At the #Nervos deep dive in Palo Alto. Secure, Decentralized consensus is necessary slow. The solution to scaling is to decrease the demand for consensus by moving normal operations to layer 2.
The real bottleneck of the decentralized network is the network bandwidth required to maintain a wide consensus.
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On-chain state design makes transaction dependencies very explicit. Jan claims this will be friendly to future sharding designs.
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I argue that while on-chain state is great at preventing ambiguity within the execution of transactions, it only moves back the race conditions outside of this execution into the ordering of transactions. All users of a contract then race with each other all the time.
End of conversation
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