A new report suggests that Cosmos, Polkadot and NEAR could fail to have off if they are perceived to have an issue with centralization — as the instance of EOS demonstrates.

Non-custodial crypto nugget exchange ShapeShift has published a written report predicting that Proof-of-Pale scalable smart contract networks Polkadot, Creation, and Nigh volition be thoroughly put to the test this year.

The report forecasts the networks' claims of increased scalability without sacrificing security or decentralization will soon be tested. Shapeshift notes the distribution of Polkadot's and Nearly'due south respective native tokens appears quite centralized as a result of "relatively loftier insider token allocations," while Cosmos' pluralistic architecture requires each of its individual "zones" to recruit independent validators — making it more difficult for each zone to ensure robust security.

Ultimately, the document's author, Kent Barton, speculates the perceived degree of centralization of the respective platforms will likely make up one's mind which blockchain volition thrive from those that will neglect to gain traction, asserting:

"This dynamic has already played out in EOS, where evidence of validator bunco seems to have played a function in the platform's anemic developer growth over the past twelvemonth."

ShapeShift predicts the hope of smart contract platform interoperability will be put to the exam this twelvemonth, forecasting that "value and information will begin to flow trustlessly between unlike crypto ecosystems."

But the report also emphasizes it will exist a claiming to design systems that conceal the complexity of blockchain interoperability:

"Wider adoption will likely require that the complexities of interoperability are made about invisible to users."

Noting the absence of a "one-size-fits-all" smart contract solution, ShapeShift predicts that decentralized exchanges and applications volition adapt to the unique capabilities offered past unlike smart contract platforms.

However, the report cautions that the platforms' innovations will besides bring new vulnerabilities as demonstrated by the myriad of flash loan exploits suffered by DeFi protocols in late 2020.

"Emerging blockchain ecosystems will likely take their ain version of flash loans—powerful new abilities that expose users to a loss of funds," said the report.