Halving and interest rate cuts: The direction of the new cycle still depends on infrastructure

Author: PandoraLabs

In each round of crypto cycle, a number of phenomenal tracks will emerge, and everyone hopes to capture this opportunity at the beginning of the cycle. This is very difficult. The difficulty lies in the fact that few people can track this market from the depth of the underlying logic for a long time, and do not know what is happening in it. More people immediately choose better targets in this track when hot spots appear.

Exploring the prototype of the next opportunity in the infrastructure field

But there are traces to follow. The improvement of Ethereum's development environment and user tools has contributed to the explosion of DeFi. The enrichment and implementation of related protocols have contributed to the rapid growth of the NFT market. Bitcoin's innovation in liquidity and smart protocols has led to the infinite vision of popular people for the development of Bitcoin's application ecology. Therefore, we can often explore the next opportunity that may have explosive growth by tracking the development of industry infrastructure for a long time.

We are now on the eve of a super cycle. With the two expected factors of Bitcoin "halving" and the Federal Reserve's "interest rate cut", the crypto market is likely to usher in a high-speed growth cycle again. The market is choosing a new growth engine.

Returning to applications, blockchain seeks a way out

Some time ago, the various Web3 elites who gathered in Singapore because of TOKEN2049 conveyed a message to the outside world in a very consistent manner, that is, their concerns about the current development of the blockchain and cryptocurrency market. On the one hand, the market behavior presents a prosperous scene, while on the other hand, the development of blockchain technology and applications has rarely had new stories that can move people's hearts.

From the perspective of public chain infrastructure, simply focusing on improving transaction speed or reducing fees is not enough to become the core driving force for market innovation and growth. More people are calling for blockchain to return to applications again. There are two ideas here. One is to enhance its own capabilities based on the more feature-rich L2 and protocol. The second is to enable public chains to go out and undertake more Web2 businesses. For example, public chains such as Solana and Polygon have launched enterprise-level blockchain solutions, competing with traditional blockchain technology services such as IBM for the enterprise-level market. There are also projects such as IO.net that reform the market allocation of artificial intelligence algorithm resources based on the decentralized network of blockchain.

And new-generation public chains like Pandora hope to redesign L1 to enable themselves to have complex computing capabilities, so as to undertake more complex business needs, rather than just simple smart contracts + asset transactions. Then use a set of Rollups to quickly replicate this capability.

There are currently two obvious application scenarios, one is the enterprise-level application ecosystem. That is, according to their own needs, enterprises can quickly build a dedicated L2 blockchain with the help of Pandora's PD-Rollup solution, and then build various applications they need on it. Enterprise-level application chains can still obtain Pandora's computing resources and security.

The second is high-performance Web3 games and metaverse ecology. The high transaction throughput and low latency of public chain complex computing enable players to enjoy a smoother and more realistic gaming experience. The high throughput and latency of public chains that people often mention are often only applicable to trading scenarios. Similarly, complex computing public chains can support large-scale concurrent user access and interaction within the metaverse, and can also provide rich application scenarios and functional expansion for the metaverse through its scalable framework.

If we only let investment behavior and external public opinion pay attention to blockchain and Web3, it will not allow our industry to go further. Only by proving to people that blockchain and Web3 can do more, can the market truly enter the next super cycle.