In the last issue, I introduced to you what public chains are and their characteristics. As the community foundation of the world, public chains play an important infrastructure function. This time, I would like to talk to you about the landscape of public chains and what the future will be like.
⬤The structure of public chain?
One superpower and many strong countries
Public chains are the foundation of blockchain applications. Currently, the market is dominated by one superpower and many strong ones. As the leader, Ethereum has a market value and ecological applications far exceeding other public chains.
Except for Ethereum, the remaining public chains can be divided into two categories:
The first category is EVM compatible chain
Chain compatible, fast and with low transaction fees.
Compatibility with EVM can quickly "own" Ethereum applications and developer ecosystems. Developers can migrate to the corresponding public chain at zero cost, thereby rapidly expanding their own ecosystems. Relying on Ethereum's prosperous #DeFi ecosystem, it can accelerate the accumulation of encrypted assets to enhance its own value.
For example, Binance's BNB chain can efficiently reuse the Ethereum ecosystem and combine the advantages of Binance's ecosystem, high speed and low fees to gain a share.
The second category is non-EVM compatible chains
Typical cases include: Solona, based on a unique PoH consensus mechanism, can process 65,000 transactions per second, comparable to Visa, but with a certain degree of decentralization compromise; Polkadot attempts to build a public chain that connects different public chain ecosystems to achieve cross-chain communication; public chains such as Aptos and Sui based on newer technologies are also planned to be launched one after another.
New public chain
Public chains are an important part of Web3 infrastructure. New public chains continue to emerge, aiming to provide developers and users with a better Web3 experience and strive to break the blockchain "impossible triangle".
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 all three.
Among the new public chains, the more popular ones are the Meta-background public chains represented by Aptos, the Layer2 new public chains represented by zkSync, the privacy public chains represented by Aleo, and the modular blockchains represented by Celestia.
The new public chains focus on high performance, high scalability, EVM compatibility, privacy protection and other aspects. There are many innovations on the technical level, but the ecosystem of most new public chains has not yet developed, and the ecological development, actual network performance and user volume remain to be seen.
⬤The future of public chains?
The public chain is still in the early stages of development.
The importance of public chains lies in the fact that the development of public chains is a forward-looking development of Web3. The current situation is that Ethereum $ETH is still in its early stages. If Bitcoin $BTC has 80% completion, but Ethereum only has 55%, its upstream ecosystem should be even more imperfect.
To realize large-scale Web3 applications, it is necessary to first improve the underlying facilities and technologies such as public chains, and then develop upper-level applications to lower the threshold for user entry.
⬤Future landscape
It is expected that a multipolar pattern will gradually take shape, and we believe that the public chain will most likely be a multipolar pattern in the future.
On the one hand, considering that the basic function of public chains is to establish industry standards, they have sufficient scale and network effects;
The interests of users holding tokens are also consistent. A larger-scale public chain can benefit everyone, so the public chain structure will not be very fragmented.
On the other hand, the open source nature of Web3.0 and the fork mechanism provide a final solution for users with different opinions. We expect its competitive landscape to be more decentralized than that of operating systems.
Finally, since Ethereum itself is decentralized in terms of power and mechanisms, we believe that the higher market share of Ethereum EVM-related public chains does not conflict with the decentralized concept of Web3.0.
⬤ Conclusion
The public chain is an operating system and the underlying infrastructure of the Web3 world.
The public chain is still in a relatively early stage. If we want to realize large-scale Web3 applications, we need to first improve the underlying facilities and technologies such as the public chain, and then develop upper-level applications to lower the threshold for user entry.
There is currently a new public chain landscape of one superpower and many strong ones, with a hundred flowers blooming, but new public chains continue to emerge.
We expect that a multi-chain landscape will be formed in the future, and we recommend paying attention to the upgrade status of Ethereum and the growth opportunities of new public chains.
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