Huobi Ventures Weekly Report #25

Huobi Ventures Weekly Insights

Insight provided by Jerry of Huobi Ventures

Why is the modular public chain one of the most important investment categories in year 2022?

First, let’s look at the dilemma of the monolithic blockchain. Polygon and BSC increase capacity through larger blocks, which makes it difficult for ordinary players to operate nodes. Monolithic blockchains need to increase scalability by improving the capabilities of a single node, which will prevent most players from running operating nodes. In the end, the nodes are controlled by a few people, and the blockchain also loses its valuable decentralization.

The modular design allows nodes to split the workload, thereby increasing throughput. The benefits of modularity, however, go beyond throughput and in efficient resource pricing. In a single blockchain, various types of applications compete for the main chain resources together. The main chain cannot customize the arrangement of resources according to the priority and the specific requirement of the application. The modular chain can effectively deal with this problem.

It is a clear trend that the blockchain is moving towards modularization. Examples include Ethereum Rollups, ETH 2.0 Shards, Cosmos Zones, Polkadot Parachains, Avalanche Subnets, Near’s Chunks, and Algorand Co-Chains. The modular public chain has different architectures.

The simplest modular public chain architecture is Multichain Hub, where multiple chains/networks which communicate with each other through a standard protocol. For example, the Cosmos architecture not only increases throughput but also allows different chains to be optimized for specific application requirement .

One of the prerequisites for a modular public chain is data availability. Many modular solutions deal with the data availability problem well, and the most typical one is the rollup solution. A rollup’s data is compressed and all stored in L1. This solves the problem of data availability. The latest trend is the emergence of Specialized DA Layers in modular public chains. For example, the main chain of Celestia does not undertake computing and execution tasks, but only provides data availability for rollup. And Celestia’s scalability can be achieved by adding nodes, without sharding.

In conclusion, modular public chains have advantages in terms of scalability and efficient pricing of resources. In addition, Specialized DA Layers is very convenient for scalability. The cost of the chain is only related to the use of rollup, and does not depend on majority trust assumptions. Therefore, we think that Specialized DA Layers is the next milestone in the development of the public chain.

Huobi Ventures Latest Update

Huobi Ventures announced ed to be judge for the Grand Hackathon 2022!
Huobi Ventures is focused on growing its venture investment portfolio and supporting blockchain projects through long-term investment strategies.

Huobi Ventures portfolio Ignite Tournaments had secures $10M for play-to-earn esports tournament and streaming infrastructure.

Huobi Ventures portfolio Stream flow had secures $3.1M in seed round.

Portfolios Weekly Status

[Boba Network]

Boba Network announced to partner with Bodh Finance. Details

OolongSwap, Largest DEX on Boba, now Supporting Lending through Ola Finance. Details


Connext could support MoonbeamNetwork and the Polkadot ecosystem towards a fluid and interoperable Web3. Details


deBridge had integrated with Ellipsis that enables low slippage cross-chain swaps for deBridge users. Details

[Digi Nation]

DREAMBOAT announced to have a new partnership with Digi Nation. Details


NAOS Finance engages shell boxes to provide an ongoing security analysis of their DeFi protocol. Details


Parasset is now listed on Nabox. Details


PawnHouse NFT Oracle Public Test version will take place on the 6th of March. Details


xNFT accomplished its official website UI upgrade. Details

[X Protocol]

X Protocol Launches Public sale of 1400 Unique Pieces of Land NFTs. Details


ZKSpace partnered with NFKings to bring out 3000 pieces of sports collection of Evgeni Plushenko’s NFTs on March 4th, at 10:00 AM (UTC) on ZKSea, the marketplace of ZKSpace. Details


Ferrum Network will integrate its suite of products with zkSync layer-2 scaling solution following Ferrum Venture’s participation in the Matter Labs Series B round. Details

About Huobi Ventures

Huobi Ventures is focused on growing its venture investment portfolio and supporting blockchain projects through long-term investment strategies.Huobi Ventures aims to identify strategic opportunities across different blockchain verticals to complement and expand Huobi’s product offerings. Acquisitions will be integrated into Huobi’s growing suite of blockchain-enabled applications and services to expand the business into new markets.

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Huobi Ventures

Huobi Ventures

Focus on Huobi’s venture investment portfolio and supporting innovative blockchain projects through long-term strategies. Twitter:@HuobiVentures