20 Hot Topics in the Encryption Field to Follow in 2024

With the arrival of the New Year, we have compiled twenty important trends that may emerge in the encryption industry this year, covering various aspects from underlying infrastructure to top-level applications. This year is sure to be filled with opportunities and challenges.

1. Parallel EVM

A certain public blockchain announced an upgrade last November, aiming to become the first parallel EVM chain. Subsequently, several projects saw significant growth in December. Although the market has cooled slightly at present, the competition in public blockchain performance is still ongoing.

2. Modular Blockchain

Data availability, consensus mechanisms, and innovations at the execution layer are thriving. Comprehensive reports on modular blockchains are released weekly in the industry, providing valuable information sources for investors.

3. Solana Ecosystem

Recently, a large number of meme coins related to Solana have emerged, and the decentralized exchange infrastructure within its ecosystem has also performed well. However, we should focus our attention on projects that encompass the entire chain of asset issuance, circulation, and leverage.

4. Decentralized Physical Infrastructure Network (DePin)

Despite the sudden popularity of the DePin concept being puzzling, there is indeed potential in this field to develop interesting applications. Hardware mining may become an entry-level investment option, while an excellent dividend mechanism design is a topic that project parties need to study in depth.

5. Restaking

The essence of competition in the DeFi space is the competition for funds between projects through interest rates. Ethereum's POS has brought about an approximately 3% risk-free yield, which could be leveraged up to 8%. Some projects claim to offer native yields in an attempt to attract funds from DeFi, while others might counter this with higher long-term risk-free interest rates.

6. Sei Ecosystem

Similar to Solana, after the launch of version V2, we will follow the project development along the complete chain of asset issuance, circulation, and leverage.

7. Starknet Ecosystem

After a long wait, the token issuance of Starknet may be imminent. The main focus is on two directions: DeFi and full-chain games. The development of DeFi projects largely depends on the decisions made by the Starknet DeFi Committee, while full-chain games require close attention to the analysis of relevant research institutions.

8. Atomicals

Compared to BRC20, Atomicals has a slight edge in authenticity. Investors may consider holding some mainstream Atom and Quark, while other inscriptions need to be assessed based on market sentiment in a timely manner.

9. GameFi

A number of high-quality gaming projects emerged in the fourth quarter of last year and are expected to be launched successively this year. Specific gaming experiences and investment opportunities may require consultation with professional gaming studios.

10. On-chain Gaming

Putting game assets on the blockchain can greatly enhance players' sense of participation and excitement. Although we have not yet conducted in-depth research, there are already professional institutions in the industry providing a wealth of research content in this area.

11. Proof of Work (PoW)

Miners are always looking for new mining opportunities to ensure the continuous operation of their equipment. A simple investment strategy is to follow the new mining machines launched by mainstream mining machine companies. For example, after a certain company launched a new mining machine in May last year, the price of the related token soared by up to 10 times.

12. Cosmos

Although we do not have a deep understanding of the Cosmos ecosystem, this ecosystem has remained vibrant and has the potential to incubate high-quality projects.

13. Derivatives

The complexity of current DeFi protocols is continuously increasing, making it difficult for people without a financial background to understand. However, for traders, this presents opportunities for more complex arbitrage and hedging operations on-chain. Some platforms show excellent fundamental data performance, and the user experience is quite good.

14. Intent (AI)

After a certain investment institution proposed this concept, the market had a brief discussion before settling down. However, the related projects are still worth following.

15. Berachain

Proof of Liquidity may become the main battlefield for capital efficiency competition in economic models and tokenomics design.

16. Decentralized Science (De-Science)

A certain research institution mentioned this trend, but it is still unclear when it will become a hot topic. Currently, it mainly involves pharmaceutical and AI projects.

17. Stablecoins

Some projects are launching new architectures, improving capital efficiency, and adjusting interest rate mechanisms, which are worth following.

18. Ponzi Economics

The story of OHM fork projects seems endless, with two projects achieving a 20-fold increase in the last 30 days.

19. ZK Proof Hardware Acceleration

Currently, no obvious projects have been found, perhaps it is still early. However, this field is worth the effort of young researchers.

20. ZK Co-Processor

Although this concept is still not very easy to understand, there are already some excellent analytical articles available for reference.