Where is the Public Chain: Is it really difficult to become an “Ethereum killer”?

We found that behind all the “ups” of public chains, almost all the results of the economic model explosion, because only when users get real economic returns, the ultimate value of the public chain Will be fed back to the price. However, due to the small differences in the underlying technologies, many public chains do not have much difference in terms of infrastructure construction, performance standardization, and cross-chain interoperability. Therefore, if you want to win on the public chain track and become the ” Ethereum Killer”, you can only start from the economic model and gradually form a differentiated competitive advantage.

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Then, how can we use the advantages of economic models to “break a bloody path” in the fierce market competition?

First of all, part of the public chains in the market have begun a comprehensive upgrade of the industrial structure, expanding from the underlying public chain to a one-stop blockchain solution. Some have launched mainnet activities, while others have upgraded the web and mobile interactive interfaces, optimized back-end functions, improved the safety factor of the back-end system, and provided users with a more user-friendly operating experience.

Secondly, some multi-chain designs bring infinite scalability, allowing users to interact with smart contracts in seconds with low handling fees, and build connections between chains, chains, projects, and projects through general-purpose oracles. The two-way interconnection network can even be further developed into an ecological network that can simultaneously support DeFi industries such as lending, AMM, and liquidity pools.

Ethereum shackles promote ecological choice of other public chains

Next, we know that the economic incentives on the public chain are obviously the point that people are most concerned about. At present, Ethereum is actively turning to the Proof of Stake (PoS) consensus mechanism. In principle, anyone can staking, but in reality, a protocol is needed to select participants to verify the block and win rewards. The right to verify blocks and obtain rewards is usually distributed according to the proportion of the number of tokens held. Sometimes, the length of the pledge time may also affect the choice of the verifier in the agreement.

At this stage, some public chains have begun to adopt a consensus mechanism, and there will be a certain frequency of re-elections during the operation. At the end of each session, the main network consensus contract will generate dividends based on the actual number of blocks produced in this session. Then enter the main chain dividend pool proportionally as a node incentive. Generally speaking, the master node of the public chain is responsible for collecting transactions, verifying transactions, and packaging the transactions into blocks, and broadcasting the blocks to other nodes; after passing the verification, the blocks are added to the local blockchain to maintain the stability of the entire ecosystem . The master node will participate in the production of blocks in accordance with the formula rules and receive block rewards, and will also be responsible for verifying the blocks, maintaining the stability of the entire ecology, and ensuring that the ecology is in a state of healthy competition.

In terms of the pledge return rate, the annual return rate of Ethereum will become less and less according to the increase in the number of verification confirmations. In contrast, some emerging public chains will provide different incentive models and dividend mechanisms according to different node and user role types to ensure that node elections are in a healthy competitive situation. In fact, based on the above-mentioned public chain economic system design rules, nodes can actively participate in pledges through incentives and rewards, and then promote the ecological development of the entire public chain.

Final thoughts

There is no doubt that economic models have played a very important role in the process of ecological value growth. Fully motivate all participants through more reasonable distribution principles, and provide economic incentives to the entire project participants and contributors, which can promote sustainable ecological health. develop.

In 2021, the major public chains have begun to accelerate the optimization of the ecological economic model. Whose economic model is more advanced at the moment, who can quickly enlist the existing users, resources, and developers in the market, and whoever will be able to fight against others in the future Public chain, even become the killer of Ethereum!

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/where-is-the-public-chain-is-it-really-difficult-to-become-an-ethereum-killer/
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