Polychain: The crypto ecosystem will change dramatically in 2021, and the monopoly of Ethereum will be weakened

Polychain focuses broadly on the crypto space, but here is what we Some trends to watch:

DeFi: The core protocols currently being built in this space are chasing multi-trillion dollar opportunities. We are particularly interested in new types of assets, markets and financial collaborations (such as DAO< /span>s), which is encrypted currency exclusive.

Application Platform: As the ecosystem moves towards scalable infrastructure and interoperability, Layer 1 and Layer 2 protocols can achieve what is not possible in the current Ethereum paradigm This will greatly benefit the entire ecosystem and create a potentially large number of new value accumulation opportunities.

Zero Knowledge: This is all-encompassing, but also extremely important. ZK-tech is still in its infancy, but has the potential to become one of the defining technologies of the next decade.

Web 3.0: This is an area that has been slowly accepted, largely due to a lack of scalable infrastructure, but over a long enough period of time, we expect Most major web platforms will be replaced by community-led encrypted networks. NFT/Digital media could be the bigger fuel for this sector .

PW: When you invest in a certain project, what principles or investment strategies do you follow?

About our investment object, I would like to say: Ideally, we hope to cooperate with the project as early as possible (from the idea stage to the seed round). However, Polychain also has a lot of flexibility in the project stage of our cooperation, and can invest in round A or even later projects.

Once we invest, our strategy is basically the same. We want to be the closest partner of the project. We are a very crypto-focused fund that can add significant value by helping with everything from mechanism design, cryptoeconomics, community building, and market entry. We have found unique ways to participate in the protocol post-launch by running validator infrastructure, becoming liquidity providers, and actively participating in governance. We adjust our strategy as new opportunities for active engagement arise. Most importantly, we are long-term investors. We are not bothered by short-term price fluctuations, we look forward to continued active participation in the project's multi-year journey.

The biggest advantage: community - except Ethereum , Polkadot can be said to have the deepest community and the strongest attraction for developers. Even before the parachain has been launched, we have seen a large number of teams create core DeFi infrastructure based on Polkadot, including DEX, lending, synthetic assets, equity derivatives, privacy, etc. Also, we were impressed by the community-driven efforts to create developer tools, educational materials, and hackathons. Polkadot’s grassroots community growth appears to be positioning the platform as a Schelling point of economic activity in the crypto ecosystem.

Biggest innovation: Substrate and application-specific chains. In the next few years, we believe that more and more developers will choose to build applications on blockchains optimized for specific scenarios. Substrate greatly reduces the cost of technology for teams looking to go this route, and Polkadot makes these chains interoperable and composable within the ecosystem. This will enable a new generation of applications that could not exist in a single smart contract on the platform.

PW: What do you think of Polkadot’s PLO, will it bring some great impact to the crypto market?

Parachain auctions are one of the most interesting things about the Polkadot system, and for projects looking to participate in these auctions, PLO will be An important fundraising tool. It will be very interesting to see how these processes develop. For us, PLO represents a great opportunity for DOT holders to actively participate in some of the earliest and most exciting Polkadot-based projects. We expect these to be very popular. The only question on our mind is: How many DOTs will these PLOs attract?

Will the first Polkadot unicorn project be a DeFi platform? Why?

This seems possible. DeFi has become a core scene and seems to have found a product market suitable for the encryption ecosystem. DeFi projects are the most valuable applications built on Ethereum, and we expect to see a similar trend on Polkadot. Even before the launches of these networks, it was clear that DeFi projects on Polkadot were already attracting a lot of attention from investors and developers. However, over time, we see numerous opportunities for Polkadot-based applications and platforms to become very valuable.

PW: How does Polychain view the Chinese market? Do you have plans for the Chinese market?

Polychain sees the Chinese market as a core driver of the Polkadot ecosystem and the broader crypto space. We have been struck by the organized community appeal of the Polkadot community in China, which is a huge difference between Polkadot and other projects. Speaking with some of the teams and community leaders in China, we are excited about the quality of activity in China and look forward to continuing to see top projects emerge from the Chinese DOT community.

Our plan is: 1) Continue to support the best teams in the Chinese ecosystem. 2) Make sure that all the projects we invest in have the opportunity to develop a community in China. 3) Actively support the Chinese Polkadot community and continue to promote its growth and development.

PW: What are your predictions for 2021?

We have a lot of predictions about what might happen in 2021, so it's hard to narrow it down. I just want to highlight one major trend we're looking at - with cross-chain Interoperability and ETHLayer 2 rollout, encryption The landscape of the ecosystem will begin to change significantly in 2021. Users will start interacting with many different chains (not just Ethereum), applications will be fragmented across multiple platforms, and liquidity will likely be fragmented. This will reduce the monopoly of the Ethereum mainnet and open the door to the development of potentially many different Schelling points in the crypto ecosystem. Competition is about to intensify, and it will be exciting to see how that plays out.