Original Author: FC@SevenX Ventures
Original editor: Iris
This article is for learning and communication only, and does not constitute any investment reference.
If the hot word in the field of science and technology in 2021 is metaverse, then this years seat will most likely be reserved for Web3. Suddenly, various science popularization, analysis, outlook, and doubts come, and this term has become a well-deserved traffic password.
In various viewpoints, although everyone has different definitions of Web3, there is a consensus that Web3 can allow users to have ownership and autonomy over their own data, and this is also a key factor that promotes the evolution from Web2 to Web3 . As our life and work are more thoroughly digitized, that is, when all human activities will be presented as data streams, the transfer of data rights is particularly critical.
Therefore, we have reason to believe that the data track of Web3 will become the most important part of the new order and has a broad space for development. From the perspective of entrepreneurs, the decentralized network driven by blockchain technology, Its essence is an open, permissionless distributed database. There are many scenarios in the data direction that need to be served. If you choose it, there is a high probability that you will be able to evolve and grow on the correct technology tree. In todays article, I will sort out the market structure and typical players of the existing Web3 data track, briefly interpret its future development trend, and share some investment judgments of SevenX.
The core point of this article:
1. Web3 breaks the data silos and at the same time returns data rights to individual users, which can be carried by users at any time, and can be combined and interacted with applications at will.
2. The structure of the Web3 data track can be divided into four levels, which are data sources, data acquisition, data query and indexing, data analysis and application. The degree of decentralization, scalability, speed and accuracy of the services provided, and the irreplaceability of the scene are the main dimensions for us to judge the project.
3. With the gradual enrichment of data market participants and the precipitation and accumulation of data itself, the value of data will increase significantly, but how to better follow the fundamental spirit of blockchain to protect privacy while using data to generate greater value is a Another important issue.
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What am I talking about when I talk about Web3 data
During the development of human civilization, a large amount of data will be generated. They will be forgotten, disappear in the long river of time, or be recorded and precipitated into known history. The emergence of the Internet has made it possible for humans to record data. Sharing can be carried out in a more efficient and wider capacity way, and the value of data is further explored, and its importance has gradually become the consensus of the whole society. In the cover story of the May 2017 issue of The Economist Here, data is defined as the most valuable resource in the world.
However, as more and more data are deposited on the Internet, a fundamental problem begins to emerge: the data generated by individuals creates value, but these data do not belong to the individual, and the value created is not distributed to the individual. So people yearn for a new order, so Web3 came into being.
So how does Web3 reshape the value of data? There are three main aspects:
Data is open, transparent and cannot be tampered with
In the Web2 world, applications obtain user data by providing free services, and then monopolize these data to make profits and build their own business moats. The data is stored on their centralized server, which cannot be accessed by the outside world, and there is no way to know which data is stored, in what way and granularity, and once these applications are attacked or actively terminate the service, the users data can be lost overnight. Between vanished into nothingness. However, with blockchain technology as the underlying We3 framework, the data on the chain is open, transparent and tamper-proof, which is the prerequisite for their better use.
Break down data silos and improve interoperability
Whenever a new application is used, there is no need to go through the registration process tirelessly. This should be the most intuitive manifestation of the negative impact caused by the Web2 data island on the user side. Because each application has its own database, which is independent of each other and cannot be connected, this kind of repetitive collection is caused. At the same time, user behavior data is fragmented and held by different applications, which can neither be reused nor integrated across platforms. In the world of Web3, in a broad sense, users only need one address to access and use various decentralized applications, and the corresponding data can be combined for every transaction on the chain that occurs at this address. , without any application permission.
Better value distribution through token economy
How the value created by data can be distributed to the individuals who generate the data is an important issue that Web3 needs to answer for data, and the ever-evolving token economy may be the core means to realize this value redistribution. Users who benefit from the airdrop should have a very intuitive feeling. In the context of Web3, the data accumulated and generated by the interaction between users and any application is the carrier of value capture.
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Web3 data track structure diagram
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The first layer, data source
Data sources are divided into on-chain and off-chain data as a whole. The data on the chain mainly includes: chain-related data (such as hash, timestamp, etc.), transfer transactions, wallet addresses, smart contract events, and some data stored in the cache (such as queued data in the Ethereum mempool). The data is maintained by a decentralized database, and the reliability is guaranteed by the consensus of the blockchain. In addition, storage is also the main source of data on the chain, currently concentrated in protocols such as IPFS, Arweave, and Storj. Off-chain data mainly includes centralized exchange data, social media data, GitHub data, and some typical Web2 data, such as PV, UV, DAU, MAU, downloads, search index, etc.
In the past two years, the types and quantities of data have grown exponentially, but at the level of data sources, there are still three problems:
1. Some public chains adopt the light node mode, resulting in incomplete data on the chain, such as Solana.
2. The storage layer is congested due to the large amount of data. My good friend REVA once uploaded her NFT work to IPFS, but when she wanted to call it, it took her 2 hours to download a file of hundreds of megabytes (think about the failure of two hours) Crash when downloading an SD movie). However, there are already projects in the market that are working on solving this problem, such as SevenXs Portfolio: Meson Network. It is a decentralized CDN network that aggregates idle servers through mining, schedules bandwidth resources, and serves them in the file and streaming media acceleration market. The objects include traditional websites, videos, live broadcasts, and blockchain storage solutions. Currently, Already supports AR, IPFS, etc.
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The second layer, data acquisition
The main players at this level are node service providers. If you choose to obtain on-chain data by building your own nodes, it will require high time, money, and technical costs, and you may also face problems such as memory leaks and insufficient disk space. Node service providers have greatly optimized this process. As the infrastructure of the entire data track, node service providers are the first players to participate, and unicorns with a valuation of tens of billions of dollars have also been born.
At present, the well-known service providers include Infura, Quicknode, Alchemy and Pocket. When choosing, developers and entrepreneurs will mainly consider the number of overlay chains, business models and the diversity of additional services (is there a CDN-like service? Can access Mempool data? Is it possible to provide private nodes?) and other factors, and Infura has experienced node downtime more than once before, and whether it is decentralized is also one of the criteria for everyone to choose. (In November 2020, Infura was not running the latest version of the Geth client, and some special transactions triggered a bug in this version of the client, and then Infura went down and caused a series of chain reactions: mainstream trading platforms were unable to charge Mention ERC-20 Token, MetaMask cannot be used, etc.)
A brief comparison of the four node service providers is as follows:
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The third layer, data query and index
Above the node service providers that directly interact with various public chains are market participants that provide data query and indexing services. They make raw data easier to access and use by parsing and formatting data.
The Graph
The Graph is a decentralized on-chain data indexing protocol. The main network will be launched in December 2020. So far, it can support the indexing of data from more than 30 different networks, including Ethereum, NEAR, Arbitrum, Optimism, Polygon, Avalanche, Celo, Fantom, Moonbeam, Arweave, etc.
It is similar to the traditional cloud-based API, the difference is that the traditional API is operated by a centralized company; while the data index on the chain is composed of decentralized index nodes. With the help of GraphQL API, users can directly access and obtain information through subgraph (subgraph), which is fast and saves resources. The Graph designed the GRT token mechanism to encourage multiple parties to participate in its own network, involving Delegator, Indexer, Curator, and Developer. A brief summary of the business flow is: users put forward query requirements, indexers run The Graph nodes, clients pledge GRT tokens to indexers, and curators use GRT to guide which subgraphs have query value.
Covalent
Covalent provides a data query layer, allowing its users to quickly call data in the form of an API. Currently, it supports Ethereum, BNB Chain, Avalanche, Ronin, Fantom, Moonbeam, Klayth, HECO, SHIDEN and mainstream Layer2 networks.
Covalent not only supports the query of all data types of the blockchain, such as transactions, balances, log types, etc., but also supports data query of a certain protocol. The most prominent feature of Covalent is the query across multiple chains. You dont need to rebuild the index similar to The graph subgraph, which can be realized by changing the Chain ID. The project also has its own token, CQT, which holders can use to stake and vote for events such as database updates.
SubQuery
SubQuery provides data query services for Polkadot and Substrate projects, allowing developers to focus on their core use cases and front-ends without wasting time building custom back-ends for data processing. Inspired by The Graph, SubQueary also uses the graphQL language, and its token economics is similar to The Graph: There are three types of roles in the SubQuery system: consumers, indexers, and principals. Consumers publish tasks, indexers provide data, and entrust idle SQT tokens to indexers to encourage them to participate in work more honestly.
Blocknative
Blocknative focuses on the retrieval function of real-time transaction data, and provides mempool data browsers, such as address tracking, internal transaction tracking, unsuccessful transaction information, and replaced transaction (accelerated or canceled) information. Because the mempool data will not be consistent with the final block data, the requirements for real-time performance are high. Field queries provided by Blocknative are more immediate and precise.
Koii Network
Koii is a decentralized ecosystem for creators, designed to help them permanently own content and earn content value. Anyone can use the Koii system to earn token rewards by deploying tasks, running nodes, or producing/registering content. The system will reward participants according to the data processed through the real traffic proof, realizing the cycle of attention economy . In addition, the Atomic NFT developed by the Koii team realizes the preservation and confirmation of NFT and its Meta-Info (meta-information, that is, the actual digital content represented by NFT) on the same chain, so all content on the Koii platform can follow Generated by the same standard, if this scalability can successfully promote content accumulation to a certain order of magnitude, Koii will also become an important content data indexing platform.
The projects listed below not only provide data query and indexing services, but also belong to the data application and analysis layer products. For the sake of convenience, they are all described here.
Dune Analytics
Dune Analytics is a comprehensive Web3 data platform that can query, analyze, and visualize massive on-chain data. It parses the on-chain data stored in the key-value database, and then enters it into a PostgreSQQL relational database. Users do not need to write scripts, as long as they can use simple SQL statements to query. The data tables that Dune Analytics can provide include raw transaction data tables, item-level data tables, and aggregated data tables.
Dune Analytics encourages data sharing. By default, all queries and datasets are public. Users can directly copy other peoples Dashboards and use them as references. Currently, the best data analysts in the Web3 field gather here. Dune Analytics currently supports data query of Ethereum, Polygon, Binance Smart Chain, Optimism and Gnosis Chain. In February this year, it completed the B-round financing of US$69.42 million, with a valuation of US$1 billion, officially entering the ranks of unicorns.
Flipside Crypto
Flipside, like Dune Analytics, also uses visual tools and automatically generated APIs to allow users to query complex data through simple SQL statements, and can also copy and edit SQL queries that have been generated by others. Flipside actively works with leading crypto projects to incentivize on-demand analytics through a structured bounty program and mentorship, helping projects quickly gain the data insights they need to grow.
Currently Flipside supports Ethereum, Solana, Terra, Algorand and other public chain networks. On April 19, Flipside announced the completion of a $50 million financing round.
DeBank
DeBank is a DeFi portfolio tracker. Through DeBank, users can track and manage the DeFi applications they have interacted with in one stop, view address balances and changes, asset distribution, authorization status, rewards to be received, loan positions, etc. Currently, 1147 protocols on 27 networks are supported.
In April last year, DeBank officially launched its own OpenAPI plan, including access to all protocols on a certain chain, obtaining a list of all chains supported by a certain protocol and their contract addresses, and obtaining a real-time investment portfolio in a certain protocol With 28 APIs, all institutions and individual developers can apply to become official partners and access DeBanks DeFi analysis data in real time. Currently, imToken, TokenPocket, Math Wallet, Mask, Hashkey Me, OneKey and Zerion are all using DeBanks API, and DeBank has successfully extended its market from data application to data query and indexing.
CyberConnect
CyberConnect is a decentralized social graph protocol. Its solution is to build a scalable and standardized social graph module, allowing developers to port the social graph module to new applications with simple code, saving time and money cost, and for end users, their own social data become personal portable assets, and can also be easily ported to new applications, breaking the barriers between platforms in the Web2 world.
RSS3
RSS3 is a next-generation data indexing and distribution protocol derived from the RSS protocol. It allows users to generate RSS3 files based on addresses, and associate their Twitter, Mirror, instant and other social platforms into the files. The files will synchronize users assets and content in real time. and behavioral data (transactions, likes, reposts, etc.), and store this information in the RSS3 decentralized network. Developers can call users through different API interfaces and publish them on different platforms with the permission of users. content, and screen and display different information according to application characteristics.
Go+
Based on its own security engine, Go+ is committed to creating a secure data layer in the Web3 world. At present, the token security monitoring function for C-end users has been released. Users can enter the token contract address to obtain nearly 30 security monitoring items in contract security, transaction security, and information security, covering ETH, BSC, Polygon , Avalance, Arbitrum, HECO and other public chain ecology. At the same time, Go+s security API can also be referenced by other developers and downstream applications to create a more secure encryption ecosystem for their own projects. These security APIs include: Token detection, NFT detection, real-time risk warning, dApp contract security, interaction security, etc.
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The fourth layer, data analysis and application
Blockchain explorer
Blockchain explorer
This may be the earliest data application layer product, allowing users to directly search for information on the chain through the web page, including chain data, block data, transaction data, smart contract data, address data, etc.
Glassnode & Messari & CoinMetrics.io
Blockchain data and information providers provide investors with on-chain data and transaction intelligence from different angles indicators, and output market analysis insights and research reports.
CoinGecko & CoinMarketCap
Token analysis tool to observe and track token price, trading volume, market cap, etc.
Token Terminal
Analyze DeFi projects with traditional financial indicators, such as P/S ratio, P/E ratio, and protocol revenue. Currently, it also supports the analysis of the NFT trading market.
DeFiLlama
The data analysis platform for DeFi TVL supports 107 Layer 1 Layer 2 networks and nearly 1,000 DeFi protocol TVL, which can be compared and viewed by different indicators and time dimensions. At present, DeFiLlama also supports the analysis of NFT, paying attention to the transaction volume and Collections types of different trading markets on different chains.
NFTSCan & NFTGO
A data platform focusing on the NFT market, providing services such as data analysis and giant whale wallet monitoring, designed to help users better track and evaluate the value of NFT projects and assets, and help make informed investment decisions.
Nansen
If Nansen can be summed up in one word, it must be label. Nansen has analyzed 50 million+ Ethereum wallet addresses and their activities, combining on-chain data with a database containing millions of tags to help users better find signals and new investment opportunities. Nansen is currently one of the most star projects in the Web3 data analysis and application layer. It completed a financing of 75 million US dollars at a valuation of 750 million in December last year.
Chainalysis
Chainalysis, known as FBI on the chain, was established in 2014. It is an enterprise data solutions company that monitors and analyzes data on the chain to help customers such as governments, cryptocurrency exchanges, international law enforcement agencies, and banks comply with regulations. requirements, assess risk, and identify illegal activity. Last June, Chainalysis announced it had raised $100 million in Series E financing, valuing it at $4.2 billion.
Footprint Analytics
Footprint is a comprehensive data analysis platform for discovering and visualizing blockchain data. Compared with other applications, Footprint has a lower barrier to use and is very friendly to novice users. The platform provides a wealth of data analysis templates, supports one-click forking, and helps users easily create and manage personalized dashboards. At the same time, Footprint also marks other wallet addresses and their activities on the chain. Users can use indicators with rich dimensions. Make investment decisions.
Zerion & Zapper
The earliest DeFi portfolio trackers and managers have also added support for NFT assets.
DeepDao
DeepDAO is a comprehensive data platform focusing on various DAO organizations. Users can easily check the treasury amount and changes, treasury token distribution, governance token holdings, active members of the organization, proposals and voting status, etc. DeepDAO also provides dozens of tools for creating and managing DAOs.
There are many other applications at this layer, so I wont list them all here.
In fact, SevenX has been paying attention to the data track since a long time ago, and has invested in Debank, Zerion, Footprint, Koii, DeepDao, RSS3, CyberConnect and Go+. In the process of screening projects, we have some experiences and judgments, which we would like to share briefly here:
In general, application layer traffic is no longer the core barrier, and users may migrate rapidly at any time due to factors such as ease of use and update speed of other products, while products with data providing capabilities and closed-loop data channels with users will be more powerful. Competitive, but traffic products have the possibility of feeding back before barriers are formed.
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1. Scene selection:
(1) Is there a demand, and is the maturity of the demand sufficient or will it happen in the future?
When the project is looking for requirements, it is necessary to judge the maturity or stage of the requirements. Still take GoPlus as an example. In the DeFi world, sense of security is already a necessity, and almost everyone has a common need for security. This demand is endless and varied, and it is difficult for ordinary users to identify and prevent it. After the security incident, it was activated and gradually matured. So now everyone would rather pay an extra step or spend money appropriately to buy a safer experience.
(2) Do you do the C-side first or do the protocol first?
We believe that when the needs of the scene are not fully stimulated, we should first develop C-end products to find the pain points of users, otherwise it is easy to find nails with a hammer. For example, GoPlus made the Go Pocket wallet in the early days, which is actually like a model room. With the model room, other partners can better understand what problems the product solves, which will help the B-side gain when extending the agreement later. Customers have been of great help.
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2. Data capability:
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3. C-end product capabilities:
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4. To B expansion ability:
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5. Team background:
(1) The background of the vertical track web2 field, and independently operated a project
(2) Open source community experience
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The Possibilities of Web3 Data
With the increase of on-chain analysis, the anonymity of the blockchain is gradually broken. For example, you can track the transaction address and transaction behavior of large accounts according to the nansen label, and you can also identify the activities and organizations that a certain address participates in through the address on the chain. And on-chain behavior, which exposes our data to the sun and loses the right to choose privacy. Nansen recently stated that it has marked more than 100 million wallets, which makes the need for privacy more important.
The current privacy solutions mainly include privacy coins, privacy computing protocols, privacy transaction networks, and privacy applications.
If we want to protect our on-chain transactions or selective discovery of activities, or if we want the process to be invisible but the results visible, we can choose privacy computing protocols, such as Oasis Network, etc. Commonly used technologies include zero-knowledge proof, secure multi-party computing, Federated learning based on modern cryptography, trusted execution element (TEE), etc.
However, the availability of the current protocol is relatively limited, and most of them are still in the development stage. The most popular one is the Secret Network. The public chain has launched applications such as the cross-chain bridge Secret Bridge, the privacy DeFi protocol Sienna Network, the privacy transaction protocol Secret Swap, and the bitcoin trustless privacy solution protocol Shinobi Protocol.
Starting from the second half of 2021, leading VCs and developers began to pour into the privacy track in large numbers. I believe that with the gradual development of this market, people will better follow the fundamentals of the blockchain when how to use data to generate greater value. Find a balance between spiritual protection and privacy.
Finally, let me briefly talk about our judgment on market trends: building a decentralized reputation system through multidimensional data vectors is one of the most important use cases in the Web3 data market. Based on the reputation system, various financial scenarios such as credit The unlocking of borrowing becomes possible.
Lending has always been an important part of the DeFi ecosystem. At present, the types of products in the entire market are mainly mortgage loans (usually over-collateralized) and flash loans. Credit loans that do not rely on (or do not completely rely on) collateral have always been It is considered to be the most important evolution direction, because credit will create a more free exchange market.
However, the biggest obstacle to introducing credit lending in DeFi is that lenders only face one address, and cannot effectively verify the repayment ability of the borrower at the other end of the address and whether they have a bad credit record. Some solutions try to achieve this goal by introducing off-chain credit data into the chain, but the question of how to ensure the authenticity of the off-chain data itself and during the on-chain process has not been well answered.
write at the end
write at the end
Reference link:
Reference link:
https://www.theblockresearch.com/a-data-dive-into-pocket-network-123733
https://www.theblockresearch.com/alchemy-company-intelligence-115930
https://ath.mirror.xyz/w2cxg5OP1OEcqvSgsEjSSyKRJhPmam0w-fXGogiG-8
