Looking from the most crucial event in the blockchain industry in 2020, as well as the BTC halving, there is nothing more than the major breakthrough of the underlying Level1 this season: ETH upgrade 2.0, Polkadot, NEAR, etc. on the mainnet. Due to the poor performance and high price of Layer1, most of the fundraising projects in 2017-2018 cannot be applied, not to mention the realization of commercial closed-loop; the barriers to using infrastructure are usually too high, and the experience is too poor, resulting in blockchain applications. Many real users are turned away. It can be mentioned that the functionality complications of the underlying Coating1 are a significant reason for the two-12 months downturn in the industry. As the most powerful tasks in Layer 1 are launched on the mainnet, or major updates are made, it could bring possibilities for the entire blockchain industry.
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Blockchain investment fund D1 Ventures divides the underlying general public chain Layer1 into two categories according to its design architecture: "DApp chain" and "cross-chain system". There is absolutely no absolute difference between your two types, which are ideal for different scenarios.
The representatives of "DApp Chain" are ETH2.0 and NEAR. Its eyesight is to permit all DApps to build on a common Layer1 and share the safety and functionality of the underlying chain. DApps do not have their very own independent chain, therefore there is no need to take into account the safety and security of the chain. Governance. ��Cross-chain system�� means that each DApp added to the cross-chain platform has its chain. The DApp is in charge of the security and governance of its chain. Numerous chains carry out cross-chain conversation through the hub provided by the platform. Mind projects consist of Polkadot, Cosmos, etc.
This in-depth report on NEAR just released by D1 Ventures, Lianwen has slow the essence of this content for you, and released the Chinese version exclusively. D1 Ventures believes that NEAR is one of the most competitive gamers in the "DApp Chain" direction. It has obvious late-comer advantages, an improved sharding scheme than ETH2.0, and world-class engineering features; but the disadvantage is certainly that it is definitely Insufficient community support.
Recently, the activity of Close to has increased significantly. In reaction to inquiries from many sector insiders, Linkwent compiled inner reports into posts for posting, aiming to talk about D1 Ventures' long-term analysis and cognition on Coating1 and its own judgment on the darkish horse project NEAR. This record is not meant as any expenditure advice.
Written by: D1 Ventures, the capital raising institution concentrating on the field of native blockchain, supports the future growth of the crypto economy by giving worldwide market insights, building cross-market liquidity, offering strategic consulting and Meme conversation strategies. Key investment projects include NEAR, Polkadot, Ethereum, Handshake, and ecological native picture applications. _
Lianwen has been authorized to create the Chinese essence edition of the statement.
How exactly to "gnaw" the hardest issue of the blockchain?
When confronted with solving the hardest problem of the blockchain, we horizontally compared the ideas and methods of Cosmos, Polkadot, Ethereum 2.0 and NEAR in solving information availability, finality, and cross-shard communication.
Data availability
In addition to Cosmos being responsible for reaching consensus and making sure network security, each chain can be in charge of storing their very own data. If a chain will be reorganized, it could encounter troubles in resynchronization with various other nodes.
Polkadot's sharding or parallel chain offers collators responsible for storing transaction information on each parallel chain. Fishermen are responsible for looking for lost data in a transaction by tracing history and compiling information from proofreaders, and submitting a fraud evidence if you find a problem.
Ethereum 2.0 uses a Reed-Solomon erasure coding style to expand a little piece of data into a longer "extended piece"; the block needs to be submitted to the root of the expanded data, and then the light customer will examine it in a probabilistic method , Whether most of the extended data can be acquired upon this network.
In provera 604 on jigsy , the chunk producer creates an erasure code for each chunk, transmits a small little bit of the code to the verifier, and then creates a Merkle tree. The leaves of the Merkle tree will be sent to the verifier as a onepart information. As soon as all the information is obtained, the block maker will take the rest of the information and reconstruct the block.
Finality
Cosmos' Byzantine fault-tolerant Tendermint consensus provides quick finality for every block and will tolerate around 1/3 of malicious nodes. In case of a network split, Cosmos has no solution to recover, because the block maker does not know which chain to keep building blocks on.
Polkadot has a hybrid consensus model, GRANDPA, which separates block manufacturing from finality by way of a chain development system and a finality gadget. This split enables rollbacks in the event of malicious transactions.
The initial design of Ethereum 2.0 depends on Casper FFG as a final tool and uses a proof-of-work (PoW) chain for block manufacturing. Thereafter, Casper CBC will business lead the full transition to Proof Stake (PoS). Casper CBC uses a excess weight of the final message received by the block instead of the fork selection guideline.
The NEAR uNightshade consensus uses Doomslug and a finality tool to supply feasible finality after one round of communication, and complete Byzantine fault-tolerant finality following the second round of communication. Weighed against Tendermint or Libra's Hotstuff mechanism, the delay hasn't improved, but the throughput will be doubled.
Cross-shard communication
All cross-chain communications in Cosmos go through the IBC process. Probabilistic chains such as for example Bitcoin and Ethereum cannot straight interact, but must interact through "anchor areas". It isn't its design goal to create native applications across chains.
Polkadot users may submit a cross-parallel chain transaction to the proofreader, who generates a block on the exit, obtains a final receipt from the relay chain, and gifts it to another parallel chain. Some regular communication protocols have to be established for these transactions.
Ethereum 2.0 also depends on cross-shard transaction receipts to avoid cross-shard atomic failures. Its communication protocol uses "friends of friends" model, that is, validators can path their communications through linked fragments. The study directed by Vlad Zamfir is still in the theoretical stage.
NEAR dynamically adjusts the balance of network sources between shards, and randomly assigns validators to lead to different shards. It runs on the receipt transaction construction similar to Ethereum and Polkadot, but integrates shards into chunks, which are then written right into a single blockchain, which decreases the cost of cross-shard transactions.
For decentralized protocols, Ethereum 2.0 is a risky upgrade
Ethereum 1.0 is already one of the largest and most active blockchain ecosystems, but its technologies is outdated. Ethereum 2.0 promises to provide Ethereum having an Internet-scale complex foundation, nonetheless it has already been difficult to create a new blockchain, aside from update a blockchain that already has a large number of users and different sensible contracts . With the emergence of Ethereum 2.0, there are some concerns:
Ethereum 2.0 focuses more on decentralization and scalability, rather than the sustainability of the ecosystem
The transition from PoW consensus to PoS consensus seems to be the primary topic encircling Ethereum 2.0, however the new sharding design may expand Ethereum into a good Internet-level basic blockchain. The advancement of Ethereum 2.0 hasn't yet centered on optimizing the ecosystem for third-party developers and projects.
The design of Ethereum 2.0 is constrained by ETH 1.x
Although Ethereum 2.0 has gathered among the best developers in the industry, most of them are just focusing on transitioning Ethereum from 1.x to ETH2.0. Other new blockchains have no historical conversion expenses or technical financial debt. The specifications surrounding ETH1, especially the zero cost surrounding state and various ERC20 tokens, have limited the options of experts. Ethereum 2.0 also inherited the troublesome fee market of ETH 1.x. Moreover, for existing ETH 1.x smart contracts, the conversion to Ethereum 2.0 may require rewriting the contract.
Ethereum 2.0 pushes state costs to the application form layer
As the first-generation blockchain, there is absolutely no charge for hawaii on ETH 1.x, which also makes it bloated. In Ethereum 2.0, each shard forms a consensus around the Merkle condition tree (once they get to an agreement on the shard deal). Essentially, storage and storage charges are completely removed from the core contract. The submitted transaction must include witnesses, which will be the history of all states required to total the transaction. The current assumption of Ethereum 2.0 is that off-chain relayers will store state and get paid for providing witnesses to customers. In Ethereum 2.0, there exists a complex, off-chain, untested model for negotiating the specific cost of providing condition between your relayer and the proposer.
Storage space and restoration of state can hinder third-party development on Ethereum
Ethereum's idea that common people may become validators by using laptops, and transfers the responsibility of state storage to DApp programmers, users or an unbiased relay market. The developer sources of ETH 1.x have been dominated by the Gas optimization strategy. Similarly, building a project on Ethereum 2.0 could also mean that hawaii recovery strategy needs to be optimized. Ethereum's stateless client is a good thing for small validators, but for DApp programmers, this means increased complexity.
Cross-shard communication will affect composability
The static sharding within Ethereum 2.0 has taken an unequal economic framework to DApps. The shards housing popular smart contracts can be overcrowded. To be able to control deal time and price, various DApps will collect together. For example, the shard that contains MakerDAO will work the DeFi DApp constructed on the shard, and the new army in the DApp industry will encounter an unequal financial landscape.
Ethereum's inflation plan is uncertain
Ethereum lacks the coherent monetary policy. As the system shifts to PoS, staking and inflation returns will become a controversial governance topic.
The number one public chain DApp development ecological spectrum
Cross-chain platform: Universe of Chains
* Requirements for construction and customization
* Possess safety, cryptoeconomics and governance
* Ideal for special use instances and traditional enterprises
* Approximate to create preset hardware
DApp Chain: Planet of DApps
* Standardized environment for developers
* Configuration, existing safety, governance and encryption economic climate are all low-end
* Developers can use many tools and infrastructure provided by some other DApps to build products
* Much like cloud deployment
The expansion technology and sustainable ecological design of the NEAR agreement can empower the DApp economy
In recent years, cryptography and blockchain research have achieved fruitful results. Especially the proof of stake and the fragmented blockchain. Both designs possess undergone rigorous theoretical and practical development. In this context, the NEAR group released the Nightshade consensus design. It includes a novel cross-shard conversation method that can achieve Internet-level scale, composability, predictable gas prices, and economically effective cross-shard transactions.
NEAR's Nightshade consensus assumes that a certain deal will involve multiple shards and will not price differentially across shard dealings. Conversely, if some shards exceed the usage and dimension of others, it will re-shard or rebalance the network.
Like any blockchain, condition is NEAR's most valuable long-term resource. Paying for state storage space is essential to guarantee the protection of any blockchain. The NEAR contract does not pass this fee on to designers and customers, but instead provides incentives for on-chain storage space and provides developers having an easier deployment atmosphere.
NEAR's sharding style works such as a single blockchain
Unlike Ethereum, the NEAR protocol is really a single blockchain, and each shard is rooted onto it. Like a conventional blockchain, each block consists of all transactions of most shards, but this data will not exist within a physical block; for that reason, each node doesn't need to store all the data. On the other hand, validators only shop the dealings of their specific shards, and the list of all transactions in the block will be physically stored in the "chunks" of every validator in the system. This design can make sure that NEAR won't double invest in cross-shard dealings without sacrificing high throughput. The "chunk" design and continuous reallocation of assets enable NEAR to achieve more efficient cross-shard communication.
The validator role in NEAR
NEAR is really a PoS blockchain. Each node must pledge NEAR tokens to participate in the incentive procedure for the system. Each epoch of the system spans several times, and NEAR randomly assigns nodes to have fun with the following functions in each epoch:
* Block Maker: Download all the states of the specified shard at the end of the previous epoch, collect the transactions of the specified shard, and create these changes in to the state.
* Chunk producer: All chunk producers are block manufacturers, but block makers do not always store state or transaction information (only change state). The Chunk producer stores a list of all transactions in the complete epoch of the specified fragment.
* Fragment validator: responsible for verifying all dealings of a particular shard and publishing the Merkle root of the shard condition. Verifiers are rotated and rebalanced between each epoch to ensure a straight distribution of network resources.
The NEAR protocol treats all shards equally, enabling quick and efficient cross-shard communication
Cross-chain communication
Transaction information should be quickly delivered to all essential nodes, and it must also be ensured that malicious dealings or double-spending transactions won't occur. For a cross-shard deal on NEAR, following the prior block is processed, a receipt with each shard that needs to be interacted with will be generated. Within the next block, the chunk producer collects regular dealings in the shard for which it is responsible and deal receipts for cross-shard transactions.
Disputes and challenges
Since the state in the NEAR protocol isn't stored centrally, the protocol carries a robust challenge system to make sure validity. Any participant in the network who maintains a fragmented state can problem the validity of a chunk by simply submitting a proof an invalid chunk. As soon as an invalid transaction occurs, the chunk will undoubtedly be rolled back again, and any block containing the chunk will undoubtedly be considered invalid.
NEAR's crypto economy creates a sustainable ecosystem for third-party developers
cost
* Calculation and bandwidth use a constant partnership, combining CPU instructions and bandwidth bytes into a deal fee. Its definition is really as follows:
NEAR realizes the dynamic rebalance of resources between shards in the network, so that each shard can maintain a well balanced cost structure. The most important thing is that NEAR strives to make sure a predictable fuel price, not really a low gas cost. If the gasoline limit utilized by the prior block exceeds half, the gas price will increase slightly. Usually, the gas cost will fall. The adjustment of block by block helps to keep the gas fee market stable.
* The expense of storing blockchain storage is high, and neither Bitcoin nor Ethereum can reasonably price it. Hawaii needs continuous storage space, but the fee is charged for just one transaction.
In the NEAR agreement, users can pledge NEAR tokens to lease part of the state. For example, 10 MB of state storage space needs 1,049 NEAR tokens. A smart contract or user must maintain the very least challenge threshold to keep up a state.
In addition to the NEAR token pledged to the validator, this model will also cause some deposits of NEAR tokens. In addition, this structure produces a symbiotic funding opportunity for projects that problem their very own tokens through pledge of NEAR tokens.
reward
The rewards for network participants are distributed in each epoch, as long as the roles of block/chunk producer and validator are assigned. New networks usually have to incentivize earlier participants, such as for example subsidizing transactions by issuing extra native tokens. The NEAR design also enables validators to become rewarded from additional issuance, but only if the regular transaction fee will not reach the reward threshold. Its annual inflation rate focus on is 5%.
Its reward structure is defined by the following formula:
Network inflation based on transaction volume and pledge amount
NEAR pledge percentage, source: D1 Ventures
NEAR's position inside the highly scalable blockchain matrix
How will the top blockchain assistance ecological development?
We horizontally compared the respective strategies and ways of Cosmos, Polkadot, Ethereum 2.0 and NEAR at the brand positioning, funding, and ecosystem funding and protocol degree funding levels.
Brand Positioning
Cosmos is aimed at a multi-chain future, focusing on "sovereignty" and "interoperability." Additionally, there are many different but related brands under its umbrella, such as Tendermint, ATOM, IBC and Cosmos. It has a strong army of avid developers and has attracted the participation of large institutions (such as for example Binance), but it has not yet attracted sufficiently companies.
When Polkadot appeared, the blockchain was extremely eager for growth and interoperability. The Polkadot architecture will pay more focus on scalability, but nonetheless emphasizes a multi-chain upcoming in its marketing strategy. Gavin Wood has brought great credibility to it, but also for new developers who hardly understand its past glory, new techniques are needed to appeal to them.
Ethereum 2.0 itself is really a brand promotion plan that packs several upgrade plans for Ethereum, including the shift to PoS consensus and sharding technologies. However, this branding plan is mainly aimed at existing communities. In addition, Ethereum is still using the "global personal computer" narrative proposed by Gavin Wooden at the Ethereum Foundation. However, this brand name positioning is gradually being refined to, for example, the DeFi economic industry, to meet the requirements of marketplace segments through interoperability.
The NEAR brand is simple and clear. These four letters are not only the title of the agreement, but additionally the title of the building blocks and token. It offers good brand recognition. For the prevailing neighborhood, NEAR is known for its advanced sharding technology, however in marketing outside the blockchain, NEAR focuses on the idea of "open system" and mixes itself with the TCP/IP process and Amazon Cloud (AWS). ) On par.
Grants and ecological funding
The Inter-Chain Base (ICF) raised US$17 million in April 2017, and as of November 2019, its funds reach US$104 million. Cosmos might not pay very much attention to the funding of value ecology, and prefer a liberal-style funding strategy, which is in keeping with its security and economic design. In 2019, 63% of its funds originated from service agreements, 27% originated from grants, and 10% originated from equity investment.
In October 2019, Web3 and Polychain announced a Polkadot Ecosystem Fund with an amount of "millions of dollars" which will directly hold equity. For the transaction of public infrastructure, Polkadot shouldn't have any financial pressure. They're mainly focused on attracting projects similarly to Block.One and EOS.
All analysis and funding for Ethereum 2.0 originates from the Ethereum Foundation, which holds 0.6% of the money. Ethereum also has Enterprise Ethereum Alliance, Ethereum Neighborhood Fund, MolochDAO and Gitcoin complementing grants (Grants). Nevertheless, the concentrate is on general public goods, not really on attracting business owners. There is absolutely no equity.
NEAR arrived earlier than the other three, but it was only recently that Open up Web Collective has been established to help entrepreneurs raise funds and build projects on NEAR. Its ecosystem mainly focuses on developers and technical support. At the time of the genesis block, the NEAR Foundation controlled 47% of NEAR tokens.
Protocol level funding
Cosmos does not have the treasury on the chain. It uses token voting indicators as the primary governance system. These indicators will not be executed on the chain. Like Bitcoin, these signals ought to be executed by validators.
Polkadot comes with an on-chain vault, which mainly originates from transaction charges, fines and invalid pledges. There is a detailed governance process to control these funds and their positioning, whether it is infrastructure advancement, or advertising activities.
On-chain financing is among the most controversial problems in the Ethereum community, and it does not seem to become a reality. The answer (see the previous item) has been released, but non-e of the solutions justify the establishment of a financing agreement foundation. There will always be disagreements between core designers and the wider neighborhood.
NEAR guides 10% of the rewards inside each epoch to be allocated to an on-chain protocol vault, in order that development can be funded without affecting the inflation price. Its long-term objective is to manage these funds by a decentralized governance process.
NEAR funding and token distribution
Past financing record
Investment agency
NEAR token distribution details
* $0.32 (locked for 1 year after mainnet release)
* $0.29 (locked for 2 24 months after mainnet launch)
* $0.25 (locked for three years after mainnet launch)
_ Proportion of NEAR token distribution, source: D1 Ventures_
in conclusion
Since the emergence of the "blockchain" concept, scientists have been trying to propose new blockchain designs to accomplish scalable global network throughput without sacrificing decentralization and preventing the formation of monopoly. With the upcoming start of Cosmos, Algorand, Blockstack, Solana, Polkadot, NEAR, and Ethereum 2.0, the era of the Internet-level basic layer blockchain provides begun. The issue is how exactly to design the very best, which public chain will eventually win?
Five years ago, sharding was even now a computer science problem. Proof of rights has not been fully tested, and clever contracts are useless... Today, although Bitcoin continues to be a "sovereign" electronic asset and the main blockchain, it is not This means that the brand new generation of blockchain must retake the design and spiritual route of Bitcoin.
In the encryption industry, Web3 and DeFi Cambrian have emerged, and some products with marketable possible have also been born. Entrepreneurs in the industry are more outgoing within their suggestions for building services and companies. The source of motivation for their innovation is not Bitcoin, but the Internet. As we all understand, the Internet can attract a lot of users and business owners, and offer them with the underlying basis to help innovation. In the end, there might be 2 to 3 3 blockchains to rebuild the brand new Internet encounter in a far more decentralized and user-oriented way.
The advancement of sharding technology shows that this may be the best choice to expand the blockchain now and in the next 10-20 years. Both Ethereum 2.0 and NEAR are using sharding, and both teams learn from each other.
Ethereum has a strong programmer community and extensive token distribution, which have to promote the execution of 2.0. At the very least within the next two or three years, how exactly to obtain the changeover from Ethereum 1.x to 2.0 can be the focus of attention.
The difference between your NEAR sharding design and ETH2.0 is that it prioritizes the balance of network resources across shards and does not deal with shards differently. NEAR's Nightshade consensus and "large block" design let it act as a single blockchain to achieve Internet-level scale.
Bitcoin shows the initial hope of the blockchain, but it took ten years to research and conceive how to do the repair to the web degree. NEAR entered the marketplace with a fully functional proof-of-stake sharded blockchain without the burden of various other chains. Help attract new programmers in non-encrypted areas.
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