Ethereum (ETH), the 2nd best blockchain network on the planet, still dominates the Web3 landscape because of its early start, although other blockchains for example Solana (SOL) are attempting to get caught up, a brand new report from investment capital giant Andreessen Horowitz (a16z) has stated.
Based on a16z, a lot of Ethereum’s success within the Web 3 space could be related to the first start the network got versus its competitors. Because of this, the blockchain now also boasts the greatest quantity of monthly active developers associated with a blockchain, with over 3,000 developers, the report stated.
In comparison, Solana arrived second with roughly 1,000 monthly active developers, while Bitcoin (BTC), probably the most valuable blockchain network undoubtedly, rated because the third-most popular blockchain among developers with 500 of these active monthly.
It is primarily the “overwhelming mindshare” that explains why Ethereum users happen to be prepared to repay greater than USD 15m as a whole charges each day, the report stated, calling it “remarkable for this type of youthful project.”
Still, the recognition of Ethereum among developers originates in a cost. Based on the VC firm, Ethereum’s focus on decentralization over scaling means other blockchains have had the ability to lure over users by promising faster transactions minimizing charges.
Additionally, Ethereum’s first layer can also be losing users to second-layer systems built on technologies for example positive rollups and nil-understanding (zk) rollups, which all make an effort to lower costs by growing the accessible blockspace.
The proceed to second layers and sidechains implies that blockchains are now being hit with a new “computing wave,” like what went down with Computers and broadband within the 90s and 2000s, the report contended.
“There’s lots of room for innovation, so we believe you will see multiple winners,” it added.
Lastly, the report noticed that it’s still beginning for Web 3 development.
Online being an example, a16z stated by using roughly 50 million active Ethereum users right now, this puts Web 3 at in which the Internet is at 1995 when it comes to development.
“The internet arrived at 1 billion users by 2005 – incidentally, right at about the time Web2 began materializing among the founding of future giants for example Facebook and YouTube,” the report stated.
Andreessen Horowitz is considered the most important venture firms within the crypto industry, accountable for backing a lot of projects, including Avalanche (AVAX), Celo (CELO), MakerDAO (MKR), Solana, and many more.