Road to the public chain, where to break the game?

At the end of September, Duan Xinxing, the founder and CEO of Bytom, resigned and left the public chain stage that he had always been optimistic about. Half a month ago, the operating entity of another veteran domestic public chain GXC (GXC) was seized by the police for involvement in illegal crawling services, which caused an uproar in public opinion.

The two public chains have undergone changes one after another. After a few days after each of them briefly occupied the "headlines" of the currency circle, the discussion gradually ceased. The hot public chain track in 2017 fell into silence. This battlefield has not yet produced a real "killer" application. This is the embarrassment faced by all public chains in the world, even the most star-shining Ethereum. And EOS, also failed to break through imagination.

From 2014 to 2019, in five years, the public chain has entered a blowout period from the exploration stage. After the excitement, the performance is not enough to support the ambition, and the problems of commercial application and value are still not solved effectively.

The departure of the founder of Bytom once again reminds the industry that the public chain of the industry is heading towards a development fault, and it is in an awkward interval between high and low.

In the market, a new round of shuffling is going on day and night, and newcomers emerge from time to time in the public chain field. Cross-chain projects such as Cosmos and Polkadot have become new stars, and iterations are coming again.

Gongxinbao Thunder exposes the scars of the domestic public chain

On the evening of September 11, the news that "Gongxinbao was seized" spread like wildfire. Subsequent multi-party sources confirmed that its operating entity, Hangzhou Cunxin Data Technology Co., Ltd., was legally prosecuted by the Gudang Police Station of the West Lake Branch of the Hangzhou Public Security Bureau for illegal crawling and reselling of data.

In the following days, the price of GXC plunged sharply, from 0.76 US dollars to a minimum of 0.29 US dollars, a drop of more than 60%.

Founded in 2016, GXB is one of the first public chains in the currency circle to put commercial applications into practice. In June 2017, GXB officially launched the mainnet GXChain. In January 2018, GXB released the famous DApp Block City, where users can upload personal data for mining.


Block City Mining Page

In the eyes of most people in the industry, GXB is one of the few good projects in the circle, and the "cross-border" accident of illegal crawlers has opened the scars of this star public chain.

Looking at the past information of Gongxinbao, its CEO Huang Minqiang has repeatedly emphasized that the practice of Gongxinbao is to return the ownership of data to individuals through the blockchain. "Privacy protection is the foundation of the free world." The irony is the final cause of Gongxinbao. Illegal crawling of private data was blocked.

On the surface, the crawler business and the blockchain business are not directly related, but the difference in words and deeds has caused it to encounter a credibility crisis, and also exposed the blood-making ability of this star public chain is not optimistic.

There is a lack of innovation and practical application in DApp construction, and its own data transaction business is limited to the niche group of the currency circle. In addition, the currency price continues to shrink, and the blockchain business of Gongxinbao is not good.

In fact, not only GXB, but also the major domestic public chains that have been online are not in a optimistic situation. The quoted price of Bytom, which has experienced CEO resignation not long ago, is 0.41 yuan, which is 95% less than the historical high of 8.35 yuan; the market value of domestic public chains such as NEO, QTUM and NAS They all fell more than 90%.

The domestic public chains that have been online are much quieter than in the past.

Two classic public chains are bottlenecked and their performance falls short of demand

The plight of public chains is related to the right time and place. Looking at it in a few decades, this may be limited by the times, after all, the most advanced public chains are savoring the taste of pain.

In 2014, Ethereum (ETH) turned out to be an epoch-making decentralized smart contract.

Originally, smart contracts have been used in traditional scenarios such as financial derivatives, insurance, and real estate. The "decentralized application" of Ethereum smart contracts has brought unlimited imagination, which makes the scalability of the blockchain change. Strong, people see the possibility of blockchain surpassing Windows, Android and other systems in smart contracts.

The innovation has brought the take-off of ETH, and Ethereum has become the representative of the "blockchain 2.0 era", occupying a dominant position for a long time.

No one thought that imagination has not been realized in real applications, and it has become its "strongest landing" with the help of Ethereum to issue currency financing. In 2017, countless Token projects based on the Ethereum network were born, which also pushed ETH to the status of "hard currency" for fundraising. The price of ETH exceeded 10,000 yuan, reaching the highest point in history.

Since then, the problems of Ethereum have gradually been exposed, and the most unbearable thing is the performance problem. Low TPS has caused congestion in the Ethereum network, and DApps are not running smoothly. In addition, users need to pay gas fees for every step of the operation on the Ethereum network, which makes the threshold for its use very high.

The problem was not solved for a long time, and Ethereum fell to the altar. Today, ETH is quoted at 1,300 yuan, which is 87% lower than the historical high.


The price of ETH has fallen by 87%

Like Ethereum, EOS, a new power in the public chain, has not escaped "the shackles of the times." EOS, born under the banner of one million TPS, has become the pioneer of the so-called "Blockchain 3.0" within a period of time with fast transfer and operation experience. Although the number of DApps is less than that of Ethereum, it has led a wave of Dapp explosions due to a better experience.

As a result, an endless stream of security incidents and gambling games flood the EOS ecosystem, and it is still a high threshold that discourages traditional developers: Ethereum only requires a gas fee, and EOS even charges for CPU and memory. This has also led to EOS facing a growth bottleneck.

As the infrastructure of blockchain applications and the carrier of running smart contracts, Ethereum and EOS have led the short-term prosperity of the public chain, and have also fallen into trouble.

In the opinion of an industry insider, the current common problem encountered by public chains is that the performance of this "infrastructure" is still too fragile for the huge demands of the outside world. In terms of performance, security, and flexibility, it is far inferior to a centralized system. The public chain has not completed qualitative progress. "Technology is still just a prototype.

The above-mentioned people believe that it will take at least 10 years for public chains to change themselves. "In 1985, Microsoft brought the Windows 1.0 operating system, and the Internet broke out on a large scale in 2000. Counting from Ethereum, public chains have gone through It will take 5 years, maybe 10 years, before the public chain can truly usher in its era."

Try more than just a lot of public chains try to break the game

Since the bear market last year, the outside world has been screaming bad news about the public chain. However, judging from the actions of major public chains, the industry is undergoing a deeper reshuffle, and they have tried different ways to break the game. Perhaps it will bring more intense actions than the 2017 public chain war.

For example, ETH is actively moving towards its 2.0 version. On September 13, Jonny Rhea, an engineer of the ConsenSys development team PegaSys, announced on Twitter that the Ethereum 2.0 multi-client operation has been confirmed. It is expected that Ethereum 2.0 will be officially brought in from 2020 to 2021. During this period, Ethereum will integrate all its technical advantages to rebuild the POS chain, and ETH will use sharding technology and virtual machines to achieve breakthroughs in performance.

EOS is also doing layout around its heavyweight DApp Voice. On September 23, EOS just completed its first hard fork and upgraded to EOSIO v1.8. In addition to improving security performance, EOS supports developers to pay users for resources and lowers the threshold for users to use DApps, which may expand user access for their own ecology.


EOS hopes Voice will break the game

In addition, QuarkChain is currently solving the problem of flexibility of the public chain. Its CMO Xiang Yazhen believes that the current problems of public chains are community fragmentation, upgrade difficulties, decentralized computing power, and single functions. In the final analysis, they are not flexible enough. Public chain developers should develop public chains that support multiple consensus mechanisms.

In addition to technological changes, public chains are also seeking breakthroughs at the application layer. In the hot DeFi (decentralized finance) field, both ETH and EOS are making efforts to deploy. According to The Block statistics, there are currently hundreds of DeFi projects in the ETH ecosystem, and the EOS ecosystem also has DeFi projects including NewDex and EOSDT.

In the domestic public chain, PoS projects such as Qtum and IOST also promote the staking economy in the ecosystem, and provide functions such as "coin deposit and mining" in investor services.

Although the progress of the public chain industry is slowing down at this stage, fortunately, practitioners are exploring ways to break the game.

After a round of bubbles, a public chain entrepreneur believes that the public chain has entered a period of accumulation before the explosion. Although the surface is calm as water, the interior is turbulent, and a deep reshuffle is in progress. After the accumulation, the public chain will enter A new level, "From a macro point of view, there is no need to worry about the "fault" of the public chain, it has been moving forward like time."

(The above text comes from Honeycomb Finance)


Mobile Blockchain Observation | Comments

According to the situation described above, the mobile blockchain observation believes that in order to break the road of the public chain, it needs to be considered from the following three dimensions:

1. Top-level design: How to break through the limitations of thinking from the top-level design, so that this public chain can stand in a higher dimension to serve commercial applications and value landing.

Previously, Mobile Blockchain Observation has written several articles stating that the most important bridge between the blockchain and the vast number of users must be opened up-the mobile terminal, so that most netizens can easily use smart phones to connect directly to the chain, so that the application can be implemented Maximize value. We believe that a true mobile public chain will be a dimensionality reduction blow compared to its competitors. Everyone does not compete in the same dimension.

2. The original intention and long-term planning of entrepreneurship: The founding team of the public chain has an unwavering belief and adheres to the core concept of the blockchain world to "solve credit problems". At the same time, under the guidance of this guide, make a long-term plan and not be attached to Only short-term benefits can make a public chain handed down.

Just like Ali under the leadership of Jack Ma, its corporate goal is not to be stronger, bigger, and the most profitable company, but to be a 102-year-old company. Ma Yun's words have special meaning for entrepreneurs: "How far you can go, the first day's dream is very important." The reason why Gongxinbao fell is related to the short-term benefits that lead to unscrupulous measures.

3. Underlying technology and friendly development environment: Performance, security, flexibility and other issues are the outstanding issues that prevent the existing online public chain from becoming a truly usable infrastructure and must be resolved.

Insufficient performance is one of the biggest obstacles faced by Ethereum, and the high development cost also makes EOS's DAPP ecology stagnant. As the public chain of infrastructure, it must have outstanding performance in these aspects to win the favor of the market.

Among the domestic public chain projects that have not yet launched the mainnet, there is a public chain that has the potential to break the game.

The world's first mobile terminal blockchain BFChain Biological Chain Forest is currently the world's first and only public chain that realizes the direct connection of the mobile terminal to participate in governance on the chain.

BFChain Biological Chain Forest takes the construction of the credit era as its own responsibility, positioning it as the infrastructure of the credit era, and has made an 18-year construction plan.

After four years of research and development, as of September 2019, BFChain has accumulated 78 technical patents including multi-dimensional sharding expansion technology, offline transactions, etc., which have passed the national preliminary examination. The peak value of TPS has exceeded 10,000+, far surpassing Bitcoin and Ethereum. Big classic blockchain project.


Based on the transcendence of the top-level design and many revolutionary innovations at the bottom, I believe that in the future, the new generation of public chains represented by BFChain will lead the way to break the public chain.

The above content is for reference only and does not constitute any investment advice!