Blockchain technology is constantly changing the way we work, live, study and play. As far as the evolution of cryptocurrency market is concerned, 2021 is a very eye-catching year: we have seen the rise of many new blockchain projects, challenging the dominant position of Ethereum. The market value of various digital currencies such as BTC has reached an all-time high, and the dazzling NFT boom has pushed forward the large-scale implementation of blockchain technology. In the tide of encryption technology, Crypto Review came into being. Initiated by cryptogram venture (CGV), with the purpose of “providing in-depth value reference for global encryption practitioners”, crypto review is committed to providing meticulous industry insights, the best investment and research practice guidance to encryption professionals and enthusiasts all over the world, And expand the positive impact of encryption consensus on more institutions and the wider population. Crypto Review is not for profit and adopts the recommendation and invitation system. The content covers: 1. Encryption trends. Pay attention to the technology, management, industry and even macro factors that will affect the behavior of the encryption industry; 2. Overview of the track. Share the latest Overview Research and analysis based on a specific vertical field; 3. Project analysis. Comprehensively and deeply interpret the early dark horse project and star project, and systematically interpret their design concept and mode. The encryption world is changing with each passing day, and the opportunity of the encryption world is fleeting. We hope Crypto Review can precipitate more valuable thoughts and really help encryption practitioners understand the present and see the future in the torrent of the times. The following is a selection of crypto review articles (January 2022) TRENDS 《The Web3 Playbook: Using Token Incentives to Bootstrap New Networks》 Original link：https://future.a16z.com/the-web3-playbook-using-token-incentives-to-bootstrap-new-networks/ CR Recommendation： a16z which is the author’s organization is the largest investor in Web3. The full text is concise and insightful. It is impressive to predict and analyze the world of Web3 from the perspective of the history of Internet development. It remains to be seen how amazing diversity and potential Web3 will show. 《Blockchains are cities》 Original link：https://medium.com/dragonfly-research/blockchains-are-cities-564327013f86 CR Recommendation: The world of blockchain is abstract and obscure, especially the public chain. However, the author compares the public chain with different cities such as San Francisco and Chicago, vividly shows the competition pattern of various mainstream public chains, and boldly puts forward his own assumptions based on the realistic logic of urban development. Perhaps, we can perceive the outline of the future public chain world in advance. 《Cars, Ownership, Capitalism, NFTs, and the Metaverse》 Original link：https://ysiu.medium.com/cars-ownership-capitalism-nfts-and-the-metaverse-f72e5844a7b3 CR Recommendation: NFT represents a paradigm shift in the online world. Everyone can truly own their own digital assets in a decentralized and scalable way. The property right mechanism based on openness, fairness, user ownership, property rights and non-zero sum method will further form a better state or social pattern. Perhaps this will finally truly form the end of the meta-universe ideal in the author’s eyes. 《Great Protocol Politics》 Original link：https://foreignpolicy.com/2021/12/11/bitcoin-ethereum-cryptocurrency-web3-great-protocol-politics/ CR Recommendation: Technology has changed not only the global order, but also the nature of companies and countries themselves. Standing at the height of human history and civilization, the author forecasts and analyzes the world change caused by the development of a new generation of innovative technology represented by crypto technology. The importance of crypto protocol is underestimated. It can protect property and execute contracts beyond the boundaries of traditional nation-state. The author’s view is refreshing. FIELDS 《How to define MetaFi and MetaFi’s framework（excerpt）》 Original link：https://outlierventures.io/wp-content/uploads/2021/12/OV_MetaFi_Thesis_V1B.pdf CR Recommendation: When metaverse meets DeFi, what kind of spark will it produce? This is an excerpt from outslier ventures’ comprehensive analysis and interpretation report on the new concept of MetaFi. The article puts forward that the main growth of DeFi in the future will not be driven by CeFi, but to release value by MetaFi. MetaFi will be an economic system parallel to the legal financial system. In this case, we need to think about MetaFi from the perspective of financial inclusion. 《Building and Running a DAO: Why Governance Matters》 Original link：https://future.a16z.com/building-and-running-a-dao-why-governance-matters/ CR Recommendation: The early well-known DAO “the DAO” did not develop smoothly, because it was impossible to find an incentive model that could encourage voters to highly participate in DAO affairs. Now, with the rise of DeFi, new “DeFi DAOs” begin to appear. They use the economic reward mechanism to encourage people to participate in these systems. In addition, DAO organizations continue to add new collective skills and modify the governance process in time, which makes the development of DAO in 2022 worth looking forward to. 《Where the Multi-Billion Dollar Crypto Derivatives Market is Headed Next》 Original link：https://jumpcrypto.com/state-of-crypto-derivatives-market/ CR Recommendation: Although the crypto derivatives market has a huge volume, the market structure needs to be improved. For example, the trading volume of crypto options accounts for about 2% of the spot; In the US stock market, the figure is about 35 times. Considering the rise of centralized and decentralized option infrastructure, the growth of decentralized perpetual contract trading volume, and the innovation of encryption original business, the author is optimistic that 2022 will become the year of encryption derivatives. 《Competitive outlook for Layer-1 platforms and Ethereum’s scaling solutions in 2022（excerpt）》 Original link：https://www.theblockcrypto.com/post/127723/the-block-research-2021-digital-asset-outlook-report CR Recommendation: Although Ethereum plans to switch to PoS mechanism in June 2022, according to the road map, Ethereum needs to upgrade for several years to complete the segmentation, that is the real Ethereum 2.0. Although there are many debates about the design and advantages of each public chain, the vigorous development of multiple public chains shows that as long as there is demand in the market, they may occupy a place in the future. Therefore, in the next few years, the new public chain will compete not with Ethereum, but with various solutions of Ethereum L2. The multi chain pattern of the whole industry will further develop, and cross chain interoperability will become more important. PROJECT 《Introducing Lockdrop + LBA: A Novel Token Launch Mechanism》 Original link：https://members.delphidigital.io/reports/introducing-lockdrop-lba-a-novel-token-launch-mechanism/ CR Recommendation: Both “Lockdrop” and “liquidity Bootstrap Auction (LBA) “represent the new basic elements of token issuance. Delphi chose to combine the two elements to better meet the important goal of providing all liquidity and price discovery on the basis of decentralization. Perhaps this will become a new paradigm of token distribution mechanism in the future. 《Why Solana May Become the iOS of the Encrypted World?》 Original link：https://www.newsbtc.com/news/company/cgv-research-why-solana-may-become-the-ios-of-the-encrypted-world/ CR Recommendation: Comparing Solana with Apple iOS, the author’s idea seems to be very bold and radical, but from the first principle thinking, the winners are similar, and the success paths they follow overlap. The cross temporal and spatial comparison between encryption and Internet in different fields gives us a new dimension of thinking about encryption projects with growth potential. For more information, please refer to Crypto Review (JAN, 2022). Just click to download:https://drive.google.com/file/d/1c9BMO_OselHm1QIWh-M9bqiaxQQCyqDC/view About CGV FoF: CGV FoF is an Asia-based Fund of Funds (FoF) that focuses on investments in Crypto Fund and Crypto Studio. CGV FoF is composed of family funds from Japan, Korea, and China’s mainland and Taiwan, with headquarters in Japan and branches in Singapore and Canada.

—By: Vargason, CGV FoF Research Fellow The continuous expansion of metaverse projects exacerbates homogenization. The strategy of betting on projects that can continuously expand the ecosystem, empower games and NFTs may be better than betting on new projects. While most industries have struggled to survive since the outbreak of the Covid-19 pandemic in 2020, the Axie Infinity of GameFi has swept the globe, creating wealth for many families and attracting a host of users outside the cryptocurrency world to participate in the blockchain game featured with “Play to Earn”. At a time when more and more projects focus only on making games, CGV finds that the Treasure run by DAOs that blurs the boundaries between NFTs, games, DeFi, and the metaverse, seems to be the next Nintendo. What is Treasure? Treasure is an NFT trading market and metaverse core infrastructure built on L2 (Arbitrum) and managed by DAOs. Treasure hopes to serve as a bridge in the metaverse, connecting the growing metaverse network and integrating NFTs, DeFi, and games through openness and composability. On Treasure’s NFT marketplace, in addition to selling its NFTs, it sells NFTs of its partners. In the future, it may be possible to trade unpartnered NFTs, using Treasure’s token MAGIC as the medium of exchange. MAGIC will be used and consumed in Treasure’s metaverse games in addition to the NFT marketplace. 1. Treasure’s Game: Bridgeworld Treasure turns MAGIC into the “reserve asset” in the metaverse and makes use of Treasure (NFT | resources) and Legions (NFT | players) for ecological construction. CGV learned that the relationship between the three is that MAGIC is the power of the game world, Treasure is the resource that players use to achieve their purpose, and players need MAGIC and Treasure to give them purpose in the game, and they support each other. Treasure is developing an interactive game — Bridgeworld. Players are mainly legions; soldiers mine MAGIC and use Treasure to upgrade their level. The game provides various maps, a legion protects the Treasure in the center of the map, while another legion launches strikes, and the winner retains the Treasure. 2. Treasure’s NFT marketplace: Treasure Marketplace Treasure Marketplace is Treasure’s NFT marketplace built on L2 (Arbitrum), and all transactions on this marketplace are performed using MAGIC. Part of the transaction fees will be used to award TreasureDAO. On the Treasure Marketplace, in addition to trading its NFT projects (such as Treasure and Legions), the NFTs (such as Smol Brains, etc.) of partners can be traded. It seems that Treasure is not satisfied with the current L2 curated NFT marketplace. In the future, it will try to become the L2 general NFT marketplace. According to market information, CGV learned that as of January 12, 2022, the trading volume of NFTs in Treasure Marketplace exceeded 33.9 million MAGICs, or approximately $68.6 million. 3. TreasureDAO DAO plays an essential role In Treasure. Treasure is managed by TreasureDAO, and all decisions are proposed by TreasureDAO and voted on by MAGIC holders. A 5% commission on transactions in the Treasure Marketplace will be distributed to TreasureDAO. Treasure’s economic model The total number of MAGIC is 320 million and players obtain MAGIC by playing games, mining tokens, and participating in Bridgeworld. Treasure has created an ecosystem that fully leverages MAGIC, which can be used to purchase useful items and unique NFTs, such as in-game treasures and players, as well as in-game items and NFTs for cooperative projects. The strategy of early DeFi and GameFi projects is to attract users with high APY, but users do not stay for a long time and often choose to sell for profit, which is fatal to the long-term development of the projects. Treasure has optimized this strategy in the economic model. It does not pursue high APY, but gradually reduces LP rewards in the mining process, and cooperates with SushiSwap and Olympus to launch liquidity mining and bonds, significantly lowering the sell-off pressure of MAGIC and boosting MAGIC’s liquidity. Partners of Treasure By partnering with projects such as Smolverse series, Life, Imperium, Mural, Olympus, and others, Treasure is creating a shared economic model for the metaverse, and MAGIC will power all these projects. Some of Treasure’s collaborative projects 1. Smolverse series Smol Brains is an NFT project based on L2 (Arbitrum). By staking Smol Brains, the owner can accrue IQ points while continuously unlocking free Smolverse series NFTs, such as Smol Cars, Smol Pets, etc. Source: https://www.smolverse.lol/ With the improvement of Smol Brains’ IQ and the combination of a series of NFTs, Smol Brains will embark on an exciting adventure. Note: The period of distributing Smol Brains for free has ended. Nowadays, players have to buy MAGIC on the Treasure Marketplace to exchange them. 2. Mural Mural is a cross-Layer2 network and cross-chain NFT transmission solution. The collaboration between Mural and Treasure enables NFTs on the EVM compatible chain (L1) to be bought, sold and stored on the Treasure Marketplace. Treasure can enable game applications on Lay1 to be used on Layer2, significantly reducing the cost of players. 3. Olympus Pro Treasure and Olympus Pro launched the MAGIC-ETH <> MAGIC-gOHM. Source: https://pro.olympusdao.finance/#/partners/TreasureDAO. Users can buy Magic bonds at a low price with LP, and Treasure sells Magic at a discount for LP. Treasure improves its liquidity in a more efficient way. Note: We only list some of the projects in cooperation with Treasure. Comparison of Treasure and Nintendo The development of traditional games has undergone many stages, and numerous industry giants like Nintendo, Blizzard have emerged. As one of the most influential and renowned game platform manufacturers, Nintendo has created many famous characters in the history of gaming, such as Mario, Donkey Kong and developed the most classic games in the history of gaming, such as The Legend of Zelda. The charging model of the game operation platform has developed from the initial product agency and time-based charging to today’s prop-based charging, which provides a rapid development opportunity for the current combination of game props and NFTs. Since 2020, the COVID-19 has caused widespread economic devastation around the world. However, the global video game industry was booming, with the Axie Infinity of GameFi gaining popularity across the globe. More and more users are participating in blockchain games characterized by “Play to Earn”. At a time when most projects are just building games, Treasure has already built game consoles as scheduled. Treasure not only develops its Legions games, but also collaborates on projects such as the highly participatory Smolverse series and the Life series. Taking Smol Brains as an example, users get free Smol Brains by participating in the ecological construction of Treasure in the early stage. Additionally, users can sell Smol Brains and other NFFs in the Treasure NFT marketplace at any time, and then exchange them for MAGIC. Users can participate in Smolverse’s subsequent adventure games by holding Smol Brains. With a large number of interesting projects introduced to the Treasure ecosystem, Treasure helps users screen out most of the unreliable projects, which will not only reward participants but also deepen their trust in Treasure. Besides, anyone who trusts Treasure will participate in the metaverse world created by Treasure. TreasureDAO adopts the governance mode of DAO, where the community can participate in the governance, voting and revenue distribution of projects. At this point, we will see a brand new gaming console. Summary With the continuous construction of the Treasure’s Metaverse Bridge, the MAGIC will be extensively used in DeFi, games, NFTs and other scenarios, which will constantly attract the deep participation of users and projects. It’s worth nothing that Treasure is a project built on L2, and it will take some time for the public to accept L2; Treasure has not launched any games, which may cause potential risks. Treasure is weaving its web in accordance with its plan. We don’t know how far it can go, but as long as one of the breakthroughs is made, Treasure will usher in a booming development. Note:This article is a CGV FoF research paper and is for reference only. It does not constitute any investment proposal. About CGV FoF: CGV FoF is an Asia-based Fund of Funds (FoF) that focuses on investments in Crypto Fund and Crypto Studio. CGV FoF is composed of family funds from Japan, Korea, and China’s mainland and Taiwan, with headquarters in Japan and branches in Singapore and Canada. Reference: 1. https://www.treasure.lol/ 2. https://docs.treasure.lol/ 3. https://treasure-marketplace-analytics.herokuapp.com/analytics

— by Shigeru, CryptogramVenture FoF Research Fellow If you have an iPhone and happen to be a fan or active participant of Solana’s systems and apps, you may feel a sense of deja vu when you use them separately at many moments. Do Solana and iOS have a lot in common? It just seems like a hunch. However, after analyzing and comparing the two carefully from the historical and current perspectives, I got an astonishing finding: the previous intuition may be incredibly close to some type of truth. Moreover, a bold prediction came to my mind: one day in the future, Solana may become the iOS in the encrypted world. In my view, although iOS and Solana belong to the Internet and encrypted worlds, respectively, they share the same logic of the first principle that supports their development.（The following conclusions were jointly organized by CGV FOF research team.） Firstly, the ultimate user experience. User experience, as the core competitiveness of a product, has been mentioned repeatedly. Due to Apple’s relentless efforts for the ultimate user experience, iOS seems to be always smoother than Android. Virtual keyboard was not created by iPhone. Microsoft, Palm, and other smartphone manufacturers have tried to promote smartphones with the full touch screen, but iPhone overcame the technical difficulties in capacitive touch screen, multi-touch, improving the screen touch experience to an untouchable level. For instance, iOS gives first priority for screen response, and it responds to Touch — Media — Service — Core architecture in order. Simply put, when the user touches the screen, the system will first handle the screen display (Touch); while the priority response level of Android is Application — Framework — Library — Kernel architecture, and display-related graphics and image processing (Library) are only in the third level. There are a host of similar factors, which directly cause a huge difference in user experience between iOS and Android. Similarly, although Solana is not the first underlying public chain, it has attracted an increasing number of crypto developers and users by providing extremely high TPS and low transaction fees, breaking through the biggest development constraint that most public chains face in the same period. Performance comparison between Solana and other mainstream public chains — Data source: RareLiquid For instance, Solana can deal with over 50,000 transactions per second while maintaining a block time of 400 milliseconds, and improve the TPS based on Moore’s Law, thus providing a good “predictability” of TPS scaling. Additionally, Solana’s low transaction fees are impressive, that is, estimated $10 for 1 million transactions. Among them, Solana’s core consensus mechanism is “Proof of History (PoH)”, which aims to solve the time problem in a distributed network that lacks a single reliable time source. By using a verifiable delay function, PoH allows each node to generate timestamps locally via SHA256 calculations, which improves overall network efficiency by eliminating the need to broadcast timestamps across the time network. The user experience of public chains can be reflected by the number of crypto wallets and the frequency of use. Take Phantom, one of the most popular wallets on Solana, as an example, it almost integrates all the features of the Solana ecosystem, including token swaps, collection of NFTs and collectibles, connection to hardware wallets, anti-monitoring, Web3.0 support, and the obtainment of incomes through pledging SOL. Solana Phantom & Ethereum Metamask monthly active users — Data source: Grayscale Building Blocks Relying on the excellent one-stop experience, Phantom has become the preferred wallet for the users of Solana, with the monthly active users exceeding 1.2 million. During the two months from August to October 2021, the users of Solana on Phantom increased by 5 times. Secondly, excellent UI design. The user interface (UI), as a human-computer interaction window for offering various functions required by users, determines whether the software or product is intuitive for users to operate. iOS has a tight system for platform UI design specifications. From buttons to icon styles, and from image size to resolution, they all require special customization. In this way, it not only unifies the styles of various programs but also helps users to get accustomed to the way of using iOS software. Nowadays, the rounded rectangular design, with only one button on the front and the rest completely covered by a glass panel, has become the iconic design of the iPhone. The project team should pay attention to UI design whether in the field of Internet, blockchain, or encryption. Besides, a “user-oriented” UI design will make the product more popular and sell better. Dr. Nielsen, an expert in human-computer interaction, claimed that usability is a prerequisite for survival in the field of the Internet. If a website is difficult to use, then users will immediately abandon it. Some people say that when they buy tokens, they only look at the logo of the project. Though just a joke, it illustrates the importance of the visual design of the project. The logo of Solana reveals that its team that pays attention to details and has good aesthetic skills. The logo color of Solana is a gradient from green to purple. Similar colors can be found in nature, such as the aurora borealis, mysterious and elegant. In addition, many cyberpunk-themed sci-fi movies often use purple, green, and blue in their images, reflecting the prospects of Solana’s innovative blockchain technology development. Solana ecosystem (DeFi fields) — Data source: Solanians Many Solana projects, at first glance, seem to be designed by the same designer, with a very consistent experience in terms of color matching, interface design, and interaction design. The interface is intuitive, concise, and easy to operate. Users can easily operate Solana without much training, as they can understand the functions on the interface at a glance after using the software. According to CGV FOF, On a well-known Solana IDO platform, the UI performance of a project is given a high assessment priority when reviewing the project. It seems that Solana improves users’ acceptance of Solana from the top down through its incubation and support of projects with outstanding UI. Thirdly, strong ecological support. Based on the second law of thermodynamics, isolated systems have no energy exchange with the environment and always change spontaneously in the direction of increasing disorder (entropy), i.e., the principle of increase of entropy. In view of this phenomenon, Prigogine, winner of The Nobel Prize in chemistry, proposed that the system must be open to transferring from a disordered state to an ordered structure, that is, the system must exchange matter and energy with the outside world. The opening of the business ecosystem requires core companies to enable partners to have access to their resources and capabilities, attract them to join the ecosystem, and achieve value co-creation through mutual empowerment. Since its inception, Apple has attached great importance to external empowerment, providing external developers with powerful development kits and allowing them to connect users through the app store, thus giving birth to a large number of popular apps such as Instagram, Snapchat, Uber, and WhatsApp. Compared with other platforms, Apple’s release mechanism for developers’ apps is fairer and more reasonable. The download ranking data on the software store is true and reliable, which has created a good competition system and environment for developers, making developers grasp an accurate understanding of what their users really want. Solana has also devoted a great deal of effort to ecological construction. Solana has a long-term funding plan to provide excellent projects with a full range of resource support, including targeted funding, VC referrals, technical support, recruitment support, marketing, and legal resources. Development of Solana and other mainstream public chains for active developers — Data source: Santiment Take the hackathon for example. In 2021, Solana officially held three global hackathons. The most recent hackathon, with a prize pool of $1 million, over 15,000 registrants, and more than 300 projects submitted by developers across the world, attracted the attention and support of a host of developers and generated a series of quality Solana native apps. Furthermore, it is worth noting that 90–95% of the hackathon developers expressed their willingness to carry out long-term development on Solana. These talented developers will constantly power the Solana ecosystem. Fourthly, a charming soul figure It may be a bit radical to say that Steve Jobs, the founder of Apple, changed the world, but it is fair to say that he was synonymous with the “spirit of innovation” pursued by the United States and all mankind. Jobs was a giant standing at the intersection of technology and humanities. His combination of idealism and perfectionism enabled Apple to take a completely different route from the traditional industry. Take simplicity as an example, Steve Jobs’ love of minimalism and his exposure to Buddhism, “let people directly know their heart without words”, exerted a great impact on Apple’s “no button” design. In addition to pursuing minimalism in product design, Jobs took the initiative to eliminate many product lines and only launched 1–2 products each year, with the best quality. In my opinion, Jobs was to Apple what Sam Bankman-Fried (SBF) is to Solana. I don’t mean to deny Solana’s incredible team, which is just as respected as Apple’s tens of thousands of talented engineers and development teams. SBF was placed on Forbes’s list of the richest people in the world 2021 — Data source: Forbes Initially, SBF was a trader and spent his early days at Jane Street, a quantitative giant. He founded Alameda Research (a quantitative trading firm) and FTX (a centralized cryptocurrency exchange) with a team consisting of finance personnel — quantitative analysts, engineers, high-frequency traders. They are seldom concerned with the centralization/decentralization debate and focus on the “large-scale expansion of the blockchain”. After leaving Jane Street in 2017, SBF took time to think about potential opportunities. He realized that “Cryptocurrency has many characteristics, it may be a very inefficient system, and there is a great demand for liquidity. This is basically: sudden huge demand, very rapid growth.” So, SBF tried to figure out the ultimate solution to these issues. Later, he discovered Solana. Anatoly Yakovenko, a co-founder of Solana, once described the scene of SBF’s first contact with Solana before it was launched on the mainnet in 2019: During the test, 80 transactions were processed in an average of 4.02 seconds. This result impressed SBF. After communicating with the team and realizing Solana’s huge development potential, SBF immediately decided to establish Serum (a decentralized derivatives exchange) based on the Solana. In this way, Solana not only won a new application project but also got a perfect encryption spokesperson (just like NBA got James). From that day onwards, Solana was reinvented by SBF. In January 2021, SBF said on Twitter that, “I’ll buy as much SOL as you have, right now, at $3. Sell me all you want.” Though a joke, it revealed that SBF had high hopes for SOL. Fifthly, a passionate fan base. I still remember that in those days, iPhone fans lined up in front of the store all night to buy a new generation of iPhone, hoping to be among the first to own the new iPhone, just as they wished to get tickets to a superstar concert. The iPhone launched by Apple every year is not only a new product but also a brand-new cultural phenomenon. This is a market effect that no other company is likely to have when launching a new product. Taking the number of Twitter followers as an example, according to statistics from CGV FOF, Solana has as many as 1.1 million followers, which is not as many as that of Ethereum (1.97 million) but ranks first among other mainstream public chains, Polkadot (1.01 million), Avalanche (450,000), Fantom (270,000), and Near (230,000). Let’s take a look at the fan token, Solana’s meme coin is Samoyedcoin ($SAMO). It was inspired by Dogecoin, Sam Bankman-Fried (containing the letters S, A, and M), and Solana’s co-founder Anatoly Yakovenko (whose hometown is the birthplace of the Samoyed dog). Nowadays, SAMO has become the mascot and promotion ambassador of the Solana ecosystem, and the peak circulation market value of SAMO’s token exceeded $700 million. In the Solana community, you can often feel a completely different atmosphere from any other public chain community. We often see the “fierce quarrel” between ETH diehards and Solana diehards. It is completely different from the peaceful and joyful atmosphere of the Near, Avalanche, and Fantom communities. This may be the price Solana pays for choosing to take a different path from the ETH (EVM). It may be a stretch to draw an analogy between Solana and iOS from the above dimensions. Some people are still criticizing the recent instability of the Solana network. But in the long run, through network upgrade, expansion of service nodes, and adjustment of incentive mechanism, these issues will become an episode in the development process of Solana. In fact, Apple’s rise did not happen overnight but was accompanied by several important turning points that established Apple’s status as king. For example, iPhone 4 was an epoch-making product that made breakthroughs in hardware, software, and design. It was the first cellphone that used the commercial retina screen, completed the dual evolution of cellphone camera hardware and algorithms, featured the most classic shape, and used iPhone self-developed chips… In cosmology, the big bang, generated by a singularity, gave birth to the universe we are familiar with. The singularity is an important turning point in history. The birth of iPhone4 is a singularity in Apple’s development history, allowing Apple to embark on a rapid development path. I try to list a few singularities to predict Solana’s vision of becoming the iOS in the encrypted world: — — The number of C-end users exceeds 100 million. On November 7, 2021, the number of active users of Solana’s Phantom wallet amounted to 1 million. It seems like a big leap from 1 million to 100 million. However, the exponential effect of the growth of the encrypted world network will speed up the process considerably. Anatoly Yakovenko, a co-founder of Solana, held a more positive opinion. He has repeatedly stated that with the launch and operation of new technologies, Solana’s next goal is to “attract one billion users.” You know, the number of VISA users worldwide exceeded 3 billion as early as 2018. — — Over 80% of the transactions are performed by institutional users. The participation of more institutional users in the encrypted market will attract more capital. The bull market in 2021 is driven by institutions. Many institutions, such as Tesla, Microstrategy, Grayscale, and the ARK founded by Catherine Wood, have entered the encrypted market one after another. SBF deems that the crypto sector driven primarily by potential institutional investment is likely to grow in the next five years. In my opinion, according to the Pareto principle (80/20 rule), if institutional users become the main force of the Solana market, and if their trading volume accounts for more than 80% of the total volume, Solana will usher in a new round of development. — — Over a third of Ethereum projects migrate to Solana. In June of this year, Neon Labs, a cross-chain bridge between Ethereum and Solana, was released. Neon allows anyone to run Ether smart contracts on the Solana blockchain, making it easier for developers to build programs that work on both blockchains. It would be an exciting time if more than one-third of the projects that have been deployed and developed on Ethereum are simultaneously building applications on Solana. — — Solana’s total market capitalization reaches 50% of Ethereum’s. SBF reckons that Solana’s unique underlying technology for developing the DeFi protocol will drive a spike in the price of its SOL tokens. He even believes that Solana can surpass Ether as the largest decentralized financial platform. Ethereum’s current market value (about $470 billion) is still nearly eight times that of Solana (about $55 billion). If Solana reaches 50% of Ethereum’s market value, it will be an important milestone in the development of Solana. The singularities of Solana ecological development (forecast) Will Solana become the iOS in the encrypted world? Probably nothing. I very much agree with Kyle Samani, managing partner of Multicoin Capital, “I think we’re going to see two things [Solana and Ethereum] coexist. We have iOS, we have Android. And, today, everyone knows you have to build an iPhone app and an Android app.” Perhaps, in the near future, Solana and Ethereum may become encrypted world’s iOS and Android, respectively. Fortunately, we are all witnesses and participators of this great change. Note: This paper is a CGV FOF Research Report and does not constitute any investment suggestions. It is for reference only. About CGV FOF: the Master fund from Asia, composed of family funds such as Japan, Korea, Chinese mainland and Taiwan, and focuses on investing in Crypto Fund and Crypto Studio. CGV FOF is headquartered in Japan and has branches in Singapore and Canada. References 1.《Solana Summer》，Not Boring by Packy McCormick, 2021 Solana Summer, Not Boring by Packy McCormick, 2021 2.《An Introduction to Solana》，Grayscale, 2021 An Introduction to Solana, Grayscale, 2021 3.《Why Solana is the ’World Computer’ Blockchain Developers Need》, Andrew Hyde, 2019 Why Solana is the “World Computer” Blockchain Developers Need, Andrew Hyde, 2019 4.《Digital Assets: Beauty Is Not in the Eye of the Beholder》, Goldman, 2021 Digital Assets: Beauty Is Not in the Eye of the Beholder, Goldman, 2021

By Vargason, CryptogramVenture FoF Research Fellow Before the rise of blockchain, Web3.0 can only stay in the concept stage due to the lack of solutions. With the development of blockchain technology, a number of Web3.0 related projects have emerged. According to the Web3 Index compiled by web3index.org (a website that tracks protocol usage across the entire Web3 stack), in the past 30 days, the revenue and other comprehensive indexes of Pocket Network, Arweave, and Livepeer ranked among the top relative to other projects. Pocket Network is currently the Number 1 middleware, with its 30-day revenue more than 30 times that of Arweave. In November, the fees paid by developers increased by 208%. In the Web1.0 era, the transmission of information was one-way, without interaction on the user’s side. Web2.0 gave users the right to edit, use, and interact with information. However, privacy protection remained an issue, and the value of user participation wasn’t explored. Web3.0 broke large intermediary platforms’ monopoly that had resulted from Web2.0, transforming the platform-centered value distribution mode into one that allows each participant who creates value for the platform to have a share of the profit. Web3.0 cannot be built in the air. Before Web3.0 applications can be adopted on a large scale, the blockchain infrastructure must be improved. In this article, CryptogramVenture FoF (hereafter CGF FoF) focuses on three blockchain projects, namely, Pocket Network, Arweave, and Livepeer, and introduces the important infrastructural components of Web3.0 from three aspects: API, storage, and streaming media. Note: This article is a CGV FoF research paper and is for reference only. It does not constitute any investment proposal. Pocket Network 1. Basic Introduction Pocket is a distributed API infrastructural project built for Web3 applications. It provides a trustless API protocol that is available for all major blockchain networks. Pocket project aims to build a complete distributed network of blockchain nodes. Through the trustless API protocol, developers can seamlessly access thousands of nodes, building a DAO ecosystem in combination with cryptoeconomic incentives. 2. Pain Points Solved On November 11, 2020, Ethereum suffered an outage that lasted nearly four and a half hours. Infura, the API service provider of Ethereum and IPFS, said that its Ethereum Mainnet API service was temporarily interrupted, which resulted in this outage incidents. This is also one of the many Single Points of Failure (SPFs) perplexing centralized service providers. CGV FoF has learnt that this incident did not affect users who added Pocket RPC’s Ethereum nodes to their wallets. They could still trade and interact through DApps or smart contracts. This was possible mainly due to the fact that the Pocket Network node operator has a variety of Ethereum clients, which makes the network service more flexible. Michael O’Rourke, CEO and co-founder of Pocket Network, believes that centralized infrastructure providers must have a large number of available buffers to meet additional needs. Due to the decentralized design of Pocket Network, it only needs to start and run a small part of the backup buffer, thus reducing the service cost. According to the company’s estimates, the Pocket Network services are “at least 10 times cheaper” than centralized services. 3. Token-based Economic Model Pocket Network has designed a unique economic model based on its token POKT. The model, which is based on DAO, creates a decentralized and trustless bilateral market between nodes and developers in its ecology, which enables all participants to benefit from it. In the Pocket ecology, developers and nodes are the rigid demanders of POKT. Developer: Uses POKT tokens to implement API requests, thus obtaining more efficient but less expensive distributed API request services. Node: Possesses a certain amount of POKT tokens to provide node services, and is awarded with POKT tokens for providing API services and implementing developers’ API requests. Because each party of the market has its own unique incentive mechanism, the bidding prices of both sides also vary. The total supply will be limited by the burning mechanism established by DAO that controls the token policy. The ultimate total supply of POKT will be determined by DAO. How does POKT become a cheaper solution? The answer is to stake POKT instead of paying AWS bills. As the number of relays and nodes increases, data will become cheaper. It is expected that the price of each relay will eventually stabilize at a certain order of magnitude in the next few years. Although the network is still in its infancy, the number of nodes keeps increasing at a significant rate. This new form of payment by staking may become a source of potential friction in the process of adoption. However, once POKT succeeds, we may have found an effective way to connect various Web3 middleware infrastructures with tokens. 4. Partners Algorand has announced its initiative to enhance interoperability by integrating the decentralized API infrastructure Pocket Network, and is slated to develop cross-chain bridges. Some cutting-edge blockchain projects have also participated in the pocket ecology, such as SOLANA, Matic, iCon, etc. Technical teams such as BlockSwap Network, Api3, Web3API, Fuse, and SKALE have also adopted POKT. see the figure above. 5. Team Members Information publicly available shows that Pocket Network currently has more than 20 full-time professionals around the world. As the co-founder & CEO, Michael P O’Rourke took the lead in creating Pocket Network in April 2017. He also set up Nonce+1 Labs, a blockchain development company, and has served as CEO ever since. The Pocket Network has a strong technical team. Core personnel includes senior blockchain engineers, APP engineers, full-stack software engineers, Big Data architects, cross-chain technology experts, financial technology talents, cryptography experts, etc. The consultant team has a balanced configuration, covering business, technology, operating, market and other fields. Arweave 1. Basic Information Arweave is a decentralized network focusing on permanent storage of data. It aims to build a data storage platform that features one-time payment, permanent storage, free reading, and tamper-proof. Arweave is one of the preferred storage methods for NFT/Web3 projects. As a decentralized storage network based on Blockweave technology, it adopts the innovative Proof of Access consensus mechanism to adjust the amount of data stored by nodes, thus ensuring balanced data distribution. 2. Pain Points Solved Web3.0 is committed to breaking the monopoly and control of data by centralized platforms. From this point of view, Web3.0 projects will not store data on centralized servers. Therefore, Web3.0 projects will have massive data storage requirements, rendering distributed storage an important infrastructure. Compared with the traditional centralized storage, distributed storage has the advantages of high security, privacy protection, and prevention of single points of failure. Arweave has changed the data structure of traditional blockchains. Not every node needs to store all blocks, but each time a new block is recognized, it needs to verify a previous random block. This mechanism is called Blockweave. Combined with the Blockshadow mechanism that allows nodes to reconstruct a complete blockchain according to the blockshadow and their own transaction files, Arweave is able to speed up consensus and provide TPS. 3. Token-based Economic Model Arweave’s token is called AR. The total number of 66 million AR tokens are mainly distributed as follows: 31.4% for financing, 13% for the team, 7.1% for strategic cooperation, 2.9% for consultant, 19.1% for ecological construction, and the remaining 26.5% is reserved. The part for ecological construction is mainly to reward storage suppliers and encourage storage suppliers to process orders, actively provide storage services for users, and effectively maintain network nodes. A total of 11 million block award tokens are available. In the intrinsic incentive mechanism of Arweave, users mainly consume AR tokens to purchase storage services and store data, whereas storage suppliers obtain revenue by obtaining block rewards and providing storage services. At present, the tokens obtained by providing storage services account for only a small part of the revenue of storage suppliers. Arweave has created a new consensus mechanism, Proof of Access (POA), which requires storage suppliers to verify historical blocks before getting rewards. The more blocks a storage supplier has saved, the more likely it is for the storage supplier to obtain block rewards. Data source: https://viewblock.io/arweave 4. Partners In the Arweave ecology, the most active tracks are finance, social networks, content distribution, verification, storage and archiving, DAO, and infrastructural tools. At present, the ecology is still in the early stage of construction. The following figure shows Arweave’s ecosystem. 5. Team and Investor The Arweave team is composed of senior blockchain engineers. Dr. Sam Williams, founder & CEO of Arweave, is a decentralization enthusiast with rich experience in distributed system design and implementation. Sam Williams is an Englishman and currently has 15K followers on Twitter. Investment institutions are very interested in the storage track. Arweave has raised funds from well-known investors, including top investment and financing institutions such as a16z, Multicoin Capital, Union Square Ventures, and Coinbase Ventures. Livepeer 1. Basic Information Livepeer (LPT) is a decentralized and highly scalable protocol at the streaming media layer. Content creators share real-time live videos and receive tokens (LPT) as rewards through video transcoding. Livepeer can function as real-time media layer in the Web3 stack. Transcoding is the process of reformatting the original video file to ensure the best viewing experience. Anyone can participate in Livepeer andbecome an orchestrator by running software that allows them to contribute their computer resources (CPU, GPU, and bandwidth) in service of transcoding and distributing video for paying broadcasters and developers. Such orchestrators earn fees in the form of a cryptocurrency like ETH or a stablecoin pegged to the US dollar. 2. Pain Points Solved Live video streaming consumes more than 80% of the Internet bandwidth. For start-ups and developers, using traditional video infrastructure to build a new live streaming platform means high costs. For streaming media applications, one of the most important cost contributors is video transcoding. Take Alicloud as an example, the average transcoding cost of an HD live video streaming is as high as US$6.2 per hour. Livepeer’s open Web3 video infrastructure provides a creator economy platform for live streaming applications. The platform supports the advertising support mode of traditional technology platforms and promotes a more economically feasible ecosystem than those delivered by centralized live streaming service providers. 3. Token-based Economic Model LPT is a native functional token of Livepeer. Users can contribute their computing resources to the network through a proprietary “transcoder”. Livepeer network will assign tasks to the user’s GPU. After transcoding is completed, users will be rewarded with LPT tokens. At the same time, ordinary users can obtain income by staking their LPT tokens (thus becoming a delegator), and the staked tokens can vote for an orchestrator. At the beginning of each round of consensus, the network will select a group of orchestrators who get the most votes for task execution, and the orchestrators will get a corresponding number of new tokens. If an orchestrator is found guilty, the staked tokens voted for the orchestrator will be deducted. Delegators who vote their tokens to an orchestrator can get a part of the earning from the orchestrator as commission. Therefore, the delegator needs to find a reliable orchestrator to vote in order to avoid penalties, and the orchestrator also needs to establish a good reputation to ensure the support of the delegator in the future. According to the data CGV FoF finds on Livepeer’s official website, the total number of active nodes has exceeded 100, the total fees earned are around US$322,000, and the total minutes of transcoded video are 8..4 million. The capacity on Livepeer’s network represents access to 70,000+ GPUs, or enough to encode all the realtime video streaming through Twitch, Facebook, and Youtube combined. 4. Team Members Livepeer lists 22 team members on the official website. As a project that made its “debut” in 2017, its main team members have rich experience in blockchain and successful entrepreneurship, as well as strong technical background. CEO Doug Petkanics graduated from the University of Pennsylvania with a bachelor’s degree in CS, and CTO Eric Tang graduated from Carnegie Mellon University with a bachelor’s degree in CS. The two co-founded the Wildcard mobile publishing platform. In terms of financing, the project has prominent performance and has been invested by many well-known investment institutions. At present, Grayscale Investment Trust, Coinbase Ventures, PanteraCapital, Digital Currency Group, CoinFund, Animal Ventures and other institutions have invested in Livepeer. Summary Web3.0 has been established as the next direction of human innovation. Now we are standing at the forefront of Web 3.0, feeling the impact of the digital world and the physical world. Pocket Network has entered a huge and extremely dynamic emerging market. It has become an indispensable solution for Web3.0 infrastructure by providing trustless API protocol and relay network infrastructure. If it succeeds, the costs of building applications will be greatly reduced. Storage has always been the key investment field of all parties, and the importance of decentralized storage will become more and more prominent. With the increasing importance attached to data security and user data ownership, the future performance of data storage networks such as Arweave in the vast and promising terrain of 3.0 is worth looking forward to. If the video infrastructure solution provided by Livepeer is comparable to the centralized alternative in terms of quality and costs less, it will promote the development of the ecosystem, which is more economically feasible than the centralized live streaming services. With the development and maturity of Web3 market, decentralized infrastructure will continue to grow and become more valuable, which will fundamentally change the relationship and interaction mode between users and the Internet. Note: This article is a CGV FoF research paper and is for reference only. It does not constitute any investment proposal. About CGV FoF:CGV FoF is an Asia-based Fund of Funds (FoF) that focuses on investments in Crypto Fund and Crypto Studio. CGV FoF is composed of family funds from Japan, Korea, and China’s mainland and Taiwan, with headquarters in Japan and branches in Singapore and Canada. Reference *1. https://POKT.network/wp-content/uploads/2020/03/POCKET-NETWORK-WHITEPAPER-V0.3.0.pdf *2. https://www.POKT.network/pocket-dao-what-to-expect/ *3.https://www.POKT.network/making-metamask-highly-redundant-by-relaying-through-pockets-decentralized-ethereum-api/ *4. https://www.POKT.network/governance/ *5. https://insights.deribit.com/market-research/infrastructure-lego-the-middleware-thesis/ *6. https://cointelegraphcn.com/news/pocket-network *7. https://www.arweave.org/technology#papers *8. https://www.theblockresearch.com/mapping-out-arweaves-ecosystem-118779 *9. What Is Web 3.0 & Why It Matters (2020), Fabric Venture, https://medium.com/fabric-ventures/what-is-web-3-0-why-it-matters-934eb07f3d2b *10.https://arweave.medium.com/profit-sharing-tokens-a-new-incentivization-mechanism-for-an-open-web-1f2532411d6e *11.https://coinmarketcap.com/alexandria/article/profit-sharing-communities-a-deep-dive-by-arweave *12. https://github.com/livepeer/wiki/blob/master/WHITEPAPER.md#livepeer-token *13.https://medium.com/livepeer-blog/the-livepeer-roadmap-2021-and-beyond-5281776e9b3d