Ethereum expansion and ecological dispute: cross-chain vs. EVM

The multi-chain era has arrived. As the Polkadot parachain slot auction is approaching, cross-chain old-brand projects are also facing a new competitive environment.

The public chain track is always full of highlights.

Last year, DeFi ecological rise, NFT project, the number of GameFi game, DeFi projects rapid increase in the size of assets which both allow the public mainstream chains are amplified, but also to emerging public chain, cross chain project, an Ethernet Square Layer2 ecological developed rapidly.

The multi-chain era has arrived. As the Polkadot parachain slot auction is approaching, cross-chain old-brand projects are also facing a new competitive environment.

Polkadot Parachain Slot Auction is Coming

Heterogeneous public chain vs. EVM

At the moment, the importance of cross-chain is self-evident.

DeFi has played a strong role in promoting cross-chain demand. There is a strong demand for circulation and mutual transfer between products with strong financial attributes on the chain, which requires extremely high communication and interconnection between chains.

The DeFi ecosystem was the first to expand in the Ethereum ecosystem. At present, more than a thousand teams based on different application requirements have developed a large number of businesses, which has established the non-replicability of the Ethereum ecosystem. However, due to the congestion of the Ethereum network, Layer 2 and other expansion methods And derivative products came into being, and promoted the personalized development direction of non-Ethereum public chains.

It can be seen that DeFi projects are increasing the number of TVL on expansion projects, cross-chain projects, and non-Ethereum public chains.

Ethereum expansion and ecological dispute: cross-chain vs. EVM

Data source: defillama

The DeFi boom that started in the first half of 2020 has led to the emergence of concepts such as “explosive” DeFi, NFT, GameFi games, and Metaverse on different public and smart chains. These distinctive products have intensified users’ cross-chain demand. Since then, more and more technology developers have also followed this trend, seeking better cross-chain solutions among various isomorphic public chains, transstructural public chains, Ethereum Layer 2 and other projects.

In the long run, mainstream public chains and multi-chain ecosystems grow together, and more and more cross-chain solutions are connecting different public chains and Ethereum Layer 2. The rapid increase of these programs, and even the expansion of Ethereum, is not so urgent.

Polkadot, the head team of cross-chain technology, was born a few years ago when the public chain ecology was initially prosperous. Under the background of the time, cross-chain technology was called the key breakthrough point of blockchain technology. It can solve single chain and single chain in Europe. The problem of isolated islands is to try to exchange data between applications in a more complete system to form a benign ecology.

Polkadot proposes a flexible heterogeneous multi-chain system, with “shared security” and “cross-chain interaction capabilities” as the main features, allowing the scalability of the blockchain to be magnified. After a long period of development, the upcoming November 11th is the planned time for the Polkadot Parachain auction. This makes Polkadot once again ushered in a wave of enthusiasm.

At present, to some extent, Polkadot’s competitive environment has changed. What we are facing is a full of various EVM chains, Ethereum Layer 2 ecology, cross-chain bridge projects, and also aiming at EVM compatible solutions. Emerging public chains.

Sorting out these projects that are dealing with cross-chain requirements can see that Ethereum Layer 2 solutions including Arbitrum , Optimism, etc., EVM isomorphic chains including BSC, Polygon , and, Poly Network , etc. The cross-chain bridge technical team, as well as heterogeneous public chains such as NEAR, Solana, and Fantom that actively adopt EVM compatible solutions, have ushered in a period of rapid development.

These plans should not be underestimated. On the Layer2BEAT data platform, the number of these products is still growing.

Ethereum expansion and ecological dispute: cross-chain vs. EVM

Data source: Layer2BEAT

EVM ecology: limitations and improvements

With the rapid development of Layer2, the development of EVM products has become a concept of its own.

In overseas community discussions, the technical improvement and application development of the EVM system is likely to become the next technical focus.

EVM (Ethereum Virtual Machine) is the abbreviation of “Ethereum Virtual Machine”. As a programmable blockchain. Ethereum allows users to create their own operations, the core of which lies in the EVM, which can execute code of any algorithm complexity. Developers can use the programming language (Solidity) to create applications that run on the EVM.

In the first half of 2020, the concept of DeFi took off, and many developers suspended their long-standing debates over the details of the underlying technology of the public chain, and turned to the direction of improving user experience and improving the liquidity of Ethereum applications. How to be compatible with EVM has become an important point. For users, the advantages of the EVM compatible chain include lower Gas fees, faster settlement speed, and the same address format as Ethereum, making the operating environment more friendly.

The effect of this approach is obvious: in the second half of 2020, many smart public chains have appeared one after another, which has promoted the new cross-chain camp of EVM. Compared with the continuous adjustment and migration of cross-chain, technical teams and users have begun to choose BSC, HECO, etc. Smart chain. Relying on resource advantages and user groups, these products have entered a period of rapid development. After the smart public chain is compatible with EVM, it will quickly “copy” the entire ecosystem of Ethereum’s DeFI, including stablecoin, swap, lending, asset management, etc., to expand its own DeFi ecosystem.

At the same time, blockchains with innovative underlying technologies such as NEAR, Fantom, Avalanche, and Substrate are also rapidly entering the EVM, becoming high-performance shards in the multi-chain Ethereum ecosystem. Many public chains are actively compatible with EVM to acquire more developers and users. Similarly, these public chains also benefit from EVM, avoiding the spillover of ecological resources.

These other public chains that are compatible with EVM are often clearly positioned. For example, BSC is based on self-built ecology and has now developed into a certain system; while Avalanche, Fantom, and Solana tend to be compatible with EVM, and their own technical routes and ecosystems are also in develop.

This trend will continue and intensify in 2021. The current Ethereum EVM is gradually becoming a universal “standard”. Compatible EVM is becoming the standard configuration of high-performance public chains. From the perspective of progress, public chains’ Compatibility has basically landed. EVM is mainly for end users. For NFT, GameFi, small settlement, and Dapps that reduce user overhead, it is more suitable to be deployed on side chains or public chains that are compatible with EVM.

However, EVM still has some limitations.

The industry view believes that EVM is actually “semi-Turing complete”, and there are still problems in contract calls, gas restrictions, and built-in operations that cause vulnerabilities. This has also led to a new concept of “EVM system improvement”, this track is still to be developed.

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