Making Web 3 More Relatable aka Abstraction
A fast-track explanation of three major L1S, but what the fug is L1s, and how do they work?
In recent weeks, we have been talking about news and political decisions that drive crypto market volatility. We also talked about art and how blockchain can help to manage and track the value of real-world assets. I figured that talking about more relatable news would drive more reader engagement and I wasn’t wrong. That’s why I want to dedicate this week to explaining a few interesting Layer 1, and a few important concepts, aiming to engage with more curious without losing the technical audience of these subs. We are almost 1,000 subscribers, so if you have been enjoying this newsletter, please share it with a friend who needs to be both informed and slightly confused about blockchain technology. If you haven’t enjoyed it, please share it with an enemy.
We're going to compare Ethereum, Solana, and SUI. And yes, they sound like the names of expensive perfumes or possibly IKEA furniture. "This sectional sofa? Oh, it's a SOLANA. The ottoman is from the SUI collection."
What is a "Layer 1" Anyway?
Before we start, let's get something straight: a Layer 1 blockchain is the foundation aka the main infrastructure where all the crypto magic happens. It's like the actual restaurant, as opposed to the food delivery app (that would be Layer 2, and we're saving that migraine for another sub).
These Layer 1s are the digital kingdoms where your crypto lives, where transactions happen, and where developers build applications that will either revolutionize finance or become elaborate digital Tamagotchis. Sometimes both.
Ethereum is the blockchain world's New York City. It was cool at first, everyone important is there, the infrastructure is aging, and my God, the rent!
Ethereum is the blockchain that made smart contracts a thing, the natural evolution of Bitcoin as decentralized value, is programable value executed through smart contracts.
Important things to understand
Consensus Mechanism: Proof of Stake, which means instead of solving math problems to validate transactions (that was the old way), you now essentially put up ETH as collateral to pinky-promise you won't be a jerk.
Transaction Speed: About 15 transactions per second, which is roughly the speed at which my mom forwards good morning WhatsApp chains. As a reference for these subs, the VISA network can process 65,000 transactions per second.
Programming Language: Primarily Solidity, which sounds like a meditation app but is actually what developers use to create smart contracts while consuming concerning amounts of caffeine.
Why is important? Security, first-mover advantage, and the most developed ecosystem. It's the blockchain your parents might have heard of.
Challenges: Scalability and Gas fees that sometimes cost more than the actual transaction. "Sure, I'd love to send you $5, but it'll cost me $37 to do it. Can I just Venmo you instead?"
If Ethereum is New York, Solana is like Los Angeles faster, shinier, more affordable, but occasionally the whole system just... stops.
Solana is the blockchain that sacrificed a bit of decentralization to make transactions faster than a caffeinated cheetah and cheaper than budget airline tickets (though with similar reliability issues).
Important things to understand
Consensus Mechanism: Proof of Stake plus something called Proof of History, which is like giving the blockchain a wristwatch so it knows when things happened.
Transaction Speed: 65,000 transactions per second aka VISA level, which is actually fast and why is driving a lot of adoption from gaming and DeX.
Programming Language: Rust, which isn't what happens to your car in winter but rather what makes developers feel both sophisticated and perpetually confused.
Why is important: Speed and low fees. Sometimes people say that Solana aims to be a sort of decentralized Nasdaq. Imagine that.
Challenges: Network outages. For a technology supposedly running 24/7, Solana has more downtime than a subway station in Brooklyn during Xmast.
SUI is a blockchain I personally like it because is sort of the new cool kid on the block. The equivalent of that new fusion restaurant in your neighborhood. Innovative, exciting, and not entirely proven.
What makes SUI innovative is it uses object-oriented programming. SUI treats digital assets like actual objects you can own, move, and combine, almost as if that JPEG of a monkey could become a real pet (it can't, but conceptually, it's super close).
Also, SUI takes four important primitives (aka building blocks) to its blockchain:
ZkLogin: enables Web 2 UX auth process.
Kiosk: is a decentralized commerce platform.
Sponsored Transactions and PTBs (Programable Transaction Blocks), give the ability to bulk transactions into one node validator.
Consensus Mechanism: Proof of Stake with something called Narwhal & Bullshark, which sounds like a Saturday morning cartoon but is actually a fancy consensus protocol. Imagine blockchain consensus as a chaotic town hall meeting where everyone must speak one at a time through a single microphone. Narwhal splits the workload among multiple "assistants" who collect and share information simultaneously (like having a team texting party invites instead of one person calling everyone), while Bullshark silently observes all this chatter and establishes the official timeline without adding any extra communication. The result is blockchain technology that transforms from a piano being forced through a revolving door into a streamlined loading dock with professional movers. Instead of Bitcoin's 7-15 transactions per second, these aquatic-named protocols handle thousands.
Transaction Speed: 120,000 transactions per second,
Programming Language: Move, designed specifically for secure digital asset management
Why is important? Object-centric approach, parallel processing, and horizontal scaling, which is tech jargon for "things go zoom zoom without breaking."
Challenges: It's newer than half of the F1 Grid and about as proven. Using SUI is like being an early adopter of air travel exciting, potentially revolutionary, and occasionally terrifying.
Choose Ethereum When:
You want to park some money for a while (I don’t mean invest, I mean you are not going to transact a lot, remember gas fees)
Security is more important to you than speed
You want access to thousands of decentralized applications and the digital equivalent of Studio 54
Choose Solana When:
You're impatient and cheap (I mean this as a compliment)
You need transactions faster than a toddler's mood swings
You're building something that needs to scale quickly and don't mind the occasional unplanned nap, they have an amazing developer community, forums and technical support.
Choose SUI When:
You're fascinated by the concept of digital objects with clear ownership
You want the blockchain equivalent of parallel processing
You enjoy being on the bleeding edge and telling people "I was into SUI before it was cool"
In Conclusion: Pick Your Poison
The truth is, all these blockchains are trying to solve the same fundamental problem: how to create decentralized, secure, and efficient digital infrastructure. They just have different approaches, like competing pizza chains all trying to deliver you a hot pie without dropping it on the way.
Ethereum is the established, expensive, but reliable option. Solana is the faster, cheaper alternative that occasionally needs to be turned off and on again. And SUI is the shiny new thing that promises to revolutionize how we think about digital assets while we're still trying to figure out if we even need digital assets.
Whatever you choose, remember the first rule of crypto: never invest more than you're willing to lose while staring blankly at a screen wondering where it all went wrong.