be-careful-solana-elrond-bsc-emergency


Something to worry about...

If you look at top altcoins today Ethereum competitors surging. (Solana, Elrond, Binance Smart Chain- BSC). Because of all these super fast providing cheap blockchain transactions.

I don't hate on eth competitors actually eth fees are absolutely ridiculous. If you make a swap on uniswap its average price is 100$ right now. A lot of these blockchains the reason they are put out the high TPS (transactions per second) and low fees is because they are centralized.

They are controlled by a small number of nodes and that is the reason for cheaper transactions. So, I mean SOLANA nowadays many people say it is decentralized but not true guys. It is controlled by a small subset of nodes. Any of these blockchains like ELROND which are promising faster transactions with low fees.

There has to be a trade-off from centralization to speed and this goes to security. A lot of these blockchains if its's SOLANA foundation controlling the nodes. They probably not going to running off with all that money. The probability of that happen isn't high but again there is a probability of that.

Billions and Billions of dollars TVL are locked into these protocols. I am predicting that one of these blockchains, I don't know if SOLANA, ELROND, OR BINANCE SMART CHAIN(BSC) are going to compromise with a large amount.

That will be a billion-dollar hack or more on of these centralized blockchains. And it's probably going to be an inside job. We already saw with Poly Network hack, their cross-chain platform there was an over a 600 million dollar hack. Of course, that isn't tied to a single blockchain. It was more tied to a Poly Network code

But still there does a possibility that does happen with one of these blockchains. It may be happening this year or most likely coming year. That could be one of the reasons to lead the bear market. They could do a chain split but I am hoping for the best. No hacks again.


Ethereum Layer Two Solutions

Let's talk about ethereum though. A lot of these use cases have a competitive advantage these blockchains really have fast speed, low transaction fees. But ethereum has layer two solutions coming ARBITRUM and OPTIMISM. They both are live now.

Optimism in a more developer-only type mainet. It's not just open for anyone, on the other hand, Arbitrum is open for all developers and projects to build on, and now it's open for the public also. Within the first week of Arbitrum being live, it already has more TVL than the lightning network. Which is pretty spectacular and it's only going to increase.

But many people don't want to use Arbitrum or Optimism because if you transact over them you have to wait seven days to withdraw your funds. And no one wants to wait seven days for withdrawals. That is because it is decentralized. Any other chain that provides withdrawals in 20 seconds instant it is probably centralized.

With Arbritrum and Optimism, seven days withdrawal period is a part of decentralization. Now there are some protocols some options being built that are going to allow quicker withdrawals. There's also a hot protocols that allows withdrawals from layer to layer.  So, you don't have to touch ethereum mainet soon.

You will be able to go from Optimism to Arbitrum to Polygon and transact back to layer two solutions. Once this kind of infrastructure is built around ethereum. The use case for a lot of these ethereum competitors goes out of the windows.


My View

I just want you to know guys that ethereum is the one there is a reason all these chains are building bridges back to ethereum. Because that's where defi lives and liquidity lives. Ethereum not going to stumble. Some of these chains fight and create use cases and build communities on top of them.

But nothing like ethereum.

I am scooping up ethereum.

Staying away from these chains, but that's my personal choice.

Because I am a fan of decentralization.

So stay to the decentralization guys.