State of major blockchains / cryptocurrencies in Q2 2022

Cryptocurrencies have lots of issues, all of them, there are just different issues and different strategies how to deal with issues.

This post is mostly for beginners as I see people so blinded by money that they do not see how complex and far from ideal ALL protocols are. ALL, no exceptions.

Let’s begin.

Bitcoin

ca. 7 TPS, UTxO, ca 390 GB, PoW

Good:

  • chain growth quite small due to low TPS so at least many full chain validator nodes present

Bad / Risks:

  • limited L2 research beyond lightning

Ethereum
ca. 13 TPS, chain size: 690 GB, PoW

Good:

  • nice L2 ZkRollup / Optimistic research and implementation being released soon (e.g. StarkNet)

Bad / Risks:

  • still PoW and “The Merge” keeps getting post-poned

Cardano

ca 7 TPS, chain size: 59 GB, PoS

Good:

  • liquid staking by design

Bad / Risks:

  • Project Catalyst still in infancy and DCF (Decentralised Fund) not active thus more professional projects like ZkRollups, alternative compilers for Plutus struggle to get funded

Summary

It should be clear by now that there is a lot to do in cryptocurrencies and that all protocols are far from ideal. On a positive note L2 ZkRollup research has been made huge leap forwards in the last 5 years. Long term it is hard to imagine that we could ever scale to billions on L1, people will need to stay on L2 networks or even L3 networks and L1s / L0s will be settlement layers. There is also undeniably interesting field of study and exploration called modular blockchains.

While majority if cryptocurrencies try to solve a so called The Blockchain Trilemma focusing mainly making sure there is scalability with sufficient security what many cryptocurrency enthusiasts forget is that there is actually The Blockchain Quadrilemma, also governance on top. Governance is an elephant in the room but ultimately only including governance we can think of a decentralised system. Only a system that completely does not evolve does not need governance and what does not evolve dies…

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