The Future of Fintech: Part 2

The Future of Payments


  • As block space decreases, blockchains become more decentralized (more nodes can validate the chain), which increases a blockchains’ security. However, smaller block spaces limit how many transactions can be processed in one block.
  • As block time increases, validators have more time to verify the correct state of the chain (more time allows for more communication among nodes), which increases a blockchains’ security. However, extended block times limit how frequently blocks (and therefore transactions) can be processed.

Layer-Two: A Brief Overview

Image 1: A modern blockchain scaled through competing layer-two solutions

Sharding: A Brief Overview

Image 2: A sharded public blockchain
Image 3: A neo-blockchain scaled through a sharded layer-one chain



Factor One: The Security of the Chain Itself

Zk Rollups

Optimistic Rollups

Table 1: Comparison of Rail Solutions

Factor Two: Anti-Fraud Solutions

Security of Centralized versus Decentralized Systems

Triggering the S-Curve

The Future of the APIs

  • If the user does not utilize any privacy solution, all of that user’s transaction history would be public via his or her public address(es) on a public blockchain. Thus, a digital wallet could query the entire blockchain for the user’s activity through either a free-market query protocol, such as the Graph or Infura, or its own internal system.
  • If the user utilizes zero-knowledge proof based privacy solutions (such as on-chain mixers or a recursive zero-knowledge proofs), the user could store their encrypted transaction history on a decentralized storage protocol, such as Filecoin, and authorize access to digital wallets through a proxy re-encryption protocol, such as NuCypher.
Image 4: Future fintech infrastructure without sharding
Image 6: Future fintech infrastructure with sharding





Partner at Bizantine Capital

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Sukhavati Network makes Storage Mining Easy for Miners

Blockchain Might Be The Only Thing That Will Fix Pharma— Conversations With Pharma Execs And…

Darwinia and Apron reached a strategic cooperation to jointly contribute to Polkadot ecosystem

Oddiyana Ventures’ Strategic Investment & Advisory Services for Jigen


Centralized vs. Decentralized Energy: The Case for DERs

HydraSwap Announces BlockDesk Ventures Investment in its Smart Solana DEX

The Dawn of Decentralized Education, Part 1

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andrew Bakst

Andrew Bakst

Partner at Bizantine Capital

More from Medium

Why Exponent is Your Go-To CaaS Provider

DeFiHelper Secures $500,000 In Its Pre-Seed Investment Round

Merge DAO

OXO Capital x ChainPort