The neglected simplicity of the blockchain

In the billiard game, there is a game called “three stars”. After the cue ball hits the ball, it must hit the Cushion three times before hitting the next ball.

In my opinion, the user behavior of the blockchain also has “three stars”. When we think about how to connect the three stars together, we have a chance to hit the ball that the user wants.

The three stars are Key, Token, and Transaction. They represent the core objects of the blockchain scene. Connect these three stars to outline a picture of the user’s life cycle.

Key: Identity data and ownership

Token: Asset expression ability and scenario

Transaction: Transaction Combination and Paradigm

From the perspective of the stars, we try to think about the simplicity of ordinary people facing the blockchain.

How does an ordinary person save good money?

not your keys, not your crypto.

This is the most intriguing motto of the Crypto industry. Many Crypto holders may not yet understand the meaning of Key.

There are countless coin loss/theft incidents in the Crypto industry. There are not only newcomers who have suffered here, but also professional players. Bitcoin core developer Stefan Thomas once caused the loss of hundreds of millions of dollars of Bitcoin due to backup errors.

Such an important thing cannot be measured objectively, and it becomes a perceptual cognition over time.

The private key is important, but it rarely becomes the priority of the industry. Everyone is thinking about the following stars. How to expand the transaction capacity and how to implement the scene? Few people care about the basic security of asset ownership. This is like a gambling game with principal and interest.

We try to find the ideal appearance of Key

Have a permission system to prevent loss and theft, this is the most basic requirement

Have a set of asset management logic to solve business demands, such as authorization, agency, delayed transactions, etc.

In the past, we generally believed that Key’s answer was “off-chain”, from private keys, hardware wallets, to TSS (multi-party threshold signature) to find a permission system to solve the problem of loss and theft.

Later, we hope to find the answer to Key “on the chain” and use smart contracts to establish account permissions and asset management logic. Everything seems perfect, but smart contracts are not first-class citizens and cannot be used in public chains. These restrictions restrict intelligence. The development of contract wallets.

Fortunately, “account abstraction” has become the ideal answer at the moment. It is like a hierarchical concept. The chain is responsible for the private key authority system, free from the constraints of the public chain, and the chain is responsible for the definition of asset management logic, which is customized on demand.

This is the first star key. We cannot ask everyone to back up their private keys like experts. It is the most basic requirement that ordinary people can independently own identity data and asset ownership.

What does an ordinary person want to do?

Sometimes, the prosperity of the blockchain is different from what you think.

76% of wallets hold tokens less than $1K, 80% of which are traded between wallets and exchanges, and 99% of on-chain application scenarios are in Swap and NFT.

Most users don’t have much assets, except for holding positions, which is exchange.

Coinbase recently published an article “Our Mission, Strategy and Culture”, in which the strategy design appropriately describes the current development route of the blockchain industry and breaks it down into three sections:

Crypto as an investment
Crypto as a new financial system
Crypto as a app platform

Coinbase clearly recognizes that “investment” is the core demand at the moment, and the beautiful vision of “DeFi” is a game for a few people in the development stage. Ultimately, the blockchain “application” outside of finance is the scene that serves the majority of people. .

This is our current situation. When we build a global ledger that is accessible to everyone, we provide services that a few people can use. This is not a simple question of cost and learning threshold, but everyone is focusing on building a minority game.

Just as Vitalik mentioned “Things that matter outside of defi” on EthCC, are there other things besides staking and farming Tokens over and over again?

If DeFi is a game for a few people, will GameFi be a game for the majority? There is no answer, not everyone can play finance, but gaming entertainment is everyone’s nature.

This is the second star Token. Token will have many types and manifestations of ERC20 (FT), ERC 721 (NFT)… But building a public scene on top of this is the core pursuit of Permissionless BlockChain.

How can an ordinary person use the blockchain foolishly?

Sometimes, we will joke, the wealth effect of the blockchain can’t stop the uncles and aunts from learning. The wealth effect will not last forever, and will eventually return to daily life.

Imagine a stablecoin player who has to work hard to learn various concepts if he tries to transfer money under different public chains, such as Ethereum’s Gas, Bitcoin’s UTXO, and TRON’s Energy.

There are two ways to solve the problem:

Establish standards, no difference

Establish a private environment to smooth out differences

The former is proved to be difficult to practice on the current Internet, and the W3C is only a recommended standard. Actually, each browser manufacturer decides on its own. However, after years of development, most agreements have formed a consensus, reducing most frictions.

The latter is the traditional Internet model, which establishes rules in a closed environment, allowing different content to behave in a unified paradigm, just like you are facing tens of millions of products on Amazon, but viewing and purchasing in a paradigm.

The rise of EVM has realized the beautiful vision originally envisioned by Cosmos and Polkadot. The same language system is used for communication between public chains. This is like a W3C recommended standard, and EVM Compatible has become a default.

The progress of Layer 2 has lowered the threshold for establishing a private environment. Everyone can use Layer 1 to build a secure and decentralized blockchain service, smoothing the difference between assets and transactions in a network system, just like a power converter , Regardless of the variety of plug standards, it can be expressed in one paradigm.

EVM + Layer2 may be able to bring blockchain applications to the next stage. This is not a simple expansion and improvement, but a flexible network under a paradigm, which makes it easier for transaction combinations to form effects and allows innovation to occur more frequently.

This is the third star Transaction. Transaction combination is the advantage of blockchain, and the transaction paradigm allows more ordinary people to experience these advantages.

Finally, the three stars are a symbol, not an answer. As the Big Dipper guides the direction, it helps us reflect on these simple questions.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-neglected-simplicity-of-the-blockchain/
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