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Pantera is focusing on three areas: Bitcoin ecosystem, social, and modularity and composability.

Pantera Capital

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Exploring some of the areas that Pantera is focusing on.

Original author: Paul Veradittakit, Managing Partner at Pantera Capital

Translated by: Luffy, Foresight News

I will explore some areas that Pantera is focusing on.

1. Social and Consumer Use Cases

Web2 has shifted from social to finance, while Web3 is shifting from finance to social. From Friend.tech to on-chain loyalty, the social elements of Web3 have recently received increasing attention, seeking to use tokenization to change social behavior. As consumers' transactions on the chain may become more frequent, we believe that stablecoins will play an increasingly important role as entry and exit settlement solutions between DeFi and TradFi.

In addition, the latest progress in generative artificial intelligence may bring more abstract, personalized, and simplified user experiences. With the promotion of abstract artificial intelligence, we hope that it can reduce the entry and education barriers of Web3, making it easier for non-technical people to access blockchain data.

2. ZK supports modularity and composability

We believe that zero-knowledge proofs (ZKP) will continue to mature, whether through new theoretical advances in recursive proofs or the gradual specialization of specific vertical companies, such as collaborative processing, proof execution, zkDevOps, privacy layers, and more. As such, we are beginning to use ZKP as a way to establish a common interface between different layers in a modular technology stack.

Modularization refers to different providers being responsible for different layers of the blockchain stack (consensus, execution, data availability, etc.). This idea allows for increased composability in the form of a "plug-and-play" blockchain architecture similar to Lego. This means that projects can customize their blockchain technology stack based on the specific needs of consumer-facing applications. Additionally, enhancing the composability of smart contracts using general-purpose languages such as Rust can increase developer familiarity and lower the entry barrier for Web3 developers.

3. Bitcoin Ecosystem

We believe that the third area worth paying attention to in the next year or so is the entire Bitcoin ecosystem, which has already regained people's interest before the expected halving in 2024. This includes the possibility of the SEC approving ETFs for major traditional financial funds, as well as allowing for more modular Bitcoin blockchains that can accommodate more combinable smart contracts.

Ordinals inscription rise, source: Dune Analytics, October 6th

One of the most interesting innovations may be the rise of Bitcoin digital assets supported by technologies such as Ordinals. As a result, we may see a divergence in the use of NFTs, with Ethereum NFTs focusing on transactional utility, while Bitcoin NFTs may evolve into a form of "digital jewelry" and collectibles in art and fashion due to the cultural significance of the chain.