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
WuBlockchain Weekly: Bitcoin Hits New High on Trump Election Win, Bitcoin ETF Inflows Reach All-Time High, SEC Cha…
Friday, November 8, 2024
On Wednesday, Donald Trump effectively secured his position as the 47th President of the United States, clinching the necessary 270 electoral votes with a victory in Wisconsin. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Seamlessly Crossing Every Chain | Layer 2 Review
Friday, November 8, 2024
Quick Reads and Hot Links Covering the People and Projects Who Are Scaling Ethereum ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Polymarket’s accurate forecast of Trump win highlights gaps in mainstream media, pollsters
Thursday, November 7, 2024
Polymarket's swift Trump prediction showcases the dynamic efficiency of decentralized markets over established media. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Reminder: President Biden Calls Nigerian PM To Secure Binance Executive Release
Thursday, November 7, 2024
We bring you the top stories in crypto every week! Stories like... Monday Nov 4, 2024 Sign Up Your Weekly Update On All Things Crypto TL;DR President Biden Calls Nigerian PM To Secure Binance Executive
Bybit COO Helen: Inside the Second Largest Crypto Exchange
Thursday, November 7, 2024
Helen Liu is an atypical executive in the crypto exchange world. She comes from a human resources background and was new to crypto when she joined the exchange. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
US Bitcoin Reserve asset, Freeing Ross Ulbricht, Firing Gary Gensler… Time for Trump to deliver
Wednesday, November 6, 2024
Trump's crypto-friendly agenda promises a seismic shift in US digital assets strategy, driving Bitcoin to record highs. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
DeFi & L1L2 Weekly — 📈 Polymarket hits US$2.5 billion in volume amidst the US presidential election; TON Foundat…
Wednesday, November 6, 2024
Polymarket hits a record of $2.5 billion in volume amidst the US presidential elections. TON Foundation launches Society DAO to enhance decentralised governance. Swell launches optimistic rollup in Op
DeFi & L1L2 Weekly — 📈 Polymarket hits US$2.5 billion in volume amidst the US presidential election; TON Foundati…
Wednesday, November 6, 2024
Polymarket hits a record of $2.5 billion in volume amidst the US presidential elections. TON Foundation launches Society DAO to enhance decentralised governance. Swell launches optimistic rollup in Op
Mining News in October:Ethiopia Becomes Mining Concentration, Northern Data Plans to Divest Mining Business, Bitco…
Wednesday, November 6, 2024
Title sponsored by Bitdeer, a NASDAQ-listed mining company. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
US markets, Bitcoin poised for rally regardless of elections outcome
Tuesday, November 5, 2024
Fundstrat's Tom Lee sees year-end rally as election uncertainty fades, while Bernstein predicts Bitcoin's resilience and potential growth to $200000 by 2025 amid fiscal challenges. ͏ ͏ ͏ ͏ ͏ ͏