Cryptocurrency Infrastructure: Proceed with Caution for Overvalued Projects
Are you content with endlessly producing and trading Memecoins, or do you aspire to construct infrastructure and revolutionize the cryptocurrency realm? This article is inspired by Rickey’s work and has been curated and translated by Deep Tide TechFlow. In recent times, there has been an uptick in complaints regarding Ethereum’s infrastructure, blaming VC investments in numerous meaningless projects. Critics suggest that the surplus infrastructure has led to industry difficulties and has aimed to sow discord between application developers and infrastructure organizations. Their depiction of the Ethereum ecosystem as an unsuitable realm for application development akin to “Niflheim” from Norse mythology, a cold, dark, and mist-filled world, is both unfriendly and unconvincing. Does this narrative have a grand macro perspective? Has it garnered backing from top-tier venture capital? Has it spawned significant bubbles? Is it rife with nihilism? Have you lost your investment? EBOLA (EVM Logic Absence Syndrome)?
Genuine infrastructure entails visualizing the development of blockchain infrastructure in the form of git branches. Blockchain can be likened to a new git branch. In the initial phase of this branch, foundational elements such as cryptography, P2P networks, consensus algorithms, etc., are integrated. These foundations can be utilized to construct Bitcoin, Ethereum, and other L1 networks. Subsequently, various Ethereum-based tools, facilities, and services have emerged, enabling developers to build diverse wallets, DeFi applications, and Layer2 networks. Interestingly, following this commit, a chain-based branch has been established. The ultimate objective of this branch is to securely store user data on-chain and execute application logic through smart contracts. Developers can create genuinely verifiable, composable, and interoperable on-chain applications. Presently, we are in the phase of constructing on-chain infrastructure for this branch, and I believe we are on the right path.
Reducing Monopolies
In a specific domain, developers have a plethora of options. Suppose you are the founder of a startup seeking to provide transaction data query services for your network. Would you prefer to pay a hefty sum for a company’s blockchain scanning service or opt for deploying a free Blockscout?
Enhancing Efficiency
Developers are transitioning to more efficient tools and infrastructure. Here are the changes I have observed in my tech stack over the past year: Chain: Tendermint → OP Stack Development Tools: Truffle/Hardhat → Foundry Contract Interaction: Web3.js/ Ether.js → Viem Storage: IPFS → BNB Greenfield Block Explorer: Etherscan → Blockscout Wallet: Extension Wallets → Coinbase Smart Wallet / AA
Diversifying Application Richness
Providing developers with ample infrastructure to develop engaging applications. A few years ago, we predominantly built DeFi and NFT-related applications within the Ethereum ecosystem. Now, you can leverage various infrastructures to craft more engaging products and applications: Cloud Platforms: Fleek Identity Verification: Privy Gaming: MUD, Dojo, Paima Wallet Toolkits: Onchain Kit, rainbowkit Open Source Rewards: tea Full Stack ZK Proof Services: polyhedra Ethereum Trustless AI: ora IP: StoryProtocol
Lowering Application Launch Costs
In reality, you only need to cover the gas cost for deploying contracts. With well-developed infrastructure, even small development teams can swiftly integrate infrastructure services to achieve desired functionalities. Nearly all infrastructure service providers offer free plans that adequately support and validate your early concepts.
Accelerating Mass Adoption
This hinges on the changes infrastructure brings to non-financialized applications and user experiences. I believe this is also a catalyst prompting many developers to shift from developing consumer-facing crypto applications to infrastructure. It’s not that developers are overly fixated on technology; rather, they must first address the friction between efficiency and user experience before constructing applications to verify their feasibility.
Minimizing Centralization Impact
Imagine if all our applications utilized the same infrastructure service, and one day, a government shut it down, or even apprehended its core code contributors or CEO, rendering the service unavailable for applications. However, with our robust infrastructure services and other alternative solutions available, applications wouldn’t cease functioning due to the paralysis of a specific infrastructure.
“Do you want to spend your life selling sugared water or do you want to join me and change the world?” This was what Steve Jobs said to PepsiCo executive John Sculley to entice him to join Apple. Now, let me ask you a question: “Are you content with endlessly producing and trading Memecoins, or do you aspire to construct infrastructure and revolutionize the cryptocurrency realm?”
Infrastructure is the industry’s driving force, bringing forth fresh narratives and visions, even if it’s just a new standard, a proposal, or an SDK. Countless builders require stories to fortify their beliefs and kindle their passion. Why do we believe in crypto? Why believe in blockchain? Be someone who builds cathedrals. If you don’t see yourself constructing cathedrals, then change your occupation.
