1. Examine the underlying technology of the public chain
The core value of a public chain lies in the advancement and innovation of its underlying technology. When choosing a public chain, you should first check if its technical framework has the following characteristics:
High Performance: The processing speed, throughput, and scalability of a public chain are very important. For example, Ethereum's slow transaction speed results in high transaction fees during peak periods; while Solana and Avalanche have become popular choices due to their high TPS (transactions per second) and low transaction costs. Degree of Decentralization: Decentralization is one of the core features of a public chain, meaning that control over the blockchain is not concentrated in a single entity. Choosing those truly decentralized public chains can ensure the security and transparency of the network. Security: The security of the blockchain network is also crucial, with multi-chain interoperability platforms like Polkadot and Cosmos performing well in both security and scalability.
2. Ecosystem Construction and Developer Support
A public chain not only needs advanced technology but also a mature and continuously evolving ecosystem. This includes:
Decentralized Applications (DApps): Whether a public chain has a strong decentralized application ecosystem directly affects its future growth potential. For example, Ethereum's DeFi and NFT ecosystems are very active, while Binance Smart Chain (BSC) has also quickly attracted a large number of DApps, especially in the DeFi field. Developer Community: An active and large-scale developer community is the driving force behind the innovation and development of public chains. A strong community means more innovative projects and technical solutions that can accelerate the expansion of the public chain ecosystem. You can measure a public chain's developer support through indicators such as the number of project code submissions on GitHub and forum activity.
3. Token Economic Model
Every public chain project has its own token economic model, which is an important factor in determining whether the public chain can succeed. What you need to pay attention to is:
Token Supply and Demand Relationship: A good token economic model should reasonably control the issuance of tokens and increase the scarcity of tokens through mechanisms such as burning, avoiding inflation. Reward Mechanism: How does the public chain's token reward participants such as nodes, miners, and liquidity providers? A fair and reasonable reward mechanism can attract more users and developers to participate, promoting a healthy ecosystem. Governance Mechanism: Is the governance mechanism of the public chain token transparent? Can it effectively allow community members to participate in decision-making, thereby promoting the long-term development of the project?
4. Cross-Chain Interoperability
With the diversified development of blockchain technology, cross-chain interoperability has become particularly important. The future blockchain world is an ecosystem with multiple chains coexisting, and whether a public chain can interact smoothly with other chains will greatly affect its market share. For example:
Polkadot and Cosmos are committed to creating a cross-chain ecosystem that supports value transfer between different public chains. Avalanche has also achieved interoperability with other blockchains through subnets, enhancing the compatibility and flexibility of its ecosystem.
5. Focus on Real Application Scenarios
Whether a public chain can truly achieve a 'win-win' for both the coin and the chain, the most important factor is whether it has a wide range of application scenarios. Although some public chains may be technically powerful, if there is not enough real-world application support, future value growth may be limited. You can focus on the following aspects:
Industry Demand: Can this public chain solve the pain points in existing blockchain technology? For example, Ethereum's high transaction fee problem, Solana's high throughput problem, etc. User Base: Does the public chain have a stable user base and active market demand? For example, Binance Smart Chain (BSC) has attracted a large number of users through low transaction fees and a wide range of DeFi applications. Strategic Partnerships: Has the public chain established partnerships with well-known companies or projects? These collaborations can bring more real applications.
