Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

  1. Meta background public chain, privacy public chain, modular blockchain and Layer2 public chain are very popular;
  2. The new public chain is eye-catching in terms of scalability, with TPS ranging from thousands to tens of thousands;
  3. The ecological development of the new public chain is still in the early stage, and the number of ecological users does not yet have a competitive advantage, but there are certain Alpha opportunities;
  4. Modular blockchain is an important trend in the development of public chains.

The public chain is an important part of the Web3 infrastructure, and new public chains are constantly emerging, aiming to provide developers and users with a better Web3 experience, and strive to break the “impossible triangle” of blockchain.

The “impossible triangle” of blockchain refers to the inability to achieve security, decentralization, and scalability at the same time. Through technological innovation and blockchain iteration, the new public chain is striving to achieve both.

Among the new public chains, the most popular ones are the Meta background public chain represented by Aptos, the Layer2 new public chain represented by zkSync, the privacy public chain represented by Aleo, and the modular blockchain represented by Celestia .

These new public chains provide high-quality solutions in scalability, security, compatibility, privacy, decentralization, etc., and have won the attention and support of the crypto community and top investment banks such as a16z and Paradigm.

At present, the new public chain has obvious deficiencies in ecological development, token value capture ability, and the status of the public chain structure, which needs further observation. The current new public chain is going through the growth process of Solana, Avalanche and other public chains, and we can expect the Alpha income behind it to ambush ecological opportunities in advance.

The development status of the new public chain

There is no shortage of topics on the public chain track. The emergence of new public chains not only provides new solutions for decentralization, scalability, and security, but also brings new concerns to the crypto community and investment institutions.

Recently, a number of new public chains have emerged, among which the Meta background public chain represented by Aptos, the modular blockchain represented by Celestia, and the new Layer 2 public chain represented by zkSync are highly discussed.

The new public chain focuses on high performance, high scalability, EVM compatibility, privacy protection, etc. There are many innovations at the technical level, but the ecology of most new public chains has not yet developed, ecological development, actual network performance, user volume to be observed.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

(Part of the new public chain data)

(1) The Meta background public chain and the new Layer2 public chain are leading the way

From the perspective of ecological development, financing, development progress, etc., the Meta background public chain and the new Layer 2 public chain have the first-mover advantage in the competition of new public chains.

1. Meta background public chain

Meta background public chains include Aptos, Sui and Linera, all of which were founded by former Meta engineers and use the Move programming language. It is worth mentioning that the Move programming language is a smart contract programming language developed and designed by Meta, which was previously used for the development of its stablecoin project Libra.

Among the three public chains, Aptos has the fastest development and ecological progress. Aptos is a high-performance public chain focused on security, scalability and upgradeability. Aptos launched the Incentive Testnet (Phase II) on July 1, and announced 30 ecological projects in July. The types of projects include DEX, wallets, liquidity protocols, NFT markets, etc. The ecology has taken shape.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

The development of Aptos has attracted the attention of investment institutions. Aptos has completed two large rounds of financing this year, with a total of 350 million US dollars. Investment institutions include FTX Ventures, Jump Crypto, a16z, Tiger Global.

Sui is the only public chain among the three public chains that publishes Tokens. The functions of SUI include pledge/protection of the network, transaction fees, governance, network assets, and node pledge and token empowerment are relatively complete among the three public chains.

2. New Layer2 public chain

Among Layer2 public chains, Arbitrum and Optimism using Optimistic Rollup have a first-mover advantage, and both development progress and ecological development are faster than Layer2 public chains such as zkSync and StarkNet. With the ecological expansion of zkSync and StarkNet, the attention of the two in the Layer 2 track has increased, and they have become the most ecologically complete new public chains.

In terms of the number of ecological projects, the zkSync ecosystem currently has over 110 projects, and the StarkNet ecosystem currently has over 80 projects, ranking the top two among the 30 new public chains counted.

The zkEVM chain is worth paying attention to in the new Layer 2 public chain. Both zkSync and Scroll use zkEVM technology. zkEVM not only ensures high security, but also is compatible with EVM, which reduces the difficulty of migrating Ethereum ecological projects.

(2) Most of the new public chains are still in the early stages of development

The number of products and ecological projects of the new public chain is not large. Except for the relatively large number of ecological projects of StarkNet, Evmos, and zkSync, the number of ecological projects of other public chains is less than 50. Among the 30 public chains in the statistics, 18 public chains cannot query ecological projects.

The development progress of most new public chains is still in the stage of completion of core technology development and test network, and the amount of network node pledge and the number of users is not large. The official website of the public chain provides a relatively rich use case, providing developers with a reference for application construction and migration.

(3) Popular directions: privacy, modular blockchain, expansion, Cosmos ecology, public chain using the Move programming language

Among the 30 new public chains sorted out, the public chains mainly focus on the following directions: privacy, modular blockchain, expansion, Cosmos-based public chains, and public chains using the Move programming language.

1. Privacy public chain

There are 5 new privacy public chains organized: Aleph Zero, Aztec, Aleo, Iron Fish, Anoma. Through zero-knowledge proof and other technologies, the privacy public chain can protect the user’s transaction, wallet and other information, and improve the user’s Web3 application experience.

Among these privacy public chains, Aztec, Aleo, and Iron Fish are highly discussed. Aztec is a Layer 2 privacy public chain, which is unique in the Layer 2 track. And Aleo and Iron Fish are both in a16z’s portfolio and belong to the leader of the privacy track.

2. Modular blockchain

Modular blockchain refers to disassembling the three components of the blockchain, the execution layer, the consensus layer, and the data availability layer, and optimizing each layer.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

In this diagram of the modular blockchain, there are many new public chains. The execution layer is the Layer2 network. The new public chains of the consensus layer include Aptos, Sui, Celestia, and Evmos. The data availability layer includes Polygon, a data availability solution launched by Polygon. Avail.

The most talked about modular blockchain is Celestia. Celestia is the first modular blockchain network, which distinguishes different modules from the consensus layer and the execution layer for developers to choose the execution environment to develop and deploy Dapps.

3. Expansion

Expansion is a topic that cannot be avoided by the public chain. The new public chain emphasizes its expansion capability during development and testing, including high TPS, low gas fee, and short transaction confirmation time. Among the new public chains focusing on expansion, the most popular ones are Meta background public chains, Cosmos-based public chains, Layer 2 and modular blockchains.

4. Cosmos Ecosystem

The Cosmos ecosystem is a part of the public chain ecosystem that cannot be ignored this year. Cosmos is committed to achieving horizontally scalable Layer0, providing modular, pluggable solutions and better scalability. Developers generally use the Cosmos SDK to build a public chain in the Cosmos ecosystem, and use the Cosmos ecosystem to improve the scalability of the public chain.

Most of the new public chains deployed in the Cosmos ecosystem are DeFi public chains. For example, the Kujira ecosystem has an order book trading platform and a lending platform, and Canto has trading and lending functions.

5. Public chain using Move programming language

The Move programming language was launched by Meta and was used during the development of the stablecoin project Libra. Meta engineers used the Move programming language to launch Aptos, Sui and Linera after their departure.

At the same time, the popularity of the Meta background public chain is rising, and the discussion on the Move programming language is also rising, and the use of the Move programming language may increase. It is expected to see more public chains adopting the Move programming language in the future.

The new public chain provides solutions for security, scalability and compatibility

The new public chain provides solutions for security, scalability, and compatibility, and strives to challenge the “impossible triangle” of blockchain at the technical level.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

(The “Impossible Triangle” of Blockchain)

1. Security

The new public chain proposes innovative solutions in terms of technology and node pledge to improve the security of the new public chain.

Take Aptos and Sui as an example. Both Aptos and Sui use the Move programming language. According to the information, the Move programming language is more secure and reliable than the Solidity programming language.

Both Aptos and Sui rely on network validating nodes to maintain network security. Both ensure the security and stability of the network in terms of consensus mechanism and node token pledge.

The Aptos team has carried out four iterations of its consensus mechanism, Byzantine Fault Tolerance (BFT), to improve transaction confirmation speed and the stability of this blockchain, ensuring stable operation even when one-third of validator nodes fail.

Sui is the only issued currency project in the Meta background public chain. In addition to using Byzantine Fault Tolerance (BFT), Sui motivates nodes through SUI, and verification nodes improve the overall stability of the network by staking SUI in the network.

2. Extensibility

The most specific indicator of scalability is the TPS of the public chain. Ethereum is currently suffering from scalability issues, and will improve its scalability through merging and sharding.

The solutions given by the new public chain include Rollup, building a new public chain based on high-performance Layer0 public chain (such as Cosmos, Cardano), modular blockchain, technology expansion, etc.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

The highest TPS of multiple public chains exceeds 10,000, such as Aptos (above 10,000), privacy public chain Aleo (10,000-20,000), and the Ethereum expansion project AltLayer.

3. Compatibility

Multi-chain deployment has become an important trend in the blockchain industry. It has become the norm for applications on the Ethereum chain to be deployed on other public chains. The new public chain attaches great importance to compatibility and interoperability.

In the new Layer 2 public chain, zkSync and Scroll both use zkEVM technology, which improves Layer 2 network security and is compatible with EVM, lowers the threshold for Ethereum ecological application migration, and expands the ecological footprint.

The expansion projects Milkomeda and AltLayer also have unique designs in terms of virtual machine compatibility.

Milkomeda is a Layer2 network based on Cardano, which has not only completed multi-chain deployment, but also provided EVM compatibility for non-EVM compatible chains.

AltLayer is an Ethereum scaling project, designed as a multi-chain and multi-VM modular and pluggable framework, providing migration solutions for applications on multiple chains.

Privacy may become a new hot track

In the Web3 era, users’ demands for privacy protection, decentralized data storage, DID and other applications that help improve the security and privacy of users’ data on the chain have gradually increased. In the past two years, the popularity of the privacy track has gradually increased, and it is expected to become a new popular track.

There are 5 new privacy public chains: Aleph Zero, Aztec, Aleo, Iron Fish, and Anoma.

Among them, Aztec is the only Layer 2 privacy public chain, Aleo and Iron Fish have a long development time and have more characteristic projects.

This article will analyze the development trend of privacy track projects by introducing the advantages of these three projects.

1. Advantages of Aztec:

  • Layer2 expansion, with better scalability;
  • Adopt zkSNARK zero-knowledge proof technology, strong privacy protection technology;
  • It has been integrated with the Ethereum ecological project and realizes asset cross-chain through Aztec Connect.

2. Advantages of Aleo:

  • Use zero-knowledge proof technology to improve security and privacy protection;
  • Provide tools for writing zero-knowledge proof applications: Aleo Studio, Aleo Package Manager, lowering the threshold and shortening the development cycle;
  • The privacy track has been developed for a long time, and has received support from a16z, Softbank, etc.

3. Advantages of Iron Fish:

An additional “readable key” is provided for each address on the chain, which protects privacy without compromising the accessibility of transactions on the chain, and solves the supervision problem of the privacy public chain.

From the above three projects, we can see 4 development trends of the privacy track:

  • Privacy public chains tend to use zero-knowledge proof technology, which can not only protect user privacy, but also improve network security;
  • The privacy public chain will focus on improving scalability and interaction with other application chains;
  • The privacy public chain will provide developers with a more complete development tool kit and development-related infrastructure;
  • Privacy protection while addressing regulatory issues.

New Public Chain Development Trend: Modular Blockchain

Modular blockchain refers to disassembling the three components of the blockchain, the execution layer, the consensus layer and the data availability layer, and optimizing each layer to achieve the effect that the sum of the parts is greater than the whole, solving a single block The problems caused by the three-level task of the chain alone help to break the “impossible triangle” of the blockchain.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

Referring to the modular blockchain chart produced by Volt Capital, there are new public chains distributed in the execution layer, consensus layer and data availability layer. The execution layer includes Fuel, Scroll, etc., the consensus layer includes Celestia, Aptos, etc., and the data availability layer includes Polygon Avail, this article will extract the representative items of each level for introduction.

1. Execution layer

The execution layer is where users interact, and the execution layer is where transactions are processed. A modular blockchain that implements a dedicated layer is focused on increasing the speed at which transactions are processed and enhancing the user’s transaction experience. Therefore, most of the modular blockchains in this layer are expansion projects, and the representative project is the Ethereum Layer 2 expansion project, which improves TPS and reduces gas fees through Rollup technology.

Taking zkSync as an example, zkSync adopts the expansion technology of zkRollup, which can process more than 3000 transactions per second (TPS>3000), and the gas fee is less than 1% of the Ethereum main network.

Use zkRollup to improve the security of its transactions, and Layer1 to Layer2 do not need the seven-day challenge period of the Optimistic Rollup expansion plan.

2. Consensus layer

The consensus layer downloads and executes the contents of blocks through a full-node network, reaching consensus on the validity of state transitions, providing ordering and finality.

The consensus mechanism is the foundation and core of the blockchain. The consensus mechanism determines how participating nodes agree on certain data. This is the core content of the public chain. A public chain must confirm its consensus mechanism in order to operate normally.

Therefore, the consensus layer component is a public chain with a consensus mechanism, of which Celestia is the first modular blockchain.

The highlight of Celestia is that it only verifies consensus and data availability, and does not participate in transaction execution. The transaction validity proof is completed on the Rollup client. Celestia separates the core, execution environment, and dApp layer to minimize data processing, enabling network scaling.

Post-public chain war era: Inventory of 5 popular sectors and 30 new-generation public chains

3. Data Availability Layer

Whether the data required for the data availability layer to verify whether the state transition is valid is uploaded and stored is a common problem encountered in the impossible triangle of the blockchain. Malicious block producers can choose to publish only the block header and retain some or all of the corresponding data. Prevent full nodes from validating and identifying invalid transactions, resulting in proof of failure.

The current data availability proof technology can effectively solve this problem, it allows customers to efficiently check whether all the data of the block has been published by downloading only a small part of the block. With error-correcting codes, block producers only need 50% of the data to make a block 100% usable. At the same time, in order to forge 1% of the data, malicious block producers must forge 50% of the data, which increases the cost of doing evil.

Blockchain solutions focused on data availability include Celestia, zkPorter, Polygon Avail, and more.

In the case of Polygon Avail, the solution allows developers to access blockchain data off-chain, meaning they don’t need to constantly check data from the network to find applications deployed on Polygon. Application clients only need to query data relevant to their application without downloading entire blocks of data.

4. Splitting and Combining Modular Blockchains

Modular blockchain provides the idea of ​​splitting and combining three levels of blockchain. Splitting means that each public chain can focus on a certain level, without taking into account the three levels and reducing the efficiency of the public chain. From the analysis of the above three levels, we can see that there are high-quality solutions at each level.

  • Execution layer: Rollup
  • Consensus Layer: Celestia and Similar Solutions
  • Data Availability Layer: Solutions focused on security and scalability (eg Celestia, Polygon Avail)

The three levels need to be combined, and the risks in the combination process are issues that need to be considered at present and in the future (refer to DeFi composability risk). The current combination of new public chains is still relatively small, and it is necessary to continue to observe the cooperation between new public chains and the combination of functional modules.

Token empowerment

Tokens are an important tool to motivate users and developers of new public chains and maintain network security. Among the 30 new public chains sorted out, 11 new public chains have confirmed to issue coins or have listed tokens on exchanges.

Token functions include: mining, node pledge, maintenance of network stability, transaction fees, network assets in circulation and participation in governance. Node staking, transaction fees, and governance functions are more of these public chain tokens.

(1) Token function

1. Node pledge

Node staking is when token holders use their tokens to participate in validating transactions and validating operations on the blockchain network. As a verification node of the blockchain, staking more tokens will help to improve the stability of the network.

In order to motivate the verification nodes, the blockchain network provides token rewards for the verification nodes, forming a positive cycle of the network. New public chains such as Sui and Evmos have this function.

2. Transaction fee

Transaction fees refer to token holders using tokens to pay fees in the network. For example, users on the Evmos chain use EVMOS tokens to pay gas fees during transactions.

3. Governance

Governance means that token holders have the right to participate in community governance and participate in the decision-making of the public chain ecology and important matters of the community.

Among the 11 public chains that confirm the issuance of tokens, the tokens of 7 public chains have governance functions. Taking Evmos with more token functions as an example, EVMOS holders can submit proposals and vote on on-chain asset management.

(2) At present, the empowerment of tokens is not strong, and it remains to be observed

At present, most of the tokens of the new public chain have not been circulated in its ecology, and the functions of the tokens are limited to node pledge, mining, governance, etc.

At this stage, users who use the new public chain with token incentive function are more inclined to obtain token rewards through node pledge and mining. After the token is listed, it is expected that the selling pressure will be large, and the value capture ability of the token may be weak.

The new public chain needs to create more token circulation and usage scenarios for users, link tokens more closely with the public chain, and enhance the ability to capture token value. The value capture ability and function of the token need to wait for the new public chain to run for a period of time before observing its changes.

However, the new public chain is currently very popular, and we can look forward to the performance of the new public chain tokens in the future.

Overall evaluation: The new public chain provides innovative solutions for breaking the “impossible triangle” of blockchain, and ecological development remains to be seen

The new public chain provides high-quality solutions in terms of security, compatibility and scalability. The emergence of modular blockchain creates conditions for improving the performance of the blockchain and breaking the “impossible triangle” of the blockchain.

At present, the defects of the new public chain are also obvious. The number of users and ecological projects is still relatively small, the ability to capture token value is relatively weak, and the competitiveness in the public chain track is relatively weak, unable to compete with Solana, Avalanche, etc. in 2020-2021. Rising new public chain rivals.

1. Technological innovations: Move programming language, modular blockchain, zkEVM

The more dazzling technological innovations in the new public chain are the Move programming language, modular blockchain, and zkEVM.

The Move programming language is more secure than the Solidity programming language and reduces the risk of code vulnerabilities. Its validator Move Prover allows validators to quickly run test code in minutes, speeding up the speed at which developers can write code and go live.

Modular blockchain focuses on specific modules of the blockchain, and the development is more targeted. Focusing on one of the modules reduces the amount of data processed by the blockchain, provides scalability, and has strong expansion capabilities. Blockchain composability provides solutions.

While ensuring the security of expansion, zkEVM makes up for the defects of zkRollup in compatible EVM, and combines security, scalability and EVM compatibility.

2. New public chain ecology: rich in categories but few in number

Among the 30 public chains in the statistics, the ecological project information of half of the public chains cannot be queried, and most of the public chains are still in the early stage of ecology.

Taking Aptos as an example, Aptos is one of the most popular new public chains. Many projects in the Aptos ecosystem are still in the testnet and development stage. Some applications have less than 1,000 Twitter followers. Currently, only wallets and DEXs can interact.

Although the number of applications and the user level are still unable to compete in the public chain track, the new public chain ecological application category is relatively rich, including mainstream Dapp types such as wallets, DEXs, liquidity protocols, NFTs, and lending.

3. Alpha revenue behind the new public chain

Alpha income means that the asset investment strategy mainly relies on the active management ability of the manager to obtain the absolute return of the market and does not fluctuate with the market.

The current wave of upsurge caused by the new public chain is independent of the overall performance of the market. Leading investment banks such as a16z, Paradigm, and Sequoia Capital have rushed to the new public chain in advance to ambush the Alpha opportunity of the new public chain in advance.

The high-quality technical background and high user participation enthusiasm of the new public chain bring higher investment expectations for the project.

In 2021, the tokens of high-performance public chains such as Solana, Avalanche, and Fantom will have excellent performance (SOL will increase by 102 times, AVAX will increase by 125 times, and FTM will increase by 138 times), providing investors with a new public chain Reference for Alpha earnings.

At present, the value capture ability of the new public chain is still relatively weak, and the correlation between the public chain and the token, and the value capture ability still need follow-up observation.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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