Disclosure: The opinions expressed here are solely those of the author and do not reflect the views or opinions of the editorial team.
In 2024, we observed a marked increase in on-chain activity, showcasing a notable rise in user engagement. Nevertheless, blockchain technology grapples with issues such as congestion, fragmentation, and the centralization of layer-2 solutions. With the potential for favorable regulations and heightened institutional interest following Donald Trump’s inauguration, it is crucial to tackle these challenges to be prepared for the upcoming wave of adoption.
Recently, intent-centric approaches have been identified as a major evolutionary development, playing a vital role in enhancing accessibility and efficiency for users.
Grasping Intent-Centric Infrastructure
Intents function as a declarative mechanism that operates within a decentralized peer-to-peer network to locate and fulfill counterparties. They empower users to articulate their desired outcomes without needing to detail the processes required to achieve them. This streamlines interactions, offering a user experience akin to web2 applications like Uber, while harnessing AI’s automation advantages without the pitfalls of centralization and privacy issues. Intents are fundamentally essential for unlocking the true potential of AI and are already witnessing considerable adoption across various AI applications.
In intent-centric DeFi, users can articulate complex objectives, such as exchanging one Ethereum (ETH) for USD Coin (USDC) at the best available rate within a set timeframe, without the need to manually configure aspects like routing or gas fees. The system autonomously manages intricate details, such as pinpointing optimal liquidity pools, securing advantageous rates, and determining the most effective execution path. This goal-focused, automated method significantly enhances the user experience.
Additionally, intent-centric infrastructure boosts scalability by enabling the majority of computation and data storage to occur on users’ edge devices, thereby diminishing congestion on networks like Ethereum. In 2024, escalating transaction fees prompted many users to abandon on-chain activities, underscoring the necessity for scalable solutions that reduce costs and streamline interactions with the blockchain. Furthermore, generalized intents can tackle fragmentation in the multichain ecosystem, allowing applications to operate seamlessly across diverse networks. Users can articulate their desired outcomes without having to navigate the complexities of various chains and protocols.
Intents Will Usher in the Next Wave of dApp Innovation
Today’s users engage with a vast array of applications, spanning social media platforms to online marketplaces. However, web3 applications constructed entirely on decentralized infrastructure constitute a mere fraction of these options. This disparity stems largely from the limitations inherent in the current generation of blockchain infrastructure, where dApps built on virtual machines demand step-by-step guidance. Such virtual machines lack the capability to support complex applications akin to Uber, Discord, or Tinder, necessitating an innovative approach to compete with web2 advancements.
Generalized intents present a viable solution. They pave the way for a fresh wave of dApps capable of matching or even surpassing the sophistication and user experience of web2 while adhering to the principles of web3. Envision a fully decentralized Discord featuring intricate permissions, privacy safeguards, and interoperability across various security domains and user interfaces. In the context of Uber, generalized intents could facilitate a single application that consolidates all service providers into one interface, allowing users to locate the fastest or most economical options between points A and B without toggling between multiple ride-hailing apps. Developers are already leveraging generalized intents to design alternative dating apps that eliminate the swipe function, enabling automatic matching with users who share specific interests or meet selected criteria.
In the realm of DeFi, generalized intents serve as a potent new primitive that empowers the industry to craft innovative applications and diminish reliance on centralized infrastructure. Fully decentralized, multi-dimensional order book DEXs are one promising example. Traditional order book DEXs depend on centralized mechanisms for counterparty discovery and restrict trading to one parameter: price. With generalized intents, users can trade based on additional factors, such as time preferences or yield opportunities, which opens up a realm of more sophisticated possibilities. Best of all, this can occur in a fully decentralized manner.
The Next Steps for the Industry
If the aim is to transition web2 users to web3, it’s crucial to provide an experience that matches the intuitiveness and simplicity they expect. Ideally, users shouldn’t even need to realize they’re interacting with a web3 application or comprehend the underlying blockchain technology. By facilitating straightforward, automated experiences along with integrated crypto features, privacy provisions, user data control, complete decentralization, and interoperability, web3 can not only meet but exceed the expectations set by web2.
Generalized intents are uniquely positioned to help realize this vision. By bridging the gap between web2 and web3 and allowing users to concentrate on the outcomes they desire, intents offer a promising pathway forward. Most importantly, they allow the space to rival the usability of web2 without compromising the foundational principles of decentralization, resilience, verifiability, and user sovereignty.