Thread by @TraderL1z

Wanna know separates the rich from the poor in crypto?
Thread 🧵 about the #crypto #tech that matters.

If you're a beginner, this is a must-bookmark.
In crypto, you don't need to...
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In #crypto you don't need to understand how the #tech works, but you should learn and understand a bit about how software development works. This will let you know what elements of a project's ideas and plans sound realistic.

If you're invested in some tech that targets business or enterprise and has clients in the business world, then the tech is mostly irrelevant to your investment.

In most cases, you won't know what the real level of "adoption" of that technology is and will only have the company's word for it ("We have 100 clients").

In this speculative era, all that matters in those types of investments is the perception of the technology and maybe some news it generates. On the other hand, "#crypto" technology is different.

#Crypto platforms ( $ETH, $NEAR, $DOT, $AVAX, $SOL) and oracles ( $LINK, $BAND) are examples of this. infrastructure, which other crypto projects use to run their projects.

This technology's adoption can be seen much more clearly and transparently, and #price predictions can be made using that information.

In this thread, I'm going to explain the adoption of these platforms, how to differentiate the solid ones from the not-so-solid ones, and why the ones that claim they will be big usually won't be.

Understanding this will also help you understand the adoption of #crypto infrastructure in general. #Blockchain platforms such as $ETH, $AVAX, and $NEAR are platforms upon which teams and projects build their dApps.

When a team decides to build on a platform, it needs to choose it carefully. In most cases, they're not going to build on your crappy low- or mid-cap MC L1 platform. Why?

They are going to invest a lot of time and money building a platform.

becoming dependent on it. They don't want to rewrite it on another. They need to trust that it's going to be around for X years, that it's going to be maintained, and that others will build on it.

There are vast resources online for learning how to work and building on them for when they run into problems. There's a big ecosystem of other developers and teams working on it, so their team can go ask questions to get help with problems or issues they are having.

It needs to be a huge open-source collaborative effort. Making a successful #blockchain platform is similar in size and difficulty to making a new operating system and getting it adopted or a new format of media, such as a next-generation Blu-ray.

It's very difficult and requires huge resources. Look back at the last 3–4 years of L1s, which made big claims but failed to gain momentum. If you'd decided to build your project on them back then and spent 18 months or more building your software at a cost of millions...

you'd be screwed now (which is why nobody built on them). You will notice a common theme in platforms ecosystem grants or development funds. In the current era, most adoption of platforms outside of #ethereum requires grants from the platform in order to encourage teams to do it.

Without funds, they'll be less inclined to do it and will go with a competitor or stick to #eth. If a platform doesn't have a huge grant fund, it will not go anywhere. You can determine how realistic a project is in its ambitions based on this fund.

If it says it's the next $ETH and has a fund of less than $50, forget it. It needs to be at least hundreds of millions. Despite its current issues, the majority of crypto projects build on the #Ethereum ecosystem and will continue to do so. Why?

Because that is where the adoption is, it has massive, unrivaled support, it isn't going anywhere, and there are vast resources available. Developers don't care that there's something faster.

Being faster means nothing if that something is built by a few guys at a company that may not be around in 12 months. It's too much of a risk. #eth, however, does have its problems.

This is where most L1s currently pitch their narrative. claiming to be superior to #eth in some way, and that projects launched on them will get better performance and scaling. But there's a problem with that narrative.

Despite what you are told, #eth isn't sitting around doing nothing, content with its 99% market share.

In 2022, big developments happened on #Ethereum. The majority of projects will continue to choose to build on it. How I see the platform space playing out is similar to the operating system market.

$ETH will be the dominant platform, similar to Windows, with an 80% market share, a 15% share for the second and third places, and the remainder made up of platforms that meet the niche needs of various projects.

This doesn't mean you can't make money on projects that can't realistically compete with #eth. But you do need to look at their current and potential MC based on what you realistically think the project can do.

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