The Present and Future of L1s

GM Anon! BTC soared to all-time highs today, setting the stage for an exciting week ahead! ETH is also on the move, surging towards new ATHs, while other L1 blockchains are showing signs of resurgence as retail interest picks up. 

It appears that retail investors are revisiting favorites from the last bull market, injecting vitality into these chains that have been relatively quiet for a while. However, it's essential to proceed with caution as several key metrics are flashing warning signs of a potential local top. Let's delve into the details!

Today, we'll delve into:

• The current status of other major L1 networks

• Fundamental architectural variances in L1 design

• Seizing the Arthera opportunity

The Current State Of Other L1s

Retail Sentiment 

And just like that, indicators such as Google searches and the rankings of crypto apps on the App Store are all signaling the return of retail interest.

Have you noticed your family members and coworkers chatting about crypto again? It's a familiar pattern – crypto fades from the spotlight, only to bounce back when least expected.

We inevitably see web traffic spike for crypto when prices are high - a tale as old as time.

If you've been following our updates, you've likely been allocating your assets since last year, and I bet you've seen some impressive returns!

If you've missed out so far, don't worry; there are still plenty of gains to be made as this bull market is just gaining momentum. However, be mindful of sharp pullbacks in the short term that can easily wipe out leveraged positions – those deep wicks show no mercy!

The L1 Race

Ethereum continues to maintain its position as the dominant L1 in terms of circulating market cap. However, other chains like BNB and Solana have been gaining traction as users flock to these networks attracted by their lower costs. 

The overwhelming majority of TVL remains within Ethereum, significantly overshadowing other chains. An intriguing development to monitor will be how this evolves as the bull market progresses. Will other chains manage to capture a portion of the TVL?

Among the newcomers, NEAR, Avalanche, and Fantom have shown remarkable returns, fueled by increased short-term usage translating into rising market caps.

Fantom, in particular, experienced a significant price surge last week, with notable whale wallets such as 0xdf89a69a6a6d3df7d823076e0124a222538c5133 allocating nearly $7M to purchasing Fantom. This suggests that whales are anticipating significant shifts towards these alternative L1 networks.

Interestingly, NEAR has experienced a surge in daily active users, surpassing all other L1 protocols. Protocols like Aurora and Ref Finance have been successful in attracting users, while initiatives such as NEAR Crowd have been incentivizing active participation.

In terms of fees, Ethereum remains the most profitable blockchain, followed by Solana. Fees play a crucial role in assessing the viability of a blockchain, as they indicate its profitability, largely driven by user activity. 

Despite the growth in usage of other L1s and their protocols, it's notable that fees continue to remain relatively low across the board. This phenomenon suggests that while there may be increased adoption and utilization of alternative L1s, they have yet to reach the same level of demand as Ethereum, which maintains its dominance in terms of generating fees due to its extensive user base and network effects.

It will be interesting to see how fee dynamics evolve over time as competition among L1s intensifies and user preferences shift.

Checking in on Stellar, one of the classic L1s, we observe a significant uptick in active addresses. The rollout of protocols within its ecosystem, such as Band Protocol and Soroban, is expanding the functionality of the Stellar ecosystem and providing users with numerous options to experiment and participate in its growing list of activities.

Comparing L1s: What Do They Bring to the Table?

It was quite the long bear market and it may have been a while since you had a refresher on what the differences are between the some of the various prominent L1s so let’s briefly catch you up:

Ethereum

• As the pioneer of smart contract platforms, Ethereum has set the standard for decentralized applications and cryptocurrencies. It's known for its robust developer community and the vast ecosystem of dApps, DeFi products, and more. 

• Despite its innovations, Ethereum has faced several criticisms for its low scalability and high gas fees. However, the platform is currently working on several updates (such as protodanksharding via Dencun) to fix these issues going forward. Regardless, Ethereum already has a rich ecosystem of L2 networks.

Cardano

• Positioned as a more energy-efficient and research-driven alternative to Ethereum. The platform distinguishes itself with a strong academic foundation, where all developments undergo rigorous peer review. 

• Cardano's scalability and transaction speeds are noteworthy, with a theoretical capability to handle around 250-1000 transactions per second. 

• Cardano employs a staking-related consensus algorithm called “Ouroboros.” Cardano's adoption lags behind Ethereum's, partly due to the less familiar Haskell-based smart contract language.

Avalanche

• Avalanche has adopted a novel approach of splitting tasks into three chains. The X-Chain handles the creation and management of assets. 

• The C-Chain is used to make smart contracts and supports things like ERC-20 tokens, dApps, and NFTs. 

• The P-Chain organizes the network's validators and helps set up specialized blockchains known as subnets. 

• The subnets allow developers to create customizable private blockchains tailored to specific regulatory or geographical requirements.

• It can reportedly process a staggering 4500 transactions per second without sacrificing decentralization. 

• This modular structure enhances its interoperability with other blockchains, positioning Avalanche as a strong contender in the race to surpass Ethereum in smart contract functionality. 

Fantom

• Fantom is a layer-1 blockchain known for its high scalability and low costs, primarily due to its Lachesis consensus mechanism, which ensures quick transaction finality. 

• This makes it suitable for DeFi applications requiring fast and reliable transactions. Unlike Ethereum, which faces scalability issues, Fantom's unique approach involves using separate blockchains and sidechains to reduce overload and maintain efficiency in dApps. 

• Its native token, FTM, is used for staking, governance, and transaction fees, contributing to Fantom's growing popularity as a versatile blockchain solution.

NEAR Protocol

• NEAR Protocol enhances scalability and speed with its NightShade sharding mechanism, dividing the network into smaller, manageable segments for parallel processing. 

• This approach boosts transaction throughput while maintaining security. 

• NEAR also caters to developers by supporting multiple programming languages and introduces user-friendly features like readable account names. 

• Progressing towards a fully sharded network, NEAR's state sharding segments the blockchain's entire state, promising improved scalability as the network grows.

Solana

• Solana is a high-performance blockchain platform founded in 2017, designed to support scalable applications and dApps through a unique hybrid consensus model combining proof of history (PoH) and proof of stake. 

• This innovative approach allows Solana to process over 65,000 transactions per second, aiming to surpass traditional blockchains in speed and efficiency while maintaining low costs. 

• The network supports a broad spectrum of applications, from DeFi platforms to NFT marketplaces, making it a versatile foundation for decentralized solutions.

Web3 without the gas fee? Say hello to Arthera!

Now that we’ve revisited some of the old school L1s and the renewed interest they’re seeing, let’s set our eyes on the future and what new L1s we can expect in the coming cycle.

Arthera is leading the charge in revolutionizing web3 with its EVM-compatible Layer-1 blockchain featuring native subscriptions, scalability, and a DAG-based Proof-of-Stake consensus model. 

• At the heart of Arthera's innovation lies its use of Directed Acyclic Graphs (DAGs), which effectively eliminate gas fees and enhance Web3 accessibility. 

• This innovative approach aligns with Arthera's vision to building sustainable, scalable and robust solutions akin to those of the traditional web while significantly reducing gas costs that we users face.

• Their ambitious vision has led to significant achievements, including over 500,000 transactions on Arthera Explorer and rapid growth to 68,000 wallets in under three weeks, highlighting the team's unwavering dedication to their mission.

• Their subscription model offers a glimpse into the future of blockchain, allowing users to experience it firsthand with a complimentary 3-month trial.

Follow these simple steps to unlock your trial subscription👇

Step 1: Set Up Your Arthera Wallet

• Initiate your journey by creating an Arthera Wallet. Head over to Arthera Wallet to the setup your wallet. This wallet serves as your key to the extensive Arthera ecosystem. We recommend Rabby

Step 2: Secure Your Free Subscription NFT

• Arthera extends a 3-month FREE subscription NFT, allowing you to access its services at no cost. For your subscription NFT minting, proceed to Arthera Faucet and follow the minting instructions.

• Mint the Arthera Whitepaper as a Memorabilia
  Go to the specialized minting page and mint your own piece of Arthera's legacy as a memorable collectible.
  

Step 3: Explore Ecosystem Applications

• Dive into the Arthera ecosystem by exploring and interacting with its diverse applications. This engagement will offer you a practical understanding of the platform's potential and how it can meet your requirements.

That’s it, enjoy your complimentary subscription! 

Farm safely, stay degen!