Blast (BLAST)

Layer 2 Scaling

Blast is an Ethereum Layer 2 (L2) solution that helps make Ethereum transactions faster and cheaper by processing them off the main Ethereum chain using optimistic rollups.

Native Yield

Blast uniquely offers native yield on both ETH and stablecoins. Users earn about 4% yield on ETH and 5-8% on stablecoins automatically, sourced from ETH staking and real-world asset protocols.

Developer Incentives

Blast shares gas fee revenue with decentralized apps (dapps) built on its platform. Developers can keep this revenue or use it to lower gas fees for their users, enabling new business models.

Real-World Asset Integration

Blast supports integrating real-world assets into the blockchain, bridging traditional finance with decentralized technology.

Governance and Staking

BLAST tokens are used for governance, allowing holders to vote on protocol upgrades and yield strategies. They can also be staked to participate in the network.

Ecosystem Growth

Blast supports a growing ecosystem with over 200 dapps and a large user base, fostering innovation and community-driven development.

Pros

• Blast is an Ethereum Layer 2 (L2) solution that offers native yield on ETH (around 3.4%) and stablecoins (up to 8%), which is unique compared to other L2s that usually don’t provide interest.
• It processes transactions much faster than Ethereum mainnet, handling thousands of transactions per second, which lowers fees and speeds up confirmations.
• Blast supports auto rebasing for ETH and its native stablecoin USDB, meaning balances adjust automatically to reflect earned yield without extra user action.
• The platform encourages developer growth with funding programs like the Big Bang contest and allows smart contracts to opt-in or out of rebasing, making it flexible for dApps.
• It has a growing ecosystem with over $1 billion in total value locked (TVL) and partnerships with exchanges like KuCoin and Coinbase, improving liquidity and access.
• Blast’s infrastructure includes decentralized APIs and node providers, offering reliable and fast blockchain access for developers.

Cons

• The project has faced some community skepticism and controversy, with critics questioning the sustainability of its incentive programs and calling it a potential pyramid scheme.
• Blast’s token price has shown volatility and underperformance compared to some other smart contract platforms recently.
• Some users have raised concerns about the transparency of certain announcements and the airdrop process.
• As a newer Layer 2, it competes with many established L2 solutions, so adoption speed and long-term success are still uncertain.

Overall, Blast offers innovative features like native yield and fast transactions but is still growing and faces typical challenges of new crypto projects.

Founders

Blast was founded by Pacman, who is also known for creating Blur, an NFT marketplace on the Ethereum network.

Team and Support

The project is backed by investors like Paradigm and Standard Crypto, and the team runs initiatives such as the Big Bang program to support developers building on Blast.

Investors in Blast

Blast has attracted several notable investors, including Paradigm, Standard Crypto, and Santiago R. Santos. These investors participated in funding rounds, such as the $20 million raised in November 2023. The project is backed by venture capital firms and individual investors who support its development as an Ethereum Layer 2 solution with native yield features.

Halal Status of Blast

• Yes, Blast is considered halal by some Islamic finance perspectives because it functions as an Ethereum Layer 2 solution offering native yield without involving interest (riba) or prohibited activities.
• The halal status depends on the project’s compliance with Islamic principles, such as avoiding interest, gambling, and unethical business practices.
• Since Blast provides yield through staking mechanisms linked to Ethereum and stablecoins, it aligns with some halal investment criteria.
• However, final judgment may vary by individual scholars or Islamic finance advisors, so personal consultation is recommended for certainty.