Massive Growth Ahead: Manta Network Co-Founder Predicts Next Three Years of Blockchain Evolution
In this interview, Kenny Lee, co-founder and COO of Manta Network, shares his expertise in the evolving Web3 and blockchain landscape. Focusing on Manta Pacific’s innovative approach to modularity and scalability, Lee offers a unique perspective on the future of decentralized systems, the potential of AI in blockchain, and the role Asia plays in driving global adoption of crypto solutions.
What makes Manta Pacific's approach to modularity unique in the L2 ecosystem, and how does it set a new standard for scalability and security?
Modularity is a technology that is commonly used in industries outside of Web3, including cloud computing. Instead of building everything in-house, modularity allows us to take pre-existing technologies and plug them into our infrastructure to provide new or additional features, functionality, scalability, and security to our users.
At Manta, we implemented this approach using Celestia to provide data. We were the first to use Celestia to provide data, and in the first month alone, we saved our users approximately $1.8 million in gas fees. This demonstrates the tangible value and benefits of using a modular approach.
The key advantage of modularity is its adaptability. It allows us to adapt and add new features as emerging industry needs change. Instead of building new features from scratch every time Web3 evolves, we can find existing technologies, integrate them into our infrastructure, and deliver value directly to users. This approach allowed us to get to market earlier than others who waited for developments like Proto-danksharding on Ethereum.
How can AI technologies be leveraged to improve the efficiency and functionality of decentralized systems on L2 solutions?
Currently, AI technologies are widely used at the application layer. They will likely be used at the infrastructure layer in the future. However, as we consider scaling to a billion users, which is the norm in our industry, we will need to collaborate and coordinate across different service levels to maintain this level of traffic.
A single L2 cannot host a billion users at once, just as Ethereum cannot host more than about 5,000 users without gas fees skyrocketing. We need to scale horizontally across multiple L2s, which will require load balancing. This is where AI can play a crucial role.
For example, AI can help balance applications and users across different L2s based on conditions like capacity and gas fees. If L2A is 80% full, L2B is 40% full, and L2C has the lowest gas fees, AI can help distribute the load optimally. This type of AI-driven load balancing across L2s could be key to scaling to the billion-user mark we’re aiming for.
How does horizontal scalability solve the challenges of L2 sharding, especially with regard to cross-chain communications and liquidity sharing?
Horizontal scalability is about decommissioning responsibilities and splitting up different layers in the stack. For example, Ethereum’s current responsibility with L2s is security and decentralization, while L2s is responsible for scalability.
In the future, liquidity may become a separate layer from L2 itself. This liquidity layer will be accessible across different L2s as it scales horizontally, addressing the challenges of fragmentation and enabling more efficient cross-chain communication and liquidity sharing.
What are the key benefits of implementing a multi-DA framework in blockchain systems, and how does it enhance network resilience?
The concept of Multi-DA comes back to the idea of modularity. As we move from building everything internally to using third-party dependencies, we need to consider potential risks. What if a service we rely on, like Celestia, stops working or no longer wants to serve us?
The multi-DA solution provides a backup plan. By leveraging techniques from different data availability solutions such as Near’s Muffle, Eigen-DA, DIL, or Avail, we create redundancy. This approach highlights the need for flexibility and redundant systems in an era of modular approaches, enhancing overall network resilience.
How can the integration of blockchain technology transform existing business models in traditional sectors, and what challenges may arise during this transformation?
The biggest shift that blockchain technology brings is the globalization of technology. Unlike regional versions of platforms like Facebook, Web3 applications can be truly global and borderless, allowing large populations around the world to use a single application.
One of the biggest use cases for Web3 continues to be in finance. Blockchain technology could help globalize finance and unlock vast amounts of liquidity around the world. For example, tokenizing stocks could give people in other countries access to markets like the New York Stock Exchange, which are currently mostly limited to US citizens and large institutions. This would benefit both stocks by providing deeper liquidity and users by allowing them to participate in the growth of companies they normally wouldn’t have access to.
Given the success of Asian game studios in the Web2 space, what factors could contribute to Asia becoming a force in Web3 development?
The biggest factor is policy and regulation. Asia has already shown a strong example of being very proactive in setting clear rules and standards that have fostered a lot of innovation in the Asian ecosystem. We don’t see much of this progress in the West, and this lack of clarity is actually stifling innovation. Clarity and regulation in Asia would really be a powerful catalyst for Asian development in the Web 3.0 space.
How might the cultural and technological landscape in Asia impact the types of Web3 applications and use cases emerging from the region?
In Asia, there is a more fast-moving, break-and-fix-it mentality. This approach has advantages and disadvantages. Western businesses tend to be more aware of existing regulations, especially given the gray areas in this area. While this caution can stifle innovation, the Asian approach allows for rapid, iterative innovation.
In terms of regulation, Asia is generally more advanced than Europe and North America when it comes to access to cryptocurrencies and DeFi products. This gives developers and thinkers more flexibility and the opportunity to be creative in building decentralized services.
How can Web3 application development in Asia impact global adoption rates and the evolution of decentralized technologies?
From a purely numbers perspective, Asia has a large proportion of the world’s population, so adoption in Asia alone is significant. In terms of global adoption, the innovation that occurs in Web3 in Asia is likely to be seen as competition by the rest of the world. This competition could lead to further innovation and adoption as other regions try to catch up and open up new Web3 opportunities.
Are there any specific things the West can learn from the Asian example of widespread Web3 adoption?
Yes, and this is very much focused on providing incubation and support at the government level. This is common in Southeast Asian countries like Thailand, Vietnam, Malaysia, and places like Hong Kong and Taiwan. These governments are very active in terms of supporting and incubating various projects in this space. This kind of support is exactly what the space needs, rather than focusing primarily on taxes and how to get the most out of the industry from a purely government perspective.
What unique challenges and opportunities does the Asian market present for implementing crypto solutions in traditional business sectors?
Asian markets have always had a lot of opportunities in the financial sector, which is where Web3 shines. The best fit for Web3 products and markets has always been around financial instruments. Asia has a huge advantage here, being the world leader in GDP, experiencing significant growth in many emerging markets, and having established financial hubs like Singapore and Hong Kong. The success of Web3 applications developed in Asia is likely to drive global financial adoption and mainstream crypto adoption.
How do you see the overall development of blockchain technology in Asia in the next three years?
I think it will be explosive. Many local governments are already educating themselves and thinking strategically about how to implement blockchain systems into their policies. While discussions around crypto adoption by political figures like Trump and Kamala Harris in the West are still in their early stages, some Asian countries are already experimenting with integrating cryptocurrencies and digital financial transactions into traditional stores. These types of service offerings are already starting to emerge in Southeast Asia, putting the region at the forefront of blockchain development and adoption.
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