Uncover the 3 major "mysteries" behind the development of the public chain in 2023

**Foreword: **The public chain has made great progress since its birth, attracting great attention and investment from the global industry and countries. Its decentralized nature and transparent framework make it an ideal tool to facilitate safe and efficient transactions, paving the way for new business models and use cases. Additionally, the growth of the public blockchain market has been impressive and is expected to continue to accelerate for the foreseeable future.

Veil 1: **** MARKET DISTRIBUTION OF **** PUBLIC CHAIN

Generally speaking, the market types of public chains include pseudo-anonymous addresses, which allow users to hide their real identities behind unique addresses; PGP encryption, which provides secure communication between parties involved in transactions; encrypted currency, which provides an additional layer of security through encryption algorithms; Distributed consensus ensures that all nodes on the network reach a consensus on the validity of transactions.

At the same time, public chains are also widely used in the market, including financial services (using blockchain for secure and transparent transactions, eliminating the need for intermediaries) and non-financial sectors (such as supply chain management, medical record management, and voting systems, etc.). Both markets benefit from the security and transparency offered by blockchain, allowing for more efficient and trustworthy transactions.

According to relevant data, it is expected that the public chain will achieve significant growth in the next few years, especially in North America, Asia Pacific, Europe, the United States and China. The U.S. is expected to hold a significant market share in the public blockchain technology market owing to the early adoption of blockchain technology in industries such as banking, finance, healthcare, and supply chain management. As emerging economies such as China and India increasingly adopt blockchain technology, the growth rate in the Asia-Pacific region cannot be ignored. In addition, the number of blockchain startups in the European region is increasing and the demand for blockchain solutions in various industries is also increasing.

Overall, the public blockchain technology market is expected to witness significant growth in the coming years, driven by the growing adoption of blockchain solutions across industries and growing awareness of the benefits of blockchain technology.

Veil Two**: **The Development Potential of the Public Chain

According to the analysis of the public chain technology market research report, the global market size of public chain technology will grow at a compound annual growth rate of 4.7% during the forecast period. Meanwhile, the increasing adoption of blockchain technology in various industries, such as finance, healthcare, and supply chain, is driving the growth of the market, according to findings from the report. The report recommends that companies invest in research and development to enhance the security and scalability of public blockchain solutions and ensure their successful future implementation.

On the one hand, in the unprecedented digital age, public chain technology has become a promising solution for secure and transparent transactions. Driven by various advancements such as pseudo-anonymous addresses, PGP encryption, cryptocurrencies, and distributed consensus, the market for this decentralized technology has seen significant growth.

Pseudo-anonymous addresses enable users to maintain privacy on the blockchain while ensuring transparency and accountability. PGP encryption adds an extra layer of security by encrypting sensitive data, preventing unauthorized access. In addition, mainstream cryptocurrencies such as Bitcoin and Ethereum have been widely accepted, providing users with a safe and efficient medium of exchange.

On the other hand, the distributed consensus mechanism in the public chain eliminates the need for a central authority, ensuring trust and reliability. These capabilities have not only revolutionized the financial services sector, but also have applications in non-financial domains, including supply chain management, healthcare, and voting systems.

However, the adoption of public blockchain technology is not without its challenges. Regulatory and legal factors play a crucial role in shaping market conditions for these technologies. Governments around the world have been grappling with the balance between promoting innovation and guarding against potential risks such as money laundering and fraud. As a result, different regulations have been introduced in different regions to ensure compliance with the legal framework, resulting in a fragmented regulatory landscape.

Despite these challenges, the public blockchain technology market still shows great potential. As technology advances and regulatory frameworks evolve, businesses and organizations can harness the power of blockchain to streamline operations, enhance security, and drive innovation in financial and non-financial sectors, ensuring a prosperous digital future.

Veil Three**: **The value capture of the public chain

In the last bull market, Ethereum also played a vital role in the development of the public chain. For many public chains at that time, in order to develop their ecology in a healthy way, they needed to capture value from ETH, that is, attract large funds for migration, and at the same time ensure that their ecological construction was highly available and fully covered, especially most public chains were I want to start with DeFi and compete with ETH on TPS.

If an ecology is regarded as a small financial circle, more ecology will have many ecological niches, and each ecology will occupy a niche and build according to this niche, occupying a unique position. Of course, the ecological construction of some public chains is voted by users with their feet. Products that are not used by users will gradually be eliminated from this ecology. This public chain will naturally have its ecological niche and its own positioning.

In the past, funds flowed from the real world to the on-chain world. This interface is currently mainly solved by CEX, and some DEXs are trying to solve this part of the problem. In fact, it is more difficult to solve the problem of offline funds on the chain with practical DEX, and it cannot avoid the problems of traditional institutions. Intervention, Terra’s attempt to introduce currencies and stocks of various countries is one of the solutions, although in the end it was disastrously out of the game due to Luna’s thunderstorm. Although the current players on this track are still dominated by CEX, the trend is definitely going to develop towards DEX, and it should eventually exist in the form of DEX+CEX.

Most of the DeFi in the chain is the current Layer 2 based on Ethereum or other public chains. Due to the limitations of Ethereum in TPS and high GAS, a large number of low-net-worth users have to give up participating in the GAS war, thus Looking for lower consumption is also an inevitable development of things. The early value gainers must find a way to maintain profits, and the later value diggers also need to increase their income, which inevitably makes a lot of value mining Those who migrate to other ecology to tap more value.

Except for Solana, Cosmos, Polkadot, etc., because the problems they solve are only biased towards certain specific directions at the early stage of their design, the rest of the public chains are actually in the process of finding their own positioning for DeFi in the chain. In the outbreak, some public chains will rely on the initial ecological construction to carry out ecological card positions, and overtake in the two subdivisions of specializing in oracles and cross-chains, and start a new wave of public chains.

Conclusion**: **As the infrastructure and underlying technology of the Web3 world, the public chain is the cornerstone of Dapp and the gathering place for ecology and communities. Although, the current public chain projects still have many shortcomings. For example, high barriers to user access, high development difficulty, insufficient network throughput, gas costs, etc., and the emergence of projects of mixed quality in the initial stage have exacerbated the seriousness of the problem. It is undeniable that many public chains will usher in a moment of reshuffle in the near future, and public chain projects based on technology and dedicated to the realization of network value can develop in the long run!