Comprehensive Analysis on Leading Layer 1 Blockchains

There are several different layer 1 blockchain platforms available, but not all of them are equal. Some of the best layer 1 blockchain platforms currently available include Ethereum, Binance Coin, and Internet Computer. These platforms are well established and have a large user base, with Ethereum and Binance Coin dominating the layer 1 blockchain sector by market capitalization. They also have a robust infrastructure that allows for fast and efficient transactions, although as discussed some are faster and can store things for cheaper.

The blockchain trilemma discusses the inevitable tradeoffs between security, scalability, and decentralization that every layer 1 protocol faces. 

When it comes to choosing a layer 1 blockchain platform, there are a few things you need to consider. First, think about what your needs are as a user of the blockchain ecosystem and what you want to use the base layer of blockchain platform for. From here, you can compare other blockchains together, analyze the strengths and weaknesses of each, and decide the best one based on your needs.

Some key factors of blockchain projects you may want to consider include the platform’s features, usability, popularity, liquidity, costs, scalability, and of course security. Ultimately, the best layer 1 blockchain platform for you will depend on your specific needs and preferences. Do your own research and compare different platforms to find the one that is right for you.

Please note though that even with the best and most reputable protocols you could still lose all of your money. Sometimes there’s a native token that acts as a decentralized blockchain protocol, however, those tokens are essentially covering for being centralized exchanges. Those native tokens, such as Binance Chain, offer a native token (BNB), and have a very centralized consensus mechanism. In Binance’s case, only 21 validators are securing the network. BNB Chain experienced very heavy traffic in the previous bull market and that is because of their consensus protocol, allowing them to bypass Ethereum’s layer 2 scaling solutions and still have high throughput. Like we talked about in the blockchain trilemma, there comes a trade off with clear block space and achieving mass adoption. It’s the fact that Binance’s DeFi protocols aren’t really DeFi at all, they’re centralized. Institutional investors understand that Binance was originally built on the Ethereum Virtual Machine (EVM) and migrated over to their own blockchain, which is still a carbon copy of Ethereum. It’s like the show Silicon Valley where Jin Yang starts Pied Piper China. Binance has essentially created Ethereum China. Their entire blockchain network and smart contracts use the same language as Ethereum, down to their blockchain layers, block rewards and the way they finalize transactions. The only major difference between the two, besides the branding, is the inflation rate, circulating supply, and their proof of stake consensus mechanisms. We’ll get into more detail about this topic in another article, however, meantime in this crypto winter, we’ll keep striving to create great content on digital assets. Please also note that nothing in this article is or should be considered financial or investment advice and you must do your own research and come to your own investment decisions.  

As always, feel free to reach out to us if you have any questions, concerns, comments, or feedback.