The Open Network (TON) Might Attract Ethereum (ETH) Userbase: Analyst Indicated Dangerous L1s

20 October 2023

in Solano

Reading Time: 2 mins read

Vladislav Sopov

Solana (SOL), Tezos (XTZ), MultiversX (EGLD), NEAR Protocol (NEAR), The Open Network (TON) are working on better scaling solutions than Ethereum (ETH) can offer now, Justin Bons says

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Contents

The Open Network (TON), Solana (SOL), Tezos (XTZ): Justin Bons indicates scalable Ethereum (ETH) competitors
Polygon introduces novel method of scaling, appoints Protocol Council

Ethereum (ETH), the largest programmable L1 blockchain network, might be missing critical scaling opportunities. Slowly but surely, users and dApps might migrate to more flexible and scalable blockchains, including sharded ones, says the veteran analyst.

The Open Network (TON), Solana (SOL), Tezos (XTZ): Justin Bons indicates scalable Ethereum (ETH) competitors

Ethereum (ETH) is “dropping the ball” by failing to meet the demand for Layer-1 blockchains. As a result, usage will inevitably move to competitors that are able to scale to meet the requirements of users. Justin Bons, founder and CIO of Cyber Capital, shared his opinion in X today, Oct. 20, 2023.

L1 competitors might rely on different scaling practices, including Solana’s (SOL) parallelization or Tezos’ (XTZ) enscrined rollups. Also, fully sharded blockchains like The Open Network (TON), NEAR Protocol (NEAR) and MultiversX (EGLD) might be dangerous competitors for Ethereum (ETH).

Sharding is a scaling practice that allows the blockchain to be split up among the ecosystem of interconnected sub-blockchains (shards).

Sharding is an endgame goal for Ethereum (ETH) on proof of stake, but it is still unclear when (and if) it is going to implement it.

NEAR Protocol (NEAR) is recognized as the first-ever fully sharded mainstream blockchain. Also, Zilliqa (ZIL) is among the leaders of this innovation.

Polygon introduces novel method of scaling, appoints Protocol Council

Besides Ethereum (ETH), Bons is an adamant critic of the current Bitcoin (BTC) design, which looks centralized to him. Also, he warns that security budget of the largest blockchain is on borrowed time.

Meanwhile, one of the largest EVM blockchains, Polygon (MATIC), accomplished a major milestone on its road to the Polygon 2.0 phase. In this phase, staking and security mechanisms in blockchain will be reconsidered. Stakers will be able to protect the integrity of several chains within Polygon (MATIC).

Yesterday, Polygon Labs shared the list of the first generation of Polygon Protocol Council members. It includes reputable Web3 experts and high-profile DeFi teams.

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