Similar to other definitions of ecosystems that we are familiar with, the Crypto ecosystem is also a system consisting of various interconnected products that support each other within the same blockchain. Each blockchain is likened to a company providing infrastructure and also wants to have its own complete and comprehensive ecosystem.
What is the Crypto ecosystem?
A complete ecosystem includes the following key components:
Transaction & Payment Services: To meet the basic needs of a blockchain, which are transactions and payments. This includes smaller components such as tokens, smart contracts, and wallets.
DeFi: This is currently the most prominent component, and most blockchains are striving to develop this component fully. DeFi mainly provides users with transactional needs such as lending, borrowing, or savings without the need for any intermediaries. DeFi includes key elements such as stablecoins, decentralized exchanges (DEX), lending and borrowing platforms, and synthetic assets.
Social, Entertainment: Interacting with the community and entertainment are also essential needs today. The main components of this area are NFTs (Non-Fungible Tokens), gaming, and gambling.
Enterprise blockchain solutions: These are practical applications of blockchain in fields such as finance, supply chain, healthcare, and education.
Crypto ecosystems
In the current Crypto landscape, there are numerous ecosystems. However, generally speaking, blockchains can be divided into three main tiers:
Tier 1: Ethereum and Binance Smart Chain (BSC) are considered the strongest ecosystems currently, as they have integrated almost all the components. They serve as the standard for comparison with smaller projects.
Read more articles:
- What is the Ethereum ecosystem?
- What is the Binance Smart Chain ecosystem?
Tier 2: Solana, Avalanche, and Polkadot are promising ecosystems, but they still lack a few components to achieve completeness.
Read more articles:
- Learn about the Solana ecosystem.
- Learn about the Polkadot ecosystem.
Tier 3: Near, Cardano, and Dfinity are relatively new ecosystems with limited development.
Read more articles:
- Learn about the NEAR ecosystem.
- Learn about the Cardano (ADA) ecosystem.
- Learn about the Dfinity ecosystem.
Investment opportunities in Crypto ecosystems
A strong ecosystem is an important weapon for blockchains to compete with each other. Only blockchains that have developed all the necessary components and serve most user needs while retaining users have a chance of ultimate success.
Investment opportunities in Crypto ecosystems Even incomplete blockchains have opportunities when they invest in completing their missing components, apply specific strategies to approach users, and build trust to retain users.
Conclusion
The above provides some fundamental knowledge about the Crypto ecosystem and gives readers a general overview of the current ecosystem in Crypto. Each blockchain aims to build its own ecosystem to compete with other blockchains in terms of users, funds, and projects.
Regarding investment, thorough research is necessary for each ecosystem to make confident investments and generate profits while meeting one’s own needs.