Many of you who only watch my channel from time to time likely believe I’m an Ethereum diehard…I only
talk about Ethereum and Eth DeFi altcoins. But that isn’t fully true…yes I love Ethereum & yes
I love DeFi…but I understand Ethereum has current limitations. And that is why I’ve
branched out to other chains…ones that are actually solving Ethereum’s current
limitations. So who is my 2chainz? Well let’s get different…because it’s time for Chico Crypto!!
Ethereum on the main chain, no doubt has its limitations. Since the end of January of this
year, the average fee for a transaction on the base chain has consistently stayed
above 5 dollars. There were a couple of times the fees jumped above 15 bucks,
and even in early May the fees got above 25 dollars.
These high fees have come when there is basically no market
hype. Ethereum is showing it’s cracks early…because when market hype returns,
FEEs on the base chain could easily reach over 100 dollars per transaction.
Ethereum also has a problem with their governance…how protocol changes are
added and implemented. Going to Ethereum’s website about their governance we can see it
says “Ethereum governance happens off-chain with a wide variety of stakeholders involved
in the process. Whilst at the protocol level Ethereum governance is off-chain,
many use cases built on top of Ethereum, such as DAOs, use on-chain governance.”
Ethereum doesn’t have on-chain governance, which means groups of centralized entities
decide the protocol changes. As we can see from this flowchart…yes anyone can propose changes,
called EIPs, but they have to go through centralized approval processes, through GitHub,
through the Ethereum developers, through the ethereum clients and finally through
the ETH validators who have took over “mining” the chain since the merge.
It’s not the token holders,
the true stakeholders of Ethereum deciding it’s fate…it’s different centralized groups…
And this fact has caused a lot of problems in the past…like in 2016,
when many of the token holders wanted to continue the chain, while the developers
wanted to hardfork….thus causing a major hard fork, and Ethereum Classic was born…
Regarding these limitations of Ethereum…I still do respect Ethereum’s market share in the DAPP space.
It’s where the development is…it’s where the money is…and it’s where a majority of the users are….
Thus any 2nd chain I’m going to pick, is going to be highly connected to Ethereum…created by
the man who created Ethereum, and realized there were limitations that wouldn’t be solved in time….
And that is POLKADOT from Dr. Gavin Wood….
Polkadot has taken a different model…making the parachains rent blockspace on Polkadot,
giving a fixed cost to the parachains, thus the fees are much more predictable
for the users. The parachains can choose to put back on the users of their dapp
the fees by charging them one, or they can absorb the cost and offer free transactions.
Polkadot is a market of blockspace & it’s resulting into a very reliable fee model.
User’s know how much the parachain is going to charge them if any,
and the parachain knows how much they need to pay in DOT, to rent the blockspace…
That is why in the last 365 days, DOT total transaction fees have stayed
consistently between 1k to 2k per day…while Ethereum has ranged to as low as 1 million,
up to 5 million, up to 10 million, and even getting as high as 30 million on some days.
Even the centralized Solana doesn't have as tight of a range for fees as
Polkadot. As we can see Solana over the last 365 days ranged at 60k for a bit,
then down to 20k, but lately they have been ranging between 25k to 50k.
Having predictable, low cost fees in a decentralized computing environment, the things
that define Polkadot, is going to be critical in attracting massive enterprise applications
And Polkadot and it’s para chains are where the big enterprises are choosing to go…per example,
KILT Protocol, the identity solution parachain announced in May that Deloitte
was choosing their technology to issue verifiable credentials for
KYC and KYB processes. Critical pieces for the building of enterprise DeFi…
Then just last week, Energy Web at Polkadot decoded announced a partnership together on stage…
Something is brewing in the world of enterprise with Energy Web,
Kilt and Polkladot…and if you research, you see exactly what
is coming…Deloitte posted this research piece in their accounting research tool.
“DeloitteESGNow — Accounting Considerations Related to Sustainable Aviation Fuel SAFl”
And in the looking ahead section they say “Building on the concept of SAF certificates,
the Sustainable Aviation Buyers Alliance (SABA), an organization founded by companies
committed to driving investment in and adoption of SAF including Deloitte, is
developing a SAF certificate registry based on a book-and-claim method and certification standards.
SABA is currently working with the Energy Web Foundation and the Rocky Mountain Institute (RMI)”
Deloitte is connected to Kilt for verifiable credentials for KYC and KYB process in Enterprise
DeFi &. Deloitte is connected to Energy Web in the new & growing market of sustainable
aviation fuel where the trading and exchange of this asset isn’t fully developed yet…
What if I told you Energy Web & Kilt were building this future market,
and the way trading will be done ... .is through a DEX???
Well, this is what makes me believe that is coming and is true. Co-founder of Energy Web,
Grid Singularity, tweeted this early last week,
on Monday. “Closely following Polkadot since the onset, Energy Web,
recently announced the parachain launch. In the same spirit, Grid Singularity has been
building the decentralized implementation of its energy exchange using Substrate.
Yes, Grid Singularity is building its own energy exchange. Diving into their wiki on this energy
exchange, they have a decentralized version os it, called the GSY DEX and they describe it.
They say “The (GSy DEX) aims to create a robust, secure, and efficient platform for energy trading
in a decentralized environment by leveraging distributed ledger technology, such as blockchain,
and advanced distributed runtime functionalities. The GSy DEX powers Symbiotic Energy Markets…
What are Symbiotic Energy Markets, well Grid Singularity has explained in a medium post
on their implementation. They say “In the final implementation of the Grid Singularity Exchange,
trading will be facilitated through a blockchain integration to ensure fully decentralized,
verifiable and transparent transaction management. This implementation will integrate
Energy Web Switchboard, an open-source tool for decentralized identity and access management
designed by the Energy Web Foundation, to verify users, assets, and application developers.
Identity management systems allow verifiable claims to be presented to verified parties.
Identity management systems allow verifiable claims to be presented to verified parties in
the GSY DEX. Now going back to the Kilt & Deloitte tweet announcement we can see they say regarding
their partnership “Customers can use verifiable digital credentials across multiple services,while
retaining control over their personal information. As a Polkadot parachain, KILT offers the scale and
security needed by enterprise partners.” In my opinion, Kilt is offering Deloitte
verifiable digital credentials to enterprise customers, so they can pass KYC and KYB in the new
energy markets that are being created before our eyes. Sustainable aviation fuel is one of them,
but this road leads back to Energy Web’s ultimate goal. Allowing you to trade Energy
with your neighbor….another new type of energy market, Energy Web is deploying.
Well viewers, with Polkadot, Kilt, Energy Web it's a marathon,
not a sprint. These are long term holds, that could change the world if their
visions succeed. If you like Polkadot and Dot ecosystem projects don’t forget
to subscribe. Make sure to follow me on all of my socials. You can find the links on my
Youtube Profile or down in the description of every video. Cheers! I'll see you next time!