Crypto Blockchains Compared to US Restaurant Chains

ARK Invest researcher Lorenzo Valente compared Ethereum, Solana, and Hyperliquid to three US restaurant businesses. The comparison aims to illustrate how each blockchain's architecture affects its revenue paths and risks.

Ethereum operates like a franchise network, allowing independent layer 2 teams to build their own systems while relying on Ethereum for settlement. This setup helps Ethereum expand without financing every new execution network itself. However, Valente argued that Ethereum captures too little of the economic activity generated by those networks, as layer 2 operators collect transaction fees from users but pay Ethereum primarily for data availability and settlement.

Solana processes applications within one integrated environment, keeping more fee flow within its base network. Validators and their delegators receive compensation, while part of the base fee is burned. This structure is compared to Chipotle's vertically integrated model, where the company owns and operates its restaurants, controlling the customer experience and retaining store revenue.

Hyperliquid combines a focused product range, internal infrastructure, and limited reliance on outside capital. Its Assistance Fund uses most eligible trading fees to purchase HYPE from the market, creating recurring demand when trading activity generates sufficient fees. This setup is likened to In-N-Out's concentrated structure built around its trading venue, consensus system, and fee-funded HYPE purchases.