1.1 Specific Limitations of Existing Blockchain Networks
Taking Ethereum and similar smart contract networks as examples, their limitations are manifested in:
edger data is completely transparent to any node that can connect to the network;
The transaction processing capacity of Layer 1 has strict, difficult-to-break vertical ceilings;
Scaling solutions like Layer 2 and Rollups, while increasing throughput, often sacrifice transaction composability;
Asset issuers effectively cede control of their assets to an anonymous set of network validators. From the perspectives of regulatory compliance and institutional adoption, complete data transparency and partial loss of asset control make these networks currently challenging for traditional financial institutions to widely adopt.
When a smart contract application reaches the transaction throughput limits of the network, the result can be disastrous for both the network itself and its application providers, leading to congestion and exorbitant fees.
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