2023 crypto narratives: LSDfi, zkEVMs, DA, app-specific rollups, privacy, RWA
Thread495 words
Lists the narratives he is positioned in: LSDfi, zkEVMs, recursive L3 scaling, hyperscalable DA, app-specific rollups, privacy, interoperability, parallel VMs, WASM/RISC-V VMs, RWA (pending regulatory clarity) and perp DEXes.
Key claims
RWA tokenization needs clearer regulation as its catalyst
App-specific rollups and RaaS will enable customized execution layers
WASM or RISC-V VMs will bring an influx of web2 developers
0/ having a strong investment thesis & conviction is key to make it going into the next cycle. That requires to have a clear vision of where the space is going and what the major narratives are 馃敭
in this 馃У I'll leak some key narratives I believe in (0/12) 馃殌馃憞
1/ 馃専 LSD & LSDfi
the amount of staked $ETH is rising. The percentage of $ETH staked in #LSD protocols is growing. The trend is not slowing down any time soon and will expand beyond #Ethereum
2/ 馃専 zk(E)VMs
this year we finally saw the first EVM-compatible zk-rollup mainnets. But this is just the start with aspiring type 2 zkEVMs (e.g. @Scroll_ZKP, @LineaBuild) and alternative zkVMs (e.g. @RiscZero, @zkwasm) launching soon. Ecosystems worth warching closely
3/ 馃専 recursive scaling (L3)
leveraging the recursiveness property of the underlying #zk proof systems, zk(E)VM rollups will allow for (app-specific) rollups (or validiums) to be built on top of their #L2 (acts as settlement layer), taking scalability to the next level
4/ 馃専 hyperscalable DA & sovereign rollups
@eigencloud, @CelestiaOrg & @AvailProject will provide highly scalable DA solutions that allows modular chains to overcome the scalability limitations of #Ethereum and enable novel network designs (sovereign rollups)
5/ 馃専 app-specific rollups
the fast-growing modular design space, the possibility to build on L3 and the emergence of various RaaS & IaaS (for #L2 & #L3) providers will enable an ecosystem of highly scalable & customized rollups geared towards app-specific use cases
6/ 馃専 privacy
in the age of doxxing marketplaces & rogue regulators, privacy becomes key. Natively privacy-preserving, zk-enabled L1s & L2s like @AleoHQ, @MinaProtocol or @MantaNetwork & @aztecnetwork but also @DarkFiSquad (true DarkFi, throwing MPC & HE into the mix) will lead
7/ 馃専 cross-chain interoperability
with increasing adoption of generic message passing protocols like @axelarcore or @LayerZero_Labs and the expansion of #IBC beyond the cosmos (zkIBC, @PolymerDAO, etc), we enter a new era of interoperability
8/ 馃専 rollups with parallelized VMs
more performant #VMs that allow for parallel transaction processing will become more widely adopted as modular #rollup chains customize their execution environments to enable novel use cases (e.g. on-chain orderbooks)
9/ 馃専 VMs with WASM or RISC-V support
VMs that allow developers to build in the web2 languages they already know will break down barriers of entry and enable an influx of devs the space has never seen before, which will be a major catalyst for growth throughout the ecosystem
10/ 馃専 RWA
the catalyst this sector needs is regulation becoming more clear. Once that happens, the enormous potential of tokenizing real world assets will be unleashed, which will lead to an explosion of the value kept on-chain and enable novel #DeFi use cases
11/ 馃専 (Perp) DEXes
def one of the hottest #DeFi topics. I'm mainly focusing on #DEXes in femerging ecosystems & projects that are building application-specific network implementations to enable trading at scale (e.g. app-specific #rollups)
12/ what narratives are you focusing on? 馃
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What came next 路 since 13 Jul 2023
Since then
Zero has written 3 more pieces on Scroll since this one.