The Three Major Encryption Fields in the Eyes of Pantera Capital Partners

The cryptocurrency industry is in a rapid development stage, with emerging fields continuously emerging. As the managing partner of a well-known investment institution in the industry, I will share three important directions that we are currently focusing on.

Social and Consumer Applications

Web3 is expanding from finance to the social domain. Recently, some projects have attempted to change user social behaviors through tokenization, a trend that has attracted widespread attention. As users engage in on-chain transactions more frequently, the importance of stablecoins as a bridge between traditional finance and decentralized finance will become even more prominent.

In addition, the development of generative AI is expected to bring users a more personalized and streamlined experience. The popularization of AI abstraction may lower the barriers to using Web3, making it easier for non-technical users to access blockchain data.

Zero-Knowledge Proofs and Modularization

Zero-knowledge proof technology is continuously maturing, with progress made in both theoretical breakthroughs and practical applications. We believe that zero-knowledge proofs will become a universal interface connecting different levels of the modular technology stack.

Modularity means that different layers of the blockchain (such as consensus, execution, data availability, etc.) can be managed by different providers. This "building block" architecture enhances composability, allowing projects to customize the blockchain technology stack according to specific needs. At the same time, using general-purpose languages like Rust to enhance the composability of smart contracts can lower the entry barrier for Web3 developers.

Bitcoin Ecosystem

As the 2024 halving approaches, the Bitcoin ecosystem is once again attracting attention. This includes the possibility of mainstream financial institutions launching Bitcoin ETFs, as well as a modular Bitcoin blockchain that supports more composable smart contracts.

It is worth noting that Bitcoin digital assets based on technologies such as Ordinals are on the rise. This may lead to a diversification in the NFT market: Ethereum NFTs may focus more on trading functionality, while Bitcoin NFTs may evolve into a "digital jewelry" due to their cultural significance, becoming carriers of art and fashion collectibles.

With the development of these fields, we look forward to seeing more innovative applications and breakthrough technologies emerge,推动整个 encryption industry forward.