I entered the crypto space slightly during the Ethereum killer app era during the 2018 to 2020 time period and boy how things have evolved since then!!
Obviously, my understanding of Blockchain has evolved from then with new insights gained over these years. Since 2020, the Ethereum killer app narrative faded, and a lot of other developments have taken place since then many of which I may not even be aware of.
Focus became on bringing Ethereum’s liquidity to other Blockchains
Blockchains began to develop EVM compatible virtual machines on their Network
From 2020 time period, new projects focused on developing EVM compatible virtual machines in their Network, where Ethereum developers can deploy their EVM dapps on Networks like Polkadot using dapp platforms like Moonbeam, or Evmos in Cosmos.
Source Dedicated EVM compatible virtual machine platform on Polkadot
Networks were building dedicated platforms that established compatibility with Ethereum dapps, Solidity smart contracts, Ethereum wallets(Metamask) and Ethereum Developer tools like Truffle and waffle.
So, there was a shift from aggressive stance taken by Blockchain projects from building a Blockchain that would kill Ethereum to drawing Ethereum’s liquidity to their side.
Source Dedicated EVM compatible virtual machine platform on Cosmos
Focus for Blockchains was now to bring Ethereum users to their Blockchain, where users can use their Ethereum assets and their familiar Ethereum dapps in another Blockchain that provides the benefits of faster transaction speeds and low fees.
Emergence of Layer 2(L2) solutions that are capable of scaling the Ethereum Blockchain
Then suddenly, Ethereum scalability solutions have been coming up, the latest and popular one being zkRollUps.
Ethereum itself, has got a more scalable architecture with it transitioning from Proof of Work to Proof of Stake protocol which also introduced new products like Liquid Staking protocols (LSDs).
It must be mentioned that Polygon has done a lot of work in introducing so many scaling solutions for Ethereum and it’s finally nailed it on a solution to make Ethereum infinitely scalable!!
I had explained about zkRollUps and Polygon’s current strategy of making Ethereum infinitely scalable in these articles -:
Deciphering how zkEVMs make Ethereum more scalable employing ZK proofs & Rollups
Polygon 2.0 all set to make Web3 infinitely scalable like the internet!!
I recommend all of you unaware of these developments to give it a read because this is going to play a pivotal role now and in the immediate future in shaping Blockchain industry’s infrastructure.
Liquid Staking protocols have been a super hit!!
Earlier only Ethereum seemed to have a mechanism for liquid staking, with users locking their ETH in Lido getting stETH which in addition to accruing staking rewards can also be used in DEFI to earn further rewards.
Of course, Lido’s LDO token did experience substantial price increases on the way with LIDO being the most popular liquid staking protocol for ETH which has proven to be very successful.
Now, I have seen Liquid Staking Derivative Protocols emerge on Cosmos, with Stride and there are such protocols on Polkadot too.
Staking experience made simple for users by LSDs
So, things have changed last few years from user needing to stake their cryptos the traditional way - choosing validators, keeping a tab on their performance to staking becoming easy for users now.
This is because liquid staking protocols themselves have a mechanism to monitor performance of validators and users’ stake is distributed only to performing validators.
Stride’s STRD token like LDO has also experienced surge in prices.
LSDs provide another benefit to users as staked asset like stETH can be swapped for ETH in DEXs like Curve, so its quick to convert staked ETH to liquid ETH than waiting for the week-long unbonding period when users unstake their ETH the traditional way.
You can read my article on Cosmos’s No.1 liquid staking protocol Stride here -:
Stride has made liquid staking possible in Cosmos
Enhancement of Blockchain architecture with Modular design framework
In the middle, I have understood that Blockchains need to be modular, allowing for the creation of application specific APP chains.
Polkadot and Cosmos are the kind of Blockchains whose architecture allows for creation of application specific App chains as they have modular architecture.
This was different from Ethereum or Solana earlier, because all dapps there were on one single chain, with all their transactions that getting processed fighting for Blockspace. These Blockchains had a single or monolithic chain architecture.
So, during peak transaction times, the entire Blockchain gets overloaded and there were several instances earlier of Solana Blockchain completely collapsing during peak transaction periods.
In Modular Blockchains there are multiple side chains for a Blockchain and each dapp can function like a separate Blockchain. They won’t have the need to compete for Block space.
These App chains have freedom of having their own tokens and tokenomics, validator set, governance mechanism etc.
App chains allow for creation of scalable gaming dapps which was not possible in a monolithic chain architecture.
I explain about Cosmos Blockchain having a Modular design architecture allowing for building of application specific dapps here -:
Privacy Blockchains like Secret Network have come up!!
Over the years, Blockchain analytics have developed where asset transactions on Blockchain are easily traceable. This has showed how transparent Blockchains are, where our transactions and other data are all viewable on chain, leaving trails that can be tracked.
Now, Privacy Blockchain Secret Network has come up, that keep users’ data confidential. So, where in public Blockchains all sensitive data is visible, in Secret this data is encrypted.
So, details like users’ wallet balance and asset holdings, DEFI holdings such as their collateral amount and debt positions, NFT content and other trade details that are visible in public Blockchains, are encrypted and not visible to public in Secret.
What’s more, Secret Network’s privacy preserving computation can be utilized by public Blockchain dapps to avail privacy use cases.
So, a Ethereum dapp can mint secret NFT, with the NFT data remaining confidential to the public with the access keys being with the owner. It’s possible for Governance voting to take place without revealing the identity of the user through their wallet address and many more such things.
I have explained about the reality of public Blockchain dapps getting privacy preserving use cases by leveraging Secret’s privacy preserving computation in this article –
Secret Network can now be utilized by Ethereum dapps for availing its privacy functionalities!!
Confidential data saves users from becoming targets of hacks and other attacks, including front-loading, copy-cat trading which can subject users to become victimized by others who know of their trade positions (buy order and sell order price levels, trading amount), or liquidity threshold levels in DEFI etc.
Governments and Big institutions embracing Blockchain for evil pursuits
Earlier, Governments and institutions were looking to ban Bitcoin but now they want to embrace Blockchain to develop centralised stablecoins or CBDCs, so called Central Bank Digital Currencies. Once, CBDCs become mainstream, we can say goodbye to privacy.
Government will be able to track all financial transactions of users. If that was not enough, Government can also censor wallets, block any one they are against from getting access to CBDC.
CoinBurea explains about CBDC being a tool for Government to control all aspects of our financial activities here -:
So, good old BTC still has value, with Bitcoin being a decentralised asset, with its issuance not under anyone’s control. BTC’s issuance happens when miners successfully mine BTC.
Also, BTC’s supply is halved every 4 years automatically according to BTC’s algorithmic processes so it’s not possible for other entities to manipulate BTC’s supply.
Plus, BTC would get scare and deflationary at one point, because there can only be 21 million BTCs, as BTC’s supply cap is fixed at that point, and issuance of BTC decreases after every halving event.
Listen to my composed song - 'Mighty, mighty Bitcoin to Rescue me here...
More innovations and changes happening now…
Most of my explorations and learnings of Blockchain technology has come about checking out the Cosmos Blockchain for me. There are so many innovative developments there that it shows that Blockchain technology has advanced a lot, though not yet quite matured enough for global scale adoption. Now, it definitely looks like Blockspace space will be geared for global scale of adoption in the very near future!!!
Existing Blockchains making it easy for Businesses to set up their Web3 portal
Dapp teams can build platforms automatically secured by Blockchain’s common set of validators
Latest developments I have read on Blockchains like Polygon and Cosmos, is the ability of a common set of validators to secure other chains in the Ecosystem.
This is done so dapps can be developed by teams easily without needing to recruit separate set of validators to secure their chain. This way, teams can solely focus on building or enhancing specific functionalities of their dapps.
Today there are Business companies that provide Web3 services launching Web3 dapps for their clients, providing clients dapp portals as a service.
In future, it would be very easy for Businesses to launch their own Dapps and the Web3 Era would spread experiencing a Boom period.
Seamless Interoperability with composability for cross-chain communication
There are also excellent interoperability solutions coming up that are decentralised and secure. It would be possible to conduct native asset transfers between Blockchains without wrapping tokens, bringing about unified liquidity.
The beauty of this interoperability is the excellent level of composability, where atomatic swaps of native cryptos between Blockchains is possible.
So, one will be able to swap ETH from a smart contract in Ethereum Blockchain with Atom on a DEX in Cosmos, with instant finality happening on the source chain where the user transaction was initiated.
Pretty novel!!
I have written about TOKI protocol that’s building such functionalities in Cosmos Blockchain, read it here -: Enhanced interoperability for 1 click instant cross-chain swaps using TOKI’s enhanced IBC protocol
zkEVM and Rollups are a rage!!
zkEVMs and Rollups are a rage now too, this is because transactions can be verified securely and instantly for EVM Blockchains using Rollups, with the final verification always approved in the Ethereum Blockchain!!
Other Blockchains wanting Ethereum’s liquidity are building compatible zkEMVs in their Network.
Lightclient nodes alongside full nodes employed to fetch Blockchain Data
Earlier, dapps have to interact with centralised full nodes to retrieve Blockchain Data, now Lightclients can fetch Blockchain data from full nodes and provide it to dapps, protocols etc.
There are some advantages of this, as maintaining full nodes is a costly affair, so using services of Lightclients that fetch data from a Blockchain’s full nodes is useful.
Cosmos’s IBC protocol uses Lightclients to verify data from another Blockchain, in a fast and efficient manner. Cosmos’s IBC is a decentralised interoperability protocol, and lightclients verify data of the source chain that’s sending message to recipient Blockchain. Here verification is done to ascertain that the message that’s sent to receipt Blockchain originally originated at the Source chain.
I have explained more indepthly about how Cosmos’s IBC protocol functions here -:
Secure interoperability between Blockchains a reality today with Cosmos’s IBC protocol
Dapps can avoid interacting with Centralised full nodes to fetch Blockchain data by using Light clients. This is good for dapp users as centralised full nodes are known to collect user data like IP address and wallet address and store it.
When dapps use light clients to fetch Blockchain data, user data is not collected.
I have explained about centralisation of Web3 with centralised full nodes collecting user data here –
The Web3 space is not free from Centralisation & our data is collected here as well!!
Decentralised cloud storage that’s censorship resistant
Protocals like Akash and Jackal provide for decentralised storage, and decentralised cloud hosting services.
So, in Akash for instance, decentralised cloud infrastructure can be purchased from different sellers who deploy their cloud infrastructure on Akash Network.
Akash Network’s cloud infrastructure is censorship resistant as no centralised entity controls the infrastructure. It is P2P, Peer to Peer, where cloud space is purchased directly from seller.
Multiple cloud spaces can be purchased, in a flexible manner and in an cost effective way.
So, a Web3 dApp, can purchase cloud space, storage, lease IP address from Akash. It’s super secure, as the Cloud space that’s deployed is secured by Akash Network’s validators.
There are additional benefits of privacy as dapps can be hosted anonymously without providing personal details.
There is no central point of failure with all data stored safely and available permanently though not on centralised database, they will be stored in a decentralised way on different nodes.
Know more about Akash Network here –
https://akash.network/
Jackal provides decentralised and private storage, providing services provided by products like Google drive, Google docs that we all know are very centralised and not secure, as Google can access stored user data, or someone can hack and get access to user data from Google’s centralised database.
Note, that emphasis is on privacy not just on decentralised storage.
Learn more about Jackal Protocol here -:
https://www.jackalprotocol.com/
Conclusion
So, I have summarised most of the learnings I have gained about the developments in the Blockchain space in these past 3 years. The Blockchain space advances in a fast phase when it does, although when I began my Web3 journey I felt that Ethereum can never scale, at that time period, it looked like Blockchain space won’t in the near future ever be ready for mass adoption.
L2 scaling solutions were all in experimental mode, and even then transferring assets from Ethereum to L2 protocols was quite a long procedure. Now, we have so many L2 scaling protocols we can use instead of main chain Ethereum.
Now today in 2023, just 3 years later from then, solutions and developments are taking place at multiple Networks for dapps to get unlimited scalability, even Ethereum dapps can be unlimitedly scalable.
Besides this, can you image that cross-chain native asset transactions can take place without bridges, without wrapping of tokens?
Here interoperability is advanced with decentralised inter Blockchain communication protocols while asset liquidity stays unified, without fragmentation of liquidity that happens with different wrapped versions of the assets.
Now, with native asset cross chain swaps possible, there can be unified liquidity, as one asset accumulating universal liquidity is traded across blockchains rather than its wrapped derivatives which divert and fragment liquidity.
All these developments look poised to become reality in the near future.
Wow!!! Amazing!!! Incredible and mind blowing!!
I end this by a fun tune performance – Mission Impossible!! It’s Magic!!
Thank you for reading!!
Posted Using InLeo Alpha
Posted Using InLeo Alpha
Posted Using InLeo Alpha
Posted Using InLeo Alpha
Posted Using InLeo Alpha
!ALIVE | !PGM | !LOLZ
@mintymile! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @ vocup. (4/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want, plus you can win Hive Power (2x 50 HP) and Alive Power (2x 500 AP) delegations (4 weeks), and Ecency Points (4x 50 EP), in our chat every day.
BUY AND STAKE THE PGM TO SEND A LOT OF TOKENS!
The tokens that the command sends are: 0.1 PGM-0.1 LVL-0.1 THGAMING-0.05 DEC-15 SBT-1 STARBITS-[0.00000001 BTC (SWAP.BTC) only if you have 2500 PGM in stake or more ]
5000 PGM IN STAKE = 2x rewards!
Discord
Support the curation account @ pgm-curator with a delegation 10 HP - 50 HP - 100 HP - 500 HP - 1000 HP
Get potential votes from @ pgm-curator by paying in PGM, here is a guide
I'm a bot, if you want a hand ask @ zottone444
lolztoken.com
He was a terrible conductor.
Credit: reddit
@mintymile, I sent you an $LOLZ on behalf of vocup
(2/10)
Delegate Hive Tokens to Farm $LOLZ and earn 110% Rewards. Learn more.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
Thanks for your contribution to the STEMsocial community. Feel free to join us on discord to get to know the rest of us!
Please consider delegating to the @stemsocial account (85% of the curation rewards are returned).
You may also include @stemsocial as a beneficiary of the rewards of this post to get a stronger support.