Blockchains are evolving, now is the time to build: a16z report

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As the crypto market continues to find its footing in an increasingly fragile climate, Andreessen Horowtiz, who launched a $4.5 billion web3 fund last year, has released his second report on the state of cryptography. It dives into everything from blockchain activity to new technologies, but one theme that stands out is that blockchains are evolving.

The scaling momentum is up from a few years ago when tons of people were using blockchain networks, said Eddy Lazzarin, chief technology officer for a16z crypto. As a result, there was a lot of congestion, mostly on Ethereum, and gas fees were expensive.

This period has convinced many that blockchain growth will come through scalability, Lazzarin noted, prompting developers to experiment and create new products. So the effort over the past two years or more has been to get scaling solutions off the ground, and now they actually work and live. They have yet to be built, but they are much cheaper, safe and work. The impetus is now that developers can use them.

It’s really time to build

There are around 30,000 active developers in the crypto industry today, which is down from the peaks in early 2022 but well above the start of 2021, according to the report.

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