Introduction:
On the second day of 2024 (January 2nd), the price of Bitcoin surged to a recent high. This was primarily influenced by the anticipation of the approval of a physically-backed Bitcoin ETF. For the cryptocurrency market, 2024 is poised to be a crucial year, with several landmark events expected to unfold.
In 2024, the following tracks are likely to garner attention:
Bitcoin Halving: The Bitcoin block reward halving is anticipated to occur in April. This event might impact Bitcoin’s price and attract more investors into the market.
Physically-Backed Bitcoin ETF: The anticipated approval of a physically-backed Bitcoin ETF could be a catalyst for driving the price of Bitcoin upward. This would enable more traditional investors to access Bitcoin through traditional securities markets, thereby bringing in more liquidity and legitimacy to the market.
NFTs and the Metaverse: The realms of Non-Fungible Tokens (NFTs) and the metaverse might continue to thrive in 2024. Digital artworks, virtual land, and related projects in the NFT market might become focal points for investment.
DeFi (Decentralized Finance): The DeFi sector may continue to expand in 2024, offering more innovative financial products and services. New protocols, lending platforms, and liquidity mining projects might capture investors’ attention.
Applications of Blockchain Technology: Besides cryptocurrencies, blockchain technology is expected to find applications in various fields. This could include supply chain management, digital identity verification, the Internet of Things (IoT), among others, making related projects worth observing.
Why do many people say that blockchain cannot be separated from oracle? First, we need to understand what an oracle is.
An oracle is a mechanism that writes external information into the blockchain, achieving data interoperability between the blockchain and the real world. It allows specific smart contracts to react to uncertain external events. It serves as the only means for smart contracts to interact with the external world and acts as an interface for data interaction between the blockchain and the real world.
Oracle prophecy machine, after completing the cross-chain aggregation Vault service for heterogeneous chain assets, faces another challenge in achieving state interoperability and coordination between DeFi protocols. For instance, when a user collateralizes assets on an A chain lending platform to obtain an LP token, then employs that receipt via Entangle on the B chain, which further utilizes the token for collateralized borrowing. In an extreme scenario, if there’s a significant fluctuation in asset prices and Oracle fails to coordinate the bilateral asset states, it can lead to defaults, such as a user redeeming assets on A chain before their assets on B chain get liquidated.
The key to tackling this complex issue lies in the Oracle’s price feeding mechanism. The Oracle needs to aggregate real-time on-chain and off-chain price data and efficiently utilize Time-Weighted Average Price (TWAP) and Volume-Weighted Average Price (VWAP) methodologies. This would enable predicting potential asset state changes on A and B chains, allowing for accurate asset management decisions to prevent defaults arising from Oracle price feeds and communication issues.
By employing liquid Vaults to address cross-chain asset friction and utilizing Oracles to manage asset state between chains, coordinating these two components creates an interoperability solution tailored specifically for DeFi circulation scenarios.
Why can Ethereum alleviate DeFi consensus overload issues? The logic is straightforward:
- Intra-chain DeFi operations limit: Engaging in DeFi nesting and Restaking within a single chain restricts liquidity to increase future asset appreciation. While this creates new profit opportunities, it limits asset liquidity as they remain locked and inaccessible for potential investment opportunities elsewhere.
- Cross-chain liquidity expansion and interoperability permit assets used on Chain A to flow to other chains, combining liquidity from different chains to seek value. This not only brings capital and activity to new chains but also relieves pressure on the original chain.
- Once DeFi protocols operate stably, metrics like fund size, user base, and yield become intangible assets. Interoperability indirectly extends the reputation of brands to other chains, which aids in brand enhancement. It alleviates concerns of established brands about expanding to new chains and mitigates the various risks associated with rebooting a project.
It’s evident that the realms of Data Availability and Interoperability have been highly competitive. Ethereum, in the former case, attempts to maintain its boundaries but is inevitably facing incursions from modular thinking. Meanwhile, the latter, no matter how it’s approached, appears to be an opportunity with numerous advantages and no apparent downsides.
When we consider these elements, one cannot help but think of PlugChain, a public blockchain. On one hand, PlugLabs continuously expands the ecosystem’s external boundaries by integrating decentralized DApps. On the other hand, it has established an internal ecosystem comprising the PlugChain SDK, wallet (Pando), blockchain explorer (PLUG Browser), NFT ecosystem platform (Very5), and oracle (ONP).
Of course, the narrative about the public chain story doesn’t end here with PlugChain. Riding the wave of the Generative AI concept, the PlugChain team has demonstrated foresight. They deployed AI onto the blockchain last year, thereby providing robust support for the intelligence and convenience of interactions within the public chain ecosystem.
In summary, the development of public chain technology revolves around scalability. Bitcoin represented blockchain 1.0 but lacked scalability. Ethereum symbolized blockchain 2.0 by introducing scalability. Various chains striving for higher performance represent blockchain 3.0, aiming for increased scalability. Without a doubt, PlugChain emerges as a pioneer in the blockchain 3.0 race!
PlugChain takes the aggregated cross-chain oracle protocol as the core, integrates the advantages of high performance, high expansion, low gas！
Website: https://plugchain.info
Twitter: https://twitter.com/Plugchainclub @Plugchainclub
Telegram: https://t.me/plugchain
Discord: https://discord.gg/GdpPzUt89E
Youtube: https://www.youtube.com/channel/UCW4s0YFA7y1qYis1eW3Wcog
Medium: https://officialplugchain.medium.com/
NFT Market：https://very5.com/
GitHub:https://github.com/oracleNetworkProtocol/plugchain
Official Email：officialplugchain@gmail.com
#PlugChain #Pando #Very5 #Gxswap #Oracle #prc20 #web3
