A new report says Cosmos, Polkadot and NEAR will not be able to take off if they encounter central problems, as the EOS example shows.
ShapeShift, the non-custodial crypto asset exchange, has released a report that expects Polkadot and Cosmos’ smart contract networks to be tested and near proof of rigidly scalable stake this year.
The report predicts that the network’s claims of increased scalability without compromising security or decentralization will soon be verified. Shapeshift notes that the distribution of tokens for Polkadot and NEAR appears somewhat central due to “the relatively high distribution of tokens from within”, while Cosmos’ pluralistic architecture requires each of its separate “regions” to recruit independent auditors, complicating the task for each region . … to ensure reliable security.
Ultimately, documentary filmmaker Kent Barton ponders the perceived degree of centrality of the platforms involved and is likely to determine which blockchain will thrive with those not receiving support, arguing:
“This dynamic is already emerging in EOS, as it appears that evidence of collaborative validation has played a role in the lean growth of platform developers over the past year.”
ShapeShift predicts that the promise of smart contract platform interoperability will be put to the test this year, and predicts that “value and data will begin to move reliably between the various cryptographic systems.”
But the report also highlights that it will be difficult to design systems that mask the complexity of blockchain interactions:
“Large-scale adoption will likely require the interaction to be a complex virtually invisible to users.”
As there is no one-size-fits-all smart contract solution, ShapeShift expects exchanges and decentralized applications to adapt to the unique opportunities offered by various smart contract platforms.
However, the report warns that platform innovations will also bring new vulnerabilities, as evidenced by countless credit flash exploits under the DeFi protocols in late 2020.
“The growing blockchain ecosystems will likely have their own version of fast loans – powerful new capabilities that put users at risk of losing money,” the report said.