Industry Interpretation | Crisis and Opportunities of Multi-Chain Ecology
The public chain, as the infrastructure in the encrypted digital world, has always been an existence that cannot be ignored. After Ethereum ignited the DeFi Summer torch in 2020, Ethereum naturally became the leader of the public chain track. However, the rapid growth of Ethereum TVL and new users has also led to an increase in the gas fee for contract interaction, which discourages new users with less capital.
At the same time, the limited “transaction speed per second” and “block generation speed” of Ethereum also limited the efficiency of interaction, and was once criticized by the insiders as “aristocratic chain”. Obviously, a single public chain cannot meet the new needs of the complex encryption ecology, and multi-chain coexistence and coordinated development will be the trend of future industry development.
Danger: Cross-chain death, hacker ATM
As we all know, for ordinary users, using the cross-chain bridge, assets can interact freely, which improves the transaction speed and reduces the gas fee, and the experience is better. From a macro perspective, the emergence of cross-chain bridges improves the productivity and practicability of existing encrypted assets, and reconnects the fragmented on-chain ecology into a whole, which can promote the formation of a multi-chain prosperity situation. In short, the cross-chain bridge not only solves the just-needed problem of user asset transfer, but also alleviates the problem of insufficient performance of the underlying public chain.
The scale of cross-chain expansion, but assets are frequently stolen
With the continuous development of various applications, the status of cross-chain bridges as blockchain infrastructure will become more and more prominent. According to incomplete statistics, there are more than 100 cross-chain bridge projects in the market, which have begun to take shape. However, after the scale of the cross-chain bridge has continued to expand, “the frequent theft of assets” has become an unspeakable pain. For a time, it became a “danger” in the multi-chain ecosystem.
On August 2, there was another tragedy in the history of the cross-chain bridge. Nomad cross-chain bridge was stolen more than 190 million US dollars, and it even evolved into the largest and most chaotic “decentralized” robbery in the history of DeFi.
On August 3, a large-scale asset theft came under the radar again, with nearly 8,000 Solana wallets being emptied by hackers within a few hours.
It is no wonder that some people joke that the cross-chain bridge has become a cash machine for hackers.
Public chain security becomes the top priority
A few days ago, the blockchain security company released the “Blockchain Security and Anti-Money Laundering Report in the first half of 2022”, showing that in the first half of 2022 (as of June 30), a total of 187 security incidents occurred, and the loss was as high as 1.976 billion US dollars.
Among these security incidents, about 77% (144 incidents) were caused by the vulnerability of the project itself being exploited by attackers, and the loss amounted to about 1.84 billion US dollars, accounting for 93% of the total loss of security incidents. Blockchain security involves all parties in the ecosystem, including users, wallets, exchanges, chains, and applications.
Especially in the public chain, security is particularly important. In other words, the most important thing for the technical team of the public chain is to compete with hackers and try to eliminate security vulnerabilities before the attack occurs.
Only a safe and reliable public chain can provide safe and fertile soil for various ecological scenarios.
Machine: The competition is fierce, and the competition of the trillion-dollar public chain is fierce
In the last round of bull market, we have witnessed the explosion of the Layer1 track. In the context of the continuous spillover of the ecological value of Ethereum, from BSC to Solana, to Avalanche, Fantom, Near, Harmony and even Terra, the major Layer 1s have achieved vigorous development, the infrastructure has gradually matured, and various applications are blooming in the chain. With the rapid growth of data, it has also ushered in value mining at the market level.
As Vitalik Buterin tweeted, “The future will be multi-chain.”
The popularity of new public chain investment continues
Times have changed, and after several months of downward baptism, the market value of many public chains has shrunk a lot, but it is still difficult to hide the market’s enthusiasm for investing in new public chains. There has always been a saying in the industry that “a bear market looks at the first level, and a bull market sees the second level”. Based on the dynamics of the primary market, the new generation of Layer 1 has become a new focus for institutions. Aptos, Sui, PlugChain and other star projects have become industry focus.
Aptos As far as Aptos is concerned, after Libra was stillborn, Libra’s technical heritage has already made it ahead of many new public chains.
To be precise, Aptos is built on Libra’s open source code base, uses the Move programming language and the MoveVM development environment, and will adopt the iterative Diem-BFT consensus. However, unlike Libra, which focuses on cross-border payments, Aptos’ vision will focus on improving the security and scalability of Layer 1 and building an infrastructure network that can reach billions of people.
Sui Similar to Aptos, Sui also inherits the Move development language of Libra, but Sui has made certain improvements on the original version (Core Move) and launched its own version of Sui Move. The new version inherits the security and flexibility of Move. The storage mechanism, address type, etc. have been optimized to a certain extent on the basis of the performance of the network, thereby improving the network performance and reducing the transaction confirmation time.
In addition, Sui will adopt a completely different consensus mechanism for independent transactions and transactions with affiliation, so as to realize the parallelization of transactions (transaction parallelization), so as to improve the network performance on a large scale.
Plug Chain establishes technical barriers
As the most low-key star public chain among the three public chains, PlugChain was founded in 2021. After nearly a year of technical polishing, the PlugChain team has also established its own technical barriers. Among them, the decentralized oracle network is the core function of PlugChain. It adopts a very innovative cross-chain interaction design, which opens a door for the cross-chain interaction between executions of the oracle network.
It is compatible with everything, and the features of Cosmos and Polkadot are also a major advantage of PlugChain. PlugChain can not only effectively solve the problem of information interaction between the networks of many independent blockchains like the Cosmos public chain, but also have the underlying functional components similar to Polkadot to achieve scalability — PlugChain can nest BSC, Heco, etc. The ecological scene of the chain, and provide modular underlying components, so as to realize the application network ecology supporting the commercial level.
Plug Chain Ecological Construction Prosperous Ecology
In addition to its technical advantages, PlugChain has also made great progress in ecological construction. The ecology on the chain is flourishing, covering Planet Gamefi, Kingdom Infinity, Panda Village, SoFi, Qiao, MetaTok, ECO, Very5, Btc.so, SoulMeta, etc. class application. All of them demonstrate the inclusiveness and openness of the PlugChain ecosystem.
n a nutshell, under the competition of trillion-dollar public chains, although the competition is very fierce, the track is still in its infancy, and there are still many problems to be solved. Naturally, there are still many opportunities for the new public chain. The new public chains that stand out in various core competition designs, especially the consensus mechanism, have technical barriers and ecological moats, which are their bargaining chips to compete on the public chain track.
Conclusion: Today, with the support of capital and the construction of developers, major public chains are competing for success. The multi-chain pattern is established and difficult to reverse. With the gradual improvement of the new public chain infrastructure and the beginning of the ecological scale, perhaps in the future, we will find that Ethereum is not necessarily required to support all network transactions, and different public chains are sufficient for different functional applications.
At this point, developers can really focus on the development itself, and then bring more efficient and easy-to-use DApps to users, which will also promote the continuous development of Web 3.0 in a true sense.