The Platform-Product-Market-Fit Dilemma and the New Blockchains that can Challenge Ethereum in the Security Tokens Market

The current generation of security tokens has been mostly tied to the Ethereum blockchain. When comes to digital securities, the limitations of Ethereum are well known but the initial market conditions made Ethereum the obvious choice to power the first experiments in the space. Under normal market dynamics, Ethereum should have been able to capitalize in the “first mover advantage” and become the default runtime for digital securities. However, security tokens remain a largely underdeveloped and slow growing market which has opened a window of opportunity for other blockchain runtimes to become a relevant challenger to Ethereum to power the backbone of digital securities. There have been a lot of noise about different blockchains venturing into digital securities but no pragmatic analysis about their chances of gaining significant traction. Today, I would like to outline a framework to analyze what blockchains have a real opportunity to become a relevant runtime for digital securities and which ones might have a tougher road ahead.

The first step towards understanding what blockchains are viable options to power the next wave of digital securities starts by understanding the challenges of Ethereum in the space. A lot has been written about…