Navigating Passive Income: Unraveling the Controversies Surrounding Blast’s L2 Network and NFTs

Embark on a journey into the realm of “Passive Income” with Blast, the innovative Layer 2 (L2) network introduced by Pacman, the founder of Blur, a decentralized NFT exchange. In the past week, Blast has stirred the crypto community with its unique “on-chain native yield” feature, promising a secure interest rate for users’ assets on the blockchain. However, as we delve deeper into Blast’s functionalities, controversies surrounding the project become apparent.

Navigating Passive Income: Unraveling the Controversies Surrounding Blast's L2 Network and NFTs

Understanding Blast: Passive Income?

Blast operates as a Layer 2 network designed to offer users enhanced asset security with its distinctive on-chain native yield mechanism. When users deposit ETH or significant stablecoins into Blast, the team ensures that the assets on Ethereum are securely stored in protocols like Lido or MakerDAO. This dual approach not only allows users to interact with Blast’s DApps but also enables their assets to earn a baseline interest rate, optimizing capital utilization.

Further Reading: Unraveling Blur’s Earning-Oriented L2 Network Blast: On-Chain Native Yields, Sustainable NFT Contracts, and More.

Impressive Metrics:

Blast’s performance has been remarkable, with a Total Value Locked (TVL) exceeding $500 million within a short period. Leveraging Blur’s proven point-based system, Blast has swiftly climbed to a top position among existing Layer 2 projects, securing its spot in the top five.

Controversies Surrounding Blast’s Technology

Despite its initial success, Blast has faced significant criticism. The project’s mechanism reveals several notable issues, notably the multi-signature control held by the Blast team, allowing the movement of funds to Lido. This centralization has raised security concerns, compounded by Blast’s current lack of a tested network, absence of transactions, cross-chain bridges, and a reliance on a simple deposit smart contract rather than a fully-fledged Rollup solution.

Jarrod Watts, an engineer at Polygon Labs, highlighted these concerns on Twitter, stating that Blast’s current state cannot be considered a true Layer 2 solution. Additionally, industry figures like Yuxian, the founder of SlowMist, pointed out security issues arising from the upgradability of the contract without public disclosure of the multisig holders.

Is Blast L2 a Sham? Developer Reveals Exit Risk

Critiques on Blast’s architectural simplicity and deviation from decentralized principles have sparked essential discussions within the community. Steven Goldfeder, the founder of OffChain Labs, even labeled Blast as a misuse of the Layer 2 terminology.

Marketing Controversies:

Blast’s ability to attract funds quickly is attributed not only to its unique yield mechanism but also to a point system reminiscent of Blur. Users depositing assets into Blast earn points, creating anticipation for future airdrop rewards. However, such point systems have been criticized for failing to engage genuine users, with much of Blur’s current transaction volume comprising trades driven by point accumulation motives.

Moreover, Blast’s invitation code mechanism has drawn comparisons to a pyramid model, raising concerns in the community. In response to these apprehensions, Pacman, the founder, addressed them in a post, attempting to alleviate concerns within the community.

Paradigm's Perspective of Blur's L2 network Blast

Paradigm’s Perspective:

Paradigm, as a major investor in Blast, finds itself at odds with several practices employed by the project. Dan Robinson, a member of the Paradigm team, acknowledged that Blast had overstepped boundaries in terms of information dissemination and execution.

While Paradigm disagrees with several aspects of Blast’s strategy, including the early activation of mainnetBridge and the delayed implementation of user withdrawals, they express continued support for Pacman and his team. Paradigm emphasizes their confidence in Pacman’s abilities, citing successful past collaborations on projects like Namebase, Blur and Blend.

Despite disagreements, Paradigm remains engaged in discussions with the Blast team, underscoring their commitment to voicing opinions on their responsibilities within the ecosystem.

The Importance of Independent Thinking

As Blast navigates its way through controversies and looks towards sustained growth, it faces numerous challenges. It is essential for all stakeholders, including the project team, professional investors, community commentators, and market sentiments, to be considered with accuracy and objectivity.

Beyond surface-level observations, it is crucial to delve into the motivations behind each perspective to form a comprehensive understanding of the situation. Independent thinking is paramount in the Web3 ecosystem, especially when evaluating projects surrounded by controversies. Blast’s journey continues, and as it does, the ability to think independently becomes increasingly vital.

Earn Passive Income! Blur’s New L2 Network——Blast

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