If statistics are anything to go by, it appears that there has been a sharp increase in the number of cryptocurrencies and blockchain technologies already present on the market. Nonetheless, the efficiency of some of these projects continues to raise some serious doubts. Joseph Lubin, the Ethereum Co-founder, got to address this scenario in a recent interview, citing specifically Bitcoin and Ethereum.
Good Marketing Projects vs Good Competitors
According to his classification, crypto-projects can fall into one of two groups: good competitors and good marketing projects. Tron, founded by Justin Sun, is among the projects that easily fall into the latter category. Lubin classified the Tron network under this category due to its ongoing developments.
He stated:
“There are other excellent marketing projects and some of those marketing projects aren’t necessarily intellectually honest and not technologically strong or rigorous, but they’re pretty high-quality technology projects, projects like Polkadot and Dfinity and Tezos and NEAR, Algorand, Avalanche. All of those are quite impressive technologically.”
Ethereum and Bitcoin are Based Trust Layers
He further added that it has increasingly become difficult for upcoming projects to grow and develop into layer one-based trust strata. An example of such a project would be the distribution quadrilemma introduced by analyst Matteo Leibowitz. Lubin was, however, quick to assert that Ethereum and Bitcoin have proven to be sufficiently decentralized to acquire the base trust layer status.
For this reason, they have earned the right to be classified as the base trust layers currently in existence. In his explanation, he further expanded on what it would take a project to achieve the base trust layer status.
He noted that a project should start by issuing a token broadly and in an equitable manner. This will be in addition to trying to garner the revenue required to create the project, as well as to continue building and maintaining its underlying infrastructure. The task calls for a community that is vibrant, big, and continuously growing.
According to Lubin, Ethereum and Bitcoin had the advantage of not having to deal with regulatory authorities. This is something that newer projects are lacking, and while it’s not impossible for strong projects to provide competition to the Ethereum network, it would prove to be a herculean task for them.
Featured image: hacked.com