chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
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There is already enough evidence to state that building privacy blockchains is not worth it.
Let’s examine the status of the current privacy blockchains:
Monero, Zcash & Dash transactions per day have remained flat at 25k, 6k & 17k per day since 2021 with no growth.
In contrast, projects that build privacy tools on existing layer1s have seen explosive growth:
Since launching on Ethereum in 2019, Tornado Cash has seen a steady increase in transaction volume as well as unique user count. 90% of the TVL is from Ethereum.
Railgun application fees and revenue have been growing steadily as shown above. 90% of TVL is on Ethereum.
Why is this the case?
Bootstrapping a DeFi ecosystem and dev tools is a hard task in itself, and doing this while solving privacy makes it even harder.
In contrast, Tornado Cash and Railgun are secured by layer 1. Users have access to all the economic activity on the blockchain and benefit from the rich history of existing dApps and builders.
Projects in the privacy space
New Blockchains
Aztec: It is a privacy focused Ethereum L2. It uses zk-magic to enable privacy. However, it doesn’t use EVM’s Solidity as the smart contract language. Instead, it uses Noir. So, it might take some time for a full DeFi ecosystem to develop.
Monero (XMR): Monero is perhaps the best-known privacy-centric cryptocurrency. It is a Layer1 blockchain that uses ring signatures and stealth addresses to obscure all transactions’ origins, amounts, and destinations.
Oasis Network (ROSE): It is a privacy-enabled L1. It differentiates itself by separating the consensus and execution layers, which gives them scalability and flexibility. Their Oasis Privacy Layer (OPL) is making waves. With OPL, all dApps on EVM chains can add privacy to their apps. Currently, ROSE has a market cap of around $609 million.
Build on existing blockchains:
Tornado Cash ($TORN): It is impossible to talk about on-chain privacy without mentioning Tornado Cash. It is the leading mixing service, with over $440 million in TVL.
Railgun ($RAIL): With this, you can use any DeFi app privately. There is no bridge, no isolated chain or liquidity, or similar. Just create a private Railgun account and transfer funds to it. Then you can use DeFi with your private account.
TLDR: Privacy-focused Layer 1s haven’t seen much adoption; instead, privacy tools built on existing blockchains — where users and the DeFi ecosystem already exist — have seen great adoption.
There is already enough evidence to state that building privacy blockchains is not worth it.
Let’s examine the status of the current privacy blockchains:
Monero, Zcash & Dash transactions per day have remained flat at 25k, 6k & 17k per day since 2021 with no growth.
In contrast, projects that build privacy tools on existing layer1s have seen explosive growth:
Since launching on Ethereum in 2019, Tornado Cash has seen a steady increase in transaction volume as well as unique user count. 90% of the TVL is from Ethereum.
Railgun application fees and revenue have been growing steadily as shown above. 90% of TVL is on Ethereum.
Why is this the case?
Bootstrapping a DeFi ecosystem and dev tools is a hard task in itself, and doing this while solving privacy makes it even harder.
In contrast, Tornado Cash and Railgun are secured by layer 1. Users have access to all the economic activity on the blockchain and benefit from the rich history of existing dApps and builders.
Projects in the privacy space
New Blockchains
Aztec: It is a privacy focused Ethereum L2. It uses zk-magic to enable privacy. However, it doesn’t use EVM’s Solidity as the smart contract language. Instead, it uses Noir. So, it might take some time for a full DeFi ecosystem to develop.
Monero (XMR): Monero is perhaps the best-known privacy-centric cryptocurrency. It is a Layer1 blockchain that uses ring signatures and stealth addresses to obscure all transactions’ origins, amounts, and destinations.
Oasis Network (ROSE): It is a privacy-enabled L1. It differentiates itself by separating the consensus and execution layers, which gives them scalability and flexibility. Their Oasis Privacy Layer (OPL) is making waves. With OPL, all dApps on EVM chains can add privacy to their apps. Currently, ROSE has a market cap of around $609 million.
Build on existing blockchains:
Tornado Cash ($TORN): It is impossible to talk about on-chain privacy without mentioning Tornado Cash. It is the leading mixing service, with over $440 million in TVL.
Railgun ($RAIL): With this, you can use any DeFi app privately. There is no bridge, no isolated chain or liquidity, or similar. Just create a private Railgun account and transfer funds to it. Then you can use DeFi with your private account.
TLDR: Privacy-focused Layer 1s haven’t seen much adoption; instead, privacy tools built on existing blockchains — where users and the DeFi ecosystem already exist — have seen great adoption.
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