Blockchain Fragmentation
Decentralized dilemma for localized platforms
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Decentralized dilemma for localized platforms
Last updated
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In the current environment, each blockchain functions like its own "galaxy", revolving around its native token (ETH, BSC, HBAR, SOL, etc.) and the projects utilizing its proprietary technology. Surprisingly, this architecture has gone largely unchallenged, despite its numerous drawbacks.
For instance, the popularity of the BYAC (Bored Ape Yacht Club) collection on Ethereum prompted a rise in Solana Monkey Business, Degenerate Ape Academy, and Degen Trash Pandas collections on Solana due to the lack of monkey PFP representation on the network. Similarly, capitalizing on the name of CryptoPunks, we can find Hbar Punks on Hedera or Chimpers on BSC.
By piggybacking on the successful marketing of one project on one network, similar copycats spread across other networks to fill the "demand." One thing they all have in common? They offer no real advantage over one another, as no one has convincingly argued why their Hbar Punk is better than the original CryptoPunk on Ethereum, despite having lower volumes, lower prices, and less overall interest. All of this ties back to the previous section and adds another reason why NFTs cannot function without a use case.
A project without a clear use case remain tied to its native networks and struggles to hold any value or interest externally.
More importantly, the same rule applies to the broader internet space, web2 networks, social apps, and profiles, as demonstrated by both right-clickers, global loss of interest and drop in volumes (as mentioned previously in Introduction).
To illustrate the issue even better, let's consider a hypothetical scenario where we decided to jump on the copycat train. Within a few minutes, we might be ready to present two stylish and incredibly authentic projects:
Undoubtedly, launching an NFT PFP collection certainly demands a bit more work – additional scripts, smart contracts, and possibly a staking pool to distribute the CCC and LRR currencies to NFT holders. However, the main point should be evident:
A fragmented crypto universe is bound to repeatedly copy and emulate itself time and time again with no technological advancement or true value generation.
Instead, we propose to establish the reason for our NFTs' existence around the use-case provided by NFT ownership.
This approach reduces our dependency on any single platform, enabling the selected blockchain to fulfill its primary role – an infrastructural host for our decentralized, immutable logic.
By making a project core a reasons for existence of its own, we are not limited to a specific blockchain network and can bring users from multiple chains together. An NFT on Hedera serves an identical purpose to our NFT on Binance Smart Chain, while our proof of use case protects us from right-clickers and re-minters of our NFTs. Anyone can save the visual representation of our NFT but it will not be useable within our system, as only our own collections are certified to provide value within our projects.
If anyone shares our goal of addressing web3 fragmentation, there is all the more reason to hope our proposition is both correct and successful. For those still confused about how such utility can be achieved, the following chapters should provide clarification.
