Last year was an absolute disaster on so many fronts and in so many ways. Ultimately, we witnessed the devastating effects of centralization, and just how dangerous it really is. There is no such thing as “too big to fail” when it comes to a scenario of centralization gone wrong. Projects, once viewed as solid, no longer even exist.
This is the reality of centralization, and when a few individuals (big bag holders) decide to make foolish decisions. As we have discussed numerous times, Ethereum is losing its sparkle. It’s definitely not decentralized, and no longer meets the demands of investors looking for a decentralized future.
However, this appears to be the case for so many other layer 1 alternatives, which suggests that perhaps the top-tier layer 1s of the future are still to emerge. Perhaps, the devastating effects of 2022, together with unfair project launches of the past are yet to inspire developers to come up with an improved solution.
It is quite possible that purists within the developer community are simply unsatisfied with what is currently available in terms of “viable” layer 1 blockchains. Could we see a number of optimized layer 1 blockchains hit the marketplace in 2023? I think it’s a strong possibility. Looking at the dot.com bubble, many early projects were replaced by better alternatives over time.
Many of the early star performers are no longer even in the game. The foundational phase of any innovation, or revolution, is rather messy, at best. It’s often a case of “trial and error”. This makes the next bull market even more exciting, as we could be exposed to brand-new projects that perform exceptionally well for early investors.
Keep An Eye Out
It’s definitely a potential scenario and one worth monitoring. I think it would be wise to watch the space for new and upcoming blockchains in 2023. ETH always held the most promise, and will most likely continue to occupy dominance, but it is losing the faith of investors like myself. Solana has had ongoing issues, and it’s still questionable if the project can regain the trust and confidence of the market.
I guess Cardano has the highest likelihood of success in 2023 and beyond. However, I am not a maximalist, in any way, which means I understand that a number of blockchains are going to be needed to satisfy the demand of an ever-increasing decentralized ecosystem and adoption rate. I guess time will tell.
Don’t necessarily limit your options to what is currently on offer. Perhaps reserve a little capital for new and upcoming blockchains. Remember, failure is someone else’s opportunity. I think the implosion of 2022 will be a birthing ground where developers will learn from the mistakes of the past. This is simply my own view and opinion. Please don’t consider it investment advice in any way. All the best and see you in the next one!