OctaSpace

OctaSpace remains on track

Some discussion I followed provides valuable insight into the strategic decisions and challenges faced by OctaSpace as an L1 blockchain. Despite the higher costs and complexities involved, the company is committed to its path, focusing on building a robust, secure, and cost-effective blockchain with real-world utility. This approach sets them apart from many other projects in the blockchain space, reinforcing their long-term vision and commitment to innovation.

Background: Tarik, the CEO of OctaSpace, recently provided insights into the complexities and strategic decisions behind launching and maintaining a Layer 1 (L1) blockchain in a conversation on the Dynex Discord server. He highlighted the financial and operational challenges L1 projects face compared to Layer 2 (L2) solutions, while also outlining the unique benefits and rationale behind OctaSpace's choice to operate as an L1 blockchain.

Key Points:

1. Higher Costs for L1 Projects:
   Tarik underscored that exchanges charge L1 projects significantly higher fees compared to L2 tokens. For instance, he noted that one exchange would have listed OctaSpace's $OCTA for $50,000 if it were an L2 token. However, as an L1 coin, the listing fee was quoted at $300,000, plus additional expenses. This stark difference highlights the financial burden that L1 projects must bear, which in turn affects their overall budget allocation and operational strategies.

2. Strategic Allocation of Funds:
   Despite these higher costs, Tarik emphasized that OctaSpace is committed to investing in its core technology and services rather than focusing solely on securing listings. He criticized projects that prioritize investor-focused aspects and extensive listings, suggesting that these projects often have little tangible to offer. Instead, OctaSpace aims to strike a balanced approach, ensuring that funds are used to build technology with real utility and end users, thus maintaining a business-centric focus.

3. Rationale for Operating an L1 Blockchain:
   Tarik provided several reasons for why OctaSpace chose to operate as an L1 blockchain:

   • Fair Launch: By being an L1, OctaSpace ensured a fair launch without pre-allocated tokens, pre-sales, or ICOs. The coin supply is mined through Proof of Work (PoW), ensuring decentralized control over the supply.

   • Cost Efficiency: Launching a computing services project on an L2 would have been impractical due to unpredictable additional costs for end users. In contrast, the costs associated with using the OctaSpace blockchain are minimal, making it a more viable option for their specific use case.

   • Security and Control: Operating their own blockchain allows OctaSpace to maintain control over security and consensus mechanisms. If they were an L2 token on another blockchain, they would be subject to changes imposed by the host chain, which could disrupt their operations or force them to adjust their development priorities.

4. Long-Term Commitment to L1:
   Tarik confirmed that OctaSpace has no plans to launch as a token on another blockchain. The $OCTA coin, which is mined on their L1 blockchain, will remain in this ecosystem for the foreseeable future. Additionally, having their own blockchain allows other projects to launch on the OctaSpace chain, further enhancing the utility of $OCTA beyond computing services. Show Less