In an exclusive interview with cryptonews.com, Keone Hon, CEO and Co-founder of Monad Labs, discusses the relationship between high-frequency trading (HFT) and crypto trading, security on the Monad blockchain, and scaling blockchain technology at the L1 level. Hon is a software developer and blockchain researcher, and before founding Monad, he spent eight years at Jump Trading, leading an HFT team.
Hon emphasizes that Monad is a new Layer 1 blockchain focused on EVM execution, making it extremely performant and capable of scaling to a broader audience and more complex applications. The blockchain boasts 10,000 transactions per second of EVM throughput, which is about 1000 times the throughput of Ethereum currently. He believes that focusing on the Layer 1 infrastructure is essential for mass user adoption in the world of cryptocurrency.
Although some crypto enthusiasts are concentrating on Layer 2 solutions (or L2s), Hon points out two main issues with L2s: decentralization and performance. He argues that L2s operate with a centralized sequencer who chooses the ordering of transactions, which can result in temporary censorship. Additionally, the cost of operating L2s is higher compared to what Monad provides as a Layer 1 solution, ultimately making it less accessible to average users.
According to Hon, the crypto community needs to focus on improving Layer 1 blockchain technology’s performance and cost while developing better mobile experiences and apps to achieve mass user adoption. He believes there is still much work to be done on the L1 layer to facilitate more significant usage of cryptocurrency.
Discussing the potential for HFT in the crypto market, Hon notes that this would involve building algorithms that can predict future price action based on a stream of information from an exchange. This entails parsing market data, building individual trading signals, combining those predictors into a composite prediction using machine learning, and then sending orders to the exchange to execute trades. As such, HFT is a highly specialized endeavor that would require a team of skilled individuals to execute effectively.
In conclusion, Hon argues that a focus on Layer 1 infrastructure and the development of high-performance blockchain solutions, such as Monad, will be key to driving mass adoption of crypto technologies in the future. With security, decentralization, and performance in mind, Monad Labs is aiming to create a blockchain platform that can cater to a wide range of users, from high-frequency traders to everyday consumers.
Source: Cryptonews
