A brand new report means that Cosmos, Polkadot and NEAR may fail to take off if they’re perceived to have a problem with centralization — as the instance of EOS demonstrates.
Non-custodial crypto asset trade ShapeShift has printed a report predicting that Proof-of-Stake scalable sensible contract networks Polkadot, Cosmos, and Close to will probably be completely put to the check this 12 months.
The report forecasts the networks’ claims of elevated scalability with out sacrificing safety or decentralization will quickly be examined. Shapeshift notes the distribution of Polkadot’s and NEAR’s respective native tokens seems fairly centralized on account of “comparatively excessive insider token allocations,” whereas Cosmos’ pluralistic structure requires every of its particular person “zones” to recruit impartial validators — making it tougher for every zone to make sure sturdy safety.
In the end, the doc’s writer, Kent Barton, speculates the perceived diploma of centralization of the respective platforms will seemingly decide which blockchain will thrive from these that may fail to realize traction, asserting:
“This dynamic has already performed out in EOS, the place proof of validator collusion appears to have performed a task within the platform’s anemic developer progress over the previous 12 months.”
ShapeShift predicts the promise of smart contract platform interoperability will probably be put to the check this 12 months, forecasting that “worth and knowledge will start to move trustlessly between totally different crypto ecosystems.”
However the report additionally emphasizes it will likely be a problem to design methods that conceal the complexity of blockchain interoperability:
“Wider adoption will seemingly require that the complexities of interoperability are made practically invisible to customers.”
Noting the absence of a “one-size-fits-all” sensible contract answer, ShapeShift predicts that decentralized exchanges and functions will adapt to the distinctive capabilities supplied by totally different sensible contract platforms.
Nonetheless, the report cautions that the platforms’ improvements may even carry new vulnerabilities as demonstrated by the myriad of flash loan exploits suffered by DeFi protocols in late 2020.
“Rising blockchain ecosystems will seemingly have their very own model of flash loans—highly effective new talents that expose customers to a lack of funds,” mentioned the report.