I am going to try to answer the question: Is the blockchain space overcrowded? Do we need more layer 1 solutions?
Warning ahead: I am just ranting.
My quick answer is that it certainly feels like there are too many layer 1s. You can check them out here.
In Coinmarketcap, there is a way to check out the cryptocurrency sectors. It seems there are 210 sectors as shown below.
Taken together, we do have a lot of blockchain projects. Definitely way more than what we saw in the previous bull runs.
To me, this kind of numbers do suggest that the blockchain space is overcrowded, relative to the possible utilisation by the masses. My point is: Does the world need so many blockchain based solutions?
If the original promise is immutability and decentralisation of records, how many blockchains do we need to fulfil these demands?
Ultimately, not everyone is sold on the promise of blockchain, and this is where I see a potential bottleneck in the adoption and proliferation of so many layer 1 solutions. It's not just about creating a blockchain, but it's about ensuring its sustainability in drawing in real-world utility.
Especially so, in the case of the layer 1 race, where it is a tricky business as what matters to the game is adoption.
So, I have just painted a bleak picture for the flourishing of future blockchain projects. I sense that they are too late to the party. We already have enough solutions that can be used, so starting a new blockchain network at the base layer is going to be futile.
Perhaps this is what I see for the next bull market. Old layer 1s will find new use cases, and they will hold their ground well as they already have a head start in terms of user base.
Specifically, which blockchain?
I think it starts with the letter H.