New analysis suggests that for blockchain technology to truly revolutionize the financial world, it must first achieve the speed and efficiency of established centralized systems. Despite the core Web3 principle of decentralization, current blockchain networks are struggling to compete with the near-instantaneous transaction speeds offered by conventional financial institutions like Visa and the NASDAQ. Ethereum, for instance, manages approximately 14 transactions each second, whereas Visa handles around 24,000, highlighting a significant performance gap that may slow down widespread blockchain acceptance [1].
According to the report, speed is “an indispensable element underpinning every facet of finance,” particularly in fast-paced scenarios such as arbitrage or time-sensitive money transfers. Although traditional finance is often criticized for its opaque structures and potentially high fees, these shortcomings may not be enough to overcome users’ preference for superior performance. As the analysis points out, “a significant number of users lean towards centralized systems due to their speed, affordability, and effectiveness” [1]. This preference is visible in the limitations of leading blockchains: Bitcoin’s 10-minute block confirmation time and 10 transactions per second, and Ethereum’s moderate improvements, still pale in comparison to the benchmarks set by centralized networks [1].
The emergence of chains like Solana, designed with performance in mind and capable of 3,000 transactions per second, indicates a growing emphasis on speed, sometimes at the expense of complete decentralization. Yet, even these advancements haven’t reached the capacity needed to truly challenge traditional finance. DeFiLlama data showed that Hyperliquid, a centralized platform, experienced a 50% jump in trading volume during May 2025, emphasizing the high demand for rapid trade execution [1]. However, critics point out that Hyperliquid’s reliance on non-composable infrastructure and limited scope mean it can’t be a universal solution for decentralized finance (DeFi) [1].
To address this disparity, developers are experimenting with hybrid strategies. Approaches like bundling transactions, employing off-chain order books, and fine-tuning state differences are intended to reduce delays and transaction costs, while maintaining blockchain’s inherent trustless nature. The ultimate aspiration, as detailed in the article, is to create a platform that merges the transparency of Web3 with the speed of Web2. A system like this could potentially make the debate between decentralization and centralization irrelevant, establishing a new financial standard that operates as effortlessly as the internet itself [1].
Experts emphasize that blockchain adoption will depend on achieving “Web2-level speed” without sacrificing openness. Projects that successfully strike this balance are poised to dominate the financial landscape in the years ahead, as history indicates that users tend to favor the fastest networks. However, until blockchain can either match or exceed the performance of existing systems, users are likely to continue choosing the “faster rails of traditional finance” [1].
Source: [1] [title1Blockchain won’t win until it outruns TradFi] [url1https://cryptoslate.com/blockchain-wont-win-until-it-outruns-tradfi/]