Prospects and opportunities of chain abstraction

In this year's narrative competition, the growth of chain abstraction narratives reached 673% (although the top four are still AI, DeFi, Meme, and L2). Regarding this, my view is still the same: "Demand drives growth, and growth leads to speculation" - at least now the market's attention to the chain abstraction track comes from some of the problems currently facing the industry, such as the complexity of multi-chain and cross-chain message transmission. The development of these narratives is a bit like "adding water when there's too much flour, and adding flour when there's too much water" - Ethereum's performance is limited, so everyone is working hard on Layer1 and Layer2, hoping to solve the congestion caused by user growth. The chains were "accidentally" overbuilt, and now everyone is pinning their hopes on new technologies, such as chain abstraction and intent abstraction, hoping they can solve the complexity brought about by the development of multiple chains. Personally, I think developers in the future still need to combine chain abstraction infrastructure and other infrastructure (such as intent infrastructure) to ultimately build a low-threshold, easy-to-operate front-end that can meet the majority of user needs. These front-ends are supported by the underlying interaction layer. Future competition will certainly focus on various interaction layers and front-ends (such as fee competition, UI/UX, asset category competition, etc.). The value capture capability of these products and infrastructure is closely related to the number of users. Next, let's talk about the top players in chain abstraction. Previously, Professor Pan @nake13 also talked about it. The three representative chain abstraction solutions are @NEARProtocol, @ParticleNtwrk, and @0xPolygon. Near In simple terms, Near generates accounts for other chains based on the main chain, and the generation of accounts and transactions is completed by decentralized MPC (although I feel that Near's current focus is still on AI). Another advantage of Near's solution is Gas payment. Particle Network We can simply understand Particle Network (just invested by Binance) as a modular Layer1, where users can use Particle to schedule the states and assets of other chains (mainly supporting EVM). Compared to Near, Particle's advantage is that it can aggregate and bundle user transactions to achieve batch signing and transactions. This way of execution provides a better user experience and may have lower Gas fees. The first chain abstraction project on Particle, Universal Account, has entered the internal testing phase, where users can directly create an account through Passkey (facial recognition or social account) or based on an existing wallet to flexibly mobilize the liquidity of any chain to realize user intent. Polygon Polygon's AggLayer is a bridge that can unify cross-chain liquidity, users, and states, connecting multiple independent blockchains to provide users with unified liquidity and operational experience. Its limitation is that it cannot be standardized to expand to major blockchains, and the core is still around the Polygon CDK ecosystem. As Professor Pan mentioned, "other chains may not necessarily accept this unified liquidity cross-chain bridge contract, which will bring some resistance to the access of new public chains, unless this solution can be accepted by all other public chains or become a widely accepted industry standard." Finally Just as I mentioned in my previous tweet, a major problem encountered in the process of the flourishing development of multiple chains is the fragmentation of liquidity - each chain is doing its best to attract users and liquidity. Solana is the meme summer, Arbitrum is the $ARB incentive, Coinbase is pushing the Base ecosystem and meme, and recently BSC has also become popular again, with users like mercenaries, eyeing the wealth opportunities on each chain and transferring their liquidity through cross-chain bridges or CEXs. The user experience in this model is really terrible, and sometimes they may miss wealth opportunities on other chains due to laziness. As I mentioned earlier, the development of the chain abstraction track will to a large extent solve many of the current user needs, and these needs will in turn drive growth. I'm still quite looking forward to a user-friendly product emerging from the chain abstraction track, just like the development of the TG Trading Bot driven by the meme hype. The modular track brings "mutual combination of independent infrastructure", and chain abstraction brings "unification of the combined". The development of chain abstraction will also be multi-layered, with the underlying infrastructure being the interaction layer mentioned above, and the front-end most likely being those ambitious wallets. However, we are still in the brewing period of the chain abstraction narrative, so let's keep an eye on it. Finally, let me give a small advertisement for my paid group, which currently has about 450 members. It is jointly operated by me and Mantou, with me mainly doing research and fundamentals, and Mantou mainly looking at secondary markets and on-chain meme-related content. The price is 3SOL/year. TG Channel (where previous market outlook was shared): https://t.me/SleepinRain Reading list: https://docs.google.com/spreadsheets/d/1JSmI-YDvbdxXJ1Tud2sK8mly33zh1VmcH8i5wUgSYs0/edit?usp=sharing Quality CT information flow: https://x.com/i/lists/1795371206344130752