Hey there, crypto enthusiasts! If you’ve been keeping an eye on the blockchain space, you might have stumbled across an intriguing thread by MartyParty (@martypartymusic) on X. Posted on July 27, 2025, this thread dives into the evolution of blockchain technology, breaking it down into four distinct levels. As someone who’s spent years covering the crypto world (including a stint as editor-in-chief at CoinDesk), I’m excited to unpack this for you and connect it to the latest trends in meme tokens and beyond. Let’s dive in!

What Are These Blockchain Levels?

MartyParty suggests that blockchain is evolving through a series of stages, each building on the last to create a more seamless and decentralized financial internet. Here’s a simple breakdown:

• Level 1: The Basics
  This is where it all started—think Bitcoin and Ethereum in their early days. Blockchains acted like digital bank ledgers, with wallets requiring logins and consent for every transaction. It was a solid foundation, but it’s pretty clunky by today’s standards.

• Level 2: Speeding Things Up
  We’re here now! This level focuses on high-speed transactions against accounts, still needing consent but moving faster. MartyParty argues that only true permissionless Layer 1 networks (more on that below) are mastering this stage.

• Level 3: Seamless Microtransactions
  The next step involves microtransactions (tiny payments, like paying a cent for a meme token) with consent that feels effortless. This is where the tech gets exciting for everyday use.

• Level 4: The Frictionless Future
  The ultimate goal? Multiple permissionless transactions with no logins, capped microtransaction consent, and lightning-fast speeds. Imagine buying a meme coin or tipping a creator without even thinking about it!

Why Bitcoin and Ethereum Are Stuck at Level 1

MartyParty makes a bold claim: Bitcoin and Ethereum haven’t evolved past Level 1. Why? These pioneers rely on older models that mimic bank accounts with login-based wallets. Even Ethereum’s Layer 2 solutions (like rollups to boost speed) introduced permissioned elements, which MartyParty sees as a step backward. Instead, he points to newer, permissionless Layer 1 networks as the future.

For those new to the term, a permissionless blockchain is open to anyone—no KYC (Know Your Customer) needed—and runs without a central authority. Think of it like a public park versus a private club. According to Alchemy’s guide on permissionless vs. permissioned blockchains, these networks encourage innovation through open-source code, letting developers build apps like decentralized finance (DeFi) or meme token platforms.

The Rise of Gen 3 Networks

So, what’s driving this evolution? MartyParty highlights Gen 3 networks—the latest generation of blockchains designed to handle Levels 2 and beyond. These networks prioritize speed, scalability, and permissionless transactions, making them ideal for the next wave of apps. This ties into the growing meme token ecosystem, where projects like Dogecoin or Shiba Inu thrive on quick, low-cost trades. As GeeksforGeeks notes, this shift is part of Web3, a decentralized internet where users control their data and finances.

Microtransactions: The Game Changer

One of the coolest ideas here is microtransactions—tiny payments that could revolutionize how we use crypto. Imagine paying a fraction of a cent to unlock a meme token feature or send a tip on X. CoinDesk’s coverage highlights projects like Scalar, which aim to make this a reality. For meme token creators, this could mean new revenue streams, while users enjoy a frictionless experience.

What Does This Mean for Adoption?

MartyParty wraps up with “Facts > Feelings,” emphasizing that technology, not hype, will drive adoption. A reply from @dch_crypt adds a key point: user experience (UX) is crucial. If microtransactions are too complex, people won’t use them. This is where meme token communities can shine—turning tech into fun, accessible tools.

Connecting to Meme Insider’s Mission

At Meme Insider, we’re all about helping blockchain practitioners stay ahead. This evolution from Level 1 to 4 could redefine how meme tokens operate, offering faster trades and new monetization models. Whether you’re a developer building the next big token or a fan collecting digital art, understanding these levels is key to thriving in this space.

What do you think? Are we on the cusp of Level 3, or is Level 4 still a dream? Drop your thoughts in the comments, and let’s keep the conversation going!