DeFi is only detonated on Ethereum, which may be the focus of other public chains in the future.
Title of the original text: ” Viewing the Status Quo of Public Chain Development from Four Dimensions “
Written by: Rebase Uncle Cai This article was reprinted with permission from LongHash to Chain Wen
Currently, the most eye-catching non-Ethereum 2.0 upgrade. As one of the most successful public chains, the proof of equity of Ethereum will switch from PoW to PoS. With the change of economic model, it has caused PoW and PoS which is better. dispute. Thanks to the success of BTC, early blockchain projects were indeed dominated by PoW. Over time, the underlying public chain projects using the PoS mechanism have increased significantly. With the market value of Bitcoin, the total market value of PoW projects still dominates. However, judging from the market value ranking of aicoin.cn, in addition to the upgrade to ETH before 2.0, only BTC, LTC and BCH are the top ten projects that use the PoW consensus mechanism. The PoS mechanism has achieved phased success, and the market value accounts for The improvement is obvious.
With the development of the network, no matter PoW or PoS, node operators need more and more powerful computers to run the network normally, which also means that the related costs will be more expensive and eventually move towards an oligopoly. This phenomenon is particularly obvious in the PoW mechanism public chain. The layout of the mining industry represented by big manufacturers such as Bitmain and Yuchi has formed a head effect. The figure below is the Ethereum miner data on etherscan.io. The top four miners have a combined computing power of more than 60%.
In addition to the emergence of several star public chains that have driven the development of PoS, the staking economic model allows ordinary investors to participate in the long-term development of the project, which is one of the key factors for the rapid development of PoS-like public chains. There is no doubt that the adoption of the PoS consensus mechanism is an unstoppable trend in the new generation of public chains. What is the development of existing PoS public chain projects?
As we all know, the development of blockchain is at an early stage. In recent years, there have been many projects called Ethereum hanging, most of which are short-lived. In the world of blockchain, data is publicly available on the chain. As a qualified investor, it is of great benefit to be used to checking data. In the PoS public chain track, Tezos is my observation, network data and ecological development status To all the surprises, Tezos officially launched on the mainnet in September 2018. It is a high-performance underlying public chain benchmarking Ethereum.
Node data
According to the official introduction, the behavior of block production and verification on Tezos is called Baking, and the role responsible for block production and verification is called Baker. The condition of the roaster is to hold at least 8000 tez, and ordinary investors can also entrust the tokens to other roasters to share the roasting income. Bakers are equivalent to the node operators in Ethereum, or the 21 nodes in EOS. The difference is that there are 426 bakers on the Tezos network (2020.11.18 data), and EOS is widely criticized for decentralization.化.
Tezos, which has been online for two years on the mainnet, has achieved certain results in proxy nodes. Data from tzstats.com shows that as of November 18, 2020, there are a total of 426 bakers in the role, which is similar to staking 32 ETH on Ethereum Node role, conservative estimates, it will take at least one year for Ethereum 2.0 to develop to the current node level of Tezos.
The number of independent addresses and the degree of token concentration
Merkaf’s law states: “The value of a network is proportional to the square of the number of connected users.” Correspondingly, the value of the public chain is highly correlated with the number of active users, and the number of active users can be estimated by the “number of active addresses”, so the number of active addresses is the number of active addresses that characterizes the value of the public chain network. The figure below shows the number of accounts in different public chains.
It can be found that the total number of independent addresses of Ethereum is far ahead, and its market value ranks second without any dispute. If you only compare the number of accounts, Tezos, as the top 20 blockchain project in total market value, is also relatively excellent. As a reminder, because ETH accounts are created for free, there are a large number of non-currency accounts, most of which are used as testers and wool. The data of messari.io shows that the actual number of active addresses of Ethereum is around 600,000. As for EOS, despite the cost of creating an account, when the gambling Dapp became popular in 2019, a large number of wool accounts spawned. The data growth of tez basically comes from natural demand, and the degree of distortion is relatively low.
The number of independent addresses can weigh the value of the main network of the public chain, and the concentration of tokens can reflect the degree of decentralization of the public chain. The following figure is selected from an article published by Yerui Zhang and Maggie Fu in LongHash. The author collected the token distribution of the three public chains of tez, ETH and ATOM, and calculated the concentration of the top 10, top 100 and top 1000 tokens.
It can be seen that Ethereum has the most dispersed address distribution, which means that Ethereum has the highest degree of decentralization. The high degree of centralization of ATOM tokens indicates that the current currency holdings of ATOM ecology are far worse than Ethereum. The degree of dispersion of tez is not much different from that of Ethereum. In the two years since the main network of Tezos has been launched, its value is being discovered by more investors, especially from the perspective of the top 1,000 currency holders.
Circulation token value
The data shows that the current daily exchange volume of tez is in the order of 20 million tez, which is equivalent to a market value of over 40 million US dollars. Circulation value corresponds to the user’s use of the main network. The more sufficient the circulation, the more the function of delivering value will be reflected. For functional working tokens such as tez, ETH, and EOS, the market value growth mainly depends on two points. The first is the number of users of the network, and the second is the circulation of tokens.
Source http://tzstats.com
In contrast, the highest daily transaction volume of Ethereum on etherscan.io has exceeded one million ETH, and the lowest in the past two years is also 500,000 ETH. The average market value is 30,000-400 million U.S. dollars, which is about 10 times that of tez day. It is well deserved Head public chain. The absolute market value of the liquidity is of course worthy of reference data, but if you take the ratio, the circulating market value of Ethereum is nearly 60 billion U.S. dollars, and the market value of tez is 1.5 billion U.S. dollars, but tez is even better.
In addition, you can see EOS data through bloks.io. The public chain 3.0, which was once high hopes, continues to decline. Now the market value ranking is squeezed out of 10, which corresponds to a serious decline in daily circulation. It can be seen that daily circulation is also a measure An important reference for the value of the main network. From the comparison of the three public chains, Ethereum’s total network circulation is far ahead, but tez has an advantage over the market value of circulation. This is related to the frequent transfer of tokens in tez’s staking model, but this data from Tezos Surprising.
Ecology and Dapp development
People have always been looking for the value flashpoint of the public chain. As the underlying technology of the blockchain, end-user-oriented products built around it are the most likely detonation point at this stage. From the perspective of the Ethereum path, decentralized finance is the key direction of its adherence to development. There have been phenomenal products around DeFi, such as Compound, MakerDAO, etc. Although everyone only knows about DeFi this year, in fact, the developers of the Ethereum community have already More than 2 years of deep cultivation.
EOS used to be a hot spot for gambling Dapps due to its high throughput, but it has not been able to find other directions after a brief flash. As for other public chains, they basically follow Ethereum. When DeFi is hot, various public chains have made DeFi products one after another. This behavior of hopefully quenching thirst actually hurts the value of the network. Compared with other public chains, Tezos is much more cautious. The Swiss Bitcoin Association recently announced the tzBTC anchoring BTC to help develop the Tezos DeFi ecosystem, but the ecological side did not invite credit for advancing. For the teams in the Tezos ecosystem, they The focus is on long-term development and stability, and will not make behaviors that harm users and the ecology for short-term heat and benefits.
As you can see from tezosprojects.com, as of December 16, Tezos has 114 projects. Objectively speaking, this data is not impressive. From a positive perspective, at present, almost all public chains have basically found no other development direction except Ethereum, and they are still in the infrastructure construction stage. In contrast, although Tezos is ahead of most public chains in terms of infrastructure, it still needs to continue to explore the development direction of public chains.
Conclusion
Tezos, currently ranked in the top 20 by market capitalization, is not only far ahead of other public chains in terms of various types of data, but also not much different from Ethereum. The mainnet has achieved unexpected results in the past two years. Of course, this year’s DeFi is only detonated on ETH, while other public chains can only serve the purpose. It is enough to show that the Ethereum ecosystem is strong. The focus is on its high-quality assets and the technical strength of the community. It has achieved staged success in infrastructure construction. For Tezos, this is also a place that needs to be developed in the future.
This article is based on the editing of the winning entries of the LongHash-Tezos essay competition. The opinions in the article do not represent the Tezos Foundation.
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