Blast detonated the craze, TVL exceeded 600 million US dollars!

Author: Xiaoyan

Editor: Curry

Speaking of the popular fried chicken in the recent currency circle project, there must be a place for Blast. In less than two weeks after Blast was launched, TVL directly exceeded 600 million US dollars, and the results achieved are very impressive, and can even be described as “amazing”. What is Blast sacred, and why can you get the benefits of “whole network milk” as soon as it is launched? Today, we will talk about Blast in detail.

Blast’s core competitiveness: ETH Layer 2 expansion solutions. **

Blast Network is a new ETH Layer 2 solution that has collected more than $600 million in TVL across the network. **

Blast Network is led by Tieshun “Pacman” Roquerre, who is also the co-founder of the well-known NFT project Blur. Blast aims to improve the efficiency of the ETH Workshop blockchain and solve the current problems of excessive congestion and high cost in ETH Workshop, and in the future, Blast will focus more on speed, cost performance, user-friendliness and other aspects.

Blast encourages users to deposit crypto assets by staking ETH and stablecoins to earn rewards. It is worth mentioning that Blast is currently quite active, with 10,000 ETH, or about $21 million, deposited into just one wallet.

Blast is so popular that it seems to have some sophisticated technology, but in fact, Blast is not a difficult project, and the logic behind it is very simple, is to put the ETH that was originally locked in Layer 1 on LIDO to get staking interest. Interest income is automatically given to ETH holders on Layer 2 Blast. The same is true for other stablecoins, which can earn RWA interest. So, in essence, Blast is essentially a layer 2 network that passively generates funds.

**The current Layer 2 market is “blurred”, relying on Blast to seize the market. **

From this, we can conclude that Blast itself has no innovation at all, but a layer of Stake and RWA that has been deposited with a layer of Stake and RWA, so that the original precipitation of Layer 1 lock-up funds can be used, and its core is still the point airdrop. **

Even so, the emergence of Blast is still important because it eliminates the ambiguity that exists in Layer 2 today. With the “guess” routine, Layer 2 has attracted a lot of funds to be active on the chain, and many Layer 2 projects have basically made money lying down without much effort.

And the emergence of Blast has taught a good lesson to Layer 2, which continues to “lie down to win” and does not act. As soon as the Blast open-card airdrop came out, Layer 2, which still relied on PUA, soon couldn’t hold on, accelerating the time of the coin airdrop. In this way, the liquidity of the Layer 2 market will continue to be attracted by Blast.

It’s no secret that liquidity is precious for Layer 2s. With liquidity in hand, Blast has a core competitiveness and has become a catfish in the Layer 2 track, stirring and stimulating the nerves of every Layer 2 project.

We can foresee that the appearance of Blast could have two outcomes.

**The first is to cause a wave of coin issuance in Layer 2. The advent of Blast will siphon out most of the liquidity in the market. In this case, the already isolated ZK-rollup seems to have nothing to do except be able to attract traffic by issuing coins. **The second is to trigger the reshuffle mode of Layer 2. **The emergence of Blast has torn off the fig leaf of Layer 2, the shortcomings and pain points of Layer 2 have been completely exposed, and the entire industry is bound to accelerate the reshuffle and accelerate the survival of the fittest.

Cybersecurity and legality issues raise questions, what will be the future of Blast?

Blast currently has more than 53,000 subscribers, and TVL has reached a staggering $600 million, achieving a rapid accumulation of funds. Some traders have questioned this, believing that Blast has the potential for a Ponzi scheme. In particular, the network’s recommender system provides a “blast point” for the planned May airdrop, which adds a bit of “suspicion”.

In addition to this, Jarrod Watts, a developer at Polygon Labs, took to social media to express concerns about the alleged centralization of the network. Watts noted that transactions on Blast require the approval of three-fifths of anonymous key holders, which he believes could be a security breach. Watts argues that this structure deviates from the intended decentralization of layer 2 networks and puts user funds at risk.

The Blast team explained this and defended its architecture. He stated that Blast is on par with other Layer 2 solutions such as Arbitrum, Optimism, Polygon, etc., in terms of decentralization. They believe that the network’s upgradeable contracts are a necessary feature to resolve potential bugs and ensure the safety of users’ funds. The team ensures that the keys to secure accounts, which are essential for authorizing transactions, will be securely stored and managed independently, mirroring practices used by other Layer 2 networks.

Interestingly, many technologists can’t sit still when it comes to Blast’s arguments. It is an indisputable fact that everyone thinks that Blast is too big and risky, and everyone talks about it just to remind players. But the Blast official had to come up with a contrived explanation, which meant that there were no three hundred taels of silver here. **

Arguments aside, one thing is an objective fact that cannot be changed: Blast is currently using an upgradable 3/5 multisig wallet. So, fundamentally, there is no technology to guarantee this, and there is only a limit to what we can do, and we can only unconditionally trust centralized institutions such as Paradigm not to do evil. If you’re interested in Blast, be sure to take the risks before you act.

It is reported that Blast is ready to put its bridge into service in February next year. It’s worth mentioning that the network’s success or failure is critical and could have broader implications for the ETH Fang ecosystem and the evolving DeFi landscape. That’s why the Blast team’s commitment to transparency and security is so important at this time.

P.S This article does not constitute investment advice

Source: Golden Finance