Will Layer 2 Projects Be Worth Investing As Hive Scales Up? — YES!
This is a question I feel a lot of people may be having in mind, the uncertainty comes in where one begins to compare to determine what is the best deserving for their money and possibly time. It's a great thinking phase to get through if we're being honest, the thing about investing is that preferably, the best is the go regardless of the circumstances. As many may have it, the ecosystem is greatly expanding. I came in when token price wise, we were dancing below 50 cents, but look where we are now? Even though sometimes, these market prices may be irrelevant since sometimes, hype drives demand and demand pushes token prices, but on a fundamental view, this is a sign of a healthy economy, which can only be achieved by project developments.
Let's take bitcoin as a case study. Many have always openly spoken about the regrets of not investing in it during its launch days. Yes, it is understood that circumstances may lead to lost opportunities, but time definitely offers some more chances to rebound. Ethereum was a chance or somehow, still presents itself as an opportunity for those that missed the bitcoin train. Though these projects have turned out to offer different solutions, the latter still stands complementary to bitcoin because it was created to do just that!
Back To Hive - Layer 2 in a nutshell
Layer 2 projects are complementary in the sense that it not only adds more money to the Hive economy, it also gives room for networking, which is a long term merit for any system. Community holds a lot of power when it comes to building infrastructures that stand the test of time, Hive, basically, is what it is today because these second layer projects exist! I personally couldn't think of what community I could have stuck this long, but Leofinance was a solution with great attractions.
Many people tend to underrate or even downtalk layer two solutions, but let the misinformation be treated, these networks are complementary to the base layer blockchain! If we look at Ethereum and polygon, it's clear polygon could just stand the test of time as it has managed to bridge the Ethereum network, offering a solution of cheaper transactions, something that seems as though Ethereum would suffer for a very long time!
Will Layer 2 Projects Be Worth Investing As Hive Scales Up? — YES!
On Hive, a number of these projects will be worth it provided developments keep being at its heart. As lots of people have lost the chance to build a huge stake on the base blockchain, what do you think would happen to these projects when Hive is priced as huge as $50? Time could actually be running out on acquiring cheap Hive tokens, but second layer solutions will aid in further accumulation, creating a network that cashes back into the base blockchain. Money will move from Hive, and spread through layer two projects and move back into Hive, this is why Hive itself is sustainable, because wealth has its way of traveling across, so these values are the importance of wider networking, and this is what layer two brings to the table…
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Layer 2 is similar to what happened on SAB (sellaband.com) when they allowed a community to grow around their website/company. In any given week there was anywhere from 3 - 20 community driven projects/ideas started. Yes the vast majority of these failed, but even in their failure they brought hundreds of new visitors and potential members to the main site. Most of these existed outside of the main site and only reference or limitedly directed traffic to the main site. Actually if I remember correctly Slice the Pie and Kickstarter were added into those references as they started up.
Even today (15 years later) I know of at least 10 projects that now operate alone. After all when SAB got rid of the community additions to their site these projects had to build their own. These 10 projects are going strong helping more and more musicians find their way in cyberspace. A few of these projects work together where one is stronger in an area while another is weak in that area. (too bad 50k music mag no longer can be numbered in that list).
This is how layer 2 operates, look at Leo. The Cub exists outside of Hive and yet is a strong layer 2 member of the greater community. Not sure of other nested communities here on Hive but I have seen where 2 or more tokenized communities have or continue to work together.
Even the layer 2 tokens that have a limited userbase (less then 1000) are worth while as long as they don't become inert. After all sometimes the world at large isn't ready for a great idea when it 1st arrives. This could be the case with any of the lesser used tools rather tokenized or not built here on hive (or elsewhere).
Classic contribution, definitely worth more than my 2 cents appreciation!
Appreciation even if only 0.000000000000001 is more valuable then any token TBH
I wanted to add more 0's but felt that would be too extravagant.
I absolutely see a future in this technology let alone so many different applications so your conclusion is highly correct.
Awesome deduction and analysis I really appreciate your content and I agree with your view here.
I can't wait to watch this entire technology truly mature.
I could not agree more. I am actually researching into several layer 2 projects and deep diving into several communities to figure out where I plan on putting a deeper investment level in.
It is quite ingenious of a framework to have so many projects create it in an open source way so that other developers can create on top or something to complement the projects. I can't wait to see what hive and its layer 2 develop into in the next 5-10 years.
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You're right, for some reason I see a large group frown upon layer 2 projects. But these projects most certainly help drive adoption.
Good stuff.
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