Healthy Competition - The Daily Gwei #343
Healthy Competition - The Daily Gwei #343Competition in crypto is fierce - but that doesn't mean that it has to be unhealthy.Competition is the lifeblood of a capitalist system. By having a vibrant competitive environment, various ventures can all battle it out to create the best products and services which ultimately benefit the users/customers the most. Within crypto, competition is extremely fierce and due to its open source nature, no project is really safe from being forked/copied. There are 2 distinct categories of competition - healthy and unhealthy - only the former leads to actual benefits for users/customers. Unhealthy competition comes in the form of monopoly’s or duopoly’s, anti-competitive tactics such as price-fixing and enrichment of the few at the expense of the many. On the flip side, healthy competition blossoms when everyone has a level playing field with a set of conditions to abide by. With Ethereum, anyone is able to build an application (or fork it) and they’ll be on the same playing field that every other app is on - the Ethereum network doesn’t discriminate based on what the app does. On that note, competition is very cutthroat within the crypto ecosystem - whether it be competing layer 1’s, competing dapps or developers just trying to one-up eachother - you’ll find no shortage of ruthless competition in crypto. This is especially true when it comes to layer 1 networks as their teams and community just love to take shots at Ethereum for its “shortcomings” such as the high fees and slower transactions. Of course, these layer 1 networks will never tell people the trade-offs they have made to achieve more “scale” (usually they just centralize). Now, with the rollout of Ethereum-based layer 2’s really heating up, competitor networks are trying to spread seeds of doubt around how effective layer 2’s are when it comes to scaling Ethereum - this just signals to me that they are afraid of the competition. Of course, layer 2’s have their own trade-offs whether that be reduced security & decentralization, liquidity fragmentation and more - but I believe that they are all still much better than most of the other layer 1 networks that claim to “scale” (more on why I think this here). Any engineer or researcher worth their weight in ETH recognizes this if they’ve actually educated themselves as the tech coming out of the layer 2 ecosystem is simply next-level. Though when someone has vested interests to protect it becomes a weird game of convincing oneself that the competition either doesn’t exist, is outright bad or that there must be something fundamentally “wrong” with it. I always find it funny how humans will literally find a way to rationalize any point of view out of fear that their existing view could actually be the wrong one. In saying all of this, crypto is in quite a unique position because of its open-source nature. You’ll often see teams of “competing” projects leveraging each-other’s strengths to play positive-sum games where both teams benefit. Of course, there’s the other side to this where projects can be endlessly forked (like Uniswap has been) which leads to things like Uniswap putting a license on their v3 code. As with everything in life, there’s a balance to be had between competition and collaboration - and the crypto ecosystem certainly loves to regularly test this balance. Have a great day everyone, Enjoyed today’s piece? I send out a fresh one every week day - be sure to subscribe to receive it in your inbox! Join the Daily Gwei EcosystemIf you liked this post from The Daily Gwei, why not share it? |
Older messages
Fax Machine Maximalists - The Daily Gwei #344
Thursday, September 30, 2021
Don't bet against innovation.
Growth Hacks - The Daily Gwei #345
Thursday, September 30, 2021
Show me the incentives and I'll show you the outcome.
You Might Also Like
Bitcoin’s sudden dip under $95k incurs $180 million in trader losses, stalls $100k momentum
Monday, November 25, 2024
Turbulent hour for traders as Bitcoin slip below $95000 incites major liquidations for crypto traders. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
📈 BTC and ETH futures open interest on exchanges hit record-highs; Crypto.com acquired financial exchange and bro…
Monday, November 25, 2024
BTC and ETH futures open interest on exchanges hit record-highs; Crypto.com acquired brokerage firm Charterprime and extends its Visa card to Latin America; Options on US Bitcoin ETFs began trading. ͏
President Trump To Privately Meet With Coinbase CEO
Monday, November 25, 2024
We bring you the top stories in crypto every week! Stories like... Monday Nov 25, 2024 Sign Up Your Weekly Update On All Things Crypto TL;DR Welcome to this week's edition of CryptoWeekly Recap,
Mingdao: Transforming Illusions into Reality - Discussing MicroStrategy's Grand Strategy
Monday, November 25, 2024
MicroStrategy has truly hatched the biggest golden egg in this crypto cycle, with paper profits exceeding $15 billion in less than two years. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Finish signing in to Crypto.com DeFi Research
Monday, November 25, 2024
Here's a link to sign in to Crypto.com DeFi Research. This link can only be used once and expires in one hour. If expired, please try signing in again here. Sign in now © 2024 Crypto.com 1
Polymarket: A revolution in prediction markets
Sunday, November 24, 2024
CryptoSlate's latest report explores Polymarket's evolution, its role in high-stakes prediction events like US elections, and the impact of its controversies on its market position. ͏ ͏ ͏ ͏ ͏ ͏
Asia's weekly TOP10 crypto news (Nov 18 to Nov 24)
Sunday, November 24, 2024
The Japanese government has announced plans to advance a new economic stimulus package, expected to receive approval by the end of 2024. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
A Distinctive Black Flag Brand | Black Flag DAO Weekly Rollup
Saturday, November 23, 2024
Catch Up With What Happened This Week in Black Flag DAO ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Blockchain Association urges Trump to tackle crypto reform in first 100 days
Saturday, November 23, 2024
The association sent a letter with five priorities to the President-elect, including regulatory clarity and ending crypto firms' "debanking." ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Weekly Project Updates: SOL Reaches New All-Time High, Magic Eden to Hold TGE on December 10, 10 Trillion BONK Tok…
Saturday, November 23, 2024
Bloomberg ETF analyst James Seyffart shared that Cboe has filed applications with the SEC for four Solana spot ETFs, with issuers being VanEck, 21Shares, Canary Capital, and Bitwise. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏