Farcaster

Considering the creation of a new service, the choice between creating a new L1 or an L2 is a crucial initial decision. Unlike PCs or smartphones, where newer technology is always better, this is not always true for blockchain.

⭐️ Network Effect 
In blockchain, the protocol that first achieves the network effect secures a first-mover advantage over latecomers. Trust, network effect, and branding function as a moat.  That's why Bitcoin is still the No.1 Market Cap.

⭐️ The Uncopyable 
While you can copy the code of DEXs like Uniswap, you cannot copy the community or trust. Building community and trust involves improving the service, communicating with users, and making it more user-friendly over time. This is a growth process that cannot happen overnight.

⭐️ Conclusion 
Looking at the current situation, catching up to a first-mover service is not easy for newcomers. When entering the market now, it seems easier to focus on product development rather than creating a new protocol from scratch.