Thread by @WesleyBKress

(1\63)In the early stages of any Disruptive Technology, narratives or stories dominate the space. Y? Disruption comes from visionaries & the best narratives originate here. Investors who scrutinize, research deeply & don’t get swept into dreamland, succeed.Let’s talk $DOT & $EGLD

(2\63) Prior to discussing further I would like point out an incredible comparison

https://twitter.com/MichaelGKress/status/1382117064102473728?s=20

done earlier in the year by my identical twin brother @MichaelGKress who is a software engineer & has been in crypto

(3\63) since 2013. I believe in a multi chain universe & do not see $DOT & $EGLD competing directly particularly because $DOT is more focused on customization, which may be a closer competitor to $AVAX As I have researched deeply into the crypto universe spending over 1,000+

(4\63) hours reading, writing, watching, analyzing, debating & synthesizing he has been there to answer my technical questions. Both of us have been participating in financial markets for over 17+ years & have had our fair share of failures & being burned. So we look at things

(5\63) differently than most, with a lot more skepticism & scrutiny. My brother was an earlier investor in $DOT as was the case with @beniaminmincu & @LucianMincu although no connection but similar conclusion, my brother has sold his $DOT position & since @beniaminmincu &

(6\63) @LucianMincu have left being investors in $DOT to start @ElrondNetwork as they felt that the complete picture was not being solved, you can interpret what you will. So what is the complete picture that I discuss?
1. Technology (Trilemma & Interoperability)

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2. User Interface (UX/UI) which promotes inclusiveness
3. Customization of Blockchain
4. Tokenomics/Economics
5. Governance
6. Sustainable with Adoption(1st Principle & Adaptivity)
7. Strategic Business Execution to allow for Mass adoption
8. Leadership & Team

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9. Modular Framework for Developers
10. Maximized Strategic Value Sharing for Developers & remove barriers
Please see comparison below: This is based on my assessment, I know that some of these are subjective while others are not. The point is to explain & express the a

(9\63) analytical framework to better help people think about these elements. To get away from narratives or stories that have dominated the space in its nascent/early stages. Move more into an objective/analytical framework.

(10\63)The final & most important point is that at the time of investing we would have needed to justify buying $DOT at 20X the relative valuation. Today it’s 10X but as an investor relative opportunity cost & returns are essential when trying to get #ALPHA (returns above the

(11\63)market or benchmark). Anytime U buy a richer valuation if in fact it’s not justified one is increasing downside risk & minimizing reward. Considering $DOT network has had downtime here: polkadot.network/a-polkadot-pos… vs. Elrond who just passed the 1 year mark without any downtime

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https://twitter.com/LucianMincu/status/1421517156622159875?s=20

This exemplifies & demonstrates execution & excellence (Elrond) vs. Increased Risk (DOT). It’s important to consider & recognize that technology is ever-evolving so these variables can change with breakthroughs

(13\63) & advancements but as investors we don’t want to be paying a 10-20X premium for something that is inferior as we amplify risk & minimize reward, the opposite of seeking #ALPHA. Details 1. Technology (Trilemma & Interoperability) Elrond has really nailed both of these, as

(14\63) has been explained by @CryptoTechs Elrond is the most interoperable of the entire space:
Add to that it’s infinitely scalable based on its 1st Principle Adaptivity design which allows shards to be added & scale with demand. Scalability is ensured with 4,294,967,294

(15\63) maximum shards all able to process ~5,000 TPS (essentially infinitely scalable at (4,294,967,294*5,000TPS) due to implementing all three types of sharding techniques. This also ensures composability across different DAPPS within the eco-system of the Elrond Network

(16\63) which represent true scalability not scalability at the cost of composability. As it relates to Decentralization Elrond has far more Validators, inclusiveness with respect to seamless staking via their world class intuitive APP @getMaiar which now has 83,000 different

(17\63) delegators.

Beyond that Elrond has really maximized the points of Decentralization as it relates to Equitable opportunity & Value Sharing, along with technological design. Elrond has 3,200 Validators vs. $DOT at 297 active & 900+ in total when combined with the que &

(18\63) an upper bound LIMIT of 1,000 validators in total.

Also, parachains roughly only have 11-12 validators respectively. As of now they only have around 22,500 active nominators or validators. So with respect to who is receiving most of the value of the network in theory

(19\63) you could combine the Validators today of 297 (assuming each is different participant) + the 21,925 active Nominators which means 22,249 different points of shared network value. This is in stark contrast to Elrond’s 3,200 Validators + 82,955 different delegators which

(20\63) is equivalent to 86,155 different points of shared network value.

You can see that one network is superior in its ability to share network value as it relates to decentralization. This is almost 4X more decentralized as it relates to equitable value opportunity as

(21\63) it relates to the 2 networks as of today & due to there being limited to 1,000 validators on $DOT ever the gap will likely only widen over time. $DOT has chosen to do roughly around 100 Parachains but these are all slots that can plug in an entire Ecosystem Blockchain

(22\63) with their own consensus and/or shared via the Relay chain Validators. $DOT also has paratheads which are a pay as you go. The strategic difference is $DOT has increased their barriers but at the expense of inclusiveness. Yet, they have reduced the barriers of friction

(23\63) if a new blockchain wants to plug into a parachain without needing to allow for decentralization to occur with their own network of validators, which is a spectrum & takes time. As to the interoperability that is promoted & narrated about $DOT as of now there is still

(24\63) no clarity if the Parachains *Timestamped can communicate as it relates to cross composability but bridging is possible (this is possible though for almost Blockchains). The theoretical limits discussed by Gavin Wood has been stated to

(25\63) 1,000,000 tx/s as seen here but when one considered this component, the math is essentially adding all separate Islands together, if they aren’t able to solve the composability between parachains.

Also, if cross composability is not possible as it relates amongst

(26\63) other parachains than this is similar to Ethereum’s issues as I explained here in detail & visually:

https://twitter.com/wesleybkress/status/1422060921258577924?s=21

2. User Interface (UX/UI) which promotes inclusiveness this is where Elrond shines they have put the

(27\63) most care, thought & development in this area with @getMaiar leveraging DNS “HeroTags” to improve social relatedness & ease of use as humans use names not long numbers to interact with each other. Elrond uses progressive security minimizing friction of onboarding to

(28\63) their app & always minimizing steps, including doing this in their recent design & implementation of their DEX (AMM) Maiar Exchange using batch transactions:

https://twitter.com/beniaminmincu/status/1418862923162824706?s=21

This can’t be overstated in importance as much

(29\63) of the Tech dominant brains 🧠 forget about the end user & a reason why we haven’t crossed the Technological Chasm as it relates to the Technological adoption cycle.

https://twitter.com/WesleyBKress/status/1409144776222396418?s=20

$DOT has not taken the same strategic

(30\63) importance to this in their execution, designs or implementation. 3. Customization of Blockchain This is where $DOT shines, them being a Layer 0 allows for Blockchains to customize by sacrificing some aspects of the trilemma to increase one of the 3 attributes while

(31\63) reducing the others (Security, Scalability, & Decentralization). Does this matter if Elrond has solved much of the trilemma not requiring trade-offs? Much to be determined in this are of value proposition but $AVAX has also risen to prominence with this key value

(32\63) proposition. 4. Tokenomics & Economics: Elrond is light years ahead of the entire space in this category dedicating an entire economics paper to this alone here: elrond.com/assets/files/e… Elrond has a Fixed supply unlike $DOT that has an

(33\63) unlimited supply:

Visual Per @invest_answers Elrond has a unique design in which the Scarcity Scales with Adoption meaning that as adoption kicks in it prevents it from ever reaching the MAX supply of about 31 million

This can’t be overstated in terms of its

(34\63) importance because once the technology has become sufficient all the conversation will turn to economics as discussed here *TimeStamped: The key emphasis of $EGLD & their economic model was to create fairness for all network

(35\63) participants & some of this was demonstrated above via the decentralized network value sharing comparison

https://twitter.com/wesleybkress/status/1422392140949114883?s=21One

key unique value proposition that $DOT has incorporated in their economic model is their Treasury model which allows for a sustainable raising

(36\63)of funds paid by network, this is something that is exclusive to $DOT & details can be learned more about here: 6. Governance -This category as of now goes to $DOT as they have one of the best governance models in all of crypto in terms of depth &

(37\63) breadth of thought. Gavin Wood explains the importance & design here: A key strategic advantage many supporters continually point out about $DOT. It’s vitally important. Elrond has elected to wait on this until the network is sufficiently

(38\63) decentralized which may prove to be a powerful strategic reason but without knowing what it will look like it’s all speculation at the moment. 7. Strategic Business Execution to allow for Mass adoption - There is no one in crypto that has a better plan or is executing

(39\63) it better than Elrond. As stated in a recent thread about the importance of #Adoption as it relates to the end user is essential as without it, the technology is well worthless.

https://twitter.com/WesleyBKress/status/1423349397148995586?s=20

With Ethereum having the

(40\63) stronghold on the first mover advantage one needs to recognize that if one doesn’t push for adoption there is less likely an avenue for making massive inroads, this is why so many supposed “ETH killers” have failed miserably. What clearly differentiates $EGLD Elrond is

(41\63) these 4 key strategic reasons as it relates to Mass Adoption:

https://twitter.com/WesleyBKress/status/1422430706995589123?s=20

In my 44 Page research paper & investment thesis on $EGLD Elrond I showed how Elrond was demonstrating the power of #Adoption via their world

(42\63)class @getMaiar

https://twitter.com/WesleyBKress/status/1402453421706289156?s=20

I showed this via a comparison of adoption to $ETH Ethereum launched July 30, 2015, while Elrond Network launched July 30, 2020, exactly 5 years later. The unique addresses in 10 months for Ethereum totaled 277,124 vs. 605,411 Elrond

(43\63) With the majority of that growth taking place (73%) after the launch of Elrond’s extremely intuitive easy to use Maiar wallet Interface App on February 2021. This clearly demonstrates that their strategy of focusing on simplifying the end user experience is creating

(44\63) tremendous value with respect to network effects. The initial growth is more than 2X the trajectory of Ethereum in the same period of time. While $DOT has struggled with account adoption immensely, leaving them likely in a similar situation to the failed “ETH killer”

(45\63) even superior technology without Users & liquidity are mainly zombie blockchains with only theoretical or hopeful value down the road.

8. Leadership & Team - Gavin Wood himself has had questionable execution

(46\63) where @gavofyork lost investor funds see here: crowdfundinsider.com/2018/04/132600… Much of what has been the narrative or selling proposition has centered around interoperability that DOT was the first one to openly narrate &

(47\63) designed their relay chain & blockchain architecture against blockchain MAXIMALISM. Gavin Wood was much of the Brains & Mastermind around Ethereum, along with Vitalik, Charles from $ADA. Gavin Wood was the creator of ERC-20 token standard & many people in the industry

(48\63) believe he is one of the biggest and most brilliant contributors to the Blockchain Space. He exemplifies true hardcore commitment towards development & the expansion of the technology which is why they have so many strong supporters. Many are what are times appears to

(49\63) be disciples, rightfully so due to some of his many contributions he has provided to the space. Elrond’s top team members and co-founders, includes Beniamin Mincu CEO, Lucian Todea, COO and Lucian Mincu, CIO. They have been in the blockchain and cryptocurrency space

(50\63) since 2013. They have worked on and invested in many projects including $DOT attempting to solve the issues that have prevented mass adoption. After 4 years they realized that no one was nailing it from all angles. Elrond is not just another smart blockchain project.

(51\63) They assembled a team of experienced entrepreneurs, engineers and researchers with significant blockchain and technical experience backgrounds from Google, Microsoft, Intel, NTT DATA, MITT, IBM and others. Backgrounds in Computer Science, Blockchain, Design, Space

(52\63) Exploration, Artificial Intelligence, and World Math Competition Awards. The team includes two PhDs in Computer Science & Artificial Intelligence, multiple math, CS, and AI Olympiad champions, and a former member of the NEM core team. Essentially, a team with the

(53\63) ability & capacity to build rockets. Elrond wins out here based on execution of the end goal (Mass Adoption) & technology (1st principles infinitely scalable).
9. Modular Framework for Developers - $DOT has done a lot more groundwork with building out tools to make it

(54\63) easier for developers. Elrond is still in the process of building this out but we believe that strategically speaking the steps they have taken were more pertinent, strategically speaking. This key value point for $DOT though is very powerful if it plays out the way

(55\63) they hope.
10. Maximized Strategic Value Sharing for Developers & remove barriers - Developers on Elrond are given 30% of all fee’s which is an industry’s leading in terms of value capture back to the developers. This highly incentivizes Developers to build on Elrond

(56\63) due to the extrinsic rewards design, not to mention that with Elrond is so far in front on the User Adoption it puts them in a unique position as it relates to having both the technology & ever growing Users & liquidity on the way with the #MaiarExchange Launch soon.

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Conclusion: The future of Web 3.0 will include a multi-chain future likely. $DOT has unique value propositions that will position it to do very well, including customization & a focus on Developer modular framework & SDK’s. With that said as stated prior $EGLD & Elrond

(58\63) is in far superior position strategically, especially as it relates to Mass Adoption. Elrond Network has all of the interwoven pieces for success now and into the future. They have the most advanced state of the art technological design and infrastructure of any

(59\63) blockchain live today. They have meticulously and strategically skipped no steps to allow for long term success. They appear ready and positioned at the right timing to capture the ever-growing adoption of distributed ledger blockchain technology for individuals,

(60\63) startups, businesses, banks, and nations. The intuitive and simplistic Maiar app will allow for critical mass adoption outside of the small minority of hardcore blockchain enthusiasts. A world class team capable of handling any problems or challenges that may arise.

(61\63) Leveraging one of the strongest communities within the blockchain space which is essential for success. All led by their extremely intelligent, world class communicator and business savvy CEO Beniamin Mincu. The potential future market leader of the smart contract

(62\63) blockchain industry if things continue on trajectory. With $DOT trading at 10X the market Cap valuation there is no way for us @MichaelGKress or I to justify buying $DOT over $EGLD We believe $EGLD is the most undervalued Smart Contract Blockchain in the entire space*NFA

(63\63) If you made it this far, you enjoy reading into the granular details. There are so many unknowns in the space but the better we understand the multi-faceted components. The better we can make decisions in #Crypto #DeepResearch #StudyHard $EGLD $DOT