**Does the world need so many layer 1 blockchain projects?**

This is the question I am mulling over today, an important question for an investor in cryptocurrency to ask.

*Look, I am generous in the sense that I am giving you my 2 cents worth even though this is the only two cents I have!* 

Indeed, I am not highly knowledgeable about the blockchain industry, but I feel I need to start thinking about this question by writing it out.   

*Let’s go!* 

By layer 1, I am referring to the blockchain ecosystems out there that many projects are built on. The most famous is Ethereum. The rest are chains like Solana, Cardano, Elrond, Zilliqa, Hive and the like where others can build projects on. 

Fundamentally, what every native blockchain is hoping for is that developers build projects on it, and users use them. That would make the native token valuable. That is what early adopters who had bought the tokens at ridiculously low prices are betting on. When the blockchain is of value, i.e., great adoption, prices should rocket!

That is how the game is typically played.

With that in mind, let’s go back to the question: **Does the world need so many layer 1 blockchain projects?**

The quick answer is **no**. Because *there is a limit to the number of users and developers*, or should I say, there is a limit to the number of willing funds to be poured into the blockchain.

Therefore, there will be a limit to how many layer-1 blockchains would be needed. If we have more blockchains, they will likely be some that have a limited user base. So, at some stage, the number of new layer 1s should dwindle. No one needs more layer 1 blockchain to build ecosystem, unless it is a new solution that the blockchain world badly needs.

As an investor, is it wise to invest in every reasonably good layer 1 blockchain? Of course not. One really must understand that some layer 1 blockchain will fail, no matter how good the founders made them sound. Simply because of the lack of adoption, and adoption is a hard game to play.

My take on this has led to me turning a blind eye to newer blockchains that appear recently. I don't follow that type of news anymore. 

And no, I don't invest in Solana, Ethereum, Elrond or Cardano, because I don't plan to use their ecosystem. 

Instead, I use Hive (duh!, see [What is Hive?](https://leofinance.io/@leoglossary/leoglossary-what-is-hive)), which I find has whatever I need as a blockchain ecosystem. 

The feeless transaction model is a feature that other blockchain does not have. The growing community actually talks about it on the blockchain, which I see as a win over other blockchain projects.

So no, **my** world does not need so many layer 1 blockchain projects. 

 


![](https://images.hive.blog/0x0/https://images.hive.blog/DQmaQioiDMPpE4AcBKH6i9CPzpBZiqkEbReRYswysdbze8x/Screenshot%202022-06-21%20at%204.30.29%20PM.png)

P/S: This is not financial advice, and please do your own due diligence before investing.

**If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.**

*You might be interested in this post, @deflacion, @jacoalberts, @young-kedar, @svanbo and @hankanon!*
  


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