🎉 Gate Square Growth Points Summer Lucky Draw Round 1️⃣ 2️⃣ Is Live!
🎁 Prize pool over $10,000! Win Huawei Mate Tri-fold Phone, F1 Red Bull Racing Car Model, exclusive Gate merch, popular tokens & more!
Try your luck now 👉 https://www.gate.com/activities/pointprize?now_period=12
How to earn Growth Points fast?
1️⃣ Go to [Square], tap the icon next to your avatar to enter [Community Center]
2️⃣ Complete daily tasks like posting, commenting, liking, and chatting to earn points
100% chance to win — prizes guaranteed! Come and draw now!
Event ends: August 9, 16:00 UTC
More details: https://www
Blockchain Modularity: Reshaping the Industry Landscape and Future Development Direction
Blockchain Modularization Trends and Industry Landscape Evolution
Blockchain technology is evolving towards a modular direction, which includes projects based on the development of Cosmos technology, as well as Ethereum L2/L3, Bitcoin L2, and cross-chain fields. Although these projects have different focuses, they are all breaking the boundaries of traditional monolithic chains, pushing the industry towards partial integration.
In this trend, the competitive landscape is changing. The original technological barriers are gradually being broken down and recombined in the process of integration. This means that the uniqueness of Blockchain projects is becoming increasingly important, otherwise they may lose their foothold in the wave of modularization.
Industry Development Forecast
The next 2-3 years will be a chaotic period for modular Blockchains. The DA layer, execution layer, and even the settlement layer will experience intense competition. After this phase, some foundational projects will emerge, constituting the underlying infrastructure of the crypto space. These infrastructures will form deep technological barriers over time.
The entry window for new high-performance blockchain projects will essentially close. Unless there is a breakthrough technology, the narrative of standalone blockchains will basically end. New entrants will find it difficult to gain market position.
Existing high-performance single chains need to find an irreplaceable position. Under the trend of modularization, high-performance public chains are under significant pressure, and compared to security, the irreplaceability of performance itself is relatively weak.
Ethereum will also face challenges, especially at the DA layer and execution layer. However, due to possessing the most scarce resource in the crypto space (security), Ethereum still holds an indispensable position.
The possible evolution path is that Ethereum and Bitcoin will provide the most fundamental settlement layer services for the entire cryptocurrency space. A few L1 projects may have the opportunity to participate in some settlement layer functions. The DA layer will experience sufficient competition, with participants including Ethereum, Celestial, Near, Avail, and others. The execution layer is mainly concentrated in Ethereum L2 (such as Optimism, Arbitrum, StarkNet, zkSync, etc.), high-performance public chains (such as Solana, Avalanche, Aptos, Sui, etc.), and an upcoming batch of Bitcoin L2 projects.
Long-term Outlook for the Industry
With the development of modular Blockchain, Ethereum and Bitcoin are gradually evolving into providers of underlying security services. Other DA layers, execution layers, and settlement layer projects will provide different levels of services to meet various application needs.
The diversification of blockchain is mainly reflected at the application layer, rather than the infrastructure level. While the infrastructure will maintain a certain degree of decentralization, it will not present a flourishing situation.
After this round of modular cycles, the competition in blockchain infrastructure will tend to ease. In the next decade, the competition at the application layer of cryptocurrency will become even more intense, involving various fields such as gaming, social, DeFi, NFT, AI, and shared services. This marks the beginning of large-scale applications in the cryptocurrency field, which is expected to gradually be realized in 2-3 years.
From 2009 to 2026, this nearly 20-year period can be seen as the wild era of the cryptocurrency field. Although this period is filled with speculative behavior, the underlying infrastructure has been continuously improved, laying the foundation for the large-scale application of cryptocurrencies.