This year, we have witnessed tremendous changes in the world and turbulence in the capital market. In the first half of the year, oil prices fell to negative values, the U.S. stock market fell many times, and the market fell into panic. In the second half of the year, the global financial market "rebounded" and the carnival began. wealth.
In the second half of 2020, DeFi, Filecoin, NFT, ETH 2.0, Polkadot and other hotspots flooded the market, and there was a crazy investment boom in the market, which was very active.
-DeFi
DeFi is undoubtedly the loudest moment of 2020.
In many DeFi projects, decentralized transactions are perfectly executed through extremely simplified basic logic, thereby achieving the characteristics of no entry barriers (no permission required), no counterparties, direct pool transactions, and all transactions are executed on the chain, and are transparent honesty and so on. At the same time, the DeFi Aave Lightning loan project rebuilt the borrowing logic. The lending logic in the chain cannot be realized in the real financial world. "If you can repay, you will be able to borrow." The tools in the chain provide people with new ideas and solutions.
Currently, DeFi faces greater security challenges in each protocol module, and expanding the DeFi protocol at the technical level requires actually retrospective roll-up solutions (such as Layer 2). The DeFi market also has problems such as lack of user education and popularization of AMM. But with the future launch of ETH 2.0, it will undoubtedly prepare for the future performance improvement of DeFi. In response to these painful issues in the industry, DeFi will also have more innovative designs.
Currently, the bottleneck of DeFi is low base chain throughput. At the same time, DeFi continues to face many security challenges. Hacking attacks caused by various vulnerabilities in smart contracts are not uncommon. Only when the infrastructure is modernized between generations, the range of DeFi applications can be further expanded next year and enter the DeFi 2.0 era.
Before security issues are effectively resolved, DeFi can only enter major markets after passing regulatory barriers.
After solving various problems, after DeFi completes the financial reconstruction and deconstruction, DeFi will modularize more financial functions, and the combination of these modular contracts will create a new financial model. DeFi is still mainly a single green combination, and there may be a combination of cross-ecological contract calls based on cross-chain technology next year.
-Filecoin
Filecoin is the most expensive ICO project in history and one of the most controversial projects. In 2017, Filecoin completed an ICO worth 257 million U.S. dollars, setting a new historical record.
The general technical details of Filecoin implementation are very complicated, which will affect the time for the project to go online. However, in the past few years, Filecoin has been highly promoted and publicized, and even started a crazy "gold rush" this year.
The popularity of this outstanding project is still very high, Filecoin can provide low-cost storage space, and the storage mining system and economic model have gradually stabilized. The demand side is widely used, and many projects are currently preparing to use Filecoin as a distributed warehouse to provide warehouse space in the chain. At the same time, traditional industries can also achieve rapid integration.
At the same time, two months after Filecoin was launched on the main network, although the entire mining system still has problems such as excessive natural gas fees, the system has begun to stabilize. In 2021, the official will pay more attention to the development of overall green projects.
However, the development of the cloud storage area itself requires more infrastructure, such as privacy protection, data control, etc., in order to contribute to IPFS. Filecoin also has problems such as complex technical models, low mining success rate and low natural gas fees. In the future, it may be necessary to adjust parameters to improve the mining environment of the mining network and find a suitable landing scenario.
- Polkadot
Polkadot is recognized by the industry as the most anticipated project. In addition to Gavin Wood, the founder of the Ethereum technology leader, the advanced nature of Polkadot's technical framework and the emphasis on management modules have also triggered heated discussions in the industry.
Polkadot is a very important infrastructure of the blockchain, which has far-reaching significance for the medium and long-term development of the future industry. Currently, Polkadot is a leader in cross-chain technology and a strong competitor of the Ethereum ecosystem. The next phase of Polkadot is the launch of a parachute, which can handle about 100 parachutes.
-ETH 2.0
The official release of ETH 2.0 is considered a step towards bringing Ethereum into large-scale applications. Ethereum will become the backbone of the green blockchain network for a long time. The arrival of ETH 2.0 will help DeFi further develop. ETH 2.0 plays an important role in accelerating the development of Ethereum DeFi. DeFi will also bring more investment opportunities through its ETH 2.0. For example, in the derivatives market including permanent contracts, options and futures, synthetic assets, etc., these market segments have a variety of ways to play, can meet the financial needs of different users, and have more financial attributes than local assets.
-Layer 2
Although ETH 2.0 needs to be gradually implemented in the next few years, the Layer 2 solution is expected to provide the scalability that the industry urgently needs before and after, and will become an important part of the blockchain scalability solution. At this stage, the ecology of Ethereum is relatively rich, and the closed capital of DeFi has reached tens of billions of dollars, but the infrastructure behind it has been slow to respond, so more developers will have to work hard to solve these problems. Layer 2 technology is gradually improving. These Layer 2 solutions (such as Optimistic, ZK summary and Validum) can greatly speed up the expansion speed. For DeFi, the underlying infrastructure will continue to improve, which makes DeFi a long-term trend.
-Mainstream currencies and other channels
The siphon effect of major digital resources, as institutions adopt deflationary reserve assets, such as digital assets such as BTC, ETH, LTC and BCH.
At this stage, market conditions diverged. Institutional funds mainly flow into the aforementioned assets. The growth of these assets has exacerbated the gap relative to other assets. The wealth effect will attract more funds for these assets and will continue to grow. Read more:
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