Compilation of the original text: Bai Ze Research Institute
Compilation of the original text: Bai Ze Research Institute
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The first L1 battle
In 2018, when I first entered the crypto market, an OG told me, Invest in ETH, its price has been cut in half, and the bottom has been reached, which is also my opportunity to enter the market. At that time, projects such as Ethereum were not called L1, but smart contract platforms.
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The Second L1 Battle
The second L1 battle took place in the most recent market cycle (2020-2024). The main task is to solve the scaling problem of Ethereum. Although the goal is the same, this war seems to be more diverse than the war in the previous cycle.
This battle focuses on underlying blockchains with the following characteristics:
Multi-chain blockchains: Cosmos, Polkadot, and Avalanche.
Monolithic Blockchains: Solana, Near Protocol, Fantom, Celo,…
Looking back at the previous two L1 battles, we can find that although the L1 narrative is a relatively new concept, it has remained attractive to investors since its emergence.
However, the manifestation of the next generation of L1 items will be larger and more powerful than the previous two generations of L1 items.
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1、Aptos
Aptos, one of the latest L1s, has completed token distribution via retroactive airdrops. Users who minted NFTs on the Aptos testnet received an average of $3,000 worth of APT token airdrops.
Aptos scaling solution
Aptos uses the Block-STM algorithm and the BFT consensus mechanism to implement network transactions, aiming to solve the expansion problem and avoid repeating the mistakes of Solanas repeated network resets. The parallel processing mechanism of the Aptos network can execute a large number of transactions simultaneously, resulting in a network speed of 160,000 TPS. In addition to the Move language built on Facebooks Diem, Aptos can also use the Rust language to build smart contracts.
The state of the Aptos ecosystem
After the introduction of APT tokens and a massive airdrop to the community, the number of projects in the Aptos ecosystem skyrocketed. This shows that Aptos is off to a good start. However, most of the early ecological projects are of poor quality, and quite a few of them have defrauded users of funds.
Still, the future of the Aptos ecosystem remains promising for several reasons:
Strong support from Binance BNB Chain: Aptos is the first blockchain that PancakeSwap scaled, showing that Binance’s support for Aptos goes beyond strategic investment.
Ecological highlight projects such as Thala Labs, Pontem, Aries Market, Totuga Finance and Martian Wallet have successfully completed financing. This proves that VCs continue to bet on key components of the Aptos ecosystem.
Additionally, adding support for Rust and many other well-known programming languages can help the Aptos ecosystem grow stronger.
Despite the small number of quality projects in the Aptos ecosystem, Aptos has had a relatively positive start and made a stronger impression than Sui in the long run, which is a positive sign for the ecosystem .
team and investors
Theres no denying the talent of the Aptos development team who have toiled at Facebook and built Diem.
Even after the mainnet went live, the project raised hundreds of millions of dollars and reached a valuation of $4 billion.
evaluate
Aptos solves the scalability problem of Ethereum in the execution phase from a technical perspective.
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2、Sui
Unlike Aptos, Sui sparked controversy when it launched on mainnet because it did not offer token airdrops to testnet users. Instead, testnet users are only whitelisted to buy SUI tokens at $0.03, which equates to a $300 million valuation.
Suis solution
Sui is a monolithic blockchain, similar to Solana, Fantom or Near Protocol. However, Sui and Aptos are very similar in that, unlike Solana, they choose to scale horizontally rather than vertically.
However, Aptos uses parallel execution to settle multiple transactions at once, while Sui goes in a different direction. The Narwhal-Tusk consensus algorithm is a key component of Suis solution to the scalability problem, minimizing the communication required between validators to process transactions for lower latency.
Therefore, Suis TPS is comparable to or even higher than that of Aptos, without the need for Solanas standard nodes. It can also be said that Sui partially solves the trade-off between scalability, security and decentralization of the blockchain.
The state of the Sui ecosystem
Suis ecosystem is still in the early stages of infrastructure development, so it has received little attention. Typically, a new L1 takes a year to build infrastructure components such as wallets, cross-chain bridges, oracles, and APIs before the ecosystem can enter a stage of sustainable growth.
team and investors
Similar to the Aptos development team, most of the Mysten Lab development team responsible for building the Sui blockchain came from the Diem project. However, compared to the Aptos team, the number of Diem developers in the Sui Blockchain development team is much higher.
evaluate
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3、Monad
Monad is a new L1 that has recently attracted attention due to airdrop speculation due to preparations for a testnet launch.
Monads solution
Unlike Sui and Aptos, Monad is an EVM blockchain with a proof-of-stake (PoS) consensus mechanism and up to 10,000 TPS. So, what makes Monad transactions so fast?
Similar to Aptos, Monads employ parallel execution of transactions.
The state of development of the Monad ecosystem
Monad is still in the research and development stage and is preparing to launch a testnet version in the near future. Therefore, there are currently no participants in the Monad ecosystem.
team and investors
Monads development team has worked for TradFi giant Jump Trading for over 7 years. In addition, Monad has successfully raised $19 million from Dragonfly Capital, Lemniscap, Shima Capital, Palceholder and many other VCs.
evaluate
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4、Aleo
Aleo is a new L1 that aims to provide decentralized and fully private applications to all Web3 users through Zero Knowledge Proof (ZKP) technology.
Aleos solution
According to the Aleo documentation, the platform does not place much emphasis on scalability, but Aleo hopes to provide privacy to all platform users through ZKP technology capabilities.
The state of the Aleo ecosystem
The Aleo ecosystem is in the early stages of development, some ecological projects such as Leo Wallet, VolcaniX, Nucleo, Demox Labs... We still need a lot of time to follow up the future Aleo ecosystem. At present, Aleo is still in the test network, and the launch time of the main network has not yet been announced.
team and investors
Aleo has managed to raise a whopping $298 million in total from VCs like a16z, Coinbase Ventures, Placeholder, Polychain Capital, etc... although Aleos development team isnt particularly impressive. Clearly, VCs have information that we havent discovered yet.
evaluate
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5、Celestia
Celestia is the crypto industrys first fully modular blockchain, so while it hasnt raised as much funding as Aptos or Sui, Celestia has still generated a lot of interest from the crypto community.
Celestias solution
Traditional blockchains typically integrate functions such as consensus, settlement, data availability, and execution into a single architecture. However, as the complexity and requirements of blockchain applications increase, a single architecture may not be able to meet the requirements of different scenarios. And Celestia, as a modular blockchain, separates execution, consensus, and data availability.
Celestias model is similar to Ethereum + Rollup L2. After the completion of the Ethereum 2.0 roadmap, Ethereum will also become a fully functional modular blockchain. Obviously, modular blockchain will be an important trend in the future encryption market.
The state of the Celestia ecosystem
Celestia is still in the research and development stage, and the ecosystem has not yet formed.
team and investors
The co-founder of the project is also a senior developer of Cosmos, while other team members also have a good pedigree.
evaluate
According to the Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.
risk warning:
According to the Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.
