EXCLUSIVE: How Blockchains Are Echoes Of The Early Internet—But With Built-In Value

Roy Hui, CEO & Co-founder of LightLink, sees both similarities and stark differences between the early days of the internet and the current evolution of blockchain technology.

In an interview with Benzinga, Hui acknowledged the shared initial excitement and bubbles that accompany groundbreaking advancements.

However, he emphasized a key distinction: blockchain inherently integrates value through tokens, unlike the early internet which primarily focused on information exchange.

Hui highlighted both the potential and the hurdles that blockchain faces in achieving widespread adoption, emphasizing user experience, security and scalability.

The promises and complexities of breakthrough blockchain technology will be discussed at Benzinga’s Future of Digital Assets event on Nov. 19.

Challenges to Widespread Blockchain Adoption

Hui pointed out that the user experience in Web3 is still complex for many users, especially when it comes to managing self-custody of assets.

“A simple misclick or erroneous transaction signature could lead to the loss of the entire wallet balance,” Hui said.

He also mentioned that navigating gas fees in native tokens can be confusing for those accustomed to Web2 environments.

Additionally, the reputation of Web3 is marred by Ponzi schemes and volatility, making Web2 companies cautious about integrating these technologies without sufficient safeguards.

Parallels and Contrasts with the Early Internet

Hui drew comparisons between the early internet and the current state of blockchain, noting that both eras are characterized by excitement, euphoria, and inevitable bubbles and corrections.

“The Internet primarily operates as an information layer, while blockchains serve as the underlying value layer,” he explained.

Unlike the early internet, which lacked built-in mechanisms for value transfer, blockchain inherently includes the concept of value through token transmission.

Balancing Decentralization with Security and Scalability

Addressing the balance between decentralization and the need for security and scalability, Hui acknowledged that initial solutions leaned towards centralization.

“Delegating responsibilities or complexities to specialized entities was perceived as simpler than mastering them independently,” he said.

However, the Web3 landscape is evolving, particularly in authentication and private key management. LightLink is exploring Zero-Knowledge (ZK) technologies to maintain privacy and decentralization.

Innovative Approaches: Zero Gas Fees

LightLink’s approach to maintaining network security and functionality without traditional transaction fees involves a dual mode system.

In Public Mode, users cover transaction fees using the native gas token.

In Enterprise Mode, the burden shifts to enterprises and decentralized applications (dApps), which purchase gas quotas in bulk.

This model allows for gasless transactions for users while generating revenue for LightLink validators.

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Future Challenges and Technological Breakthroughs

Hui identified fragmentation as a significant challenge for the Web3 ecosystem, with numerous blockchains each having isolated elements that could benefit from consolidation.

He emphasized the need for enhanced security in account access and simplifying user experience.

Additionally, Hui sees homomorphic encryption as a crucial technological breakthrough, enabling zero-knowledge computation without energy-intensive processes.

The abstraction concept is also vital, but it must be implemented without compromising decentralization and security.

The Importance of Open-Source Development

Hui stressed the importance of open-source development for transparency and trust.

He cited BNP Paribas’s CTO, who stated they would only consider using a blockchain if it were open source.

“For institutions built on trust, transparency is of utmost importance,” Hui said, noting the necessity for public audits and verifiable asset holdings.

The Future of Blockchain

Looking ahead, Hui envisions blockchain technology playing a foundational role in establishing truth and ensuring immutability, especially in the era of AI.

“In the era of AI, where impersonation becomes increasingly feasible, the importance of provenance escalates,” he stated.

Hui believes blockchain will be crucial in maintaining truth and scarcity in a world of absolute productivity.

These insights and more will be further explored at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders will discuss the latest trends and future directions in digital asset investments, providing valuable insights into this rapidly evolving sector.

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