Are Virtual Chains Pushing Web3 Above The Clouds?

The term “above the clouds” is interesting.  Essentially, it means that some force is pushing you from a point where you can’t see the sky because it is blocked with the gray blanket of cloud cover, through the disorienting fog, and to a point where you break through into crisp, beautifully clear sunlight with a spectacular view of everything around you.  If you’ve flown in a plane you’ve likely experienced this sensation, and there is something amazing starting a journey on the ground, on a day with terrible rainy weather, and then to soon be above it all, gaining a new clarity and peace.

This is where Web3 is right now, and it’s thanks to virtual chains.  

You see, the Web3 ecosystem has been fighting to gain altitude on a number of problems for years.  While individual chains have been evolving, and the ability to develop a platform on a chain has become easier, there has still been a number of severe limitations to the “above the clouds” view of Web3, where chains and protocols and platforms are all seamlessly connected, where commerce and communication can take any form needed by the users, and that setting up new Web3 systems doesn’t take an elite team of the rare Web3 developers.  These limitations have been extremely frustrating for the industry as a whole, and the sheer effort to solve any one of these problems consistently and across all chains has been nearly impossible.  But then, the concept of virtual chains moved beyond complex prototypes and into the realm of a genuine tool that can actually “break through the clouds.”  The result?  It seems to have really worked, as many of the limitations we’ve struggled with for years are simply gone by using high quality virtual chains, especially those by industry leaders like Aurora who have a laundry list elements that are each impressive, and together provide the punch needed to get above the clouds and into a seamless Web3 ecosystem.  Let’s take a look at some of these elements applied to virtual chains, and in particular the three areas they have been able to drastically improve the larger Web3 ecosystem:  Development, Connections, and Economics.

Virtual chains just got a speed boost! https://t.co/6BwCu4sTyq

— Aurora (@auroraisnear) May 13, 2025

Development

For any chain or even platform, there has been a unique problem in Web3 due to the severe shortage of developers capable of building protocols, smart contracts, and the different elements needed for a usable and secure Web3 application.  Even for those teams with the right people, the process is cumbersome, resource heavy, and much of the effort is necessary but doesn’t translate to direct benefit for its users.  Nobody gets excited when a homebuilder installs the electrical and plumbing systems; yes, they took a lot of time and money, but they were part of a minimum expectation for the home.  In the same way, a lot of infrastructure development happens by teams in a way that eats resources without providing unique value.  It has to be there and people will notice if it’s built poorly, but that’s all.  Virtual chains bypass much of this infrastructure because it is essentially already there, under the hood and ready to go.  With a highly intuitive UX (Aurora gets another nod here, as it has made a name for its lightning fast setup times), users who have little or no code experience can set up a virtual chain.  Not just a chain, but critical functions required for users.  These can include a full DEX, forwarder support for instant connections to exchanges, and the ability to create permissioned virtual chains.  Permissions are absolutely essential for RWA projects needing to adhere to strict compliance, while maintaining flexibility.  All of these elements can be set up incredibly quickly, without development experience, and because of the underlying tech, the core pieces are already verified as secure and safe for communities.

Connections

Virtual chains are easy to set up with the right provider, but they can really shine when it comes to cross-chain connections.  Intent based DeFi is now possible where virtual chains can connect to an existing liquidity hub, then stream that liquidity in order to improve the health of the chain.  At the same time, the virtual chain can enable cross-chain swaps that range from BTC, ETH, Solana, and others.  Another connection required and provided through virtual chains is strong oracle support, allowing a feed of real time data with a very short (and simple) setup.  This is critical as a reliable price feed is required for a solid chain, but isn’t guaranteed (and certainly not easy) with traditional development options.  In addition to the price feed is the ability to request custom price feeds, further refining the trusted info coming into the virtual chain.  At the same time, virtual chains can push items out to other chains, including the token of the virtual chain itself, sending it across various platforms.  In Aurora’s case, it can access the NEAR network which significantly expands its reach.

Economics

Finally, virtual chains have developed excellent flexibility and customization for gas-related processes.  While each is different, Aurora for example can allow its dev teams to customize gas values.  Why?  This allows a virtual chain to select specific users and contracts, then allow specific rates over a certain period of time in order to better manage its customers, create promotional rates to increase adoption, and reward certain groups like community members demonstrating high activity.  The other element specific to Aurora but could potentially be adopted by other virtual chains is its base token expansion.  Instead of moving away from custom gas tokens, the network has focused on allowing USDC, USDT, and BTC as options for a virtual chain to accept as gas tokens.  This simplifies the transactions for its users, allowing them to have a smoother experience with the virtual chain and not have to purchase native tokens to use for gas.  This can attract a much larger group of users if they can interact using what they already have in their wallets.  This also smoothes out volatility issues with native tokens.

What’s Next?

Well, the most likely thing we will see in the near future is a swelling of adoption for virtual chains, as they benefit the platforms themselves, dev teams, and the communities that will use them.  To help this, a number of leading Web3 organizations (including Aurora) are partnering to launch Aurora Blocks, a six-week incubator that will provide close mentorship, infrastructure support, and $250,000 for the five teams selected. 

5 projects · 6 weeks · $250K in funding

Apply now 👇 pic.twitter.com/TJNpexQmx1

— Aurora (@auroraisnear) May 20, 2025

This will be a big step toward the Aurora vision of “1,000 Virtual Chains in 2025”, as the success of these teams will cause a positive effect for other virtual chains building up the ecosystem.  Because of programs like this, and with all the features available that were considered nearly impossible just a few years ago, we could very well see a large number of virtual chains pop up in short order, fully set up and customized for their communities.  This would help better connect Web3 as a whole, bring those bright ideas to market that much faster, and allow us all to finally see above the clouds at what the Web3 ecosystem could really become.