Home Ethereum Ethereum Was First, but Its Dominance Won’t Last

Ethereum Was First, but Its Dominance Won’t Last

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Twelve years in the past, everybody on Wall Avenue carried a BlackBerry of their pocket.

This early smartphone had a 4-inch display screen and a full QWERTY keyboard. It additionally had a rollerball mouse that allowed customers to navigate e-mail, learn textual content messages and play an addictive sport referred to as Brick Breaker.

In 2009, BlackBerry had a 20% market share of the complete smartphone market. Immediately, it’s as related as Blockbuster Video.

My level right here is that Apple didn’t invent the primary smartphone. It made it higher.

This isn’t the primary time an organization confirmed up late however got here to dominate a brand new expertise.

Amazon didn’t invent e-commerce. Tesla didn’t construct the primary electrical car. Google wasn’t even a public firm throughout the dot-com growth.

These corporations succeed by taking current expertise and making it higher. Probably the most profitable corporations aren’t all the time those first to market.

I imagine we’ll see the identical blueprint within the cryptocurrency market. Simply because a cryptocurrency is first to market doesn’t imply it’s the winner in the long term.

This yr, we’re already seeing this battle play out in one of many greatest crypto sectors.

The Constructing Blocks of Internet 3.0

Just lately, El Salvador turned the primary nation on this planet to undertake bitcoin as authorized tender.

This clears the best way for six.5 million Salvadorans and lots of of 1000’s of companies to pay taxes and different money owed with bitcoin.

It is a massive deal for El Salvador, which has spent the previous 100 years coping with one forex disaster after one other.

However crypto’s greatest influence gained’t be from its use instead forex. Quite, it can reshape the complete web with the arrival of Internet 3.0.

This new paradigm will change the way we use digital services like community bandwidth, storage, digital identification and even finance.

And the constructing blocks of Internet 3.0 begin with Layer 1 blockchains like Ethereum, Cardano, Terra and Solana.

Right here’s a chart that exhibits these Layer 1 chains over the previous three months.

While Ethereum has a solid head start, history has shown its dominance won’t last.

Ethereum was first to market, however now the competitors is beginning to catch up.

Consider Ethereum Like Lego Blocks

Traders are starting to appreciate that the marketplace for these cryptos is so massive it can take a couple of Layer 1 answer.

Consider Ethereum like Lego blocks — they arrive in customary styles and sizes which can be interchangeable. That’s Layer 1.

If Ethereum is Lego blocks, then Layer 2 can be the Lego Millennium Falcon set.

Cardano is one other Layer 2. If Ethereum is Legos, Cardano is like Lincoln Logs. Each child had them, however you can solely construct log cabins.

Solana is an Erector set. It might probably execute 50,000 transactions per second. That’s over 1,000 instances quicker than Ethereum in its present type.

You get the purpose: Legos are fashionable, however there are completely different constructing blocks for various tasks.

Whereas Ethereum has a stable head begin, historical past has proven its dominance gained’t final.


Ian King cryptocurrency bitcoin expert at banyan hill publishing signature

Ian King

Editor, Strategic Fortunes


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