There are currently more than 20,000 blockchain projects on the market, each competing with the others for market share and dominance. Since the beginning of the crypto bear market, the price of these coins has fallen across the industry.
At the moment, Fantom is among the relatively more popular series. that it FTME code (No. 67 by market capitalization) is down 93% since its all-time high of $3.46 on October 28, 2021, and is currently trading at $0.22, according to CoinGecko.
But a falling market and a crowded field of competition have not deterred the CEO of the Fantom Foundation from hoping for the future.
“Competition is good because it can get a better outcome, better technology,” said Michael Kong, CEO of the Phantom Foundation. Decrypt at Chainlink SmartCon in New York this week, adding that since crypto users are accustomed to using more than one blockchain, multiple chains will continue into the future.
“I think in the future, you might not have 20 or 30 different series…but I think you’re going to have a few more chains out there, and I think they’re going to get a significant market share,” Kong said. “People use many different blockchains, that is the case today, and I think that will be the case in the future.”
It was launched in December 2019, phantom It is a Layer 1 blockchain that aims to provide an alternative to the high costs and low speeds that Ethereum users often complain about and hope that the now-completed Ethereum integration process will be resolved. Layer 1 protocols such as Bitcoin, Ethereum, and Solana use their own blockchain, allowing decentralized applications to be built on top of their protocol.
On September 15, Ethereum completed its long-awaited transition from energy intensive proof of work Consensus algorithm for the most environmentally friendly proof of stake compatibility mechanism.
But ETH has fallen by 320% since then, and Kong believes that many in the Ethereum community do not fully understand what the consolidation means.
“I think a lot of people were expecting, wrongly, in the community, that merging Ethereum would significantly increase network throughput or make the technology significantly more scalable. But the Ethereum Foundation repeatedly came out and said no, the purpose of the merger is basically to remove a component Proof of work in the series.”
For Kong, the misconceptions surrounding the merger were more related to the excitement of the community and less to any error by the Ethereum Foundation in managing expectations.
Kong said the merger was not about “increasing scalability and not drastically reducing gas tariffs. What disappointment people have in the aftermath”It wasn’t really anyone’s fault, in particular, or the Ethereum Foundation, who were just telling people the truth.”
And how can Fantom compete with Ethereum and other chains? “We still have the competitive advantage, at least for now, when it comes to our ability to process transactions asynchronously,” Kong said.
What worries him most about moving forward is the alarming recent rhetoric from regulators. “I think the biggest downside right now is the regulatory uncertainty,” he said. “I think that’s what scares a lot of people [in the industry]. “
Kong referred to the recent actions of the Securities and Exchange Commission, which claimed that everything Ethereum transactions Fall under US jurisdiction, the Commodity Futures Trading Commission, which filed a lawsuit ok daw and its founders last week.
“For me, regulatory uncertainty about who is supposed to regulate what, such as the SEC and CFTC disagreeing publicly with each other, is really what can discourage innovation, and make people think twice about blockchain technology and they don’t want to get into any of it,” he said. “So it’s kind of having a scary effect on the industry.”
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