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Communities replace companies, encrypted networks open Web3.0 doors

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Only when the innovation threshold of the Appchain is low enough, can more entrepreneurs explore diversified possibilities and innovation in the field of Web3.0 applications, so that Web3.0 applications can be implemented and go to the mainstream faster.

Article title: octopus web: enabling the application chain and opening WEB3.0

原文作者： MiX，章鱼网络

OctopusNetwork Mission

The vision of Octopus Network

Octopus Network, which is a "secure rental market" at its core and provides "cross-chain interoperability" and a number of "infrastructure services" including block browser, API access and archiving, has become a "community-building enabler" for the application chain team.

Octopus network greatly reduces the threshold for the launch, operation and innovation of Web3.0 application chain, reduces the cost of starting a chain from millions of dollars to tens of thousands of dollars, and starts the innovation wave of Web3.0 together with more application chain teams.

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1. The Web2.0 platform economy has reached a critical point

2. Web3.0 redistributes platform benefits

3. Two features to build excellent Web3.0 applications & NBSP;

4. Web3.0 New Technology Solution -- Application Chain & NBSP;

5. App Chains VS smart contracts

6. Application chain landing challenge;

7. Octopus Network - Enabling Application chain;

8. The multi-chain ecology of octopus networks

The Web2.0 platform economy has reached a critical point.

Negative contribution > positive contribution

The Web2.0 economy is characterized by a "platform economy."

In the Web2.0 era, except for a few enterprises that monopolize natural resources such as petrochina, Sinopec and Aramco, all the other giants, without exception, belong to the "platform economy". In short, the platform is the intermediary.

Wechat is an intermediary between the sender and the receiver

Taobao and Amazon are intermediaries between merchants and consumers

Meituan is an intermediary between restaurants and consumers

Didi is an intermediary between drivers and passengers

Icbc acts as an intermediary between deposits and loans

Platform economy: An economic relationship that creates value by facilitating or matching transactions, interactions, and symbiotic interactions between different types of participants.

Then there are Baidu, Tiaotiao, Facebook, Apple, Netflix and Google. These are all platforms.

While we are enjoying the convenience of the platform, the disadvantages brought by network effect are also appearing.The platform is eating the world, and we are glued to it and cannot leave it.

Network effect: As the platform has more and more participants, the service will get better and better, which will lead to more and more participants.

If you do ride-hailing, you don't get passengers yourself, you have to rely on Didi. As a passenger, they will only subconsciously go to Didi to hail a car, because Didi is a dominant service with obvious advantages. Platforms are like "black holes" that suck in participants at both ends of the market, even though "big data killing" is often heard, we can't do anything about it.

Why does such a drawback appear?

Because the platform in the Web2.0 era belongs to the company.The company's most fundamental mission is to generate as much profit as possible to return to shareholders, second to serve customers.Companies need to grow every quarter, and public companies need to beat analysts' forecasts to boost their stock prices.

When the scale of the platform is large enough, both the service provider and the service user cannot live without the platform, the platform will inevitably expand its share of business transactions.In economics, we call this "rent-seeking."

Rent-seeking is not a good word, your contribution to the economic transaction is the same, but because you are in a special position, you can go and seek a bigger piece of the profit, that's rent-seeking.

The deepening of platform regulation means that the platform economy has developed to a critical point.In fact, we are already facing very serious platform rent-seeking, the contribution of the platform to the improvement of efficiency and scientific and technological innovation is getting smaller and smaller, and even the negative contribution has exceeded its positive contribution.

Our data is being used as a weapon by platforms to exploit us as consumers.Passengers almost have to raise prices or switch to high-end cars when they need them badly, and Didi drivers complain that they can't make money. Because big data knows at that point in time you're willing to raise the price; Big data will squeeze drivers' profits right down to the bottom line of making a living.

They will, as soon as the platform is big enough to worry less about competitionThe evil of Web2.0 platform is to utilize the powerful data sharing ability to minimize the economic value added of both "service providers" and "service consumers" and maximize their own interests.Didi is not alone, nor is it the worst.

So how does Web3.0 solve this problem?

Web3.0 redistributes platform benefits

Community owned encryption protocol & NBSP; Transfer "benefits" to "participants"

Web3.0 will shift the form of economic intermediaries from "company-owned platforms" to "community-owned encryption protocols."Community-owned cryptography creates a new phase of Web3.0 that is more open, fair and secure.

Why encryption protocols are fairer?

An encryption protocol is simply a protocol between participants, that is, a "network protocol" between merchants and consumers, and between service providers and consumer services.Crypto agreements try to match transactions as efficiently as possible, while ceding the economic added value created to the users of the agreements,That leaves only part of the cost for developers to update software and miners to maintain cybersecurity.

The encryption protocol itself is not a public company, so it does not seek to maximize its own interests.

Why are encryption protocols more open?

Because the encryption protocol is owned by the entire community: Not dictated by a single person, or a small group of people, but by many participants. As the entry threshold of the community is open and transparent, there is no need for a centralized Didi audit, as long as the community standards can be joined.

What is community?

The core role of the ride-hailing community is the ride-hailing drivers, and the developers, early investors and users are the supporting roles in the community. These ride-hailing users promote the encryption protocol and become active members of the community. The central role of the takeaway community is the restaurant. The core role of e-commerce encryption protocol is the e-commerce seller.

Why are encryption protocols more secure?

Because we all use anonymous ID, address, DID, the data is on the encrypted blockchain, the ownership and use right is completely owned by us.

Once the technology matures, Web2.0 platforms will not be able to compete with "encryption protocols." Because the gene of The Web2.0 platform is to maximize the interests of shareholders, which cannot be changed."Encryption protocols" can return nearly all of the economic value to community participants, something Web2.0 platforms will never do.

So we believe that Web3.0 will replace Web2.0. It just takes time.

How to build a good Web3.0 application

1. User experience comparable to Web2.0 applications & NBSP;

2. Decentralized/trusted incentive model

For the Web3.0 era to come, there must be "good Web3.0 apps" to replace "Web2.0 apps or traditional mediators."

So what is a "good Web3.0 application"?

First, there must be a "user experience" and "service capability" comparable to Web2.0 applications.

It is difficult for Web3.0 startups to succeed only by relying on blockchain technology. Now based on smart contract DAPP, install MetaMask, BUY ETH OTC, recharge to wallet, understand and set up Gas,High barriers to entry and poor user experience keep most mainstream users out of the crypto world.

Even if very few users use it, the product performance, cost, and service capabilities are not as good as traditional Web2.0 applications.

Second, a decentralized/trusted incentive model must be established.

The agreement developer designs the "token economy model" based on the rights and interests of the participating parties. Developers, early investors, service providers, consumer pitches, and how many tokens they should get each need to be carefully considered and professionally designed."Decentralized/trusted incentive model" turns profit distribution in the Web2.0 era into "community sharing" and makes protocol participants believe that "encrypted networks are for everyone".

,Drivers don't have to trust anyone, just use the ride-hailing encryption protocol to know what kind of cut they'll get.

·When merchants join the B2C decentralized e-commerce agreement, no one can deprive them of the accumulated credit, and their weight will not be reduced because they do not participate in the activity.

Excellent user experience and decentralized/trusted incentive model both require "highly available blockchain technology" to achieve.

Decentralized ledger should have high security, low cost, high performance, easy-to-use wallet, convenient private key management and other requirements.In the past few years, the blockchain community has focused on capacity expansion and TPS, which is not enough.

Be sure to apply rules with decentralized governance.The power to change the agreement must belong to the community so that the agreement can continue to be decentralized, otherwise it will be controlled by a few people to a certain extent. In practice, it is called upgradability, that is, it is not against the interests of most people,The upgrade of legitimacy is achieved after community consensus is reached.

But smart contracts don't provide all of these things.

Appchain vs. Smart Contract

Why should Web3.0 apps have a chain to themselves?

Application Specific Blockchain is to use the Blockchain framework to make a dedicated chain for applications, referred to as Appchain.Realizing Web3.0 applications through application chain technology can solve the pain points of smart contract and provide users with a user experience comparable to Web2.0.

Why is application chain particularly suitable for Web3.0 application development?

1. Extremely fast performance,The processing power of a single chain.

2. Can achieve on-chain governance,Consensus costs so little that users can use it at no cost. Through community consensus and formal protocol upgrade, the application chain can quickly evolve to adapt to new requirements or eliminate software defects.

3. Strong customization, the application chain can adjust and optimize all parameters of the blockchain to achieve vertical integration.

Based on the application governance mechanism, we can adjust and optimize all parameters of the blockchain technology stack,It includes consensus protocol, execution environment, P2P communication, data K/V storage, Runtime and wallet interaction, and the top-level application logic. Only then can the best user experience be possible.

Axie Infinity is a phenomenal chain tour that perfectly demonstrates the benefits of the app chain: Launched its own customized Ethereum side chain in April, which reduced transaction costs by five orders of magnitude, with fast speed, and integrated fiat payment in the wallet, making the whole protocol ushered in an outbreak. Before, with smart contracts, you could only do development at the application layer, even though development and deployment were simple,However, the consensus protocol and implementation environment are completely limited by the mechanism of public chain, so the user experience cannot be guaranteed, and it is naturally difficult to compete with Web2.0 applications.

In fact,Smart contract teams that have worked hard and with some success have hit the ceiling on the user experience and customizability of smart contracts:

,The first DAPP to hit the ethereum ceiling was Crypto. The team, DApper Labs, decided to develop what is now Flow as its own dedicated chain.

·STO pioneer Polymath, chose Substrate to develop an application chain called Polymesh, which is now very close to the mainnet coming online. Currently, the account system of Polymesh chain is DID. There are KYC service providers and legal advisers on the platform, which can move the whole PROCESS of STO issuance to the chain and meet the compliance requirements from the bottom.

·Aragon, the original DAO practitioner, is working on a DAO application chain to get rid of the constraints of Ethereum. Over 300 of Aragon's smart contracts have been disabled due to an Ethereum upgrade that increased the cost of an Opcode by four times.

·Compound focuses on cross-chain lending agreements, and now select Subsrate for the application chain.

We firmly believe that the only path to Web3.0 can be opened only through application chain technology, which gives back the huge design space in the entire blockchain technology stack to developers.

Application chain landing challenges

Start, run and innovate

In the ecosystem of application chains, there are already Substrate frameworks, RUST languages, that bring the cost of developing application chains down to a level comparable to smart contracts.But running a chain of apps is still a long, expensive thing to do.

First, applying chain security bootstrapping is a very difficult process.It takes millions of dollars and 2-3 years to convince the community that chains and tokens are valuable before everyone collaborates with POS and builds security for the app chain.

Cosmos does have many chains, but each one requires an investment of at least $5 million to get started.

Second, the application chain needs to cross the chain bridge.You have to be at least cross-chain with Ethereum to be able to connect to the mainstream digital assets. It takes at least five people who are proficient in blockchain to cross chains, let alone cross chains with other chains.

Then, the application chain requires a whole set of infrastructure, such as blockchain browser, backup and recovery, how to set up Infrua, and how to lay out a highly available full node cluster.

Finally, the app chain needs to have early seed users,You need community support, which is also a very difficult thing to do.

OctopusNetwork has the ability to reduce the cost of starting a chain from millions to tens of thousands of dollars, dramatically reducing the threshold for getting Web3.0 app chains up, running and innovating.

Octopus Network -- An Enabling Application chain

Open OctopusNetwork Web3.0

At its core, Octopus Network is a "secure rental marketplace" that offers "cross-chain interoperability" and a number of "infrastructure services" including block browsers, API access, and archiving. Octopus Web Community is also a community builder for the application chain teamBy promoting the app chain in the octopus community, help the team quickly find quality early users and investors, and work with the app chain team to realize the ideal of Web3.0.

1. What is a "secure rental market"?

Octopus network is a two-layer network built on Near Protocol. Octopus Relay is a group of smart contracts running on Near Protocol, and its essence is a "security rental market".

When the Substrate based application chain is added to the octopus network,Staking Staking can be achieved through Octopus network, using OCT to pledge in Octopus Relay, sharing the value of OCT, and making the entire application chain secure.For the application chain team, the more OTC tokens pledged, the higher the security level of the application chain obtained. If you don't need too much security early in the app chain, you can pay less rent. With 20,000 to 30,000 OCT pledges, 200 to 300 WATTS of security can be achieved.

OCT token holders Staking, delegating, and being validators for their favorite application chain,These nodes form a BFT consensus, and the application chain is safely up and running. The Validator is rewarded with blocks in BFT consensus. As OCT tokens become more valuable, more OCTs are pledged, and the ultimate return for early participants converges to an expected 5% annualized return.

When you pay $500,000 a year for security in the app chain, you get $10 million of security in the app chain, and each app chain creates $10 million of demand for the collateral OCTS.

2. How to obtain "cross-chain interoperability" capability?

Join the Octopus Network app chain,Multiple cross-chain solutions are available:

Through the Bridge of octopus network, the mutual transfer of two-way untrusted assets with Near Protocol is realized, and then the trust cross-chain is realized based on the rainbow Bridge of Near and Ethereum.

Interoperates with all Cosmos chains through IBC.

IBC is implemented on Substrate to interoperate with all Polkadot parallel chains.

Finally, multi-chain network with Octopus network as the core is realized.

3. What are the "infrastructure services" on which the application chain operates?

Octopus netted"Infrastructure services" includes a number of things such as block browser, API access, and Archiver backup.In addition, we will deploy a high-possibility full-node cluster to provide RPC access. The developers of the application chain only need to provide Runtime and change the front-end point of the project to port, so that the chain can provide external services.

4. Why does the app chain need "octopus Community"?

1. Can help the app chain team quickly find quality early users and investors,Is the application chain team building community booster.

2. Web3.0 service developers,Science Substrate, pioneer of the culture application chain.

3. Incubating Web3.0 entrepreneurs,Through octopus Accelerator, we will jointly discuss the token economy system, design Web3.0 products, establish crypto community to realize real decentralized governance, and help Web3.0 entrepreneurs to become excellent application chain team.

Multi-chain Ecology of Octopus Networks

Top fund holding & AMP; Application chain ecology

Octopus Network got it firstA $1 million strategic investment from the NEAR Protocol Foundation, which completed a $3 million seed round at the end of March 2021,Investors include D1 Ventures, SevenX Ventures, Puzzle Ventures, PNYX Capital, Electric Capital, Ascensive Assets, Origin Capital, and ZMT Capital, Bixin, OKEx Block Dream Fund, Spark Digital, ChainX, Stafi, NGC Ventures. These excellent funds are familiar with the whole application chain ecology, with Polkadot, with Cosmos.

Octopus Network Ecology has had seven ongoing iterations, with the first hosted by Octopus Network on June 18, 2021"Octopus Appchain Showcase Day" was successfully held, and you can see it on Youtube. It's all non-defi, real Web3.0 applications for end users.

DeBio is a decentralized marketplace for genetic testing and genetic data.

Muse is a decentralized streaming protocol.

Atocha is a decentralized puzzle game protocol.

Discovol is a decentralized health and wellness content filtering protocol.

Myriad Social is a decentralized Social network.

Davoll is a platform for decentralized DAOs.

Scifanchain is a decentralized science fiction community.