Yesterday I wrote a rather detailed article on why I feel $ETH Ethereum very well might out beat $BTC bitcoin during this bull run in terms of percent gains. Now of course that's all speculative and anything could happen and it should go without saying that this article is for entertainment purposes only and is not financial advice.
You can read the full article on InLeo here: Ethereum Stages For Massive Growth
Ethereum's Goal
A big focus of that and I believe a point that I didn't make clear enough is that Ethereum interacting with the blockchain itself will always be expensive. It's never been Ethereum's goal to be able to expand it's own blockchain and instead to shard aka use layer 2 tokens to expand of which then broadcast clumps of data into the main net chain.
This is because if ANY blockchain tried to do everything on a single chain the amount of data and capacity would be so much that it would either kill off any smaller end person to be able to run a node themselves or simply require so much data that the system just wouldn't work anymore and come crushing down under its own weight.
This is why layer 2 solutions are critical for the growth of Ethereum.
The issue is now there are so many layer 2 options and there's only going to be more of them. Of which many simply will not make it. In fact we could even look at it as another one of those alt coin runs we saw back in 2017 when new altcoins came out of the woodwork for Ethereum for the first time. Of which over 90% of them came crashing down during the bear market, had rug pulls etc.
Sound familiar right?
Every cycle goes through this same thing and it's why it's important to either invest in the core asset itself (In this case Ethereum) or do lots of good research and make your own best call as to what layer two options are brining value and will last.
The reason why these layer two solutions will get so much support is from a update soon coming to Ethereum which will reduce the fees for these chains to broadcast their data to the main Ethereum blockchain.
Right now these "companies" or layer 2 solutions clump data and broadcast it to Ethereum so they need to have Ethereum on hand in order to do so. Right now those fees continue to climb and because of that so do the fees of the layer 2 solution.
To touch on the 2017 alt coin markets I'd have to say what we see happening over the next two months will mirror just that. Instead of hard forks like we had in the past for Ethereum and Bitcoin we will instead just see it happen in the form of layer 2's which means airdrops, broken promises and just the wild west.
Many of these layer2's simply wont exist in the bear market but of course there is money to be made which is a big driving factor in all of this.
What's going to be important for the growth of these layer 2 solutions is not simply offering faster and lower fees. We see that all the time and it's not hard to do. What we need to see are capital, volume and more importantly applications that use the chains and that they are active.
If a layer 2 chain has a solid system in place for dev work and building applications on top of it then it has a much better chance at success and longevity.
Posted Using InLeo Alpha
