Is the blockchain space overcrowded? Do we need more layer 1 solutions?
I am going to try to answer the question: Is the blockchain space overcrowded? Do we need more layer 1 solutions?
Warning ahead: I am just ranting.
My quick answer is that it certainly feels like there are too many layer 1s. You can check them out here.
In Coinmarketcap, there is a way to check out the cryptocurrency sectors. It seems there are 210 sectors as shown below.
Taken together, we do have a lot of blockchain projects. Definitely way more than what we saw in the previous bull runs.
To me, this kind of numbers do suggest that the blockchain space is overcrowded, relative to the possible utilisation by the masses. My point is: Does the world need so many blockchain based solutions?
If the original promise is immutability and decentralisation of records, how many blockchains do we need to fulfil these demands?
Ultimately, not everyone is sold on the promise of blockchain, and this is where I see a potential bottleneck in the adoption and proliferation of so many layer 1 solutions. It's not just about creating a blockchain, but it's about ensuring its sustainability in drawing in real-world utility.
Especially so, in the case of the layer 1 race, where it is a tricky business as what matters to the game is adoption.
So, I have just painted a bleak picture for the flourishing of future blockchain projects. I sense that they are too late to the party. We already have enough solutions that can be used, so starting a new blockchain network at the base layer is going to be futile.
Perhaps this is what I see for the next bull market. Old layer 1s will find new use cases, and they will hold their ground well as they already have a head start in terms of user base.
Specifically, which blockchain?
I think it starts with the letter H.
There are dozens and dozens of chains that essentially perform the same function, and claim to solve the same problems, and then 100s or 1000s of token projects within those respective chains.
There will be consolidation at some point. We saw the proliferation of chains and tokens because everyone wanted their chance at a 10x or 100x return.
You can outrun fundamentals for a while on hype, but eventually products without users and some strongly desirable use die.
I meant to say that.. and you just completely spoke my mind! !PIZZA
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I don't think the world needs that many at all.... Since the first major bull run a lot of people might have started their own chains... Since it is something easily done from home... Most of them are rubbish though😂
We need a few good ones...like Eth and Hive and BTC... A few more won't hurt but yeah
I think there are too many chains and I don't think there is much reason if the purpose is similar to ones that already exists. On that factor, Hive is doing well to stand out. I like the feeless transaction structure of RCs and it makes it so that Hive can appeal to a lot of people.
It definitely seems overcrowded on the blockchain space, and I think adoption will go to those who're able to stand out from the crowd, through making a real difference and impact in the world.
Thanks @cryptothesis once again very interesting reflections on the future of web3 and the Hive, it's true that so many doors in so many different topics are opened that only need to be filled up. Services seems to be a good market to come particularly in social elders care safety protection healing massages holistic therapies and many more in tech design organisation. The thing is am i the only dumb and dumber that can stay on the Steem and Hive 4 years and earned nothing zero neal. still i like to carry on because i think it might be our only way to live in a short to medium future with these bummers in control.
https://twitter.com/jewellery_all/status/1713303633520136336
o.o i dont mind as long as it gets more people here. we have what almost 8 billion people in this world. blockchain can change their lives O.O. even just 1 billion people here would make it seem like we dont have enough blockchains maybe idk lol
You have a point there.
Thank you O.O I just gave you my thoughts on it. Eventually banks will have to conform and the digital dolllar will come; we already have a digital yuan. in that sense people will learn and be more aware I think. but hopefully they know the digital dollar is scary cuz banks will know where all the money is going. better have btc or stables to keep their money safe ;3
To me I strongly believe that the blockchain space is really wide so much to accumulate more and more sector as that is what is built for. I don't see it been over crowded
That's one bullish view! !PIZZA
Exactly when I came into crypto market and blockchain and found out about blockchain, there were only 7000 coins of blockchain technology in the crypto market and now they have increased to 20000 so we are seeing. That many people have paid attention to this technology in the last five or six years.
Your thoughtful insights on the overcrowded blockchain space are well taken. It's true that the proliferation of layer 1 solutions might seem overwhelming at times. Finding the right balance between innovation and practicality is essential.
While having various blockchain options can drive competition and innovation, it's crucial to ensure that these solutions bring real-world utility and fulfill the original promises of immutability and decentralization. Sustainability and adoption are key factors in the success of any blockchain project.
The future might indeed see established layer 1 solutions finding new use cases and maintaining their positions in the market. It'll be interesting to see how the blockchain space evolves, especially with a hint towards a blockchain that starts with the Hive.The next bull market could hold some exciting surprises. 🚀💡
I'm completely with you, all these tokens and all these blockchains, cannot be sustained. Not now and not when users are getting x10,000 !PIZZA
Everyone is waiting now already for 2 years for the next Bull run... I'm getting worried that it isn't even going to come. I mean, I'm afraid there will be so many tokens, blockchains and options, that the investments will be spread and that there won't be a real Bull run, or scenario 2, that there will be something new which will have a Bull Run and will fall down to never recuperate like we seem to experience now... !PIZZA
There is a possibility that the bull run that we expect may not come if there are no new buyers into crypto who will chase the green candles. I should be writing a post on this. !PIZZA
That is what I'm worried about for a long time already. And there are a lot of motives for people not to start to chase these green candles like you're saying. The diversity (there are too many projects and blockchains already), something else comes to replace (partially or completely) or the biggest hype is over (like what happend with the NFT's) are thre of the main reasons/motives in my opinion.... !PIZZA