CSC | How to Pick the Next Financial Ecosystem After the Terra Crash?

The meltdown of LUNA and UST has ended with the collapse of the Terra ecosystem, and projects that chose Terra have now become “homeless”. The sudden crash of Terra, a giant public chain, comes as a wake-up call. Is there still a trustworthy and stable public chain ecosystem other than Ethereum?

Unlike on-chain projects, public chains are blockchain infrastructures. As such, they need to focus on ecosystem building while pursuing high performance. At the moment, the public chain category is evolving into an Ethereum-centered multi-chain universe. When trying to choose a strong player from the many public chains that are flourishing, users can focus on the following aspects.

Performance

As the bottom-layer infrastructure of blockchain ecosystems, public chains will find themselves at a serious disadvantage if they couldn’t scale up their processing capacity or process transactions in a reliable way and provide services for hundreds of thousands of customers. Therefore, when evaluating a public chain, we should assess its transaction speed and scalability.

TPS (transactions per second), a major indicator of a public chain’s performance, refers to the number of transactions a network could process every second. The higher the TPS, the more efficient a public chain is. According to the statistics shown below, CoinEx Smart Chain (CSC) boasts a TPS of 1,000, which makes it more efficient than Ethereum and BSC.

Secondly, the consensus mechanism affecting public chain governance is also an issue that should be considered when evaluating different public chains. Although both PoS and PoW have their pros and cons, the former is more scalable. It is expected that Ethereum will switch to PoS within this year. Meanwhile, CSC uses PoS, which enables permissionless validators, high throughput, low fees, and EVM compatibility.

Cross-chain swapping

In the current multi-chain universe, the demand for asset swapping across different chains is growing stronger. Such demands will become particularly obvious when the returns brought by on-chain projects in such categories as DeFi, NFT, and GameFi fluctuate during a certain period. As such, for public chains, cross-chain swapping is a major part of ecosystem expansion, and also one of the criteria for assessing their potential.

Right now, public chains including BSC, Avalanche, Solana, NEAR, and CSC have all introduced native cross-chain bridges, most of which only support the swapping of assets between Ethereum and the public chain on which they are deployed. CSC Bridge, on the other hand, allows users to transfer assets from Ethereum, BSC and TRON to CSC, and vice versa, which meets the demand of more users and creates more extensive application scenarios.

CSC Bridge: https://bridge.coinex.net/

Long-term plans for ecosystem building & incentives

The growth of a public chain hinges on its ecosystem. Apart from superior performance and satisfying user experiences, a decent ecosystem should also create an enabling development environment, which depends on two factors: 1) compatibility and 2) incentives for emerging projects. CSC is compatible with EVM, which allows Ethereum-powered projects to migrate to CSC seamlessly. As for incentives, major public chains like Avalanche, NEAR, and CSC have all set up project development funds. CSC, in particular, has created the Multi-Million Dollar Supportive Plan and the Five-Million USD Special Funding Support for Metaverse Ecology. Apart from funding, CSC also supports projects in terms of market resources and technology to encourage more developments to deploy projects on CSC.

Conclusion

We have analyzed the different factors contributing to the strength of a public chain. Apart from performance, public chains will pay more attention to ecosystem expansion and project innovation to swiftly adapt to the future development of the blockchain space. Outstanding players will surely emerge from the competition between multiple chains and rank as second-tier public chains. The rapid advancement of blockchain will bring more challenges, and we look forward to the rise of more emerging public chains.

* The above cannot be relied on as any financial advice.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store