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To EVM or Not to EVM: Blockchain Compatibility and Network Effects. (arXiv:2208.10269v1 [cs.GT])
Aug. 23, 2022, 1:20 a.m. | Ruizhe Jia, Steven Yin
cs.CR updates on arXiv.org arxiv.org
We study the competition between blockchains in a \emph{multi-chain}
environment, where a dominant EVM-compatible blockchain (e.g., Ethereum)
co-exists with an alternative EVM-compatible (e.g., Avalanche) and an
EVM-incompatible (e.g., Algorand) blockchain. While EVM compatibility allows
existing Ethereum users and developers to migrate more easily over to the
alternative layer-1, EVM incompatibility might allow the firms to build more
loyal and ``sticky'' user base, and in turn a more robust ecosystem. As such,
the choice to be EVM-compatible is not merely a …
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