Cathie Wood Sees Blockchain Expansion, Compares Ethereum to McDonald's

Cathie Wood, CEO of Ark Invest, believes that blockchains have been around for over a decade and more will launch in the future. She highlighted an analysis by Lorenzo Valiente, Director of Research at Ark Invest, which frames Ethereum (ETH), Solana (SOL), and Hyperliquid (HYPE) as distinct business models.

In the analysis, Valiente drew parallels between blockchains and fast food chains, comparing Ethereum to McDonald's Corp. (MCD). He noted that Ethereum owns the brand, operating system, and 'real estate', which includes blockspace and a Layer 1 settlement guarantee that Layer 2 chains rely on.

Solana was compared to Chipotle Mexican Grill Inc. (CMG), as it has all activity concentrated on its Layer 1 chain, with no middleware or L2 layer. Hyperliquid was mapped to In-N-Out Burger, a privately held company with a small menu and no franchise model.

Valiente's analysis provides a framework for understanding the different business models and trade-offs of various blockchains. Wood emphasized that this framework is 'digestible' and can help investors understand the distinct approaches taken by different blockchain projects.