The Hunt for Layer 1 Blockchain Protocols

The Hunt for Layer 1 Blockchain Protocols

By eltoro0x | Crypto - my view | 31 Aug 2021


The Hunt for Layer 1 Blockchain Protocols.

 

The market is going very slowly up.

BTC is in the limbo of 45-50K.

And probably September will not be the best months for BTC or ETH.

But if you noticed lately some tokens are mooning!

Some good examples are:

And others (FTM, ADA etc.).

Why?

 

Right now everyone is hunting!

 

Hunting What?

 

Layer 1 Blockchain Protocols!

 

What is a Layer 1 Blockchain?

A layer-1 blockchain is a set of solutions that improve the base protocol itself to make the overall system a lot more scalable. There are two most common layer-1 solutions, and these are the consensus protocol changes as well as sharding.

When it comes to consensus protocol changes, projects like Ethereum are moving from older, clunky consensus protocols such as proof-of-work (PoW) to much faster and less energy-wasteful protocols such as proof-of-stake (PoS). 

Sharding is one of the most popular layer-1 scalability methods out there as well. Instead of making a network sequentially work on each transaction, sharding breaks these transaction sets into small data sets which are known as "shards," and these can then be processed by the network in parallel. 

One of the pros when it comes to layer-1 solutions is that there is no need to add anything on top of the existing infrastructure.

 

Everyone is hunting Layer 1 Protocols mostly for one reason:

 

To Find a Cheaper Solutions than ETH!

 

The gas fee are huge, and sometimes are extremely high.

So people are starting to look around, a lot of people believe in Cardano (ADA), personally I like Polkadot (DOT), Solana (SOL) and Terra (LUNA) better.

This doesn't mean that ETH price will drop down, just that people are looking for a better deal.

 

 

If you want to explore more Layer 1 Blockchain protocols here you can find a complete list.

 

GOOD HUNT!

 

PS: I’m not a financial advisor, never invest all your money in crypto, to have a stop loss is very important!

DO YOUR OWN RESEARCH before investing your money.

 

 

 

 

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eltoro0x
eltoro0x

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