Crypto Oasis, Crypto Valley, the DLT Science Foundation, and Inacta Ventures have forged a groundbreaking initiative aimed at addressing the Blockchain Trilemma. The entities united to unveil the Global Protocol Report at The Hub of Casper Labs in Davos on the 17th of January 2024. The report offers granular insights and evolving analyses of Distributed Ledger Technology (DLT) protocol attributes. This resource serves both industry experts and novices by providing foundational knowledge on DLT concepts, WEB3 ecosystem infrastructure, the evolution of the Blockchain landscape, and the influential factors of capital, talent, infrastructure, and regulations in WEB3 innovation. The Global Protocol Report introduces a comprehensive framework for assessing DLT protocol maturity, enabling informed decision-making through concise protocol fact sheets.
Blockchain Generations Overview
Blockchain technology has evolved through distinct generations, each addressing limitations and expanding applications across industries.
Blockchain 1.0: The Foundation (2008-2013)
Blockchain 1.0, initiated by Bitcoin, focused on decentralization to ensure the security and efficiency of digital transactions. Led by Satoshi Nakamoto, it introduced key principles such as peer-to-peer value transfer, security through cryptographic hashing, and transparency via a public ledger. Despite challenges like high transaction fees and energy consumption, this generation laid the groundwork for cryptocurrencies.
Blockchain 2.0: Smart Contracts (2014-2016)
Ethereum ushered in Blockchain 2.0 by introducing smart contracts, enabling self-executing agreements beyond currency transactions. This generation featured key innovations like automation, virtual machines, and decentralized applications (dApps). It found applications in passive income generation, liquidity facilitation, and Initial Coin Offerings (ICOs).
Blockchain 3.0: Applications and Scalability (2016-2018)
Blockchain 3.0 focused on scalability, interoperability, and advanced consensus mechanisms. Sharding, Layer-2 solutions, and improved consensus were introduced, addressing challenges faced by earlier generations. Use cases expanded to include the Internet of Things (IoT), integration with artificial intelligence (AI), and decentralized finance (DeFi). Key protocols include Cardano (ADA), TRON, Hedera Hashgraph, Polkadot, IOTA, and Cosmos.
Blockchain 4.0: Industry Adoption (2019 – 2030e)
In the ongoing Blockchain 4.0 era, focused on Industry 4.0 integration, solutions are tailored for business needs with an emphasis on scalability, privacy, and security. Applications span digital twin-empowered IoT, energy-efficient Blockchain-integrated SDNs, DeFi Platforms, NFT Marketplaces, Decentralized Social Networks, DEXs, Decentralized Identity Solutions, and Supply Chain Traceability. Key protocols include Top Network and Hydrus 7 by JD Coin, showcasing advanced features like decentralized communication services. Ongoing advancements mark this phase in Blockchain evolution.
Blockchain 5.0: Web3 Integration (2023-2030e)
The fifth generation of Blockchain, intersecting with Web3.0 from 2023 to 2030, introduces decentralized applications (dApps) that redefine user experiences. Focused on decentralization, immutability, and transparency, this generation prevents data leaks and relinquishes singular organizational control. Key features include metaverse enablement, advanced block architecture, unique communication technology, Proof of Tsar (PoT) consensus, user empowerment, tokenization, and open-source practices. Use cases span smart energy grids, innovative data management and storage models, decentralized file systems in dApps, and social media networks. Protocol examples such as Everscale and Relictum Pro highlight scalability and advanced Blockchain functionality in this transformative era.
Switzerland’s Dominance in Blockchain Protocols
In the exploration of valuations and funding within the Blockchain realm, the report delves into critical aspects, emphasizing market cap distributions. Notably, Switzerland emerges as a dominant force, claiming 68.58% of the market cap share of top protocols globally, with Singapore following at 13.93%. Impressively, Switzerland hosts 20 of the leading DLT protocols, just one short of the USA‘s count of 21. This leadership is deeply rooted in Switzerland’s renowned financial industry, celebrated for its pillars of security, neutrality, and privacy. The country’s allure for digital asset holders has consequently transformed it into a central hub for Crypto finance and decentralized technologies.
Jurisdictions Shaping the WEB3 Landscape
The report also explores the different jurisdictions where network organisations are located and help readers understand why certain countries have become favourable destinations for Web3 ecosystems.
Ralf Glabischnig, Co-Founder of Crypto Oasis, highlighted the regulatory challenges in the Blockchain landscape, noting the significant variations globally. He emphasised Switzerland’s stability and leadership in the Blockchain domain, stating, “In the report we have explored the jurisdictions shaping the WEB3 landscape, analysing regulatory frameworks, infrastructure elements, and other factors influencing their favorability. It’s challenging how regulations can vary so greatly depending on where you are in the world, involving different regions, legal jurisdictions, and governing bodies. Switzerland, being a prominent player in Blockchain, stands as a pillar of stability and one of the most popular jurisdictions for DLT protocols”.
Glabischnig acknowledged that the European Union’s introduction of the Markets in Crypto-Assets Regulation (MiCA) is a notable step towards creating a cohesive framework, potentially serving as a blueprint globally. Notably, Switzerland and other non-EU countries are affected if they provide Crypto-related services in EU nations. MiCA introduces licensing requirements, with oversight by competent authorities and ESMA for “Significant CASPs.”
The European Banking Authority oversees stablecoins, while MiCA establishes market abuse rules for Cryptoasset markets. Despite potential challenges, there’s optimism in navigating MiCA’s impact on CASPs, anticipating substantial changes in the regulatory landscape. Such a regulatory landscape underscores the importance of understanding and navigating diverse legal frameworks, making the Global Protocol Report an invaluable resource.
Valuation Of DLT Protocols
The Global Protocol Report also details valuation models and funding mechanisms so stakeholders can make informed choices and contribute to a thriving ecosystem. It emphasizes three vital components for successful innovation: capital, infrastructure, and talent. It delves into the valuation and financial dynamics of DLT Protocols, exploring funding mechanisms, investment trends, and their impact on Web3 application growth. Readers will gain insights into how these protocols, with effective programs, drive adoption for a thriving Web3 Ecosystem.
The valuation of Blockchain and digital ledger technologies requires a nuanced approach due to their complexity and evolving nature. Th e report gathers insights from leading experts in the field, representing influential organizations in the Blockchain sphere. These thought leaders contribute diverse perspectives and methodologies, collectively providing a comprehensive exploration of innovative and emerging valuation methods crucial for understanding transformative technologies.
Forkast Labs introduces the GDPx, a novel metric designed to evaluate the economic output of Blockchain networks. This metric, akin to traditional GDP measurement for countries, represents a significant innovation in quantifying the economic health of digital economies. By considering activities like mining rewards, transaction fees, and NFT sales, the GDPx offers a more comprehensive view of Blockchain’s economic activity, marking a pivotal step in understanding the broader economic impact of Blockchain technology.
Aisot Technologies explores the application of artificial intelligence and quantitative tools for the valuation of Cryptocurrencies. The article showcases this innovative approach through the analysis of two distinct types of Crypto assets: large-cap and small-cap. It illustrates how AI can provide a nuanced and sophisticated perspective on Crypto valuations, revealing intricate patterns and insights not apparent through traditional methods. This exploration highlights the evolving role of AI in the realm of digital asset valuation, emphasizing its potential to revolutionize our understanding of Cryptocurrency markets.
Assessing Protocol Maturity
The Global Protocol Report marks a significant milestone in Blockchain research because it provides a comprehensive assessment framework for assessing the maturity of DLT protocols. This framework will allow readers to gauge the strengths and weaknesses of each of the selected protocols, facilitating comparison and identification of potential areas for improvement.
Commenting on the protocol maturity framework, Daniel Rutishauser, Partner, Head WEB3 Venture Building, Inacta Ventures said, “In our daily work, we are using our assessment framework to select the protocol that best fits the requirements for a WEB3 solution. In this report, for the first time, we give some insights into it as guidance for others to successfully build WEB3 solutions. The Global Protocol Report is a game-changer for understanding DLTs. This is a data-driven roadmap with a clear framework for assessing protocol maturity that will empower decision-makers and policymakers in the intricate world of Blockchain technology. By shedding light on the technical complexities and financial dynamics of DLT protocols, the report paves the way for a more informed and responsible WEB3 future.”
The Global Protocol Report: Understanding the Blockchain Landscape
Each of the selected Blockchain protocols has undergone thorough research and assessment based on attributes such as governance, performance, reliability, security, maintainability, usability, and adoption. The second part of the report provides fact sheets for each protocol, detailing key information like consensus mechanisms, transaction speeds, and Tokenomics.
Paolo Tasca, Co-Founder and Chairman of the DLT Science Foundation, emphasizes the Global Protocol Report’s significance in understanding the Blockchain landscape, offering a framework for evaluating protocol maturity. The report, a collaboration between partners, addresses scalability, security, and decentralization complexities, serving as a crucial guide for those shaping the future of WEB3.
A distinctive feature of the Global Protocol Report is its commitment to being a dynamic resource, regularly updated to incorporate new trends and developments. This ensures a current and valuable resource for users, allowing a time series analysis to showcase major shifts in the evolving protocol landscape.
The Global Protocol Report is positioned as a beacon of clarity in the ever-changing WEB3 landscape, offering essential insights to fuel the development of a robust DLT ecosystem. It serves as an invitation to explore, understand, and shape the future powered by distributed ledger technology.
You can download the report at https://cryptooasis.ae/globalprotocolreport2024/