The importance of "interoperability" in the context of multi-chain in Web3 and how to achieve it
We believe that compared to the interactive theme of user experience, the "interoperability" of the crypto ecosystem is more fundamental, more basic, and more important.Written by: Jerry @ TPDAO
The intention has become fervent, and the crypto world seems to have found a way to break through "poor user experience" and achieve "Web3 application interaction."
This is not wrong! For a long time, the crypto world has been limited to asset markets like DeFi and PFP, struggling to make progress in the application ecosystem, mainly constrained by user thresholds. We initiated the theme "Searching for the Next Bull Market" at the beginning of 2023, planning a series of content around it, including the Twitter Space seminar "Breaking the Three Major Barriers to 'Integrating Web3 Technology and Industry'" and research articles "Breaking the Topic I: The Value Logic and Path Choices for Lowering 'Web3 Thresholds'" and "Breaking the Topic II: The Iteration Logic and Value Opportunities of Web3 Applications from the Perspective of the Builder Economy."
In the opening of our planning, we judged that we are entering the era of "integration of technology and industry" in Web3 applications. However, if we cannot solve the following problems, Web3 will not be able to unleash the potential of "technological transformation of industries":
- Lowering the threshold for users to enter the Web3 world;
- Strengthening the circulation and management of users' data/assets/tokens across various application systems;
- Improving the convenience of users' interoperability between different application ecosystems.
Therefore, the fervor of intention has prompted us to restart this planning theme after six months of silence. We appreciate the efforts of the participants in the intention narrative under the theme of "interaction" and are glad that we can join the intention narrative through ThePrimediaDAO in the process of moving towards the Web3 media protocol.
However, we believe that compared to the theme of user experience interaction, the "interoperability" of the crypto ecosystem is more fundamental, more basic, and more important. This has already been touched upon in our breaking topic series—improving the convenience of users' interoperability between different application ecosystems.
In the grand narrative of the metaverse, we need to utilize advanced chip technology, possibly breakthrough integrated circuit systems beyond Moore's Law, more efficient network communication technologies (5G/6G), as well as VR/AR/MR/XR hardware and the development of advanced virtual engines and interaction technologies, wearable biosensor hardware, and precise motion capture software and hardware to achieve physical reactions, movement rules, and high immersive experiences in the virtual space of the metaverse. All of this is a direction of collaborative effort from various research fronts in the traditional physical world.
Based on blockchain/Web3, achieving "interoperability" in a multi-chain crypto world is the promised land that blockchain/Web3 Builders bring to the metaverse—reconstructing the digital society with Web3 decentralization, token incentive mechanisms, and DAO governance structures, providing a better social system and governance structure for humanity's digital evolution. This includes achieving a more equitable and efficient data/assets/identity confirmation and interoperability in the metaverse, which is more systematic and important than user experience in a public chain ecosystem or a specific Web3 application or DeFi transaction.
We once hoped for the scalability and evolving potential of NFT protocols. During the tight development and internal testing period of Element in 2021, I had in-depth discussions with founder Wang Feng about "the value capture logic of NFTs and the mechanism of everyone being able to participate in NFTs." "Don't talk about the metaverse without NFTs." This theme of discussion continued in multiple strategic mobilization meetings of Element's founder Wang Feng. This article further analyzes why NFTs are such an important element (the lifeblood) of the metaverse and clarifies the value capture logic of NFTs and the mechanism of everyone being able to participate in NFTs…
We elaborated that "in the process of the metaverse's continuous expansion, the most essential and core meaning of NFTs is not merely to complete the mapping of real-world assets; this process will promote future metaverse residents' understanding of the roles and value of native NFT certificates—crypto assets, identity roles, and social relationships can be freely converted through native NFTs across various crypto islands and even between different metaverses…"
To this day, we still need to rely on NFTs based on scalable and composable evolving protocols to achieve asset confirmation and identity interoperability. However, we also believe that NFTs are unlikely to bear the foundational mission of "interoperability" in the metaverse/Web3 application ecosystem.
Therefore, in the context of intention and multi-chain, we have the opportunity to continue the series initiated at the beginning of 2023, "Searching for the Next Bull Market," focusing on how to improve the convenience of users' interoperability between different application ecosystems.
Our breaking topic series, which is entering the era of "integration of technology and industry" in Web3 applications, is an organic component of our "Searching for the Next Bull Market" initiative—In "Why 'Integration' Becomes the Value Research Theme of the Next Bull Market," we judge that the next bull market's "integration" theme includes three dimensions: the integration of Web3 technology with various industries; the integration of crypto economy with sovereign finance; and the integration of DeFi with the Web3 industry.
Recently, we have focused on the RWA track, using the Dubai RWA project BG Trade as an example to interpret the "integration" theme of the next bull market. The latest news is that "ExPloration Unleashed, KBW 2023 Web3 and RWA" will be held on September 3. This event in Korea continues the focus on the development potential of the RWA track and how to serve the evolution from Web2 to Web3, as well as the services provided by BG Trade in the RWA track and the value of building RWA:
- Beyond traditional diversification: Harnessing the power of real-world assets
- How real-world assets enhance investment stability
Today, the development of "Web3 application ecosystems" in the context of intention and the development of "RWA assets and trading markets" in the context of integration are gradually approaching the prosperity of the crypto ecosystem under Vitalik's expectation of "Ethereum's three transitions." In "The Three Transitions," Vitalik mentions the three transitions of the Ethereum ecosystem—L2, wallets, and privacy—using three parallel structures and mentioning life and death three times. However, specifically, the details related to interaction, assets, and identity are addressed one by one in the "development of Web3 application ecosystems in the context of intention and the development of RWA assets and trading markets in the context of integration."
Combining the development of Web3 application ecosystems and RWA assets and trading markets over the past six months, in the previous discussions about Vitalik's three transitions and the RWA market, we can gradually turn hope into reality—if all goes well, we expect to enter the application era in this cycle, starting from Vitalik's decentralized non-monetary application ecosystem; of course, the supporting force brought by the incremental market of this bull market should lie in the possibilities of RWA.
Stay tuned for Breaking Topic III.
