W3BStation
Markets
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
10/25/2024

The Chain Abstraction Boom: How Chain Abstraction Could Unlock Killer Apps

Written by: Yue Xiaoyu's Web3 Product Journey Particle Network defines chain abstraction as: a user experience that requires no interaction with multiple chains. This definition is concise and clear, directly laying out the ultimate goal of chain abstraction. When using blockchain applications, users run into three main pain points: different chains require different wallets, each chain uses a different gas token, and moving assets between chains is a hassle. Chain abstraction abs

The Chain Abstraction Boom: How Chain Abstraction Could Unlock Killer Apps

Written by: Yue Xiaoyu's Web3 Product Journey

Particle Network defines chain abstraction as: a user experience that requires no interaction with multiple chains.
This definition is concise and clear, directly laying out the ultimate goal of chain abstraction.

When using blockchain applications, users run into three main pain points: different chains require different wallets, each chain uses a different gas token, and moving assets between chains is a hassle.

Chain abstraction extracts the common, essential characteristics across different chains, allowing users to use a product without needing to understand the specifics of each underlying chain — or even without realizing those chains exist. They simply use the product to get the outcome they want.

Why has the chain abstraction narrative suddenly captured market attention at this particular moment?
The biggest reason is the explosion in the number of chains.

In the previous cycle — the bull market from 2020 to 2021 — a handful of well-known public chains like Ethereum, Binance Smart Chain, Solana, and Cardano existed and were relatively mature. No significant new public chains emerged.

In the current cycle, however, starting in 2023, the number of new chains began to surge. Two main forces are driving this: existing public chains are scaling through Layer 2 solutions, and leading applications are launching their own app-chains to gain autonomy and a stronger value narrative.

To address Ethereum's performance issues, numerous Layer 2 networks have emerged within the Ethereum ecosystem. In the future, there will be Layer 3 networks as well. This is like building elevated expressways over a city's existing main roads, forming a three-dimensional network that significantly reduces congestion.

Based on data tracked by L2Beat, the number of Ethereum Layer 2s has reached 11. With more L2s set to launch, that number will only grow.

Another trend: once an application reaches a certain scale, it often has an incentive to launch its own chain in search of greater freedom and a stronger project narrative — these are known as app-chains (dApp chains). Notable examples include dYdX, a leading decentralized derivatives trading platform; Friend.Tech, a decentralized social network; and Uniswap, a leading decentralized exchange.

What is the relationship between chain abstraction and modularity?
The market's earlier focus was on modularity, driven by the growing demand for chain launches that needed corresponding infrastructure solutions.

That's why the modularity narrative gained traction about six months ago, with the emergence of leading projects like Celestia (data availability layer), Dymension (settlement layer), and AltLayer (RaaS — Rollup as a Service) as chain-launching platforms.

At its core, modularity is about collaboration and division of labor. A complete system can be broken down into interchangeable modules. Each module is independent, secure, and scalable. Different modules can be combined to run the entire system.

Modularity significantly reduces the cost of building a chain, making it easy to assemble a new one.

As the number of chains expanded and proliferated, people realized there were simply too many chains and infrastructure projects, which was directly hurting the user experience.

As a result, the infrastructure layer narrative lost its appeal, and the focus shifted to the user experience at the application layer.

The industry's attention has therefore shifted from modularity to chain abstraction — a shift that reflects the maturation and progress of the market.

Here's a summary of the relationship and differences between modularity and chain abstraction:

  • Modularity drives the maturation of the infrastructure layer, while chain abstraction drives progress at the application layer.
  • Modularity solves the problem of launching chains, while chain abstraction solves the problem of using them.

Before chain abstraction emerged, how did products on the market address the multi-chain problem?
To tackle multi-chain UX issues before chain abstraction arrived, application-layer products adopted a self-aggregation approach across multiple chains. They even tried to minimize the differences between chains in their product design — or prevent users from noticing those differences — thereby improving the user experience.

A prime example is the OKX Web3 Wallet. Users can manage their digital assets in this wallet, directly swap tokens, transfer assets between chains, trade NFTs, and access financial products across different chains.

However, the OKX Wallet runs on a team of hundreds and relies on resources from the OKX exchange — which is what enables it to deliver that kind of positive user experience.

Most projects and products desperately need a more universal technology, middleware, or architecture that directly eliminates the differences between chains and helps their products improve the user experience at a fundamental level.

In other words, there needs to be an intermediary layer between the application layer and the blockchain layer — one that abstracts away the underlying blockchain characteristics and then provides a universal service to a broader set of blockchain applications. That is chain abstraction.

Looking back at the OKX Wallet solution: as a multi-chain wallet, OKX Wallet simply aggregates multiple chains and multiple cross-chain bridges, making it easier for users to work across chains.

But the chain abstraction solution addresses the root problem that OKX Wallet never actually solved: letting users truly ignore the chain entirely — no switching networks, no paying gas fees on different chains, no juggling multi-chain transactions.

Conclusion
By understanding the problems chain abstraction aims to solve, the context behind its emergence, and how it compares to alternative solutions, we can develop a much clearer picture of chain abstraction itself.

Returning to the definition of chain abstraction mentioned at the start of this article: a user experience that requires no interaction with multiple chains.

With that definition in mind, we should now have a much sharper understanding of the value and goals this concept represents.

As chain abstraction concepts and technology mature, they will push the crypto industry toward a more user-friendly, developer-friendly, and highly interoperable direction — ultimately giving rise to killer apps that anyone can actually use.