Periodic review of the bull market: The asset-first application startup model is being verified

Wash your face at the waterfall, the crowd is wailing, and you are no longer excited when you push it. You calm down and review this bull market in stages.

This bull market has not yet seen the emergence of replicable application models. There is no ICO in 2017 or DeFi in 20 years, so I always think that the real bull market has not yet arrived. However, there have been many attempts at new types of asset issuance models, such as new asset protocols on Bitcoin (Inscription, Atomics, RGB/RGB), inscription protocols on various chains, Meme Coin, Tokens, SFT, etc.

As a Builder, I look at the problem from the perspective of whether there are opportunities to build applications. What are the implications of these attempts? I summarized two points.

CSV model assets have been initially verified

First of all, Bitcoin's Inscription has verified one point: the model where asset data is defined on the chain and legality verification is off-chain is feasible, which indicates that A new way of asset issuance and expansion. All protocols derived from Bitcoin, including RGB/RGB and Atomics, belong to this paradigm, which can be called a broad client-side validation asset. This asset is an asset between L1 and Offchain (L2). It can define a bridge within the protocol to realize the migration of assets from L1 to Offchain. This has been initially verified by the RGB protocol. It's its transition mechanism. And what this capability foreshadows is a way for blockchain expansion to overflow assets from Bitcoin to the infrastructure of Offchain (including other public chains), thus bringing about the prosperity of the entire blockchain ecosystem.

Attached is a picture I shared at the Bitcoin Layer2 Conference organized by @BTCSCYLab in Hong Kong:

This model is different from Ethereum’s Ecological paradigm, the application scenarios of assets can no longer be limited to the smart contract environment provided by L1, but can be provided through the smart contract environment of Offchain, so that there are no technical bottlenecks in application construction.

The asset-first application startup model is being verified

If the technical bottleneck of building applications is broken, another problem is how to start the application. The traditional approach is to build an application, attract users, and then issue assets. The way to verify this wave of new asset issuance models is to put assets first, build a community, and then build applications based on the community to provide usage scenarios for the assets. This model has been initially verified to attract users and build a community, but the application startup still needs to be explored. There are several problems that need to be solved:

1. Fair distribution can easily attract users and can also reduce fraud, but the initialization of building an application How to solve the cost.

2. Building an application takes time, and assets with too high liquidity may not wait until the application is born. Therefore, it is more appropriate to initially issue low-liquidity assets and turn them into high-liquidity assets after growth. However, how to switch seamlessly is a direction to explore (ERC404, Movescriptions).

Although there are many problems, the advantages of this model are also obvious:

1. Assets come first, and applications are derivatives of assets, not the other way around. In this way, the life cycle of assets can beyond the application life cycle.

2. Only in this model can there be a combinable scenario where the same asset is used in multiple applications. This combination ability is the most critical thing that distinguishes blockchain applications from Web2 applications. point.

3. In this model, the application team does not need to issue assets and directly benefits from providing scenarios for the assets, thereby solving the compliance issues faced by the Web2 application development team.

The combination of the above two exploration directions will promote the emergence of a large number of assets and applications. At that time, when a hundred flowers bloom, it will be a real bull market.

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