a16z crypto identifies fair execution as the next blockchain milestone

Venture capital firm a16z crypto has stated that the viability of blockchains for heavy trading is increasingly dependent on fair execution and predictable transaction ordering rather than raw transaction speed.

While aggregate blockchain throughput has increased more than 100 times over the last five years—rising from under 25 transactions per second to over 3,400—speed alone does not guarantee timely processing. For market makers and banks, the ability to ensure transactions arrive in a predictable order is critical, particularly during periods of high volatility.

If a network allows for the delay or reshuffling of transactions, market participants may face significant risks. For example, if a market maker cannot cancel outdated prices quickly enough during a price spike, arbitrageurs may exploit the delay to incur losses for the maker.