Crypto Market: Consensus More Important than Technology

Source: Daoshuo Blockchain

1. Can fil's second-layer subnet technology solve the problems of BTC expansion and DA?

I don’t know much about fil’s layer 2 subnet technology. However, when it comes to solving the BTC expansion and DA problems, many technical means and projects can be used to try to solve the BTC expansion and DA problems, and there are already many ready-made solutions.

However, no matter what the specific methods they use, as long as DA is not placed on the main network (such as Bitcoin and Ethereum), then their security will definitely be compromised, but it’s just a discount. question.

This kind of DA solution that compromises on security also has its own application scenarios: that is, applications that are not so secure. Applications that require extremely high security, such as DeFi or payment, probably still need to put DA entirely on the main network.

So whether fil's second-layer mainnet technology can solve the problems of BTC expansion and DA, we must first see how secure it is, and then judge its application scenarios based on its security, and then see if it can Solve problems in which application scenarios.

2. How about the XX project on the XX protocol?

Many readers left messages asking about the XX protocol in the Bitcoin ecosystem and the XX projects on the protocol?

There are too many protocols emerging on Bitcoin and other blockchains, and as soon as each protocol appears, it will be accompanied by a bunch of new projects of this kind and that.

I am not familiar with many of these new protocols and projects, so it is difficult to judge how each new protocol and project is.

I think this is probably a common problem encountered by users in the current ecosystem. This situation itself means that most of these protocols and projects are destined to be zero in the end, because they may not attract the attention of the majority of users at all, or even be known to them at all.

So we should pay attention to two points when looking at these agreements and projects:

The first is what I have mentioned repeatedly: don’t be too superstitious about technology. It is definitely not that the more advanced the technology, the more likely it will be adopted. Good technology is only the first step. Whether it can be quickly promoted and used is the second, more critical step.

Regarding this, we have already seen in the involution of the second layer expansion of Ethereum: the ZK system with better technology has so far been unable to compete with the OP system ecologically. We have seen it again in the Inscription Ecosystem: Bitcoin Stamps and SRC-20, which are technically more secure, are still ecologically inferior to Inscription and BRC-20.

The second thing is to look at the community and consensus of these projects. Without a rapidly expanding community and strong consensus, these new projects are quickly annihilated and forgotten.

So for new agreements and new projects, my personal suggestion is that if you like it very much, then pay more attention and participate appropriately, but don’t be too obsessed and don’t easily reposition yourself. More often, we need to continue to observe. and compare.

3. The XX I bought has doubled XX times, should I continue to hold it?

This is a question asked by many readers who hold inscription assets.

Some of the assets (such as inscriptions, NFTs, etc.) bought by these readers in this round of Bitcoin ecological explosion have so far made good profits. Now they are faced with doubts whether they should liquidate or continue. hold.

My suggestion is to look at your personal position status:

If your position is very heavy when you buy it, then I suggest that you can indeed liquidate part of it to ensure the safety of your funds.

But if you participate with a small-capital mentality when buying, and if these funds are completely lost, it will not affect your overall financial security, like me, then I will definitely not sell. I would hold until the bull market hits and then cash out when it gets close to crazy. The risk of doing this is that the projects you hold are very likely to return to zero; but the advantage is that as long as you catch a big target, the income from that one can cover the losses of other projects and there will be additional generous income.

In my past experience, 10% of projects will bring amazing profits, 20% of projects will bring good profits, 10%~30% of projects will maintain capital, 40%~60% All projects may be lost. Taken together, the overall benefits are pretty good.