Degen News

Tech News

Analytics

Blockchain abstraction, often called chain abstraction, has emerged as a key topic in Web3 as developers, users, and enthusiasts look for ways to attract new users and expand the overall crypto ecosystem.

Blockchain abstraction involves streamlining the user experience of blockchain technology by decoupling it from the hard-to-understand underlying systems while preserving its essential advantages.

Simply put, blockchain technology gets abstracted away from the user experience. This approach facilitates easier interactions for users and developers with blockchain applications, eliminating the need for extensive technical expertise.

### Why Chain Abstraction Matters

The main purpose of chain abstraction is to simplify how blockchain technology is experienced, separating the technical details from user interactions. By doing so, it increases accessibility, making it easier for more people to engage with blockchain applications. Developers also benefit from this approach, as it allows them to focus on creating decentralized applications (dApps) without being bogged down by the intricacies of the blockchain. Moreover, abstraction supports interoperability, facilitating easier connections between various blockchains and promoting new developments in the ecosystem.

### Unlocking Blockchain’s Potential

Chain abstraction makes it easier for users to interact with decentralized applications (dApps) by removing the need to understand the underlying complexities of different blockchains. Much like how modern web browsers enable seamless internet browsing without requiring technical knowledge, chain abstraction allows users to manage their digital assets and engage with blockchain-based services without needing expertise in blockchain technology itself.

Additionally, chain abstraction enhances liquidity across blockchains by enabling users and developers to access a broader range of liquidity options. This integration facilitates more favorable rates and improves the efficiency of financial applications by eliminating the barriers between different blockchain networks.

For developers, chain abstraction offers the flexibility to leverage multiple blockchains within a single decentralized application. This allows them to combine the strengths of different blockchains—such as Ethereum’s smart contracts and Polygon’s low fees—resulting in a more cost-effective, high-performance dApp.

Finally, chain abstraction promotes interoperability, enabling smooth communication and transactions between diverse blockchain networks. This is crucial for the continued evolution of the decentralized ecosystem, fostering a more interconnected and adaptable landscape.

### Potential Challenges

Developing a single interface for various blockchains could create a single point of failure. Maintaining a decentralized and secure framework is vital for mitigating the risks associated with centralization.

Each blockchain operates under its unique security protocols. One of the main challenges is to ensure that chain abstraction does not undermine these protocols. For example, weaknesses in one blockchain could potentially impact the entire chain abstraction system if not managed appropriately.

Different blockchains employ varying consensus algorithms and smart contract languages, making interoperability complicated. It is crucial to create a robust and adaptable system that can effectively navigate these differences for successful chain abstraction.

Handling cross-chain transactions and sustaining a unified interface can lead to performance inefficiencies. Fine-tuning these processes is essential to ensure seamless and efficient operations, avoiding delays and disruptions.

### The End Goal of Chain Abstraction

The end goal of chain abstraction is to simplify the user journey and eliminate the friction often associated with blockchain interactions. Users could log in with just an email, automatically creating a zero-fund account—no seed phrases or private key management needed. The applications they engage with could then initiate meta-transactions, sending them through a trusted intermediary. If users need to interact with other blockchains, their account could seamlessly connect to a multi-chain signature service that would forward transactions and cover gas fees. For instance, users could easily collect NFTs from various blockchains, all through a single email login. They wouldn’t need to manually create accounts or acquire cryptocurrency to engage with NFTs across different networks.

Looking forward, chain abstraction is set to drive major advancements in decentralized applications, helping solve many challenges around user experience, liquidity fragmentation, and blockchain interoperability. As this technology matures, it will play a pivotal role in shaping the Web3 ecosystem, fostering a more connected, efficient, and user-centric decentralized world.

Top.png

Chain Abstraction

Memecoins have taken the cryptocurrency news by storm in 2024, outperforming all other categories in the crypto market. Although memecoins are not a new concept—Dogecoin (DOGE) has been around since its launch in 2013, before the emergence of Ethereum—they have seen a resurgence in recent years. The "memecoin supercycle" theory, proposed by investor and analyst Murad Mahmudov, has gained traction among traders. This theory suggests that a combination of factors will create an almost continuous supercycle for meme-focused cryptocurrencies.

In addition, AI memecoins have attracted attention due to their blend of meme culture and artificial intelligence. Unlike traditional memecoins, some AI memecoins utilize AI agents that can track social media trends and respond quickly to market fluctuations. These agents enhance the appeal of a token by interacting with users in real time across platforms like X.

### What are AI Memecoins and Why Did They Become Popular

AI memecoins are becoming a new trend in cryptocurrency, driven by excitement from tokens like Goatseus Maximus (GOAT). These digital currency tokens combine elements of artificial intelligence with internet culture, appealing to cryptocurrency enthusiasts and offering opportunities for momentum trading.

Unlike traditional memecoins, AI memecoins feature narratives generated by AI systems, like Truth Terminal, which engage users on platforms such as X (formerly Twitter). GOAT, for instance, reached a market cap of $800 million within weeks by leveraging AI storytelling. Turbo, the first AI-generated memecoin, showcases how AI can add allure and humor to the market.

These tokens are speculative and volatile, relying heavily on community involvement and market sentiment. The rapid rise of GOAT highlights the role of AI bots in creating social media buzz that attracts retail traders. While they offer interactive experiences through real-time user engagement, analysts caution investors about the unpredictability and potential longevity issues of these tokens in a volatile market.

### Popular AI Memecoins and Their Unique Features

- **GOAT**

Goatseus Maximus (GOAT) is a popular memecoin on the Solana blockchain, powered by AI and driven by viral marketing from the AI bot Truth Terminal on X (formerly Twitter). Just two weeks after launch, its market cap surged from $3 million to $800 million, thanks to strong community involvement and listings on major exchanges like KuCoin. With a total supply of one billion GOAT, it is recognized as a leading AI memecoin, boasting over $400 million in 24-hour trading volume. Traders are drawn to its high-risk, high-reward potential, including perpetual futures contracts with up to 50x leverage. Analysts warn, however, that its speculative nature leads to rapid price fluctuations.

- **TURBO**

Turbo (TURBO) is an ERC-20 token launched on the Ethereum blockchain, created by Rhett Mankind with AI input. Initially funded with just $69, Turbo aims to explore the role of AI in cryptocurrency. It has emerged as a decentralized memecoin with zero transaction taxes and a renounced smart contract. The total supply of Turbo tokens is 69 billion, consisting of 60 billion allocated through crowdfunding and 9 billion held by the founder. The project emphasizes fairness and transparency. Turbo quickly gained popularity, built an active social media presence, and was listed on major exchanges, appealing to both meme enthusiasts and innovative investors in the memecoin market.

- **CORGIAI**

CorgiAI (CORGIAI) is a unique memecoin on the Cronos blockchain that blends meme culture with artificial intelligence to foster creativity and community engagement. Inspired by corgis, CorgiAI features staking, token-burning milestones, and AI-driven tools, aiming to boost user participation through activities like CorgiSwap and CorgiNFTs. With a total supply of 500 billion tokens—65% for community initiatives and 35% for liquidity—CorgiAI offers staking rewards and uses a burn model for deflationary pressure. However, investors should be cautious due to the volatility of meme-driven tokens and reliance on community momentum.

### How AI Enhances Memecoin Ecosystems

Truth Terminal and various AI agents are designed to interact with users on social media platforms such as X and Reddit, providing automated social media activity. These agents not only post consistently but are also capable of responding to market trends, resharing content, and creating a network effect. The automated replies and memes generated by these agents closely resemble authentic posts. This can spark enthusiasm among users for specific tokens.

Unlike traditional bots, AI agents continuously monitor real-time market information and respond quickly to trending memecoins. They often share positive messages, creating the impression that certain tokens are gaining value. This data-driven approach can drive up demand and increase prices.

AI agents do more than just automate content; they engage with the community. For example, Truth Terminal has built a dedicated following by interacting directly with its supporters, who believe in its potential to elevate tokens to new heights. These agents foster community loyalty through platforms like forums and Telegram groups, creating a sense of belonging that boosts enthusiasm for specific memecoins.

While AI-powered agents can generate excitement around memecoins, it's important to approach them with caution. The buzz they create may lead to market manipulation and contribute to fear, uncertainty, and doubt (FUD). These market fluctuations often result in rapid rises and falls. The influence of AI agents in the crypto space demonstrates how AI can significantly shape the memecoin narrative.

### Challenges and Risks of AI Memecoins

Cryptocurrency memecoins, especially those influenced by artificial intelligence (AI), are highly speculative investments known for their significant market fluctuations. For instance, tokens like GOAT can experience dramatic price surges followed by swift declines. These coins often gain popularity through social media buzz, frequently rising to prominence due to AI-generated narratives and endorsements from influencers, as seen with Truth Terminal's promotion of GOAT. However, the rapid profits associated with these coins are usually not sustainable, which poses notable risks to investors.

Experts advise caution, emphasizing that the value of memecoins mainly relies on momentum trading rather than any inherent value. For example, GOAT surged by 8,000% before facing a sell-off, highlighting the unpredictability of such assets. Without tangible utility, many cryptocurrencies risk rapid depreciation when initial excitement wanes.

To mitigate risks, it’s essential to diversify your investment portfolio. Avoid investing too much money into a single memecoin, as their value can be highly volatile and unpredictable. Understanding the speculative nature of these tokens can help you navigate the risks more effectively.

### Conclusion: Should You Invest in AI Memecoins?

AI memecoins present a unique blend of innovation and risk, combining artificial intelligence with meme culture. Tokens like GOAT and Turbo have garnered significant attention thanks to their AI-driven narratives and viral social media presence. However, their volatility is notable, with prices often influenced more by market sentiment and hype than by intrinsic value.

If you're considering investing in AI memecoins, it's crucial to approach them with caution. While these tokens offer high-reward potential, their value is primarily shaped by social trends and investor enthusiasm. Diversifying your investments and staying informed about market shifts can help mitigate risks. As the industry continues to evolve, staying up to date with the latest advancements will enable you to navigate this high-risk, high-reward market more effectively.

Left img.png

AI Memecoins

Why are some nations wealthy while others struggle with poverty? This question has intrigued economists for decades, and recent [Nobel-winning research](https://www.nobelprize.org/prizes/economic-sciences/2024/press-release/) highlights the role of public institutions as a key factor in prosperity. According to the study, inclusive institutions that encourage participation and growth can drive economic success, while extractive ones may hinder progress, regardless of individual efforts.

These insights into economic structures come at a time when technology is rapidly reshaping how economies operate and evolve. In an era of fast-paced digital transformation, blockchain, in particular, offers a new approach — enabling quick experimentation and near-instant results that would be unthinkable in traditional economic systems. So, what cutting-edge innovations has blockchain brought to the world? Let’s summarize the key advancements in today’s article.

### Bitcoin

Bitcoin stands out as a prime example of blockchain technology’s potential, functioning as a decentralized store of value that offers individuals an alternative to traditional currencies and investment assets. Often referred to as "digital gold," Bitcoin shares similar qualities, such as a limited supply and the ability to serve as a hedge against inflation and economic instability. Its robust network further enhances its appeal, making it increasingly popular for long-term savings and wealth preservation.

However, this innovative currency presents challenges, particularly concerning privacy. The transparency inherent in the Bitcoin network means that, while transactions can be pseudonymous, they remain publicly visible on the blockchain. This openness creates a paradox: many users are attracted to the idea of financial autonomy, yet the lack of privacy may deter those wishing to keep their financial activities confidential. Consequently, there is increasing anticipation for new protocols that could enhance privacy without compromising the decentralized nature that makes Bitcoin so revolutionary.

### Ethereum

Ethereum revolutionized the blockchain landscape by introducing the principle that "code is law," establishing a framework where developers can create decentralized applications and smart contracts. This innovative platform led to the emergence of standardized tokens like ERC-20, which facilitated a new wave of digital assets. The rapid adoption of these standards resulted in an explosion of token creation, including everything from utility tokens to memecoins, showcasing the platform’s versatility and accessibility.

Ethereum also exemplifies the boundless potential of blockchain technology: the ability to create virtually anything without limitations. This environment fostered the development of "right institutions," paving the way for groundbreaking innovations such as Initial Coin Offerings (ICOs), Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Play-to-Earn games. These advancements have reshaped various industries, driven by two foundational pillars: robust code standards and the freedom to innovate without constraint.

### Binance Smart Chain

Building on Ethereum's foundational principles, Binance Smart Chain (BSC) emerged as a platform that offers cheaper and faster transactions, attracting developers and users alike. This accessibility sparked a significant surge in decentralized applications and services, catalyzing the creation of Web3 games and other innovative projects. The success of BSC's model not only expanded the ecosystem but also led to the proliferation of over 200 Ethereum clones, as developers sought to replicate its achievements. By lowering barriers to entry, BSC democratized access to blockchain technology, enabling a wider audience to engage with decentralized finance and other digital experiences.

### Polygon

Taking the evolution of blockchain scalability a step further, Polygon (previously known as Matic Network) introduced solutions that allowed for near-instant transactions with minimal fees. Initially, this resulted in a flourishing ecosystem of decentralized applications and economic bots, demonstrating the potential for a high-volume, low-cost environment. However, this rapid growth revealed inherent challenges, as the influx of activity underscored the unsustainability of completely free transactions. In response, Polygon's developers implemented a strategy to introduce minimal fees, striking a balance between accessibility and sustainability.

### Web3 Gaming

As blockchain technology continues to reshape traditional economic models, its impact extends significantly into the gaming industry. The rise of Play-to-Earn (P2E) games represents a significant shift in the blockchain and Web3 economy, redefining player engagement in digital environments. By leveraging blockchain technology, these games allow players to earn real-world value through in-game activities, fundamentally altering gaming dynamics. Unlike traditional games that limit ownership and confine value to centralized systems, P2E games foster fully on-chain economies where digital assets can be owned, traded, and monetized, granting players true ownership and agency over their virtual assets.

However, creating sustainable economies within these games poses unique challenges. In a decentralized landscape, even minor disturbances in the in-game economy can trigger significant sell-offs, leading to instability reminiscent of financial panics. To tackle this, developers are innovating economic models that prioritize balance and resilience. These advancements not only enhance player engagement but also cultivate community-driven ecosystems where players can influence the direction of their favorite games. As the P2E model evolves, the potential for blockchain to transform the gaming landscape remains immense, paving the way for new forms of interaction and economic participation.

### Final Thoughts

In conclusion, the transformative potential of blockchain technology extends beyond innovative financial instruments and decentralized applications; it also emphasizes the importance of establishing robust governance structures that foster inclusivity and resilience. By learning from the successes of nations with effective economic models and integrating these insights into blockchain initiatives, stakeholders can create the right institutions needed to support sustainable growth in virtual economies. As we advance into this digital era, focusing on sound governance will be crucial for harnessing blockchain's capabilities and driving meaningful economic participation, ultimately paving the way for a more equitable and prosperous future.


Blockchain Web3 Crypto.png

Blockchain Evolution

Sony, a global leader in technology and entertainment, is now expanding into the Web3 space. Its Singapore-based subsidiary, Sony Block Solutions Labs, is developing Soneium, an Ethereum Layer-2 blockchain that is designed to bridge the gap between Web2 and Web3, making decentralized technology more accessible and user-friendly. By leveraging Sony’s vast global network of technology, entertainment, and media partnerships, along with launching new initiatives, Soneium aims to drive mainstream adoption and help everyday users easily transition into decentralized tech without hurdles.
### History
Sony’s venture into blockchain officially began in September 2023 when Sony Network Communications and Startale Labs formed a joint venture, establishing Sony Network Communications Labs, with the goal of developing a blockchain that could serve as the foundation for a global Web3 infrastructure. By pooling their combined expertise and leveraging a wide network of partners, they aimed to unlock the full potential of blockchain technology to drive broader adoption and lay the groundwork for decentralized solutions to become mainstream.

By August 2024, the company had rebranded from Sony Network Communications Labs to Sony Block Solutions Labs, signaling its renewed focus on blockchain development. Later that month, the launch of Soneium was officially announced. Positioned as a key player in the Web3 ecosystem, Soneium seeks to bring Web3 use cases into everyday life, advancing the venture’s mission to make decentralized technologies easily accessible to all.
### Technical Foundation
Soneium is a public blockchain designed for open participation, leveraging Ethereum’s layer 1 infrastructure to provide faster and more affordable transactions. By building on the OP Stack and Superchain from Optimism, Soneium offers a scalable and EVM-compatible network tailored for developers. Its fully-featured testnet mimics mainnet conditions, enabling thorough testing of projects. The platform supports advanced smart contracts and is built to handle high-volume applications, offering scalability without limits. Additionally, Soneium has a cross-chain bridge, facilitating interoperability, and currently boasts 123 projects within its ecosystem, spanning DeFi, NFTs, and gaming.
### Soneium Spark
In addition to leveraging Sony's global network and Startale's blockchain expertise, the team behind Soneium launched the Soneium Spark Incubation Program ("Soneium Spark") to foster a community of creators and builders shaping the future of decentralized technology. The program aims to support innovation and help projects that can drive long-term growth within the Soneium ecosystem. By offering a space for developers and innovators to succeed, Soneium Spark focuses on sustainable growth in areas like decentralized finance (DeFi), gaming, and entertainment.

Soneium Spark invites submissions in categories such as DeFi (including decentralized exchanges, lending, stablecoins, and derivatives) and Web3 Experiences (spanning NFT, gaming, social, and entertainment). The program’s goal is to spark innovative solutions that contribute to a healthy, thriving ecosystem for Soneium. After an orientation week held from September 10-14, 2024, applications were closed on September 30. The selected winners were announced on October 14, 2024, and will showcase their projects on Demo Day, scheduled for November 15, 2024.

The winners of the Soneium Spark program will receive tailored marketing, technical, and business support, depending on whether they earn Gold or Silver awards. This support will be provided at the discretion of Sony Block Solutions Labs (SBSL), ensuring that the projects have the tools and guidance needed to scale and succeed. Through Soneium Spark, the team aims to build a robust ecosystem of innovation that will lead the way for mainstream Web3 adoption.
### The Road Ahead
As Soneium develops, its ambition is to position itself as a significant player in the Web3 landscape by integrating blockchain technology into everyday life. With its foundation built on Ethereum and Optimism, and initiatives like Soneium Spark encouraging innovation, the platform has the potential to drive broader adoption of decentralized technologies.

However, as with any emerging technology, the path ahead is not without its challenges. While Soneium is well-equipped to support a growing ecosystem, it remains to be seen how effectively it can meet the demands of scalability, security, and usability as the Web3 space continues to evolve. Success will depend on its ability to deliver on its promises and to adapt to the fast-changing blockchain environment.

Looking forward, Soneium aims to attract more projects and developers while contributing to the broader adoption of Web3 technologies. With its focus on innovation, scalability, and ease of use, it is well-positioned to play a pivotal role in shaping the future of decentralized solutions. Soneium's commitment to fostering a thriving ecosystem and addressing real-world challenges offers a promising path toward long-term success.


Soneium

A subtle yet significant revolution is transforming the way new users are onboarded in crypto, all without drawing much attention. About a year ago, FSL introduced keyless wallets in StepN and GasHero, and today, they are being implemented widely across the industry.

Keyless wallets are crypto wallets that eliminate the need for seed phrases. They utilize multi-party computation (MPC) technology to secure private keys, distributing security across multiple parties rather than relying on a single key. This approach simplifies the user experience, allowing individuals to manage their assets without the worry of forgetting seed phrases.

A key feature of keyless wallets is their use of advanced cryptographic techniques, such as threshold signature schemes (TSS). This method ensures that no single complete key is solely responsible for securing assets. Instead, multiple key shares collaborate to authorize transactions only when necessary, offering a practical solution that balances security and usability.

### Security Concerns with Keyless Wallets

Although keyless wallets offer enhanced usability and protection through advanced cryptographic techniques, they are still not as secure as cold storage options. Cold storage, which involves keeping private keys offline and requires a seed phrase for access, remains the gold standard for safeguarding large amounts of cryptocurrency. By being completely disconnected from the internet, cold wallets are immune to hacking attempts, phishing attacks, and other online threats.

Keyless wallets, on the other hand, are considered "hot" wallets, meaning they are connected to the internet, similar to the already known custodial wallets. While the multi-party computation (MPC) technology distributes private key security across multiple parties, the fact that key shares are still accessible online introduces a level of vulnerability. Even with the added protection of threshold signature schemes (TSS), keyless wallets cannot completely eliminate the risks associated with being online.

### So Why Choose Keyless Wallets?

While keyless wallets may not match the security of cold storage for long-term asset protection, they offer clear advantages for everyday use. Their primary strength lies in convenience and accessibility. By eliminating the need for seed phrases, keyless wallets simplify the onboarding process for new users, reducing the friction often associated with managing crypto assets.

For most users, especially those handling smaller amounts of cryptocurrency or engaging in frequent transactions, keyless wallets strike a balance between security and ease of use. The distributed security of multi-party computation (MPC) and the advanced cryptographic methods employed ensure that even though they are connected to the internet, they remain a safer option than many other "hot" wallet alternatives.

Also, this solution fundamentally addresses one of the most significant user challenges in the crypto space: the inability to recover a private key if it is lost. In traditional wallet systems, losing access to a private key or seed phrase often leads to a permanent loss of funds. However, keyless wallets mitigate this risk by distributing ownership of the private key among multiple parties. This means that even if one key share is lost or compromised, the remaining shares maintain the security of the assets, allowing for recovery options that were previously unavailable.

### Summing Up

Choosing the right cryptocurrency wallet is crucial for achieving a balance between security and convenience. Cold wallets provide maximum security by keeping private keys offline and utilizing a seed phrase, but they can be difficult to use and may complicate transactions. In contrast, traditional custodial wallets simplify access to funds by managing private keys on behalf of the user, though they may not offer the same level of control and security. For those seeking a middle ground between security and ease of use, keyless wallets are an excellent choice. They employ multi-party computation to distribute security risks and enable recovery options without the complexity of traditional seed phrases, effectively combining safety with user-friendliness.

Will this new approach drive a wave of mass adoption? It likely won’t do it alone. While keyless wallets significantly enhance user-friendliness — one of the key trends in crypto in recent years — other areas of the industry are also adopting these principles. Together, these efforts are already making cryptocurrency more accessible to a wider audience.

Default.png

Keyless Wallets

Crypto markets are known for their ups and downs, but if you take a closer look, certain patterns begin to emerge. One of the most talked-about is “Uptober” — the idea that October often brings a boost in crypto prices. It’s become a bit of a tradition for traders to watch and speculate around this time each year. Let’s take a closer look at what makes 'Uptober' so interesting.

### The Meaning of “Uptober”

For those unfamiliar, “Uptober” combines “up” and “October” and refers to the historical trend where Bitcoin, and often other major cryptocurrencies, experience a price surge in October.

October is typically a strong month for BTC, with gains in 9 out of the last 11 years, excluding the current year of 2024. The only exceptions were in 2014 and 2018, when BTC recorded losses. In the other years, October consistently delivered solid gains for the leading crypto asset. Below, you’ll find a table from Coinglass outlining BTC’s price movements by month, starting from 2013.

![table btc moves.png](/uploads/table_btc_moves_0f8de48e89.png)


### Other Months

November and December also tend to bring favorable results for Bitcoin, earning them the nicknames “Moonvember” and “Bullcember” due to historical price increases. Another standout is February, which has only seen negative results twice in the last decade — 2014 and 2020 — highlighting its overall positive track record.

In contrast, September has typically been a challenging period for BTC. While it posted positive results in both 2023 and 2024, historically it has been one of the more difficult months, with only 4 out of the last 12 years showing gains. This trend has led to terms like “Redtember” or “Rektember” in the crypto community. August follows a similar pattern, with just 4 positive years in the last 12, reinforcing its reputation as a tough month for crypto investors.

When looking at median performance, October stands out as the best-performing month, with an average increase of +21.20%, making “Uptober” a fitting label. In contrast, August has the lowest median performance, with an average loss of -8.04%. These trends highlight October's significance in the crypto calendar and provide insight into potential market expectations.

These patterns highlight the significance of October in the crypto calendar and offer insights into potential market behavior.

### Current October Trends

This year, positive market sentiment picked up following the Federal Reserve's interest rate cut, sparking a surge in the value of various meme coins. On September 27, more than $400 million flowed into spot Bitcoin ETFs after a prolonged period of stagnation. QCP’s market analysis highlighted strong perpetual funding as well. 

One possible reason for this uptick is that October often brings key market announcements, coming after the slower summer period but well ahead of the holiday season. This year has already seen significant developments, including PayPal’s announcement that merchants can now buy, hold, and sell cryptocurrencies. PayPal, which has facilitated peer-to-peer crypto transfers for years, launched its own stablecoin, PYUSD, in 2023, further driving adoption.

### Summing Up

As October unfolds, the crypto community is filled with anticipation, given the historical trend of “Uptober”, which often signals price increases. The combination of past performance and current market sentiment suggests that this month could present potential opportunities for investors.

However, it is important to remain cautious and conduct thorough research before making any investment decisions. Utilizing our [DEX analytics tool](https://whattofarm.io) can provide valuable insights and help investors navigate the evolving landscape effectively, ensuring they make well-informed choices during this pivotal time.

**Please note, the views expressed in this article are not financial advice. It is essential to conduct your own research before making any investment decisions*

Navigating Uptober

In a recent interview with Cointelegraph, Alex, a developer from Sundog, discussed the meteoric rise of this memecoin. The conversation also explored Sun Pump and the broader memecoin market, offering valuable insights into their dynamics and future potential.

Sundog, a dog-themed memecoin built on the Tron blockchain, has gained significant traction, now boasting over 500k holders.

### Sun Pump

Sun Pump is a platform for launching and trading memecoins on Tron. The team markets Sun Pump as a platform with “no rug pulls and no team allocation.”

To quote Alex from Sundog, “Where Solana was a crowded marketplace that was hard to stand out in, Tron was a blue sky and we felt that we wanted to be in an ecosystem where we could make a difference and put in the work and creativity to launch a chain-leading meme.”

If you want to learn more about Sun Pump, take a look [at this article](https://whattofarm.io/blog/degen-news/meet-sun-pump).

### How Sundog Rose to Prominence

Sundog rapidly rose to a $300 million market cap and is now aiming at $5 billion.

According to Alex, the price has risen rapidly due to the fact that Sundog managed to tap into the untapped Tron community and persuade a lot of other memecoin holders from Solana to migrate to SUNDOG. The trust was built, and it showed.

They demonstrated strong resilience in terms of pricing, leading new participants to join our project at all stages of our development. Additionally, they distributed a substantial $2 million worth of SUNDOG tokens to the Tron community through an airdrop.

Sundog's global presence is evident from trending on X in various countries, including the United Kingdom, Germany, Brazil, and the United States.

### Why Memecoins Have Better Staying Power than NFTs

To quote Alex directly: Memes, unlike non-fungible tokens (NFTs), are able to cut across both Web2 and Web3. They are a social currency — a way for friends and communities to come together and have fun, discover and (hopefully) make gains. Many in the Sundog community have made profits, and this is important to us."

Memecoins incorporate the cultural and social aspects of NFTs, such as memes and inside jokes, and spread it across a large supply of interchangeable units, merging NFT culture with the rapid pace of altcoin trading.

### The Future for Memecoins in 2024 and Beyond

Memes will remain a fixture. They have demonstrated themselves as a primary catalyst for generating interest in the market at this moment, encapsulating the spirit of people coming together for enjoyment and collective speculation. Platforms like Robinhood and eToro have included memes, attracting a conventional retail audience, thus showcasing their appeal beyond just Web3.

Memecoins stress-test blockchain technology, mirror market sentiment, and foster dynamic communities beyond the typical crypto audience. They validate the reliability and scalability of technology, serving as indicators of broader market trends. Memecoins challenge blockchain technologies to exhibit resilience in the face of new obstacles.

**Please note, the views expressed in this article are not financial advice. It is essential to conduct your own research before making any investment decisions*

Sundog's Journey

**Quick Take:**

- Polygon transitioned from the MATIC token to POL, marking a major milestone in its 2.0 roadmap.
- POL enhances fee generation with data availability and decentralized sequencing, features a 2% annual emission rate, and is set to play a central role in Polygon's expanded ecosystem.
- Polygon 2.0 aims to create an interconnected ecosystem of multiple chains with a single bridge, facilitating seamless interoperability.
- The AggLayer is designed to unify Layer 1 and Layer 2 chains, simplify cross-chain transactions, and bring uniform cryptographic security.

On September 4, 2024, following a year of community-driven discussions and consensus, Polygon successfully transitioned from its original MATIC token to POL, now the native token of its network. This migration represents a pivotal step in the Polygon 2.0 roadmap, which aims to transform Polygon into a unified, interconnected ecosystem.

Beyond upgrading the native token for the Polygon PoS network, the shift to POL will expand its utility in future phases, powering Polygon’s vision of an ever-growing network of aggregated blockchains and enhancing scalability across the entire ecosystem.

Today, let's dive into the details of the MATIC to POL migration and explore Polygon's broader vision for its future as a multi-chain network.

### What is POL and Its Key Features

The upgraded POL token introduces new features and a "hyperproductive" system as described by CEO Marc Boiron. Unlike its predecessor MATIC, which mainly earned fees from gas and staking, POL expands fee generation opportunities by incorporating methods like ensuring data availability and decentralizing sequencing.

POL also presents a new emission model with a 2% annual rate, distributed between validators and the community treasury. Validators will benefit from consistent rewards to encourage network participation, while the treasury will support growth initiatives, such as grants, to broaden the ecosystem. This model overcomes a limitation of MATIC, which was constrained by the burning of update keys. POL offers enhanced control over token usage and future development.

As POL progresses, it will be integrated into the broader Polygon ecosystem, strengthening the security of chains within the Polygon aggregated network, known as the AggLayer. The AggLayer aims to create a unified network of chains, facilitating fast and secure cross-chain transactions. With Polygon 2.0's evolution, POL is expected to play a key role in connecting various chains and supporting the network's expansion.

### Current State Of The Migration

In just over a week, more than 7 billion tokens have successfully migrated to POL, accounting for over 70% of the total supply. The market cap of POL has quickly surpassed $2.64 billion, with daily migrations ranging from 5 million to 5 billion tokens. Meanwhile, over 3.2 billion MATIC tokens remain in circulation, holding a market cap of just over $1.21 billion at the time of writing. This rapid migration reflects the community's confidence in the transition and the growing momentum behind POL as the new native token.

### The AggLayer

Earlier, we introduced the concept of the AggLayer, and now it's time to explore it more deeply. The Aggregation Layer (AggLayer) is a key component of the Polygon 2.0 vision that addresses blockchain fragmentation by providing a decentralized protocol acting as a unified bridge for interoperable Layer 1 and Layer 2 chains. It allows sovereign chains to securely share liquidity, users, and state, aiming to create a seamless experience across multiple chains as if interacting with a single one. This approach has the potential to significantly enhance the user experience.

As Polygon envisions it, “In its endstate, the AggLayer will provide a common language for secure, atomic interoperability among heterogeneous chains.” In this context, "atomic" refers to transactions that must be fully completed across all chains or canceled entirely, ensuring security and consistency. This guarantees that users won’t experience partial failures or incomplete transactions when moving assets or data across chains, reinforcing the reliability of cross-chain interactions.

### How It Works

In most multichain Layer 2 ecosystems, transferring assets between chains typically involves multiple bridges connecting each chain to Ethereum. From Ethereum’s perspective, each rollup is essentially a smart contract containing a state root and a verifier to monitor assets. To move assets between chains without third-party bridging services, users often have to withdraw to Ethereum, which can lead to delays — especially on optimistic chains, where a withdrawal could take up to seven days.

The AggLayer aims to change this by using a single bridge contract on Ethereum for all connected chains. Instead of multiple bridges, Ethereum interacts with just one contract, while each chain keeps a local copy of the bridge root. This allows for faster cross-chain transactions without needing to withdraw to Ethereum, making the process simpler and reducing the security risks of using third-party bridges. Additionally, the AggLayer includes a bridgeAndCall() library that lets developers not only transfer assets but also trigger actions on other chains once the assets arrive, streamlining cross-chain interactions for users.

Another crucial element of the AggLayer is its use of Zero Knowledge (ZK) technology. At its core, the AggLayer aggregates ZK proofs from all connected chains, ensuring the security of cross-chain transactions. By leveraging the cryptographic strength of ZK proofs, the AggLayer allows chains within the network to maintain their sovereignty and modularity, all while offering the seamless user experience typically associated with monolithic chains. This combination of decentralization and interoperability sets the foundation for a secure and efficient multi-chain ecosystem.

### Understanding Aggregated Blockchains

Polygon describes Aggregated blockchains as a crucial evolution in blockchain design, moving beyond the limitations of monolithic and modular chains. Initially, monolithic chains handled all aspects of consensus, data availability, and execution within a single ecosystem. While these integrated systems offered unified interoperability, they faced significant limitations. As they scaled, validators required more hardware, leading to centralization and reduced security. Performance issues like state bloat and contention also arose. Moreover, these chains lacked flexibility and customizability for participants.

In response, modular architectures were developed to allow multiple chains to operate independently and in parallel, each maintaining its own sovereignty. This approach improved scalability and design flexibility. However, it also led to fragmented liquidity and user bases, creating inefficiencies in bridging or compromising chain sovereignty.

Aggregation aims to resolve these challenges by merging the advantages of modular architectures — sovereignty and scalability — with the unified liquidity and user experience of monolithic systems. This synthesis creates a more cohesive and efficient multi-chain environment.

### Summing Up

The transition from MATIC to POL marks a significant advancement for Polygon’s network, enhancing both functionality and scalability. Central to Polygon 2.0, the AggLayer addresses blockchain fragmentation by facilitating seamless interoperability among Layer 1 and Layer 2 chains. By overcoming the limitations of both monolithic and modular designs, Aggregation combines the benefits of each, creating a unified and efficient multi-chain ecosystem. This evolution has the potential to not only improve the user experience but also position Polygon for future growth and innovation.

However, while POL’s increased functionality and new emission model offer substantial benefits, it is important to consider potential trade-offs. The expanded capabilities of POL may grant the Polygon team greater control compared to the previous system where keys were burned. Additionally, as the modular architecture is still in its early stages, only time will reveal how effectively the Aggregated approach will integrate and perform in practice. The ongoing evolution of the ecosystem will depend on balancing innovation with core blockchain principles.

Overall, Polygon’s shift towards a more interconnected and scalable framework represents a bold step forward. The coming months and years will be crucial in assessing the real-world impacts of these changes and the effectiveness of the Aggregation model in shaping the future of multi-chain networks.

Right img.png

How the MATIC to POL Shift and the AggLayer Are Shaping the Future

Polygon 2.0

Traditional social media platforms have their flaws, including data breaches, content moderation issues, and a somewhat relaxed approach to user privacy. These problems have affected major players such as Facebook, Twitter, and LinkedIn. Can blockchain technology and decentralized social networks revolutionize the online experience for billions of users worldwide? Is your data more secure on the blockchain than on centralized servers?

In this article, we will explore decentralized social media networks and consider how they might address the issues that plague traditional platforms.

### Advantages and disadvantages of decentralized social networks

Decentralized social networks tackle many problems faced by traditional platforms but also come with their own set of challenges. Let's explore the advantages and disadvantages of these networks.

**Advantages:**

- **User privacy and security** – Decentralized social networks offer users better security and privacy.
- **Control over your data** – You alone control your data and how it’s used on a decentralized network.
- **Decentralized governance** – A decentralized autonomous organization guides key decisions regarding the growth and development of the platform.
- **Monetization opportunities** – Content creators enjoy alternative monetization methods, instead of relying solely on sponsored posts and advertising.
- **Censorship-resistant** – Decentralized social media networks provide everyone with a platform for free speech. Once a post is shared, only the original poster can remove it.

**Disadvantages:**

- **Web3 UX issues** – Blockchain-based applications still have a high entry barrier. User experience issues can hamstring mass adoption and discourage users.
- **Tough competition** – Existing centralized networks like Facebook and Twitter have monopolized the market, making it difficult to attract new users.
- **Scalability** – Blockchain transaction fees can be expensive.
- **Market volatility** – Because many platforms are tied to supporting cryptocurrencies, bear markets and crypto market fluctuations can devalue a network’s monetization offerings.
- **Censorship-resistant** – Without content moderation, decentralized social media networks can become breeding grounds for unrestrained hate speech and cyberbullying.

### Examples

There are a lot of decentralized social networks — Mastodon, Steemit, Only1, and many others. In this article, we’ll take a closer look at Lens and Farcaster protocols.

**Lens Protocol**

Introduced by the Aave team in 2022, Lens Protocol is a leading decentralized social graph network that offers users exceptional control over their social profiles.

What makes Lens Protocol unique is its completely composable and decentralized approach. Users have the ability to create a Lens handle as an NFT directly in their crypto wallet. These Lens NFTs are not limited to Lens only – they effortlessly integrate with various dApps and smart contracts within the growing LensVerse ecosystem. Additionally, users can trade their Lens NFTs on secondary marketplaces such as Opensea.

Built on the Polygon network, Lens Protocol offers a refreshing experience with low gas fees and swift transactions, ensuring a smooth user experience.

The Lens Protocol ecosystem consists of a range of evolving applications that enhance the capabilities of the decentralized social network. Whether you need secure communication, creative social engagements, or content creation tools, the Lens Protocol ecosystem provides a varied selection of projects to fulfill your requirements.

*Orb*

Orb, an innovative application in the Lens ecosystem, enables users to efficiently handle their social interactions. It provides features for creating, organizing, and managing connections, all while ensuring users maintain ownership of their data.

*Hey.xyz*

Hey plays a crucial role in the Lens Protocol ecosystem by offering a seamless communication platform. It incorporates different social aspects while upholding decentralization principles, guaranteeing the security and privacy of user data.

*Bonsai Token*

Bonsai, a DN-404 token on the Polygon network, was created to integrate with the Lens Protocol. Its purpose is to support community builders, explorers, and early adopters of on-chain social platforms. The token enables a variety of on-chain actions directly from Lens posts and aims to improve social media interaction via DeFi and creative contributions. Part of its tokenomics is dedicated to community airdrops and ecosystem support.

**Farcaster**

Farcaster operates as a decentralized social protocol utilizing Optimism. It enables users to establish profiles, share messages, and engage with one another, similar to popular social media platforms like Reddit or X (formerly Twitter).

Farcaster leverages blockchain technology to securely link and process personal data while upholding decentralization and anonymity. Its primary focus lies in scalability and adaptability to new technologies to maximize user value.

The protocol employs smart contracts to govern social interactions within the network, adding a layer of programmability and customization to social networking. Farcaster's emphasis on interoperability allows for seamless interaction with other blockchain networks, fostering a smooth exchange of information and assets across various platforms.

This interoperability enables developers to construct diverse decentralized social media applications (dApps) on top of the Farcaster protocol.

A Farcaster account creation requires an Ethereum (EVM) address, which will be associated with the account and utilized to sign and publish messages on the Farcaster protocol (as opposed to the traditional username/password approach). Activities such as posts, replies, and follows are recognized as messages of any activity.

User account data, such as profile details, is stored on-chain via a smart contract (e.g., ID Registry) deployed on the Optimism mainnet. Other data, such as Casts, is stored off-chain on Farcaster's storage network named Hubs.

Manageable via ENS on-chain, usernames ensure that users maintain control over their identity compared to centralized entities, which may revoke usernames at their discretion. Any individual can query the ENSRegistry contract to map a username to its custody address.

Users have the ability to create and integrate decentralized applications within their posts (e.g., a mint NFT button, 1-click DAO vote, etc.). These integrations, known as "Frames," must adhere to the OpenGraph to display properly in a Cast. Notable Frames developed by others include @cookies, which developed a seamless checkout experience in a Frame powered by Coinbase Commerce, and $DEGEN, an ERC-20 token distributed to the Farcaster community via the BASE chain.

The absence of a single entity owning the underlying data means that any Farcaster account holder can operate a Farcaster node (also known as a Hub) and access/write data.

Farcaster's distinctive features are upheld by specific smart contracts, each fulfilling unique functions to facilitate the decentralized experience. Moreover, the network features Hubs, which denote open-source, decentralized, distributed peer-to-peer nodes responsible for storing and serving Farcaster data.

### Comparing Decentralized Social Networks to Traditional Social Media

These alternative platforms have a shared objective: to provide users with more control over their content and access rights. Their goal is to distribute storage and control across social networks and establish decentralized structures.

They operate on a peer-to-peer (P2P) model, enabling direct user interaction without reliance on a central authority or server. They are known for being decentralized, open-source, ad-free, and owned by the community.

Decentralized networks prioritize individual ownership and control of data and interactions, empowering users to handle their personal information more effectively. Privacy is a key focus, with reduced data collection, encryption methods, and selective data sharing to improve user experience.

Additionally, decentralized networks aim to combat censorship through distributed content storage, community-driven moderation, and anti-censorship tools. Content on decentralized networks is less susceptible to removal or suppression, promoting freedom of expression.

Both conventional and decentralized social networks have their own benefits and difficulties. Decentralized networks emphasize privacy, user independence, resistance to censorship, and the ability to withstand single points of failure. On the other hand, traditional centralized networks typically offer convenience, a large user population, and a smooth user experience.

Web3 native social platforms are not the sole entities looking to incorporate blockchain technology into their systems, with X and Instagram now providing support for NFTs.

### Conclusion

Decentralized social networks offer a revolutionary model for social engagement, a significant departure from the deficiencies of centralized alternatives. They provide a high level of control, privacy, and independence, enabling self-expression without the restrictions often imposed by traditional platforms. 

Through the adoption of decentralized technology and novel methods for monetizing content, these social media platforms are paving the way for a fairer and user-focused internet experience. Whether you're a creator, an enthusiastic user of social media, or someone seeking a more secure and privacy-oriented online space, exploring these decentralized social media platforms is certainly worthwhile.

The New Era of Online Privacy and User Autonomy

Αλυσίδες	22
DEXes	830
Πισίνες	3.764.353
Tokens	2.438.304
Φάρμες	4.778
NFTs	Σύντομα...

Explore latest articles and news