• Our Web 3.0 thesis is that the entire field will evolve as Ether or a specific layer-1, which we believe will become Ether with network effects 99.9999% of the time.
  • According to the scalability trilemma, increasing the scalability of a blockchain comes at the expense of security or decentralization.
  • Then, any layer-1 that claims to be more scalable than Ether will eventually choose scalability over decentralization. Any layer-1 that tries to complete more transactions at layer-1 will either fail to deliver on its promise.

Sandeep Nailwal, co-founder of Polygon (MATIC), an Ethernet (ETH) scalability tool, believes that ETH is responsible for the third generation of the Internet. In a new interview with Cryptocurrency Channel host Scott Melker, Nailwal claims that Ether will massively dominate Web 3.0, a version of the Internet where platforms are decentralized and people manage their own data.

Ethernet has a network effect 99.9999% of the time

Our Web 3.0 thesis is that the entire field will evolve as Ether or a specific layer-1, which we believe will become Ether with network effects 99.9999% of the time. And the evolution of Ether or ETH as an asset. The evolution of the ethereum network as a decentralized protocol. How the ethereum community has evolved to the point where people like us are fighting for the protocol as if it were our own. Ether has significant advantages that we don't expect any other layer-1 to catch up with.

While Ether has speed and cost limitations, the Polygon (MATIC) co-founder claims that unlike its competitors, it manages to remain decentralized. According to Nailwal, the second largest cryptocurrency asset by market cap puts security and decentralization above scalability, citing the scalability trilemma originally established by Ether co-founder Vitalik Buterin.

Cost of security or decentralization

According to the scalability trilemma, increasing the scalability of a blockchain comes at the expense of security or decentralization. You can only choose two of scalability, security, and decentralization, right? And you can't avoid having security, which is a requirement. So you have to choose between scalability and decentralization.

Then, any layer-1 that claims to be more scalable than ethereum will eventually choose scalability over decentralization. Any layer-1 that tries to complete more transactions on a layer-1 will either fail to deliver on that promise. Or, they are very centralized. Or, at the very least, they are designed in such a way that they will never become decentralized enough.