Why build another layer 1? Paul from somnia protocol on scaling for real web3 gaming and AI

Sam kamani

September 27, 2025

“Do we really need another Layer 1?”

It’s the kind of question that triggers an eye-roll in most crypto circles. But for Paul, co-founder of Somnia Protocol and former exec at Improbable and Goldman Sachs, the answer is clear: yes—if it’s built for what’s coming.

In this episode of Web3 with Sam Kamani, Paul doesn’t pitch vaporware. He walks us through the very real limitations that still plague Ethereum and other chains when it comes to mass-scale gaming, real-time state changes, and AI agents operating natively on-chain.

From Goldman Sachs to Improbable: A Builder’s Journey

Paul’s background isn’t the usual Web3 story. He started in traditional finance, then scaled Improbable from 4 employees to over 1,200. Along the way, he built infrastructure for multiplayer games that needed to handle tens of thousands of simultaneous users.

When they tried bringing those kinds of experiences on-chain, everything broke. Latency, networking bottlenecks, data bloat—no existing Layer 1 could keep up.

Why Somnia? Because Everything Else Buckled

So Paul and his team built Somnia, an EVM-compatible Layer 1 built specifically for high-performance, real-time use cases.

Their edge? It’s not just a faster consensus algorithm. Somnia’s secret sauce lies in three things:

Custom compression algorithms that reduce data payloads without compromising state.
Novel networking approaches to handle real-time sync between nodes.
A redesigned execution layer that doesn’t trade speed for decentralization.

In short, Somnia wasn’t created to be "the next Ethereum"—it was born out of necessity for use cases where 100K+ users interact in the same game state at once.

The Real Bet: Fully On-Chain Gaming and AI

Unlike other chains chasing NFTs or token speculation, Somnia is betting on gameplay metadata as the real value layer.

Imagine a world where gameplay is financialized:

A player bets $10 they’ll score 10 headshots.
The match happens.
The results are recorded in real-time on-chain.
Payouts happen immediately, with no third party needed.

That’s what Somnia is architected for.

And it’s not just players. Somnia supports autonomous AI agents that can transact, trade, and even bet—without a wallet or fiat gateway.

Why UX Abstraction Is the Next Frontier

Another standout point from the episode is Paul’s insistence that “blockchain should be invisible.”

He believes the average user shouldn’t even know they’re interacting with Web3. If you’re a gamer, you should just be playing. If you’re an AI agent, you should just be transacting. Wallets, bridges, and gas fees should all happen behind the scenes.

Somnia is built with that abstraction in mind—giving devs tools to build frictionless apps that just work.

Lessons in Scaling and Storytelling

Beyond the tech, Paul reflects on the importance of public storytelling.

He admits he wishes he had started building his personal brand and sharing openly much earlier. His takeaway for founders? Don’t wait until you’re ready. Start talking, even if it’s messy.