**Title: The Rise of Mission-Specific Chains in Web3: A Potential Shift in the Industryโs Direction**
*Subheading: The Appeal of General-Purpose Blockchains vs. the Emergence of Specialists*
Bruce Lee once famously said that a man whoโs practiced 10,000 kicks once isnโt a worry โ but the one whoโs practiced the same kick 10,000 times is a force to be reckoned with. And this principle also applies to business, with the rise and fall of giants as its great illustration. Take Yahoo, once your gateway for anything on the Internet, and its loss to Googleโs simple and ascetic search bar. Take Kodak, which lost a lot of ground to Nikon. Take Blockbuster and Netflix, or any other similar story โ they always come down to the same pattern. Specialization wins where a jack-of-all-trades loses.
In the realm of Web3, the dominance of general-purpose blockchains has yet to be challenged effectively, but changes may be on the horizon.
**The Appeal of the General**
For now, general-purpose blockchains built to power anything (or nothing in particular, one could also assert) are the top players. By market cap, Ethereum still leads the way in terms of general-purpose L1s, but market cap might not fully capture the essence of a blockchainโs success. It is an important metric, but of equal importance is the diversity and vibrancy of the applications a blockchain supports. After all, if a chain was purpose-built for a niche sector, be it gaming, NFTs, or RWAs, its success is a matter of how many relevant projects go to build there.
โ Ethereum is currently leading general-purpose blockchains in terms of market cap.
โ Market cap alone is not an accurate measure of a blockchainโs success.
โ The diversity and vibrancy of applications a blockchain supports are also important factors to consider.
โ Purpose-built chains for niche sectors may see success if they attract relevant projects in those areas.
As far as dApps are concerned, Ethereum used to be the undisputed king, but now, BNB Chain has risen as a popular alternative, running more dApps than its arch-rival, according to DappRadar. BNB Chain is very much a general-purpose one, but it offers developers enough architectural, economic, and other improvements, as well as a lot of users and a high market cap to tap into, which enabled it to compete and succeed. The same advantages appeal to any project, no matter what Web3 sector it belongs to, so the chain is home to games, DeFi services, NFT projects, and more.
And itโs not just these three chains โ thereโs both Ethereumโs layer-2s and various other layer-1s vying for the crown of the generalist appeal. The battle among these generalists is fierce, with each striving to offer the best combination of technology, community, and ecosystem support. Some are succeeding more than others, but still, the competition is for overall dominance, not as much for a specific segment.
**Enter the Specialists**
Now, letโs consider mission-specific chains, or blockchains built with a particular Web3 segment in mind. Donโt confuse them with application-specific such as Ronin, which only exists to power Axie Infinity, or chains like Filecoinโs, which provide a specific service layer for Web3 projects, but arenโt meant for dApp deployment. Sector-specialized chains aim to host dApps in areas such as gaming or decentralized social media, offering tailored functionalities and benefits.
โ Mission-specific chains are built for specific Web3 sectors.
โ They offer tailored functionalities and benefits.
โ They differ from application-specific chains that are built for specific applications or service layers.
In some sectors, such as gaming, the niche approach has only seen limited success. Most crypto games are still built on general-purpose chains, for example, not on the ones tailored for gaming. However, there is a range of sectors where purpose-built chains defy this trend, gaining traction by focusing on specific business needs and models, which hints at a potential shift in the industryโs direction.
โ Purpose-built chains in certain sectors have gained traction by focusing on specific business needs and models.
โ This suggests a potential shift in the industry away from the dominance of general-purpose chains.
For example, the Energy Web Chain has been making headway with industry adoption due to its enterprise-tailored strategy and focus. Peaq, the blockchain for real-world applications, has outpaced Solana in its adoption by DePIN projects, even before its mainnet launch. Audius has been making headway with its user and artist adoption, advancing the Web3 push into the music and entertainment field. These projects offer segment-specific economic models and benefits, which could transform the entire Web3 landscape.
โ The Energy Web Chain has gained industry adoption due to its enterprise-tailored strategy.
โ Peaq has outpaced Solana in adoption by DePIN projects.
โ Audius has made progress in user and artist adoption in the music industry.
โ These projects offer segment-specific economic models and benefits.
One of these sector-specific chains, peaq, is worth highlighting. As one of Web3โs most prominent sectors, DePINs have unique characteristics and needs, such as involving APY-generating hardware, requiring real-world demand, and needing specific functions and fundamentals for rapid deployment. Projects in this sector could benefit from mission-specific chains like peaq, which is designed specifically for DePINs and real-world applications.
It is interesting to note that all these projects focus on real-world business processes, services, and business models. With the rise of RWAs as one of the most sought-after DeFi categories and Web3โs overall newfound interest in the real world, the advantages offered by these projects, from fundamentals on par with general chains to segment-specific economic models and benefits, could revolutionize the entire Web3 landscape.
โ DePINs have unique characteristics and needs.
โ Mission-specific chains like peaq are designed for DePINs and real-world applications.
โ Projects focusing on real-world business processes and models are gaining traction.
It is too early to dismiss general-purpose chains like Ethereum, as they still have a strong presence and will benefit from the bullish market sentiment. However, as the crypto winter subsides, the momentum surrounding mission-specific chains with their clear focus and laser-accurate strategies becomes more enticing for investors and builders. Web3 might be on the cusp of its own Yahoo moment with the emergence of these specialists.
**Hot Take: The Rise of Mission-Specific Chains: A Shift in Web3โs Landscape**
As the Web3 industry evolves, the dominance of general-purpose chains is facing potential disruption from mission-specific chains. While general-purpose chains like Ethereum continue to lead the market, purpose-built chains that cater to specific Web3 sectors are gaining traction and challenging the status quo. This shift is driven by the advantages these specialist chains offer, such as tailored functionalities, segment-specific economic models, and benefits.
Projects in various sectors, including gaming, energy, and music, are thriving on mission-specific chains, signaling a potential change in the industryโs direction. Peaq, a blockchain designed for real-world applications and DePINs, exemplifies the success of such chains by outpacing major players like Solana in adoption.
While general-purpose chains remain strong, the rise of mission-specific chains presents a promising future for Web3. As the crypto market emerges from the winter and embraces the real world, these specialist chains with their focused strategies and unique offerings are poised to transform the Web3 landscape.
Cyrus Dailey stands as a luminary gracefully weaving the roles of crypto analyst, tenacious researcher, and editorial artisan into a captivating narrative of insight. Amidst the intricate world of digital currencies, Cyrus’s perspectives resonate like finely tuned melodies, captivating curious minds from a myriad of perspectives. Her ability to decipher complex threads of crypto intricacies melds seamlessly with her editorial finesse, transforming intricacy into a harmonious composition of understanding.