and other Layer 1 public chains are also trying to develop similar virtualized EVM instances.)

Fifth, users are not so sensitive to the performance of non-Ethereum Layer 1 now. They care more about the overall strength of the ecosystem, good user experience, and low fees. These blockchains are not currently competing on performance because in reality, their capacity limits have not been reached unless during rare peak periods, such as IDOs or market crashes.

We expect the performance of all major Layer 1 public chains to improve over time as development teams spend more time optimizing performance for typical use cases. None of these blockchains have been well optimized in the early days.

But overall, my impression is: Ethereum is like the MS-DOS of smart contract operating systems. But the current blockchain era is leading us into the Windows 95 era.

The next generation of blockchains show significant progress, but there is still a long way to go before they are widely accepted.

Disclosure: Dragonfly Capital may hold positions in assets mentioned in this article.