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Crypto’s Nirvana and Rebirth

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  • Most DeFi projects are increasingly embracing regulationdefeating the original purpose of fewer intermediaries and permissionless.
  • Most GameFi is not fun at all, and the unresolved economy system issuealways ends in a death spiral.
  • Most NFTs are basically altcoins, speculating on useless or largely useless community concepts, the more expensive the art, and the air-dropped tokens are just nothing to feed the Ponzi, unable to be a real product, just to keep the story going.
  • Most DAOs are useless. A slogan can make people deposit with confidence. Everyone has joined no less than 10 DAOs. DAOs are more than people. Also, DAOs do things very inefficiently.
  • Most project’s tokens are useless, and while they are said to be useful for governance. Is the staking process really about voting? Do a few votes really give the user a part of ownership of the protocol?

Decentralization

Centralization equals lower price, decentralization equals value. The high gas you pay represents the value added by decentralization. Blockchain has many levels and areas of decentralization: hash power decentralization, governance decentralization, token decentralization, application decentralization, storage decentralization ......

1. Whose Law is Code?

One of the oft-repeated ideas of the Web3 era is that code is law, and code can refer to the code of a protocol, smart contract, or "recommendation system". The essence of code as law is actually a new world of social consensus (the scary kind), and we focus here on code and the decentralization of development, and the role of non-code-savvy users in the world of cryptography and computing.

  1. The problem involved in BIP-50 led to at least one double-spend transaction. Another violation of PoW.
  2. BIP-42 fixes the problem that bitcoins can have an infinite supply due to overflow. White papers are Law, Code is not.

2. Trustless?

While Bitcoin Core is the consensus, does everyone have to believe in the consensus, or defer to the majority opinion?

  • Our mechanism is super secure, but we don't know what could go wrong in the implementation.
  • Our funds are managed by a secure multi-signature wallet.
  • We are temporarily based on a centralized service with better performance.
  • Our contract code may have inadvertent or intentional bugs.

3. Permissionless

While most people don't want to, some users very much want and need to run their own nodes. And while many blockchain networks are outright discouraged to them by the configuration requirements, the true ultimate decentralized network is one that can be run by the average user on their home device.

Privacy & Ownership

Web3 = Read + Write + Own. To have true ownership, we must find a balance between privacy and publicity.

Innovation

The boom of blockchain and Web3 is based on innovation, which includes: open source 2.0, composability, decentralization, ownership. Innovation is a necessary condition for success in any new field.

1. Solving problems that others have not solved

A truly great innovation can be described in one sentence, and here are a few typical blockchains:

  • Arweave: A permanent storage network without any censorship.
  • BSC: Fast and cheap centralized blockchain.
  • Solana: Super throughput, contracts can be written in Rust.
  • Cosmos: New blockchain network architecture.
  • Arbitrum: Cheap, while borrowing the security of Ethereum.
  • Luna: The first blockchain to print money on 20% APY (this article was written in April '22, before Terra crashed).

2. Creating new and unsolvable problems

Each branch of innovation may solve one problem and then create more problems. As blockchains are created, issues of scaling, consensus, and security emerge. That's how the process of collapse and convergence came about. Computers were created to build better computers. It's hard to explain why an innovation is useful, but when it creates more problems, we know that at least we'll reap more progress.

  1. Is it a good new meme? (New Kind of Money, Rely on Math not Validators, The Internet of Blockchain)

Key Research Dimensions

1. Next-Gen Infrastructure

Every year is a year of building the Web3 infrastructure. This is a good thing, and it means we realize that the industry needs a stronger foundation. Infrastructure will inspire new applications, and applications will inspire new infrastructure. But be aware that infrastructure that doesn't solve problems and doesn't evolve into applications is still meaningless.

  • New Bridges: Bridges are the necessary facilities to communicate across networks.
  • Developer Resources: Next generation developers, more researchers.
  • Infra for Developers: Better development tools, more readable data, faster and more meaningful build tools.
  • Facilities for users: Better wallets, better applications, especially for Web2 users, which will represent an overall expansion of Crypto.
  • Public Goods: Providing value to Web3 and the world at large.

2. Next-Gen Innovative Technology

We need to look for innovation at the surgical level, not at the pharmaceutical and plaster level. My personal idea of the next generation of innovative technology is typically zero-knowledge proof.

3. Next-Gen Business Model

  • DAO: More exploration of the DAO model is needed in the future. What can DAO do? What is the right thing to do? How do you do it? The DAO is at the heart of the Web3 and Crypto spaces, and is tightly focused on communities and users. We will continue to investigate how the DAO can improve on the traditional system, and how the DAO itself can evolve.
  • Creator Economy: The creator economy, much like DAO, is a very familiar concept, but one that doesn't really run the gamut of value. Art creators have their own community and economy through NFT, but creators in music, video, and other fields still seem to have a rejection reaction after countless interactions with NFT, and are unable to truly integrate and innovate. The true realization of the creator economy, perhaps need more Web3 social and NFT innovation together.
  • Guild 2.0: Guilds have been evolving since the advent of gaming, and the emergence of the Play-to-earn model has given them a new lease on life. Guilds are playing an increasingly important role in the Crypto Gaming space, playing a management, operational, and integration role. I believe this model will move more into the mainstream in the future, allowing the Crypto gaming industry to mature even more.
  • NFT 2.0: We all love PFP, but in the end it's probably just a consumer product (for now). What exactly is the role of NFT? We all have some hazy ideas, is it Pass, is it Link, is it Art, or is it Meme?

Conclusion

Remember the opening thoughts of AC? Still, we are entering a new era, and we are a new generation that can do better. Blockchain may have temporarily entered the wasteland, with less "easy" innovation, but the foundation of Crypto has not become profit-seeking greed, but may have shifted from being trustless, to being partially trustless. Nevertheless, we are still on the right path.

Related Links

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