undefined | Better HN

0 pointshervature4y ago0 comments

How do you reconcile the fact that most of Web3 is built on Ethereum which only works because miners ("soon to be" stakers) are rewarded for running the blockchain?

0 comments

Tenoke4y ago

There's more and more being built outside of Ethereum and the dominance has been shrinking. As to how I explain the dominance - shrinking first mover advantage.

capableweb4y ago

> the dominance has been shrinking

According to what? According to the global charts on Coinmarketcap, Ethereum is still around 20% of the total marketcap of cryptocurrencies (BTC being at ~40%) today, coming from growth since January 2020 (where Ethereum started at ~7.5%). By that metric, Ethereum seems to be growing, but you might have a better source/metric to share?

spmurrayzzz4y ago

even for the other DVM-eqsue networks (solana, avalanche, et al), they still have the same constraint. the incentive to secure the network (either through PoW or PoS) is inherently tied to the underlying tokenomics, the currency has to have some value for the consensus mechanism to be successful.

flokie4y ago

this. the incentives are bound by the underlying tech.

j / k navigate · click thread line to collapse