Understanding the critical challenges in obtaining real-time blockchain data for high-frequency applications
“In high-frequency trading, speed is contested within milliseconds or microseconds—it’s the ultimate competitive capability. Failure to be fast enough is lethal.” — Edgar Perez, The Speed TradersHigh-performance blockchain networks with rapid block production mechanisms have opened up entirely new possibilities for real-time blockchain applications, particularly excelling in trading, payments, and gaming sectors. Today’s decentralized exchange (DEX) ecosystem processes hundreds of billions of dollars in daily trading volume across multiple blockchain networks. Leading decentralized exchanges like Uniswap V3 frequently surpass $1 billion in daily trading volume, while the total value locked (TVL) in the entire DeFi ecosystem has reached hundreds of billions of dollars. Blockchain technology is driving the development of fast, scalable on-chain trading systems. In the near future, this technology’s applications will extend beyond cryptocurrencies—it will enable on-chain trading of stocks, bonds, forex, commodities, and various other assets. Building such trading systems requires advanced infrastructure comparable to global top-tier exchanges like NASDAQ, where low latency is a non-negotiable core requirement. To succeed, developers must be able to reliably access real-time, low-latency on-chain data. This article will explore in depth the main technical approaches for obtaining ultra-low latency data to support large-scale applications. Our focus is on blockchain data reading; transaction execution-related content will be detailed in subsequent articles. Considering that blockchain validation nodes are distributed globally rather than centrally deployed, efficiently delivering real-time information faces significant challenges. Optimizing network architecture to achieve fast transmission of blockchain data is crucial for numerous applications. Let’s analyze the various technical solutions for obtaining real-time blockchain data one by one.