Many try to draw up analogies that help to show what is taking place within the world of crypto-networks. People are still having a tough time understanding how a lot of this is unfolding. In the end, it is all just a mental exercise yet it is fun to engage upon.
Grayscale came out with a report putting forth the analogy to a city. It is an interesting comparison and a worthwhile way to structure the thought process.
Basically, if a blockchain ecosystem was a city what would it be?
Here is where we can have some fun.
Ethereum Is New York City
Ethereum is the biggest of them all, according to Grayscale's report. It is also this richest. This puts it in line with New York City. In fact, they went on to say that it shared many of the same characteristics.
Ethereum is like New York City, the report noted. Though vast, expensive, and congested in certain areas, the network features the most crowded and richest blockchain protocol, “with over 500 apps that command a total value of over $100 billion—more than 10x larger than any other competing network.”
This makes sense, especially since they are valuing the smart contract capability as a vital aspect of the "development" of the city. It also negates Bitcoin (as well as Hive) from the analysis.
The idea is to make the main chain the city and all else tied to it the buildings.
On the other hand, the L2 solution Polygon, built on top of Ethereum, was considered a skyscraper in NYC, which scaled by building upwards. Polygon combines and settles many transactions internally in order to reduce the congestion derived from the base chain.
From there, they worked down the scale. Other chains were tied to other areas, working their way down the scale in size.
When it came to Avalanche, the report stated that it is like Chicago because “the network is smaller, transactions are cheaper and less congested, and development is more centralized,” while its ecosystem feels like a “smaller subset of Ethereum’s ecosystem.”
Solana, which operates on a different consensus mechanism and whose speedier L1 chain makes it distinct from Ethereum, is similar to Los Angeles.
An interesting thought experiment to say the least.
Now that we have some of the big ones out of the way, where does Hive rank?
Hive As A City
Hive is a tight-knit community. It is nowhere near the size of Ethereum, nor does it have the wealth. That does not mean that it lacks characteristics which make it unappealing. Quite the contrary when one actually digs down deeper into the system.
The userbase is solid. We also have a great deal of activity, thus our city is fairly busy. The chain is technologically advanced with breakthrough potential. It can be seen there is enough going for it that, at some point, it could be a major player. For now, though, it is off the grid.
In other words, many of us feel it is an undiscovered gem.
We see a growth rate that is slower than most. That said, we know what is being offered here and it is just a matter of time before some things start to come together. This is the mindset of many of the community members.
External capital is almost non-existent Here is where being off the grid has a downside. We are still looking for that breakthrough moment which starts the flow organically. Of course, we also avoided the Venture Capital money for the most part. Because of that, there is a degree of freedom and autonomy not present in the larger "cities".
Many feel Hive is home. Certainly there are trade-offs that are made. Some head to the larger cities periodically to enhance their earnings. However, much of the focus is on our home base.
Obviously, there are different strokes for different folks. Some love the major metropolis living while others prefer a slower way of life. Is it most important to be the biggest? Of course not. We can pick any city and deliver a host of positive attributes. The question is who does it appeal to?
We know Hive is not for everyone. This is especially true from the developer perspective where they run to the biggest of them all, New York. It makes sense since there is where the money is. One will get paid there even if the application doesn't reach success.
Hive certainly is not that way. So where does it rank?
What City Is Hive?
When it comes to forming "digital cities", Hive would be akin to Boise, Idaho.
For those who do not know much about this city, it is an up and comer. Yet it is still off the grid for many. This doesn't have all the "comforts" of the major city since it is still an area for those with a rugged mentality.
The wealth does not compare to the likes of NYC, Los Angeles or San Francisco. You will not find companies with household names headquartered there.
While that is lacking, you also see things such a crime at a much lower level as compared to the major counterparts. Real estate prices are a fraction of what you find in the Denver, San Francisco, and Seattle areas. In fact, Boise is often a destination for those migrating out of those areas.
Here is where Hive can excel. We are not the first name on everyone's mind when it comes to cryptocurrency. That said, we can see development (construction) taking place which holds appeal to people. We also do not need to be millionaires to transact. With the fee-less design, anyone with a bit of stake can operate.
At some point, we are going to see Hive on the "up and coming blockchain" lists. This is what we saw with Boise in recent years. As people question what larger aspects of their lives, migration becomes appealing.
So who are the ones who could find their way here? If Ethereum is New York City, then Facebook is Tokyo. This is where we see the major shift possible. There are a lot who are unhappy with that city and what is taking place. The same is true for the counterparts in Shanghai and Mexico City (YouTube and Twitter).
Millions head to the big cities with big hopes and dreams. Many often come back after they were smashed. Bigger is not always better.
Of course, that does not mean we are relegated to remaining the same size. As migration takes place, some of the virtues of living in our community will start to come out. At the same time, the growth will spur on even more development, expanding the "city" upwards.
So what are your thoughts? If you were comparing crypto ecosystems to cities, what would you equate Hive to?
Let us know in the comments below.
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