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1Confirmation: Three major trends in the blockchain industry in 2021

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Have you ever been optimistic about the 1Confirmation of blockchain insurance and AMM trading platform? What's your original idea for 2021?

Article Title: "Under-The-Radar Product Trends: 2020 RECAP and 2021 Predictions"

Source: 1Confirmation, Richard Chen

Text compiled: 0x26

Late last year, I wrote about three big trends for 2020 (Richard Chen is an investment analyst at 1Confirmation). Before making three predictions for 2021, let's review how well I've done.

1. Smart contract insurance

Conclusion: Correct.

Nexus Mutual has increased its insurance coverage from $1.1 million to $56.4 million in 2020, a 50-fold increase in one year!

Note: The peak in the middle of September was caused by another project's mobile mining, source:https://nexustracker.io/

In 2020, Nexus successfully paid the first amount of damages in bZx hack, dForce, Opyn, Harvest Finance, Value DeFi, Origin Protocol, Akropolis, Pickle Finance and other hacks that lost more than $93 million. With $14 billion currently locked up in smart contracts, THE DeFi project is a huge fortune for hackers, and more risk-averse individuals and funds want their savings secured.

Another important implication of these hacks is that smart contract auditing makes less sense than it once did. The auditor's calendar is fully booked, and even without reviewing other types of vulnerabilities (for example, a lightning loan attack), it can lead to missed bugs under deadline pressure. In the future, I would like to see the project use some of the money to pay for expensive audits to incentivize users to buy project insurance.

Reference reading:Do you really understand lightning loan?"

2. Joint curve

Conclusion: Correct.

Amm-based trading platforms are clearly one to compete with decentralised trading platforms based on order books and Dutch auctionsThe winner. Uniswap, in particular, has a share of the decentralized trading marketMore than half. This has been triggered by the fact that AMM trading platforms are gobbling up the order book marketThe anger of vested interestsThey feel threatened by the union curve.

We have also seen AMM tailored to address specific trade use cases; The rise of the joint Curve trading platform. Curve specializes in converting from stable currency to stable currency, as well as etherean-based bitcoin exchanges, using a constant and/or constant product combined with a Curve to minimize slips in transaction pairs where prices are not expected to deviate significantly. Notional, which provides fixed-rate fixed term loans, uses a logarithmic curve to minimise the rate slip when zero-coupon bonds are traded, particularly as they approach maturity.

Reference reading:The pool of liquidity that gives time value to tokens Notional"

3. Wallet user experience

Conclusion: Wrong.

Contract-based accounts are a significant user experience improvement over externally owned accounts (EOA), and I expect to see an explosion of smart contract wallets by 2020. However, the Gas charges were not high at that time. Then comes the "summer" of DeFi, when Gas prices soar above 100 Gwei. This makes the deployment of the smart contract wallet as expensive as $20 per new user, with Argent at one point spending $584,000 a month to subsidize its users' transaction costs.

Strategic exchanges contribute to strategic Accounts, which refer to the address of your wallet (an account with public key), because your wallet is Owned by some external "person", so they are "exchanges Owned".

Given that Gas rates will not fall any time soon, Metamask's dominance will continue. The use of DeFi will continue to be driven by "whales" who are accustomed to the behavior of native encrypted wallets.

Here are my top three trends for 2021:

1. Encryption art

Currently, DeFi adherents scoff at NFTs, which is reminiscent of BTC fundamentalists' rejection of dApps in 2018. But the reality is that there is a very passionate community of artists and collectors in the industry -- and I know this is firsthand, because my SuperRare Twitter bot gets nearly a hundred notifications a day. In addition, the volume of transactions in the cryptographic art industry has increased by more than 50% month-on-month, and has been quietly accumulating... Until December.

Source:https://cryptoart.io/data

Digital artist Beeple, who has more than 1.7 million Instagram followers, recently discovered NFTs and has coinized some of his artwork. One of the works set a record for encrypted artwork at $777,777.77, and Beeple currently tops the list of cryptographic artists with nearly $6.5 million in total artwork sold.

Other articles have discussed cryptographic art opportunities in depth, but I'll briefly summarize why I think cryptographic art has great potential.

First, blockchain makes it easy to verify the authenticity of works of art, while traditional works of art, like Picasso's paintings, are harder to fake, but also harder to verify.

Second, NFT has opened up a new business model for digital artists, as they can now sell personal art without relying on commissions from commercial clients.

Third, cryptographic art is well placed to capture the taste of the art worldFrom baby boomers to millennialsThe shift.

Finally, cryptographic art is one of the main potential ways to use blockchains and cryptocurrencies.

There are currently three artists with work worth more than $1 million, and 43 artists with work worth more than $100,000, and I would like to see more than that by the end of 2020.

Reference reading:Character of Cryptographic Art: Beeple, artist from dystopian Future"

2. Forecast the market

One of the major events of 2020 that hasn't been covered by the mainstream media is,PollstersMr Biden has an 85-90% chance of winning the general election, compared with forecasts that put the odds at around 60-65%. With the benefit of hindsight, the election was much closer than expected, and the pollsters were completely wrong. To make matters worse, polling is a multibillion-dollar industry, and hundreds of millions of dollars of campaign money are wasted because of inaccurate polling data.

In a society that distrusts the mainstream media, we have long been bullish on the forecasting market as a source of information.Now, the forecast market has reached a million inflection point and trading volume has reached tens of millions of dollars. Not only would I like to see more markets with tens or even hundreds of millions of transactions in the coming year, but I would also like to see the media use forecast markets more often as a source of information to cover events, for exampleEth2 Phase 0The launch of the.

Reference reading:Which prediction market will play the most in the election: Comparison of five prediction platforms, such as FTX, Augur and Catnip"

3. DeFi derivatives

From 2018 to 2020, we saw the development of DeFi infrastructure. This includes lending agreements (e.g. Compound, Aave), trading platforms (e.g. Uniswap, Curve, Balancer), and asset release agreements (e.g. USDC, DAI, WBTC). As these base layers continued to grow, the huge liquidity on which they were built allowed a whole new layer of derivative instruments to be created. Obvious examples include structured products, index ETF, options, futures, swaps and so on.

In traditional finance, the derivatives market is several times the size of the spot market. Blackrock has a market capitalisation of $100bn, while the total value of structured finance products is estimated to be five to 10 times higher ($500bn - $1tn). If extended to the DeFi industry, this represents a significant opportunity in derivatives projects and is just the tip of the iceberg of what is to come.