Blockchains aren't networks
February 23rd, 2022

People usually describe L1 blockchains as networks, e.g. the Ethereum network, the Solana network. This implies that blockchains are endlessly extensible like the Internet, or Telegram, or Facebook. If blockchains are networks, then network effects will dominate, and one blockchain will win.

But networks are the wrong analogy for blockchains. Blockchains are physically constrained*. *Blockchains cannot expand to infinite block space because blockchains require many independent small validators; if blocks were arbitrarily big, the blockchain would no longer be decentralized.

Smart contract chains are more like cities. If you embrace this mental model, then the dynamics around L1 blockchains becomes less mysterious.

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