Blockchain technology was originally conceived with decentralization at its core. However, in the world of finance, speed is paramount. If Web3 technologies cannot achieve the same near-instantaneous transaction speeds as Wall Street, users are likely to continue relying on the faster systems of traditional finance. For example, the Ethereum network handles approximately
15 transactions each second, whereas Visa manages around 24,000.
The advent of the internet brought irreversible change to the financial sector. Speed has become a critical element of modern finance, dictating whether one can take advantage of fleeting arbitrage opportunities or ensure timely payments.
Traditional financial institutions are plagued by a lack of transparency, exorbitant fees, and structures that favor the elite few. For blockchain to truly revolutionize established financial systems and provide transparent, open, and equitable alternatives to users, the Web3 sector needs to improve transaction speed considerably.
The Limitations of Current Blockchains
Bitcoin is arguably the most recognizable cryptocurrency today. Its success is largely attributable to it being the first digital currency, creating the concept of an internet-based exchange system independent of any government or country. However, despite its global reach, developers must take into account that
Bitcoin block times are around 10 minutes and its transaction processing capabilities are limited to about 10 transactions per second.
Ethereum represents a slight improvement in transaction speed. Yet, its average of
14 transactions per second remains significantly slower than those of centralized payment processors. In addition, Ethereum transaction costs can be substantial, which hinders wide acceptance. The NASDAQ stock exchange, which handles
approximately 20,000 stock market transactions per second, illustrates how far behind blockchain systems truly are.
While decentralization and trust are important principles behind blockchain, individuals outside the crypto space often value performance over decentralization. Many users favor centralized systems, such as traditional banks or exchanges, for their speed, affordability, and efficiency.
Ethereum’s decentralized structure is offset by its speed limitations and elevated expenses. In essence, current blockchain networks cannot effectively compete with traditional financial solutions. This encourages users to seek faster, albeit often more centralized, options.
The Crucial Role of Speed
Currently, even experienced crypto users are starting to compromise on decentralization in favor of speed. For instance, high-performance chains, such as Solana with
block times of 400 milliseconds, support up to 3,000 transactions per second, narrowing the gap with traditional financial systems. Furthermore, the emergence of centralized platforms, like Hyperliquid, reinforces this pattern.
According to DeFiLlama,
Hyperliquid experienced a 50% surge in trading volume in May 2025, demonstrating a rise in the number of traders who place more emphasis on speed than on decentralized principles.
Even with its recent success, Hyperliquid is not the ultimate solution. Its infrastructure is not fully open or composable, and it addresses only a portion of the requirements of DeFi traders. The platform lacks the scalability and interoperability necessary to transition modern finance to digital assets on a
global scale.
Projects can strike a balance between speed and decentralization by implementing strategies like batching transactions to minimize on-chain load, utilizing off-chain order books to speed up execution, and optimizing state differences to lower transaction costs and latency.
The truly transformative blockchain application will be a platform that seamlessly combines decentralization with high performance, matching the speed, simplicity, and affordability of centralized platforms such as Revolut. When that materializes, discussions about “DeFi versus TradFi” or “centralization versus decentralization” will become obsolete.
Instead, a new benchmark will be established for the financial sector, where operations are as smooth and efficient as the internet.
History proves that the quickest networks prevail. Trust alone is insufficient for blockchain; latency is vital. Innovators who provide Web2-level speed without compromising openness will dominate the next decade of finance.