By 2025, the crypto sector is transitioning from hype to functionality. Stablecoin frameworks are being established, tokenized assets are entering mainstream markets, and artificial intelligence is beginning to operate on-chain.
In this wave of change, layer-1 blockchains are being redefined as critical infrastructure for real-world adoption, rather than mere experiments.
“Layer-1s still serve as the backbone of the industry,” remarked Marc Vanlerberghe, chief strategy and marketing officer at the Algorand Foundation, during this week’s episode of Decentralize with Cointelegraph.
“The rest of the ecosystem is built on top of them. Innovation can thrive at the edges, but without a secure and scalable base, none of it stays.”
Challenges to Adoption
Even with technological advancements, onboarding and user retention remain significant challenges. As Vanlerberghe elaborated:
“Today, it’s an insurmountable challenge. One must be extremely motivated to navigate the complexities crypto entails.”
This challenge has deterred many new users from sticking with blockchain applications after their initial experience. To combat this, projects throughout the ecosystem are trialing gamified initiatives and simplified wallet designs to reduce friction.
“Our goal is for users to experience the advantages of Algorand, not just by discussing instant finality, but through genuine experience,” Vanlerberghe stated.
Related: BitGo obtains license for regulated crypto trading in Europe
Looking Forward
As new experiments emerge in the ecosystem to engage and retain users, he emphasized the need for resilience and clarity of vision.
“You simply must… clearly understand your North Star. That’s your direction. Through both highs and lows, you must continue to progress.”
According to Vanlerberghe, Algorand’s North Star includes both retail adoption and enterprise applications such as tokenization and payments.
As tokenized finance grows and blockchain experiments cater to real-world needs, layer-1s are not only positioning themselves to survive but to remain vital.
For the full interview, listen to the latest episode of Byte-Sized Insight on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. Don’t forget to explore Cointelegraph’s full lineup of other shows!
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