Blockchain Bottleneck: Public Internet Hinders Performance, Says DoubleZero CEO

Austin Federa, co-founder and CEO of DoubleZero, has identified a critical issue hindering the blockchain sector: the public internet's infrastructure is acting as a bottleneck, limiting the performance of blockchain networks. During an interview at Consensus 2025, Federa explained that the public internet, originally designed for basic server-to-server communication, is not equipped to handle the high-performance demands of blockchain technology. This mismatch is now the primary constraint on blockchain performance, surpassing limitations related to compute power or software development.

Federa elaborated on the challenges faced by blockchain networks, noting that validators around the world must handle massive data consumption and broadcasting, requiring substantial resources for both ingress and egress. This high demand for data transfer is not adequately supported by the current public internet infrastructure, which was not designed for such intensive use cases.

DoubleZero, a project co-founded by Federa in 2024, aims to address these infrastructure challenges by developing high-speed fiber optic communication rails specifically for blockchains. The goal is to reduce latency and increase bandwidth, making blockchains faster, decreasing spreads in decentralized finance (DeFi) trades, lowering transaction fees, and opening up new use cases that were previously unavailable due to communication infrastructure constraints.

In April 2025, DoubleZero conducted a validator token sale, offering token purchase agreements to accredited investors and active validators on high-throughput blockchain networks such as Solana, Celestia, Sui, Aptos, and Avalanche. This sale was part of DoubleZero's efforts to raise capital and build a robust network of validators. Following a successful $28 million capital raise, DoubleZero is set to launch its public mainnet in the second half of 2025.

Federa's insights highlight the growing need for dedicated, high-performance communication infrastructure to support the increasing throughput and sophistication of blockchain networks. As the blockchain sector continues to evolve, investing in specialized infrastructure will be crucial for overcoming the limitations of the public internet and unlocking new opportunities for growth and innovation. This investment could pave the way for a more decentralized and secure digital future, where blockchain technology can fully realize its potential and drive significant advancements across various industries.