19min chapter

The Rollup cover image

Nick White and Jon Charbonneau on The Rise of Celestia's Native Ecosystem

The Rollup

CHAPTER

Economic Dynamics of Decentralized Applications

This chapter examines the intricate economic dynamics surrounding decentralized applications and layer one blockchains, focusing on the competing interests of developers to optimize costs and maximize transaction throughput. It discusses the crucial roles of network effects and interoperability in enhancing the functionality of blockchain solutions, while addressing the debate on data availability as either a commodity or a valuable resource for applications. Additionally, the chapter highlights the importance of light nodes and secure consensus models in ensuring scalability and trust within blockchain ecosystems.

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