Today, Aptos, a public chain project founded by former Meta employees, was revealed to be seeking a new round of financing at a valuation of $2.75 billion. A few days earlier, another public chain project Sui developer Mysten Labs was also revealed to be seeking to raise a valuation of $2 billion. At least $200 million in financing.
At the end of June, a Layer1 blockchain called Linera also announced the completion of a16z-led $6 million seed round financing. Why are well-known institutions such as a16z, FTX, Coinbase and other well-known institutions betting heavily on these new public chains today, when the Layer 1 track is hot and narrative is getting weaker, and what is special about them?
The founders of these three public chains are not only former employees of Meta, but also the main creators and core developers of the company’s cryptocurrency project Diem (formerly known as Libra) and the cryptocurrency wallet Novi.
In 2021, with Diem’s regulatory decline, a group of developers working on innovative projects in the Meta encryption department realized that in order to build new applications for the groundbreaking Web3 that were different from the past, they had to jump from the original realm to encryption. field work. After leaving Meta, Evan Chang and Sam Blackshear founded the encrypted infrastructure development company Mysten Labs, and then launched the new public chain Sui; Mo Shaikh and Avery Ching established the new public chain Aptos on the basis of the open source Diem code base.
At the beginning of 2022, the crypto-friendly bank Silvergate confirmed the acquisition of Diem project technology and assets, and the project officially ended. Novi’s principal researcher and engineer Mathieu Baudet founded Linera and decided to carry forward the FastPay and Zef protocols he had previously developed at Meta.
This is the initial story of the three new public chains, all of which more or less inherited the innovative technology of the once-high-profile Diem project, and because of this, even though the crypto market is gradually attracting the attention of L2, a16z, FTX and Top institutions such as Coinbase are still injecting large sums of money into these new public chains, and a16z has adopted a comprehensive betting strategy, leading investment rounds in all three projects.
Why do they cause so much market enthusiasm? Let’s look back at Diem first.
01 Diem and Move languages
Diem is a blockchain-based permissioned stablecoin payment system. As an encryption project launched by social giant Meta, Diem has attracted much attention since its debut.
The market has high hopes for Diem and believes that its launch will change the world’s payments landscape. Super giants in social media, e-commerce, shared travel, music, travel, payment and other fields, such as Visa, Uber, eBay, Spotify, Coinbase and other companies have become Diem’s partners.
However, the project has aroused strong opposition from government regulators in the European Union, the United States and other countries based on issues such as monetary sovereignty, financial stability, privacy and antitrust. It was regrettable at the end of January this year.
But Diem left behind a number of important technical “legacy”, the most important being the design of a new programming language called Move.
Move programming language
Move semantics are inspired by linear logic. According to the Linera team, Web2 did not have the scalability it is today at the beginning, and it was precisely because the transition from “horizontal expansion” to “linear expansion” was completed around 2000 that the massive speedup was achieved. Currently, blockchains prioritize a model of “sequential” execution, which allows accounts and smart contracts to interact arbitrarily over a series of transactions, but prevents linear scaling. Therefore, the name Linera directly indicates that it inherits the characteristics of the Move programming language and will continue to develop and promote new execution models suitable for “linear scaling”.
In addition, this linear logic of Move can define digital assets. In this language, digital assets are like resources and satisfy some characteristics in linear logic: digital assets cannot be copied; digital assets cannot disappear out of thin air.
In short, Move is a smart contract language for manipulating digital assets. The static type system of Move enables the smart contract code to be checked by the compiler for most resource usage errors at compile time, that is, before deployment, ensuring that smart contracts are no longer as fragile as before.
The Move contract was designed with security in mind. We won’t explain the specific technology here. In short, Move is different from Solidity. Move is better in terms of security and verifiability, and is specially designed to represent digital assets and operate them securely.
In addition, Move has learned lessons from the EVM smart contract language. At present, many smart contract languages of public chains are trying to replace Solidity, but in fact they do not take into account the network effect of Ethereum, and just want to replace EVM, not Solidity.
Aptos, Sui and other public chains have developed additional frameworks, basic packages, etc. on the basis of Move. Among them, Sui Move has made major changes to the original version of Core Move. The main differences include: Sui uses its own object-centric global storage, addresses represent object IDs, Sui objects have global unique IDs, and Sui has module initializers (init) , the Sui entry point takes an object reference as input. These changes inherit the security and flexibility of Move, and optimize the storage mechanism and address type to improve network performance and reduce transaction confirmation time.
In addition to the Move language, Diem has two technical features, namely:
1) Use the Byzantine Fault Tolerant (BFT) consensus method: Protocols using the BFT consensus method achieve high transaction throughput, low latency, and a more energy-efficient consensus method than the proof-of-work mechanism used in some other blockchains.
2) Adopt and iterate based on widely adopted blockchain data structures: The Diem blockchain is a single data structure that records the history and state of transactions over time. Simplifies the work of applications accessing the blockchain, enabling a unified framework that allows data to be read from any point in time to verify the integrity of that data.
02 Sui, Aptos and Linera: Who’s going to get out of L1 first?
Although it promises not to use any Diem intellectual property owned by Silvergate when building the blockchain, but comparing Diem’s white paper, you will find that the three public chain projects of Sui, Aptos and Linera have certain development languages or technical logic. Inheritance of some aspects and functions.
Next, let’s compare the development progress and technical highlights of these three public chain projects.
1. Sui / Mysten Labs
The development team of Sui comes from Mysten Labs, and the founding team includes Evan Cheng, Adeniyi Abiodun, Sam Blackshear, George Danezis, Kostas Kryptos, all of whom have participated in the Novi and Diem projects at Meta. Among them, CEO Evan Cheng has been the technical director of R&D Meta blockchain engineering from 2018 to September this year.
In December last year, Mysten Labs received a $36 million financing led by a16z, and institutions such as Coinbase Ventures, NFX, Slow Ventures, Scribble Ventures, Samsung NEXT, and Lux Capital also participated in this round of financing.
In May, Mysten Labs released the first test network Sui DevNet and announced the token economics model, announcing that it will launch a total of 10 billion SUI tokens.
Sui Network Economic Model
In July, Mysten Labs is seeking to raise at least $200 million in Series B financing at a $2 billion valuation. This round of financing was led by FTX Ventures and has now received $140 million in funding support in this round.
At present, the Sui network has launched 2 encrypted wallets for testing: the official Chrome plug-in wallet Sui Wallet and the third-party wallet Ethos Wallet, users can experience the transfer and minting NFT of the Sui network. Sui will launch an incentivized testnet in August.
The key to Sui performance is transaction parallelization. In most blockchains, transactions must be ordered and put into blocks for sequential execution. Sequential execution unnecessarily limits throughput on these chains, since most transactions are independent of each other. Because Sui requires explicit representation of transaction affiliations, it is able to process them in parallel. In the case where a few transactions are intertwined, Sui can still sort them and execute them sequentially.
In terms of technology, Sui uses the Move language to implement smart contracts to ensure compliance and security. In terms of consensus protocol, Sui uses BFT consensus for transactions with affiliation, and uses Byzantine broadcast algorithm for parallel verification of independent transactions, thus ensuring high TPS while reducing communication between nodes to achieve extremely low latency. Simple transactions can be verified instantly, and complex transactions take less than 3 seconds.
Aptos can be said to be a public chain with the fastest development progress and ecosystem start among the three. Technically, Aptos also uses the Byzantine Fault Tolerant (BFT) consensus protocol and the Move programming language to build a more scalable blockchain.
Source: Aptos Blog
In March of this year, Aptos completed a $200 million financing round led by a16z, with participation from Tiger Global, Katie Haun, Multicoin Capital, Three Arrows Capital, FTX Ventures and Coinbase Ventures. Since then, Binance Labs announced to invest in Aptos Labs, and payment giant PayPal also said that it has participated in the investment, and this is also the first Layer 1 public chain project invested by PayPal Ventures.
In May, Aptos launched incentivized testnet registration. In Aptos’ roadmap, there are 4 rounds of incentive testnet, and it is currently in the second round of AIT-2 staking test phase.
Today, Aptos was once again revealed to be conducting a new round of financing at a valuation of $2.75 billion.
Aptos said in a blog post that its testnet has reached over 20,000 nodes, making it the largest known community of proof-of-stake nodes today. At the same time, the testnet can verify and synchronize over 10,000 transactions per second (TPS) with sub-second latency and is on its way to over 100,000 TPS. Aptos is expected to launch the Aptos mainnet by the end of September.
In terms of ecological incentives, Aptos has held a hackathon and launched an ecological funding plan at the end of June to develop the ecosystem. According to Aptos, its ecosystem has more than 100 projects built on the network, with use cases covering DeFi, NFT, games etc. In addition, Austin, the former head of marketing at Solana, recently announced that he will officially join Aptos in August as the director of the ecosystem. Most of his career in web3 has been focused on incubating and expanding the global community, and his experience may be able to expand the Aptos ecosystem. Great help.
Linera started the last time than the other two projects and is still in the early stages of development. Its goal is to create a low-latency blockchain that can scale as easily as a Web2 application, enabling most account-based operations to be performed in minutes. Acknowledged within a second.
Linera founder Mathieu Baudet previously worked as an engineer at Meta and helped create the Diem blockchain. As a principal researcher and engineer at Novi, he was a central figure in the invention of the FastPay and Zef protocols. Both protocols speed up transactions by completely removing mempools and minimizing interactions between validators, and Linera will continue to build on both protocols. In addition, Linera’s founding team consists of ex-Zcash, ex-Meta/Novi engineers and researchers.
On June 29, Linera completed a $6 million seed round led by a16z, with participation from Cygni Capital, Kima Ventures and Tribe Capital.
As mentioned above, Linera’s name directly indicates its characteristics. Linera will develop and promote a new execution model suitable for “linear scaling”. Linear scaling means that it is always possible to double the system capacity by doubling the number of machines. Currently, blockchains prioritize a model of “sequential” execution, which allows accounts and smart contracts to interact arbitrarily over a series of transactions, but prevents linear scaling.
In Linera’s linear model, operations for different user accounts run concurrently in different execution threads, in this way execution can always be scaled by adding new processing units to each validator. At present, Linera has not been explicitly developed in the Move language in the public information, but it is based on the Rust language, but from the technical characteristics of Linera, the logic of the two is very similar.
As a former Tianwang project, although Diem has come to an end, the Diem team members also have the momentum of “gathering is a fire, scattered is a sky full of stars”, not only many important members have joined Chainlink, Mina and other relatively mature encryption The project is the birth of three dark horse projects, Sui, Aptos and Linera.
The market’s enthusiasm for these three new public chains seems to be somewhat rooted in regret for Diem, who transferred this high expectation to the “successors”.
From a technical logic point of view, these three new public chains inherit some of Diem’s advantages, such as strong scalability and security, and the blessing of a new programming language like Move will not only attract more traditional markets developers, and will attract more Web2 customers.
On the other hand, although Move is an important innovation in the smart contract language, Solidity is still the de facto standard blockchain language. Almost all existing dApps are developed using Solidity, and each chain is looking for EVM compatibility to undertake Ethereum The overflow value of the square. The language structure of Move and Solidity is so different that developers need to rewrite the entire codebase to migrate to Move.
At present, these three new public chains can be regarded as “a good start, and the future is promising”. They have won the initial recognition of the market with Diem’s technical ideas, and their performance in some aspects is even exaggerated. Aptos and Sui were founded about half a year ago. That is, reaching a valuation of more than 2 billion US dollars, which is quite rare in the crypto industry, which is known for its high valuation, and even in the emotional bull market stage.
The higher the market expectation, the higher the popularity of venture capital institutions, and the potential bubbles and risks of the project will also rise to a certain extent. Projects such as Terra have also repeatedly reflected this problem. And if the adoption rate of Layer 2 continues to rise sharply, will these new public chains encounter a situation of “not born at the right time”? Are they just a new round of forced narrative and capital games for venture capital institutions? These questions may be answered in the next market cycle.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/new-public-chains-sui-aptos-and-linera-diem-successors-bet-by-top-vcs/
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