1/ Two crypto chads - Jack (J) of @cosmos and Kyle (K) of @multicoincap - recently butted heads on Web3's direction of travel via @Cryptocito’s (CC) YT.
Are Cosmos appchains sound? Or will the space aggregate towards 2-3 layer-1s?
Let’s see what they said.
2/ CC asks about the #appchain thesis:
K says appchain thesis is 98% flawed. The only variable that matters is growth, and L1s haven’t finished growing.
J says that appchains will enable #composability that made DeFi so good in the first place, future-proofing the industry.
3/ CC asks about #scalability (P1):
K believes 2-3 L1s will dominate 90% of the market. Appchains increase complexity and friction, while L1 efficiency is far from its final form. Scalability is not as big a challenge as people think.
4/ CC asks about scalability (P2):
J says chains are like computers. Just as one super computer can’t handle all internet traffic, one chain can’t on-ramp all economic activity. We should build with the future in mind, and scale horizontally.
5/ CC asks about sovereignty (P1):
K says sovereignty for sovereignty’s sake is an overblown requirement. Credible neutrality must openly exist. In the case of @dYdX, and for value-exchange, modifying consensus is useful - otherwise it’s all hot air that increases overhead.
6/ CC asks about sovereignty (P2):
J says it's key to new #blockchains, curing dependencies. No one cares if an app has total control, as long as the underlying structure is credibly neutral. Users want their own run times, especially with #IoT, exchange, and other products.
7/ CC asks about developers:
J says that devs have increased in quality, but so have the tools to plug them into Cosmos, which is going to pay dividends.
K says developer ease-of-use is the wrong variable to optimise for and there shouldn't be one overarching programming model.
8/ CC asks about value capture (P1):
K says that, historically, those who tried to set a ‘standard’ have struggled to accrue value back to their main platform. It never works and renting security feels like a mistake.
9/ CC asks about value capture (P2):
J mentions RedHat, Linux, Google, and Cisco, citing their involvement with open source software that has recaptured value, but admits the current model may only work for 10-20 chains.
10/ It was a lovely, respectful debate between Kyle and Jack, with both offering intelligent, nuanced comment on ‘path dependence’ - and what that path looks like.
Kudos to @Cryptocito for moderating this titans clash. Can’t wait for the next one.
11/ Enjoyed this breakdown? Steady lads, deploying more content 🫡
Do RT and shoot me a quick follow to see more guides, fundamentals, research, summaries, and upcoming controversial opinions, as all things should be.
12/ And lastly, a round of applause to @jackzampolin & @KyleSamani for their awesome work in furthering our industry!
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