Why Alt Chains Exist

Every blockchain faces the scaling trilemma: decentralization, security, and scalability pull in different directions. Ethereum chose a conservative path — broad validator participation and strong composability — which means block space stays scarce when demand spikes and fees rise for everyone.

Fee markets tell part of the story. When a simple swap costs dozens of dollars on mainnet, users migrate to chains where the same action costs cents. Developers follow users, grants, and tooling. A gaming studio may prefer predictable sub-cent transactions; a derivatives protocol may stay where collateral and oracles are deepest.

New L1s also compete on narrative and timing. Solana captured mobile-first wallet UX and memecoin velocity. Cosmos attracted teams that wanted their own chain without forking from scratch. The winners are not always the most technically elegant — they are the ones that find product-market fit for a specific audience at the right moment.