Overview Of The Entire Layer 1 For The Next Cycle 2024–2028

The Layer 1 clash is no longer a novel concept for crypto investors. Nonetheless, because Layer 1 is continuously being created and improved, investors who do not keep up with the market may find that investing in Layer 1 is extremely unprofitable and is no longer in the development trend.

This article will provide an overview of past and forthcoming Layer 1 wars, including analysis, evaluation, and lessons learned from observing these L1s war.

A Retrospective on the History of Layer 1 Projects

The first Layer 1 battle

When I entered the crypto market in 2018, an OG told me, “Buy ETH, the price has split in half from the top; the bottom is already reached,” which was also my opportunity to enter the market. Previously, projects such as Ethereum were not referred to as Layer 1 but as smart contract platforms.

During this time, numerous smart contract platforms such as Cardano, and NEO — labeled the Chinese Ethereum, Tron, EOS, and Monero—were created with the intention of solving the problem. Scalability solutions (transaction speed + transaction fees) for the Ethereum network, also known as ETH Killers. However, the majority of ETH killers no longer exist.

The fierce battle of the cycle 2020–2024

The next Layer 1 warfare occurred during the most recent crypto bull market, and we are still living in this cycle. In this stage, the main mission is centered on solving the scaling problem of Ethereum. Nonetheless, this conflict appears to be considerably more diverse than the war in the previous cycle. But the outcome remains the same!

This cycle focuses on foundational blockchains with characteristics such as:

  • The Internet of Blockchain: Cosmic, Polkadot, and Avalanche.
  • Monolithic Blockchain: Solana, Near Protocol, Fantom, Celo,…

In the scope of this article, we will not go deeply into the battle of Layer 1 through the cycles, but we want to make it clear that the trend of developing Layer 1 is not only a solid idea that has not lost its appeal since its inception but also a relatively new one. However, the manifestations of next-generation projects are somewhat larger and more potent than those of previous generations.

Consequently, looking at the past and projecting a future with the next Layer 1 war between prominent names such as Sui Blockchain, Aptos, Aleo, Celestia, and Monad… is something that has a very high probability of occurring during the next bull cycle of the market.

Overview of Layer 1 Platforms for the Next Cycle

For the new Layer 1 projects, we’ll go over the highlights including:

  • Scaling solutions
  • Ecosystem
  • Core Team & Investor
  • Rating

1/ Aptos

Aptos is one of the new Layer 1 mainnets that has significantly contributed to the expansion of the retroactive/airdrop trend. Users who mint the NFT testnet on Aptos’ network have received an average of $3,000 in airdrops per account.

Scaling Solution on Aptos

Aptos employs the Block — STM algorithm and the BFT Consensus Mechanism, which enable transactions on the network, to solve the scaling issue on Ethereum and avoid repeating Solana’s experience of having to reset the network multiple times. Parallel processing of the Aptos network enables the execution of a large number of transactions concurrently, resulting in a network pace of 160,000 TPS.

Aptos utilizes Rust, one of the most prominent languages on the market for crypto right now, in addition to Move, which is built from Facebook’s Diem.

Aptos’s Ecosystem

The number of Aptos projects skyrocketed after the introduction of the APT token and a massive airdrop to the community. This indicates that Aptos is off to a promising start. However, the majority of early-stage Apos projects are of poor quality, and a significant number of them have scammed user money. However, the future of the Aptos ecosystem is still quite promising due to the following positive developments:

  • Strong Support from Binance & BNB Chain: Aptos was the first blockchain that PancakeSwap landed on, indicating that Binance’s support for Aptos extends beyond strategic investments.
  • A few bright points, including Thala Labs, Pontem, Aries Market, Totuga Finance, and Martian Wallet, successfully raised capital. This proves that VCs continue to wager on key components of the Aptos ecosystem.
  • Additionally, increased usage of Rust and a number of other prominent programming languages can help the Aptos ecosystem grow stronger.

Despite the small number of high-quality projects on Aptos, it is a positive sign for the ecosystem in the long run that Aptos has had a relatively positive beginning and made a stronger impression than its counterpart Sui.

Teams and investors

There is no denying the talent of the Aptos development team; it is just that this team labored and built DIEM at Facebook until the project was nearly complete and ready to launch without the government’s intervention.

Even after the mainnet, the platform raised hundreds of millions of dollars, resulting in a $4 billion valuation. In addition, Binance Labs invested in Aptos’s strategy round.

Rating

We will evaluate the platform based on two primary technological and ecosystem-related factors:

  • Aptos solves Ethereum’s scalability issue at the execution stage, from a technological standpoint. However, parallel execution of multiple transactions is also risky, and it is not possible to identify the true problems until the project is initiated. Aptos’s horizontal expansion option is quite appropriate at this time.
  • In terms of an ecosystem, the new ecosystem of Aptos is in its early stages, with insufficient evidence for a detailed evaluation.

2/ Sui

Unlike Aptos, Sui’s mainnet event is a bit noisy, and testnet players don’t like it because there is no retroactive or airdrop. Instead, there are only priority slots to buy SUI at $0.03, which is equal to a $300M valuation. But that wasn’t why Aptos, who was on the other side of the front line, proved to be better than Sui.

Scaling Solution on Sui

Sui is a Monolithic Blockchain, like Solana, Fantom, or Near Protocol. However, Sui and Aptos are very similar in that, unlike Solana, they choose to grow horizontally instead of vertically. If Aptos decides to use parallel executions to settle more than one transaction at once, Sui will go in a different direction.

The Narwhal-Tusk consensus algorithm is a crucial component; this consensus mechanism has addressed the main issue at Mempool, where validators sort transactions into the blockchain and are considered the bottleneck for each blockchain. This will solve the blockchain’s scalability problem.

Therefore, Sui’s TPS can be comparable to or even greater than Aptos’s without requiring nodes of Solana’s standard. Thus, Sui partially resolves the trade-off between a blockchain’s scalability, security, and decentralization.

Sui’s Ecosystem

Sui’s ecosystem is still in its early phases of infrastructure development, so it receives little attention. Typically, it takes a Layer 1 platform one year to establish infrastructure components such as Wallets, Bridges, Oracle, and API, before the ecosystem can enter a stage of sustainable operation and growth.

Teams and investors

Similar to the Aptos development team, the majority of the Mysten Lab development team, which is responsible for constructing the Sui blockchain, originated from the DIEM project. However, the number of DIEM developers on the Sui Blockchain development team is considerably greater and more consistent than on the Aptos team.

Rating

The future of Sui Blockchain may not be accurately predicted at this time, but compared to its adversary Aptos, Sui’s development team has a greater appreciation for the problem of solving transactions. Regarding the scalability question, Sui’s solution is safer and more practical. Nevertheless, the development team or technology is still in its infancy.

The most important element we need to see is Layer 1’s own development strategy. Sui and Aptos are the two blockchain platforms that have raised the most capital and have the highest valuation from an investor’s standpoint.

3/ Monad — EVM Blockchain built by the Jump Trading team

Monad is a blockchain platform that has recently attracted attention in the crypto market due to airdrop or retroactive reasons, not because of the technology or development team. The project is preparing to launch a testnet version in the near future. Therefore, any long-term investor should keep Monad on their radar.

Scaling Solution on Monad

Monad, unlike Near Protocol, Sui Blockchain, and Aptos, is an EVM blockchain with a Proof of Stake consensus mechanism and scalability of up to 10,000 transactions per second (TPS). So, what contributes to Monad’s high speed?

Monad, like Sui Blockchain and Aptos, recognizes the execution phase as the scalability impediment for any platform blockchain. Similar to Aptos, Monad discovered that traditional blockchains organize transactions using Sequential Execution. To address this issue, Monad employs Parallel Execution.

Monad’s Ecosystem

Monad is currently still in the R&D process and preparing to launch a testnet version in the near future, therefore, Monad’s ecosystem is currently devoid of any participants.

Teams and investors

Monad’s development team has been working together at Jump Trading for more than 7 years. Besides, Monad has also successfully raised $19M from many investment funds, such as Dragonfly Capital, Lemniscap, Shima Capital, Palceholder, and many others.

Rating

It is difficult to evaluate Monad at this time, but tentative conclusions can be derived based on the limited information currently available.

  • In addition, the potential development team is validated by soliciting funding from numerous large investment funds.
  • Parallel Execution is also risky.

4/ Aleo

Aleo is a blockchain platform designed to provide decentralized and fully private applications for all Web3 users via zero-knowledge technology at the core of development.

Scaling solution on Aleo

According to the Aleo documentation, the platform does not place a strong emphasis on scalability, but Aleo wants to provide privacy to all platform users via the Zk technology feature.

Aleo’s ecosystem

The new Aleo ecosystem is at an early stage of development with the first basic pieces like Leo Wallet, VolcaniX, Nucleo, Demox Labs,… We still need a lot of time to follow up on the Aleo ecosystem in the future. Currently, Aleo is still in the testnet, and the official mainnet roadmap has not yet been announced.

Teams and investors

Aleo has successfully raised a total of up to $298M from A16Z, Coinbase Ventures, Placeholder, and Polychain Capital,… Despite the fact that Aleo’s development team is not particularly impressive. Clearly, fund investors have information that we have not discovered.

At the beginning of February 2022, Zk technology was not as interesting, noticed, or FOMO as it is now, particularly after CZ tweeted Zk technology.

Rating

We lack sufficient information to evaluate Aleo at this time and require additional observation time. Governments, particularly the US government, may actively discourage what Aleo focuses on; As a result, will Aleo adjust its goals in the event of such a significant obstacle?

5/ Celestia

According to the project, Celestia is the first comprehensive Modular Blockchain in the crypto market, so although it did not raise as much capital as Aptos or Sui, Celestia still garnered significant interest from the crypto community.

Scaling solution on Celestia

Celestia intends to separate the execution and consensus processes from data storage. Consensus, Execution, and Data Storage occur on a singular layer, similar to the other Monolithic Blockchain. However, with Celestia, these processes will be segregated and managed in distinct layers. Consequently, how does Celestia tackle the scaling problem?

  • Roll-ups: Off-chain transaction processing With the data storage structure described above, Celestia has the potential to be the ideal environment for developing Roll-ups when: Optimistic rollup requires data to demonstrate the invalidity of the failed transaction, whereas zk-rollup requires complete data to re-aggregate the chain’s state.

The future model of Celestia is comparable to the model between Ethereum and Layer 2 platforms that utilize Rollup technology. Upon the fulfillment of the Ethereum 2.0 roadmap, Ethereum will also become a fully functional Modular Blockchain. Modular Blockchain is evidently an evolutionary trend in the future crypto market.

Celestia’s Ecosystem

Celestia is currently still in the R&D process, so the ecosystem has not yet formed.

Teams and investors

There are a few noteworthy aspects of the Celestia development team. The project’s co-founders were also senior developers at Cosmos, and the other team members also have a solid pedigree.

Rating

Celestia’s model is generally well-grounded, but becoming a Modular Blockchain will require a significant amount of time. Compared to Aptos and Sui, Celestia’s growth rate is significantly slower due to the complexity of the technology they’re attempting to develop.

Conclusion

Above are Layer 1 projects, which we believe will break through in the next crypto market cycle. Additionally, the Beehive Research team will continuously update the latest information regarding potential Layer 1s.

10 Likes

this is lovely. nicely written Thread.

1 Like

Thanks great information bro

1 Like

Great info, thank you

2 Likes

C’mon…thanks for this

4 Likes

wow, big thanks to you

3 Likes