Read on Twitter
1/18
First off, great thread.
Second, I'm going to say something contrarian that I think will likely annoy maxis on both sides.
Ethereum & Solana are not separate competitive L1s.
They do no have the same goal or niche. They do not serve the same purpose or customer segment. https://twitter.com/SBF_Alameda/status/1343436567847739392
First off, great thread.
Second, I'm going to say something contrarian that I think will likely annoy maxis on both sides.
Ethereum & Solana are not separate competitive L1s.
They do no have the same goal or niche. They do not serve the same purpose or customer segment. https://twitter.com/SBF_Alameda/status/1343436567847739392
2/18
When we look at them from a technical perspective its easy to claim they are building different tech and have a common KPI (TPS) so they must be competitors.
But, when we look at the business case, nothing could be further from the truth.
When we look at them from a technical perspective its easy to claim they are building different tech and have a common KPI (TPS) so they must be competitors.
But, when we look at the business case, nothing could be further from the truth.
3/18
Solana will scale certain types of applications that even ETH2.0 simply won't be able to. But, there are trade-offs.
Ethereum will be a backbone layer everyone can partake in, but, there are upper bounds trade-offs.
Solana will scale certain types of applications that even ETH2.0 simply won't be able to. But, there are trade-offs.
Ethereum will be a backbone layer everyone can partake in, but, there are upper bounds trade-offs.
4/18
That's not two competitive L1s.
It's either two components of an industry L1 or an L0 (settlement backbone) and an L1, depending on how we cut these (currently) rather arbitrary definitions.
That's not two competitive L1s.
It's either two components of an industry L1 or an L0 (settlement backbone) and an L1, depending on how we cut these (currently) rather arbitrary definitions.
5/18
Right now cultism gets in the way of our industry progressing because we think this industry is zero-sum, when in fact it is closer to near-binary
Either we as an industry make blockchains successful and there is a good chunk of pie for everyone.
Or we don't & there isn't
Right now cultism gets in the way of our industry progressing because we think this industry is zero-sum, when in fact it is closer to near-binary
Either we as an industry make blockchains successful and there is a good chunk of pie for everyone.
Or we don't & there isn't
6/18
When we look at these technologies as part of a core blockchain stack and see them as complementary, interoperable systems, that's when the business case is clear.
Each carving off a clear market segment that the other cannot.
When we look at these technologies as part of a core blockchain stack and see them as complementary, interoperable systems, that's when the business case is clear.
Each carving off a clear market segment that the other cannot.
7/18
While some chainpurists & maximalists will argue Ethereum doesn't need otherchains because of things like rollups, zksync, xDai, matic, etc - they fail to realize they are making roughly the same trade-offs they would being interoperable with another chain, with less upside
While some chainpurists & maximalists will argue Ethereum doesn't need otherchains because of things like rollups, zksync, xDai, matic, etc - they fail to realize they are making roughly the same trade-offs they would being interoperable with another chain, with less upside
8/18
There is no perfect blockchain - it is a classic triangle problem. There are always trade-offs, and both are acceptable in different use cases.
I think the terms of L1 et al, have done us more harm than good, as they make us think of things as diametrically opposed.
There is no perfect blockchain - it is a classic triangle problem. There are always trade-offs, and both are acceptable in different use cases.
I think the terms of L1 et al, have done us more harm than good, as they make us think of things as diametrically opposed.
9/18
The reality is, we stand far more to gain, as an industry, as investors, & as businesses when we can see the benefit of different subcomponents of the tech stack and how they work together
That's exactly what @AudiusProject has done in leveraging the benefit of both stacks
The reality is, we stand far more to gain, as an industry, as investors, & as businesses when we can see the benefit of different subcomponents of the tech stack and how they work together
That's exactly what @AudiusProject has done in leveraging the benefit of both stacks
10/18
I've spent my career in the awkward divide of being a highly-technical business person, where my goal has always been to find the business opportunity in the tech stack that others miss.
And I always summarize it up for my students like this:
I've spent my career in the awkward divide of being a highly-technical business person, where my goal has always been to find the business opportunity in the tech stack that others miss.
And I always summarize it up for my students like this:
11/18
"At a lighting company, it's the engineers job to argue on prioritizing the best filament tech.
It's the MBA's job to argue on prioritizing price.
But, it's the job of the analyst to tell them to invest in authors who write books that people read in the dark"
"At a lighting company, it's the engineers job to argue on prioritizing the best filament tech.
It's the MBA's job to argue on prioritizing price.
But, it's the job of the analyst to tell them to invest in authors who write books that people read in the dark"
12/18
New industries often fail to see the forest for the trees.
Macro thinkers like @SBF_Alameda and @VitalikButerin are well aware of this issue and likely see beyond it. Having a preference doesn't negate that - I have my own set of preferences.
New industries often fail to see the forest for the trees.
Macro thinkers like @SBF_Alameda and @VitalikButerin are well aware of this issue and likely see beyond it. Having a preference doesn't negate that - I have my own set of preferences.
13/18
But our industry suffers from a cultish-populism that means most users, investors, and sadly even companies, end up locked-in with self-imposed boundaries of what tech to use.
But our industry suffers from a cultish-populism that means most users, investors, and sadly even companies, end up locked-in with self-imposed boundaries of what tech to use.
14/18
And really, we're not arguing about the comparison of two lightbulbs that are the same. They may be in the same industry of producing light, but the reality is they are different classes of bulbs.
One is an LED bulb, the other a spectrum UVB bulb.
Different markets.
And really, we're not arguing about the comparison of two lightbulbs that are the same. They may be in the same industry of producing light, but the reality is they are different classes of bulbs.
One is an LED bulb, the other a spectrum UVB bulb.
Different markets.
15/18
But it's easy for any UVB bulb manufacturer to think they could expand their footprint by selling UVB bulbs for LED cases, and to try and waste resources competing there.
But it's easy for any UVB bulb manufacturer to think they could expand their footprint by selling UVB bulbs for LED cases, and to try and waste resources competing there.
16/18
That's why its great to see folks like @SBF_Alameda and @VitalikButerin discuss the merits of multiple chains in a professional manner and broadcast that. Acknowledging the pros and cons of each side.
That's why its great to see folks like @SBF_Alameda and @VitalikButerin discuss the merits of multiple chains in a professional manner and broadcast that. Acknowledging the pros and cons of each side.
17/18
I think we need a lot more of that, and to reframe this L1 category, if we are to really advance as an industry.
We're not building a business, we're building an entire category.
The enemies are external, not internal.
I think we need a lot more of that, and to reframe this L1 category, if we are to really advance as an industry.
We're not building a business, we're building an entire category.
The enemies are external, not internal.
18/18
The best way to lose money is to invest in dogmatism because that's how investors and developers become blind to weak spots.
Love a project once its shown you its heart, but cut a check when its shown you its shortcomings.
The best way to lose money is to invest in dogmatism because that's how investors and developers become blind to weak spots.
Love a project once its shown you its heart, but cut a check when its shown you its shortcomings.
