Quite interesting analogy. What city would Hedera be?

medium.com4m ago

That leaves #3, the last approach on how to scale a city: build another one.

This is what Solana, Avalanche, and NEAR have each done.

When you build a new city, you have to first reduplicate a lot of infrastructure. It seems redundant. Each new city requires another set of roads, another police station, a school, a hospital. In the same way, every new L1 requires another block explorer, another fiat onramp, a native AMM, an NFT marketplace. It’s redundant, but every L1 needs those basics to get off the ground.

But the nice thing about building a new city is that each city can be built differently.

Take Solana for example — Solana is LA. It’s big and sprawling and cheap compared to Manhattan. You can be a starving actor and get by in LA! Ignore that east coast fixation on decentralization — move your app to Solana, launch your NFT, and capture your 10 minutes of fame.

Sure, Solana isn’t the most decentralized. But games and NFTs don’t need that much decentralization to begin with. The weather’s great, fees are low, and no one takes themselves too seriously.

What’s Avalanche then? I’d say Avalanche is Chicago: trying to be the next Wall Street, but newer, cheaper, more aggressive. It’s cold up there, but Avalanche’s specialization in finance and trading gives the city energy and self-confidence. It’s hard not to bet on it rising.

Credit: ChooseChicago

And NEAR? NEAR is San Francisco — built for web3 techies. It’s an idealistic city, full of people who want to fulfill the Ethereum 3.0 dream. In their minds, sharding is the only way forward long-term.

Credit: Rough Guides

The important thing about these cities is not just that they’re big and open for business. Each has a different vision of what a city should be and how it should be governed. They each accept different tradeoffs, adopt unique values, and attract different industries.