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As the cryptocurrency market matures, the range of options available on blockchains multiplies. The rapid expansion of chains, along with interoperability solutions, aggregating platforms, and cross-chain protocols, makes navigating this landscape more challenging than ever. At any given time, there are seemingly infinite ways to conduct a transaction, so the emergence of services and technologies focused on simplifying the user experience was predictable. One such solution is intent.
In the typical process, users give specific directions (such as using a particular app to exchange one token for another at a specific price), and the blockchain carries out these instructions one by one. Naturally, the more complex the user's request, the more complicated and lengthy this process becomes. Intents can change that. In a blockchain environment, an intent is a user's specific goal, which can be achieved in any way. The user's intent is presented to a service and then delegated to a "solver," whose role can be played by a person, AI bot, or some protocol to complete the task in the most favorable way possible.
The idea of intent may seem familiar as there are existing services that work on a similar principle. For instance, many liquidity-aggregation platforms and exchanges are already presenting their users with various ways of achieving their desired trade. However, with this term appearing on the market, the crypto community signifies the new era of DeFi development that is focused on users and their experience within the blockchain landscape. Moreover, theoretically, the complexity of intents that can be expressed is unrestricted, making their potential limitless.
Intent-based platforms will likely work in the following way. First, users share their desired actions. These intents are collected in one place where they can be accessed by solvers. However, the mechanisms behind the distribution of intents among solvers may differ. Some can be distributed automatically and randomly, and some, like Kinetex, may utilize an auction model to ensure the best conditions for intent execution (learn more about Kinetex's intent-based approach in this post). This competitive arrangement is designed to guarantee that no single central entity is responsible for meeting all user requirements, ensuring long-term decentralization.
Intent-driven designs offer numerous advantages, especially in improving user experiences within dApps. These designs alleviate frustration by removing the necessity for users to immerse themselves in complex transaction specifics. The benefits of efficiency are especially clear in situations involving multistep procedures like cross-chain transactions, asset acquisitions, and staking within dApps.
The simplification of transaction complications is essential for user convenience and an important security improvement. By prioritizing user intention and automating the execution details through the blockchain protocol, intention-based structures notably decrease the dangers linked with fraudulent actions. Users do not have to deal with technical aspects, which enhances the overall security and reliability of the blockchain experience.
Another significant advantage of intent-based architectures is the increase in efficiency. Complicated processes like cross-chain transactions or complex smart contract interactions become simpler and faster. The efficient execution of transactions leads to savings in time and money spent on gas fees, which makes blockchain technology more available to a wider group of people.
Lastly, the focus on users in intent-based architectures helps build trust in decentralized systems. By allowing users to communicate their intent without dealing with technical details, blockchain technology becomes more accessible. Intent-based architectures are paving the way for a future in which people with different technical skills can easily interact with decentralized applications. This will help in the widespread adoption and use of blockchain technology in various industries.
Although intent-centric services offer various user experience advantages, there are still several areas where this approach can do more harm than good. Foremost, a broad acceptance of intents could lead to the formation of a new type of monopolies. Quickly appreciating intents' benefits, user activity can move to new transaction processing systems, changing the power and influence within the crypto landscape. If not properly handled, this change could lead to centralization and the establishment of a few influential intermediaries.
Moreover, even if intent-centric services choose to work with solvers on a competitive basis to avoid centralization, certain companies still have the potential to gain dominance in the space. For example, one might envision a scenario where a crypto exchange develops solvers to control the "buy" and "sell" intents to their advantage, effectively directing all market activity to its own platform. In this case, the exchange could initially lower its fees to surpass competitors, only to raise its prices once it has established market dominance.
Another problem that should be thoroughly assessed is the solvers' integrity. As the crypto community increasingly depends on intermediaries to carry out user intentions, these organizations, along with solvers, may begin prioritizing their own interests. The latter may find ways to work around measures implemented to ensure a better user experience and gain more profit with less work. In an intent-based infrastructure, users have to trust both the intermediate service and solvers to complete a task justly and favorably. Therefore, a platform seeking to implement an intent-based approach must ensure that user trust will not be compromised since it may have severe consequences for the platform and the whole crypto industry.
Intent-based models have the potential to introduce a new era of blockchain-based systems. These systems can reduce costs and save time for users, thereby increasing accessibility for a broader audience. Thus, the significance of intents in the context of DeFi's future cannot be lessened, as cannot be ignored the close attention of the public's and blockchain developers' attention to the term and technologies behind it. However, achieving this vision will necessitate a cautious approach.
Kinetex Network: Website | Kinetex dApp
