DLT platforms review: 2 October 2018

NKB TEAM 02. 10. 2018

The distributed ledger technology (DLT) platforms provide a necessary infrastructure for the creation of Distributed Applications (Dapps), issue of tokens, crowdfunding and other use cases in the crypto space. The choice of a platform implies restrictions on features of an application, affecting the user experience in the final product or service. While the existing parameters of platforms are important for Dapps launching now, the interoperability of platforms and evolving regulatory landscape will play a major role in the future, highlighting new raising stars. In this report we compare several decentralised platforms, in terms of the technological solutions they offer, their development plans, their security, scalability, governance system and some other characteristics, which are important not only for the valuation of platforms, but also for distributed applications and their potential customers. We have based our conclusions on public materials and our interveiws with developers, users and representatives of the platforms.

  • A Distributed Ledger Technology (DLT) platform creates an ecosystem and sets limits for distributed applications built on the top of it. The platform parameters, such as governance model, economic characteristics and technologies used, are restraining factors for use cases and “mass-adoption” of the blockchain by large corporations. We have analyzed a few blockchain platforms to compare their parameters such as the governance system, security, protocol, economics, scalability options, and technology, along with others.
  • Ethereum is the largest platform so far in terms of Dapps, fees received and the size of community. The scalability issue and the lack of a regulatory layer that makes it easy to create scam schemes on the top of it are the main points of criticism.
  • The centralized validation became a trade off to get a regulatory compliant system in VeChain and NEO. Alternatively, the self-amend governance system, probably based on Futarchy, may be realised at Tezos.
  • The valuation of platforms reflects the upside investors now see in their scalability, use cases, technology and community. The scalability of EOS, IOTA and Hedera Hushgraph may still compromise trilemma (security versus scalability versus centralization). The market gives credit for new use cases, reliability and technology upgrades and criticism for regulatory issues, scalability issues or development delays.
  • The community of developers and users is a key determinant of the platform success. Ethereum, followed by NEO, Cardano, EOS, VeChain and Waves all have good communities which are supportive for their platform development, while Tezos needs to catch up to increase in the popularity stakes.

Date: 2 October 2018

Crypto MktCap: $221 bn

Bitcoin dominance: 51%

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NKB TEAM 02. 10. 2018

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