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Three Major Trends in Crypto for 2024: AI, DePin and Modular Blockchains
2024-07-16

During the last bull market cycle, we witnessed explosive growth in the Metaverse and NFT field. At the peak of the last bull run, mainstream game projects like Sandbox and Axie Infinity brought investors an astounding return of up to 160 times. Therefore, keeping up with industry trends has become an excellent strategy for investors to maximize their returns during a bull market cycle.



This article will briefly explore three major trends that may replicate the P2E or Metaverse boom in this market cycle.



AI


The underlying architecture of blockchain is a distributed ledger capable of storing data in block form. The data stored on the blockchain is immutable and safeguarded by cryptography. Blockchain can ensure data security without the need for a third party. On the other hand, AI consists of machine learning algorithms that utilize computational power and big data to mimic human problem-solving abilities. It simplifies the decision-making process, rationalizes decisions, and takes actions most likely to achieve specific outcomes. AI can learn from the data provided and become smarter over time.


Theoretically, on one hand, blockchain can help explain AI behavior. Blockchain technology provides an immutable record of the data and processes used by AI in decision-making, making it easier for humans to understand and audit how AI algorithms make decisions, thereby building deeper trust. On the other hand, AI can enhance blockchain efficiency. In future Web3 application scenarios, data processed by AI algorithms can provide users with a better experience.


With the advancement of AI algorithms, the next generation of dApps and NFTs may benefit from its capabilities and become more intelligent.



DePin


Decentralized Physical Infrastructure Network (DePin) is an innovative concept aimed at incentivizing participation in blockchain networks or the contribution of resources to them. DePin is built on the foundation of the Internet of Things (IoT), with its core idea being the use of tokens to incentivize users to deploy hardware devices, as well as maintain and operate them. By encouraging contributors to run peer-to-peer (P2P) hardware infrastructure networks, DePin enables innovators to launch projects and provide services. Similar to how SocialFi rewards users for sharing data, DePin rewards users for sharing their unused hardware to support the network.


DePin can be divided into two types:


Physical Resource Network (PRN): This type incentivizes participants to use location-based hardware to provide unique real-world goods and services, such as Wi-Fi, 5G, VPN, energy information sharing, and geospatial data. An example project is Helium, a decentralized wireless network protocol.


Digital Resource Network (DRN): This type incentivizes participants to use hardware to provide a physical infrastructure network for digital resources, such as broadband networks, storage networks, and computing power networks. Representative projects include Meson Network (a decentralized bandwidth marketplace), Render Network (a decentralized GPU rendering platform), and Livepeer (a decentralized live video broadcasting platform).


The potential for DePin's development is enormous, as it can bring together various services, manufacturers, and the entire device ecosystem on a neutral platform, offering new options for the integration process across industries and markets, and helping blockchain projects break through industry boundaries.


Modular Blockchain


A modular blockchain is a blockchain that focuses on handling a few responsibilities while outsourcing the rest to one or more independent layers. The working principle of a modular blockchain is modularization, separating the system into different components that can be combined in various ways to achieve specific goals. In essence, you can think of modular components as Lego blocks that can be assembled into different structures.

Clearly, in terms of scalability, modular blockchains are undoubtedly the latest paradigm in blockchain design.


In the modular path, blockchains achieve the same goal through different approaches, choosing modular implementations that emphasize execution, settlement, consensus, and data availability in various ways. Taking ME Network as an example, it is a public chain independently developed by Meta Earth, focusing on empowering RWA (Real World Assets), helping to bring real-world assets on-chain and enabling the on-chain migration of various real-world scenarios, which inevitably relies on a high-performance underlying network.


Therefore, ME Network adopts an innovative modular blockchain design, utilizing vertical and horizontal decoupling, combined with Rollup technology, to layer the functions of the public chain. Horizontal decoupling mainly divides it into three modules: execution layer, settlement layer (including state verification consensus), and data availability and consensus layer (Txn consensus). This separates the core consensus maintenance from transaction execution, ensuring stable data availability and efficient resource utilization.


Vertical decoupling categorizes the business within the blockchain, forming various functional modules, making network maintenance easier and allowing for flexible responses to evolving technology and market demands. Additionally, ME Network creates a collaborative environment through MBC that connects many chains, building a more inclusive and open multi-chain integration network ecosystem.


Compared to the isolated approach of traditional monolithic blockchains, modular blockchains are more about holistic collaboration. Another significant advantage of modular blockchain collaboration is that developers can reuse and extend existing modular blockchain components. This allows them to flexibly combine the necessary components according to their needs without building a new monolithic blockchain from scratch. This more efficient and cost-effective development method is a crucial factor in promoting the rapid growth and prosperity of the entire modular blockchain ecosystem.


Conclusion: Whether through AI enhancing the intelligence of dApps and NFTs, DePin incentivizing the construction of hardware infrastructure networks, or modular chains offering efficient and flexible blockchain solutions, these new trends will bring new opportunities to the blockchain sector in this market cycle. They not only expand the application scenarios of blockchain technology but also provide investors with diverse strategies.




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About Meta Earth


Meta Earth (ME) is based on a modular, high-performance, infinitely scalable multi-dimensional fusion underlying value network — ME Network, which supports the high-concurrency big data processing needs of traditional industrial applications.And through an encrypted DID (Decentralized Identifier) system — ME ID & ME Pass which can effectively protect user privacy data, and a co-construction & co-governance mechanism which can fully reflect personal sovereignty and equality for all, as well as an economic model which can guarantee UBI (Unconditional Basic Income) without any distinction, Meta Earth is fully dedicated to enhancing happiness for a better life and maintaining ecological balance to promotesustainability.


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