New Mainnets in 2023: Here's what you need to know
New Mainnets in 2023: Here's what you need to know
TL;DR
Layer-1 mainnets are battling in a race to winning a share of the community and the market; focusing on new technology breakthroughs, funding & grants, and strong network effects.
The 2023 spotlight falls on Sui Network, Pi Network, and BASE. Each harnesses its unique advantages to woo the market.
While a bear market continues, the steady roll-out of new mainnets fuels positivity. But, with fewer contenders entering the ring, expect the competition to heat up.
What are mainnets?
The best way to understand what a mainnet is is by comparing it to an operating system like iOS for iPhones. An array of applications are developed on iOS, attracting a broad user base and creating a unique ecosystem. A mainnet operates in a similar manner. As decentralized applications (dApps) are developed and deployed on a mainnet, it attracts users and organically form a distinctive ecosystem.
When such an ecosystem expands, it sets in motion the "winner-takes-all" phenomenon due to the network effect and economies of scale. The ecosystem built upon iOS has undeniably become irreplaceable for both developers and users, and mainnets are designed to emulate this effect. As an ecosystem grows, the value of the underlying mainnet naturally increases. All mainnets are competing to become the iOS of Web3.
However, to achieve this, it's important to show WHY the mainnet must be used to both developers and users. Factors such as technological advancement, plentiful capital, or an extensive user network should distinguish it from other mainnets.
Sui Network
The Sui Network is developed by members of Facebook's Diem team, who are better known by their work with Libra. It aims to create a mainnet capable of accommodating billions of users. The network, designed for utilization across various web3 industries, pursues scalability and programmer-friendly environments through:
Ultra-fast Processing: With capabilities of up to 120,000 Transactions Per Second (TPS) under certain conditions (25,000 TPS per core), it surpasses the processing speeds of both Ethereum and VISA.
High Scalability: A horizontally scalable structure allows for an organic increase in network capacity as the number of validators grows, thereby maintaining low gas fees, even amid high network traffic.
Complex Transaction Configurations: It provides a programmer-friendly environment with programmable transaction blocks, which enables more complex transaction configurations.
Consensus Algorithm and Engine: The adoption of Bullshark, an object-oriented blockchain with a free development environment, addresses the problems of existing Directed Acyclic Graph (DAG) consensus engines.
Sui Network's developer, Mysten Labs, has successfully raised $36 million in Series A funding and about $300 million in the Series B investment round. Notable investors include a16z, Coinbase Ventures, Binance Labs, SamsungNEXT, and NCSoft.
The funds have been deployed in various ways, including the provision of grants to developers. These grants range from $10,000 to $100,000, which reflects the importance of developer participation for the long-term growth of the mainnet ecosystem.
While the fervor around the Sui Network has seemingly cooled since its mainnet launch and subsequent airdrop, they are continually expanding the ecosystem through initiatives such as the Sui Improvement Proposals (SIPs). Armed with a strong technical and capital foundation, the network's remaining challenge is to launch user-friendly dApps to gather a strong community base.
Pi Network
The Pi Network gained considerable attention in 2019 as an altcoin mineable via smartphones. After launching a closed mainnet last year and initiating KYC procedures, the network is anticipated to officially launch this year on Pi Day, June 28th.
The Pi Network has focused more on accessibility rather than technological , resulting in over 45 million active users. However, the network's approach, which allows mining without actual computational work or block creation, has raised some eyebrows regarding its validity.
Pi Network is unique in the sense that it has its own internal KYC process, as opposed to conducting it through an exchange. This has raised privacy concerns, as it could potentially lead to personal data breaches or identification of individual users.
BASE
Coinbase has launched a test-net version of Base, an Ethereum Layer 2 chain, designed to assist Web 3 developers in building decentralized apps (dApps) efficiently. Jesse Pollak, who spearheads Base, recently hinted in an interview with TechCrunch that the launch of the mainnet is planned for 2023. Although he didn't share a precise timeline, it's safe to assume that Base aims to facilitate an effortless development environment, similar to the testnet.
Conclusion
As we wrap up, it's important to note the diversity in the 2023 Layer 2 ecosystem landscape. While initial predictions favored Ethereum dominance, an array of mainnets now dot the scene, each pursuing distinct goals.
The Sui Network certainly stands out with its immense potential. Alongside Aptos, which hit the scene last year, this tech innovator may well pave the way for a novel ecosystem approach.
However, the flurry of significant mainnet launches has undoubtedly slowed down. Regional winners like Klaytn & Oasys are becoming rare finds. Going forward, we predict a fierce face-off among the existing mainnets.