Why today’s blockchains can’t support institutional trading

[ed]

As tokenized assets multiply, blockchain infrastructure is becoming the weakest link. Current layer-1 networks face three structural failures that make institutional-grade trading nearly impossible.

First is throughput. Many blockchains struggle under modest demand, with single popular launches congesting networks for hours. That’s incompatible with markets processing millions of trades daily.

Second is latency. Slow block times and uncertain finality undermine price discovery, turning arbitrage and high-frequency trading into risky bets rather than efficient strategies.

Most damaging is market fairness. Maximal extractable value (MEV) enables front-running and transaction manipulation, creating an uneven playing field that institutional investors simply won’t tolerate. For serious capital, execution integrity isn’t optional — it’s foundational.

[cryptobro]

lol throughput is such a basic problem but somehow everyone acts like it’s just gonna magically fix itself