Frictionless Capital is a thesis-driven fund investing from first principles backing world-changing entrepreneurs GPs:
@SolanaLegend
&
@LoganJastremski
We are delighted to support
@armaniferrante
and team in building a truly next-generation exchange that reimagines the crucial exchange product as part of our commitment to back category defining products
X is going to be just an exchange like the iPhone is just a phone
The next generation crypto investor is on the ground floor of the ecosystem
and has a view on everything
From the tech, to the culture
VCs that are 4-5 levels removed won’t be able to compete
Portfolio company
@xNFT_Backpack
has executed a flawless go to market via their NFT collection
@MadLadsNFT
This native community will be invaluable for testing and iterating on their stellar cross-chain wallet experience
Congratulations
@armaniferrante
,
@yver__
and team!
Many Blockchains will not be able to cross the chasm
The preferences of the Early Adopters are not the same as the Majority
High-Throughput/Next-Gen Chains allow Censorship Resistance at SCALE
The vast majority of VCs in the space are focused on Ethereum and EVM
This is a historic misallocation of resources and most people are not technical enough to understand the differences between blockchains and don’t have views of their own
You need to be smart on the tech…
Crypto VCs should be highly technical and have a clear research view on the space
Today this is not the case, but being smart on the tech is going to be a major differentiator in the next few years
Being early is not enough...
Frictionless Managing Partner
@LoganJastremski
is hosting a
@SolanaConf
fireside chat with
@aeyakovenko
on what Solana’s endstate looks like and what needs to get built to achieve it
Over the next year some of the most strongly held beliefs and assumptions of what a blockchain should look like will be drawn into question
This is how the paragons of the old world crumble silently
You take the blue pill, the story ends, you wake up in your bed and believe sequential blockchains with side chains are the future. You take the red pill, you realize all modern hardware is multi core, and you see how deep this parallel VM blockchain rabbit hole goes
There will be a Pokémon Go moment for a Web3 App or protocol
And it will be built on a highly performant blockchain that can support tens or hundreds of millions
It’s hard to be internet money and the future of how people spend their time on the internet on 2kb/s
We are going to need more data propagation… 😅 $BTC sorry not sorry
People love to hold hands and dream of a multi-chain future where all of their bags make it
The reality is some blockchains are built to scale for mass-adoption but most are not
When analyzing an industry where only ~15M people sign transactions on chain, a first principles approach is warranted
Network effects remain very limited
Source:
@ElectricCapital
,
@github
Everyone is engagement farming off Solana twitter
For many VC funds this means nothing because they are 3-5 levels removed from the ground floor of the ecosystem
This is a leading indicator for those in tune with what it means
Blockchains should be accessible, fast, and frictionless.
Hear from the co-founders of
@orca_so
,
@rawfalafel
&
@oritheorca
, about how Solana’s low latency and high throughput enables them to focus on building their product 🐋
#OnlyPossibleOnSolana
Layer 1s can be pushed much much harder before L2s become a requirement
Chains that rely on an L2 solution so early in their existence are simply not built to scale
If your goal is mass adoption with hundreds of millions of concurrent users even the best L2 and sharding solution is NOT enough to compensate for a non-performant L1
Building on the right chain(s) is a non-trivial decision that is on par with what to build
Some chains have the features required to scale to hundreds of millions of users but most do not
ETH has admitted defeat on its PoW Bitcoin hard money dreams
But a huge portion of its community still believes in solving for decentralization at the expense of performance
This should be interesting!
Software and marketing are easy to change
Culture and beliefs are hard
Thanks for 1,000 followers
We will publish a research paper every Tuesday, podcasts with leading blockchain minds, and spicy takes daily
Tuesday’s article is on L2s
Cool to see our research cited in
@TheTieIO
's quarterly report.
Block size matters... Next generation chains make block space a commodity and we believe this is a fundamental requirement for mass-adoption
The public's perception vs. reality of Solana has never been wider
Now more than ever the Solana community needs to come together to tell their story
I'll make sure to step up and do my part over the coming months, but for now, I'll leave you with this🫡
🎤 Doing a LIVE podcast (my first ever) with
@LoganJastremski
on Thursday at 10 AM PT to discuss all things
#Avalanche
. You can sign up for a reminder/watch on YouTube here:
If there is anything specific you want me to touch on, leave a comment below 👇