Sequence Launches Trails to Solve Crypto Fragmentation

According to Sequence CEO and co-founder Peter Kieltyka, the fundamental issue facing the Ethereum ecosystem isn’t technical capability but fragmentation. “Ethereum is not one chain,” Kieltyka told Decrypt. “It’s an ecosystem of chains and a network of chains, but there is just so much fragmentation that’s come out of that.” This fragmentation manifests as disparate silos of tokens, wallet infrastructures, and capabilities when moving between Ethereum mainnet and its layer-2 scaling networks like Arbitrum and Base.

The consequences of this fragmentation are significant for both developers and users. “You have liquidity everywhere, you have tokens everywhere, you have gas tokens everywhere—the chain fragmentation just really hurts developers and applications from actually being able to monetize and create a successful business on-chain,” Kieltyka explained. Traditional transaction flows require users to have exactly the right tokens in exactly the right places, creating friction that has hindered broader adoption of blockchain technology.

Trails introduces what Sequence calls “intent-focused transaction rails” that fundamentally change how users interact with blockchain applications. Instead of requiring users to manually manage their assets across different chains, Trails allows them to simply state what they want to accomplish. The platform then handles the complex orchestration behind the scenes, automatically finding paths to execute transactions regardless of where assets are located.

As Kieltyka described the process: “Trails works by taking that exact transaction and going backwards.” This approach contrasts sharply with traditional methods that require specific transaction paths. “If you don’t have one of these things in the right place, you’re kind of toast,” he noted about conventional systems. “There’s way too much friction and things that users don’t need to be thinking about.” With Trails, as long as there’s any path to the desired outcome, the transaction will proceed automatically.

Shun Kakinoki, head of cross-chain at Sequence and founder of Light (which Sequence acquired earlier this year), described Trails as “practical chain abstraction.” The platform will feature compatibility with USDC issuer Circle’s Cross-Chain Transfer Protocol (CCTP) and is partnering with the Katana network, leveraging expertise gained through strategic acquisitions to deliver robust cross-chain functionality.

Sequence’s launch of Trails represents the latest step in the company’s evolution from gaming-focused infrastructure provider to broader blockchain solutions company. Originally known as Horizon Blockchain Games, the firm previously used its Ethereum-based card game Skyweaver to “showcase its blockchain stack” and has raised $53 million to date from notable investors including Reddit co-founder Alexis Ohanian, Ubisoft, and Take-Two Interactive.

The company’s 2023 release of Sequence Builder marked its initial expansion beyond gaming, simplifying Web3 game development by making it easy to add NFTs and other blockchain functionality. Now, with Trails, Sequence is targeting multiple crypto verticals including DeFi and stablecoins, positioning itself as a comprehensive infrastructure provider for the broader blockchain ecosystem.

Trails will launch this year with initial support for 16 Ethereum Virtual Machine-compatible chains including Ethereum mainnet, Base, Arbitrum, and Avalanche. Looking ahead, Kieltyka confirmed that the platform will expand to support other virtual machines, with the Solana Virtual Machine next on the roadmap. This expansion strategy reflects Sequence’s commitment to solving fragmentation across the entire blockchain landscape, not just within the Ethereum ecosystem.