Original author: Paul Veradittakit, Managing Partner of Pantera Capital

Original compilation: Luffy, Foresight News

Ill explore some of the areas Pantera is focusing on.

1. Social and consumer use cases

Web2 has moved from social to finance, and Web3 is moving from finance to social. From Friend.tech to on-chain loyalty, the social elements of Web3 have received increasing attention recently, seeking to use tokenization to change social behaviors. As consumer transactions on the chain are likely to become more frequent, we believe stablecoins will play an increasingly important role as an entry and exit settlement solution between DeFi and TradFi.

Additionally, recent advances in generative artificial intelligence may lead to more abstract, personalized, and simplified user experiences. As AI abstraction spreads, we hope it will reduce entry and education barriers to Web3, making blockchain data more accessible to people with non-technical backgrounds.

2. Modularity and composability supported by ZK

We believe that zero-knowledge proofs (ZKPs) will continue to mature, whether through new theoretical advances in recursive proofs or the gradual specialization of companies in specific verticals, such as co-processing, proof execution, zkDevOps, privacy layers, etc. At this point, we started using ZKP as a way to establish common interfaces between different layers of the modular technology stack.

Modularity means that different layers of the blockchain stack (consensus, execution, data availability, etc.) are taken care of by different providers. The idea allows for increased composability in the form of a Lego-like “plug and play” blockchain architecture. This means projects can tailor their blockchain technology stack to the specific needs of consumer-facing applications. Additionally, enhancing the composability of smart contracts using a general-purpose language like Rust can increase developer familiarity, thereby lowering the barrier to entry for Web3 developers.

3. Bitcoin Ecosystem

The third area that we believe will be worth watching over the next year or so is the entire Bitcoin ecosystem, which has seen renewed interest ahead of the expected 2024 halving. This includes possible SEC approval of ETFs for major traditional financial funds, as well as a modular Bitcoin blockchain that would allow for more composable smart contracts.

The Rise of Ordinals, Source: Dune Analytics, October 6

Perhaps one of the most interesting innovations is the rise of Bitcoin digital assets powered by technology like Ordinals. From this, we may see a divergence in the use of NFTs. Ethereum NFTs may focus on transaction utility, while Bitcoin NFTs may evolve into a kind of digital jewelry and art and fashion collectibles due to the cultural significance of the chain. form.