The dismantling of the multi-chain universe (part 2): the competition of niche public chains
This is the original 1504 issue of Vernacular Blockchain
Author | Five Fireball Master
Produced | Vernacular Blockchain (ID: hellobtc)
In “Multi-Chain Universe Dismantling·Part 1”, we talked about BTC, ETH, and a group of ETH Layer2, and then in “Multi-Chain Universe Dismantling·Part 1”, we talked about this The most popular public chains in the past two years, Polkadot, Solana, Near, and the Avalanche Protocol, etc.
In the next part of today, we will talk about some new public chains that are relatively small but cannot be ignored.
Cardano is the most mysterious existence in the circle, there is no one. As a project initiated in 2015, it is almost at the same time as Ethereum, and the most basic smart contract function has not been completed in 2021 (the smart contract has just been launched recently).
You have no idea what the team has been doing for 6 years. However, this is not important. The most important thing is that Cardano’s market value dominates the top ten all year round. This year, it has been in the top three for a while.
2021 is no longer an era when you can rely on dreams, white papers, founders, or other big V sites. The circle has evolved to an era when you can watch TVL, watch the number of users, watch ecological projects, and watch various data indicators.
Then there is no smart contract, Cardano, with almost zero ecologies, standing in the third position in market value, looking at the new husband chains below, with a fascinating smile on his face.
Yes, this is a project that both domestic and foreign core circles use to “make fun of”. Whether it is domestic Weibo and WeChat groups, or various foreign Twitter veterans, almost everyone will joke Cardano, and very few people have it. Ada.
Some people say that Cardano is locally promoted, and it is well promoted in many third- and fourth-tier cities and Africa. However, using these reasons to explain its third market value ranking is a bit far-fetched.
All in all, Cardano’s market value ranking is a mystery, giving people a sense of “SHIB” in the public chain industry.
But anyway, the smart contract is finally on. Regardless of market value, it is technically at least on the same starting line as other public chains. In the next 1–2 years, let’s see if Cardano can still make some eye-catching things.
If the market value of Cardano is a mystery, the technical realization of ICP is another mystery for many people. Yes, it is more difficult to understand than the public chains of Fantom, Avax, and Solana. There are only a handful of people in the circle who fully understand the implementation of ICP technology.
Simply put, Dfinity is a “world computer” system built with special hardware + data center connection + blockchain bottom layer. Compared to Ethereum, Dfinity is more like a “world computer”. Public chains such as Ethereum are a “synchronous” state update machine, while Dfinity is an asynchronous message processing machine. The advantage of this kind of asynchronous is that ICP is very suitable for implementing traditional Web2 things with Web3, video, audio, social, e-commerce…This is why CanCan implements an on-chain Douyin with hundreds of lines of code before it is exciting Endless.
However, the shortcomings are equally obvious. Because of the asynchronous, the atomicity of the interaction between the contracts is lost, causing DeFi, which other chains to hand in hand, to become difficult in Dfinity.
Fortunately, this problem can be circumvented in other ways, including database mechanisms like banks and Cex, or new programming paradigms. I believe that shortly, we can see the rise of the Dfinity-based Defi ecosystem.
Another thing to look forward to is a proposal for the integration of DFINITY with Bitcoin in September. The proposal adds smart contracts to Bitcoin by applying “chain key encryption technology”, and the application will directly integrate the Bitcoin network.
Smart contracts on Dfinity will be able to hold, send and receive bitcoins without the need for private keys. This may be a new idea for the “expansion” of Bitcoin.
All in all, Dfinity seems to have missed this bull market. However, in the next 1–2 years, you will most likely see his voice in more and more areas. His technical paradigm that is completely independent of other public chains is also a technology worthy of recognition. Explore the direction.
I remember that a few months ago, a technical tycoon in the circle commented: “The launch of Dfinity can be said to have welded the last gate of the public chain track.” The last seeded player on the public chain track? Looking forward to its performance.
Algorand has two big labels: Turing Award and Peak at the opening. These are also the two most impressive aspects of this public chain. It can be said that after the peak of the listing, you have not heard of Algorand’s many actions in the past two years. However, soon, Algorand may choose to cut into this public chain dispute from another angle.
That is compliance.
It may be difficult for you to find a public chain that is more “compliant” than Algorand. Although the ecology is currently small, the above projects are all kinds of financial products, especially compliance items, such as asset digital securitization, real estate tokenization, Tokenization of gold, copyright platform, etc. Cooperative institutions and units are also some government departments, environmental protection departments, and traditional financial institutions. El Salvador, which previously listed Bitcoin as legal tender, said that it would use Algorand to launch government blockchain infrastructure.
From this perspective, Algorand is destined to be a long-term investment, but its main compliance route does not have many competitors for the time being. Decentralized blockchain + compliance may take a completely different route.
In the circle, the title of Nervos has always been the strongest domestic public chain, and even some technical big V commented that “Nervos is what Ethereum should be.” It is not too surprising. After all, the chief architect Jan is ETH. The earliest person in the core team can be regarded as “the person who understands Ethereum best in China.”
Nervos has two major technical characteristics. One is layering, which is equivalent to the built-in Layer2. The expansion scheme currently used by ETH, Nervos can be said to have been designed from the beginning; the second is Cell state storage, which is also ETH full node data Expansion, state explosion gradually revealed a problem. It can be said that from a technical point of view, Nervos is more like an “evolutionary version of Ethereum.”
However, there are also disadvantages. First, the ecological progress has been slow, which has caused the overseas communities to remain stunned. For example, USDT, USDC, and other commonly used stablecoins have no relevant support on Nervos. The second is to insist on the POW-type Layer 1. After ETH, especially the domestic tightening of the “mining” industry, a Layer 1 public chain based on the POW computing power of physical mining machines, can it run out? People are a little worried.
However, the DAS of the Nervos ecology is promising in the DID and domain name system of the Web3.0 era, and because of its advantages in the underlying abstraction of cryptography, it can support several addresses in multiple chains under one account corresponding to personal identity (currently supports BTC, ETH), CKB, TRX), and the extremely hot ENS can only support the Ethereum ecosystem. In the next few months, there is a high probability that Nervos will start to appear on DeFi, NFT, and other ecologically first projects.
This is a public chain with big capital behind it. A16Z, Polychain, and Deutsche Telekom, the world’s leading telecommunications company with more than 242 million mobile users…
What is special about Celo? The main reason is that his target is Libra, which was still dead. His vision is to “establish a financial system that creates conditions for prosperity for all,” so it is called a decentralized version of Libra by the industry.
Celo’s style is also very distinctive, unlike most public chains that have to be operated on a computer. Celo focuses on mobile APP, mobile phone operation and use, and hides many technical details behind the scenes. Celo users only need to know the other party’s mobile phone number. , You can transfer money to the other party without knowing the concepts of public key and private key at all. This also makes stable currency and payment the most suitable application scenario for Celo.
The current market focus of Celo is Latin America, Africa, and Southeast Asia. This is well understood. Many people in these regions lack the support of financial infrastructure, but many people have mobile phones and 4G. They don’t know what Libra wanted to do but failed to do. Will it be done by Celo? Wait and see.
IOTX was originally a project of the Internet of Things route, but in the era of the multi-chain universe, it also plans to come in and blend in.
So far, the effect has been really good. Putting aside the things of the Internet of Things, as a public chain alone, IOTX can be considered “qualified”.
There is an improved version of the DPOS-Roll-DPoS
A cross-chain bridge spanning several chains
Basically, with these three points, DAPP and the like on ETH can be easily migrated to the past, which depends only on willingness, not technology. IOTX also has Defi infrastructure, such as DEX, borrow dai, etc…It is worth mentioning that Cyclone, a machine gun pool based on IOTX, was named “cross-chain machine gun pool” when it went online more than half a year ago. At that time, IOTX had already anticipated the foregone conclusion of the future multi-chain universe and the vision of cross-chain bridges.
And just last month, IoTeX officially released the machine finance MachineFi vision book and IoTeX 2.0 roadmap, claiming to open the “new era of tens of billions of machine finance”. The Internet of Things is a so-called “outreach” that has been shouting for many years, but it has always been praised. Not being popular.
Now that Iotex has made some achievements in the field of the multi-chain universe, and then use this experience to make machine Fi, MachineFi, will it take the leading overlord position in one fell swoop when the Internet of Things comes? At present, it seems quite promising. Except for HNT, it seems that I can’t think of projects that can compete with IOTX in the Internet of Things field. Of course, when the Internet of Things will come, it will always be a metaphysical question…
This is the second part of the multi-chain universe. What other public chains do you find interesting or promising? Welcome to share your views in the message area.