In a recent Placeholder VC blog post, the firm drew a striking analogy between the major layer 1 (L1) blockchain ecosystems, ethereum and Solana, comparing them to Android and iOS respectively. Written by Joel Monegro on October 10, 2023, the ethereum-and-solana” target=”_blank” rel=”noopener nofollow”>mail provides insights into the unique attributes and future trajectories of both blockchain platforms.
Why ethereum is like Android
Drawing a parallel to Android’s open and diverse ecosystem, ethereum stands out for its modularity and widespread adoption. Monegro notes that just as Android runs on a large number of devices made by various companies around the world, ethereum is “becoming more of a platform for third-party networks than the place where most end users and developers operate.” “.
Quoting the post, “The rapidly growing ecosystem of Layer 2 (L2) networks that use the ethereum mainnet for security or leverage the ethereum Virtual Machine (EVM) as an operating system already processes 5 to 6 times more transactions than the ethereum mainnet.”
This expanding ecosystem reflects the multiplicity seen in Android devices, with ethereum‘s influence potentially encompassing “hundreds of networks processing billions more transactions than the ethereum mainnet.”
Monegro further explains that the ethereum Virtual Machine (EVM) will reinforce its dominance as the leading blockchain operating system, orchestrating countless networks and rollups covering a variety of markets, sectors and functionalities. Although the ethereum mainnet may capture only a segment of this expansive value, the platform is poised to gain significant benefits from the expanding ecosystem.
Despite the benefits, Monegro points out challenges reminiscent of Android’s problems, stating: “ethereum smart contracts are not guaranteed to run smoothly on all of them by default, and developers have to spend more time fine-tuning.” , test and maintain for different environments. “
Why Solana looks like iOS
In contrast, Solana is compared to Apple’s iOS, known for its focus on integration and performance. Monegro explains: “Solana, as a single, unified network, is much faster and cheaper than ethereum and many other EVM networks.” The seamless user experience, reduced transaction speeds, and cost efficiencies found in Solana mimic the consistent, integrated user and developer experiences on iOS.
However, Monegro emphasizes that this analogy, although instructive, is somewhat superficial. He writes: “Whatever is absolutely and objectively ‘better’ does not matter; That debate will never end. Some people will value the flexibility of a modular philosophy; others will value the speed and simplicity of a more integrated platform.”
The article ends with a warning against market myopia. Drawing on historical examples from the cryptocurrency and technology industries, Monegro states that while there were times when singular players like bitcoin or ethereum dominated, it is a “mistake to assume that the status quo at any point in time will remain the same for always”.
Monegro’s perspective underscores the notion that in the changing landscape of blockchain technology, both modularity and integration have their advantages. The overall message seems to be one of appreciation for diversity, encouraging a more inclusive and vibrant crypto ecosystem.
At press time, Solana (SOL) was trading at $22.07, down 1.4% in the last 24 hours.
Featured image of Mudrex, chart from TradingView.com
