Written by: Haotian
In line with the principle of saying less but more, let me quickly comment on the significance of @ParticleNtwrk launching UnivesalX, a new “chain abstraction” application trading platform:
1) "Chain abstraction" is a mainstream continuity narrative after modularization, aiming to achieve a paradigm shift from the current infra split to the improvement of user application experience. However, many people cannot intuitively feel the significance of this transformation, and even label chain abstraction as a "misinterpretation".
The UniversalX trading platform is a product born out of this background. Since the B-side concept cannot make everyone feel it intuitively, it is better to launch C-side application products to drive it "intuitively".
Essentially, it completes a narrative upgrade from 'protocol' to 'end', speaking well through good products.
2) UniversalX is a chain-agnostic trading platform supported by universal accounts, advocating for various upgrades in user experience at the functional level, such as 'one account, one balance, any chain, no bridging, any Gas, fiat access'.
What seems simple is actually the result of 'abstracting' complex chains, funds, and interaction environments. For example, 'one account, one balance' means unifying access to various homomorphic and heteromorphic chains and managing balance centrally. Users may not perceive the complexity, but the underlying protocol scheduling control layer has to handle a lot of cross-chain interaction communication challenges.
Therefore, UniversalX is not a product that can be accomplished overnight; it will continue to optimize various details in subsequent iterations. It is difficult to achieve perfection from the start, as there are always new complexities in the crypto field that need to be 'abstracted'.
3) The strategic significance of UniversalX is enormous, as it will directly impact the two mainstream industry formats of 'decentralized wallets' and 'centralized CEX'.
Taking custodial wallets as an example, most wallets are entangled in 'functional' differences, but they are ultimately just a control console for users to manage their assets, unable to truly rise to the level of user 'entry point'. The reason is that the differentiation of wallet functions itself can cause a tear in the smoothness of user experience, which is difficult to change in the past development environment that 'emphasized infrastructure and neglected applications'.
The approach of UniversalX, which aggregates various basic functions and unifies user experience from the start, will truly have the trend of being an 'entry point' and pose a threat to the moat of decentralized wallets.
The impact on centralized CEX is easier to understand. A product like UniversalX, which is functionally close to CEX but entirely based on the on-chain environment, will ride the wave of on-chain DEX gradually surpassing CEX during a period of significant benefits. The final outcome is uncertain, but even lowering the participation threshold of the on-chain environment to the level of competing with CEX would be sufficient.
It is not difficult to find that this is a new species that has restarted under the narrative of the new 'chain abstraction', aimed at upgrading user experience and based on application 'end' thinking.
