The cryptocurrency fund ArkStream Capital has invested in nearly 20 projects in the second quarter of 2021. We will start with project introduction and track analysis to explain why we invest in these projects.

secondary title

Efinity

Efinity project introduction

Efinity is a scalable NFT cross-chain network built on Polkadot. It is built by Enjin, a cutting-edge blockchain technology company. Efinity hopes to make NFT be utilized by almost any industry, thereby releasing the potential trillions in current digital assets. USD NFT assets.The blockchain technology company behind it, Enjin, was founded in 2009 by Maxim Blagov and Witek Radomski.Their first product, Enjin Network, and over the next decade, grew to over 20 million gamers worldwide. At the same time, the Enjin team is also the creator of the ERC-1155 NFT standard on Ethereum.

secondary title

NFT public chain ecological development status and Polkadot ecology

image description

Data sourcedappradar.com

Ethereum 

At present, the most active and oldest NFT public chain ecosystem is undoubtedly Ethereum. Among the top 10 transactions in May, there are a total of 6 projects based on Ethereum. Classic NFT protocol standards such as ERC721, ERC1155, and ERC998 are all based on Ethereum.

And its disadvantages are also obvious: extremely high minting costs, high transaction fees, slow speed, etc., are barriers for newcomers to enter.

Polygon(Matic)

In order to solve the above problems, the NFT ecology on Ethereum thinks of expansion. The Polygon sidechain is currently a relatively successful expansion solution for ETH.Polygon relies on technical advantages. The transaction speed of DApp on the chain is very fast and the transaction cost is very low. Each transaction is about 0.00004USD, and Polygon is compatible with EVM and Metamask.

At present, in Polygon's NFT ecosystem, most NFT projects are migrated from ETH, such as the top NFT trading platform Opensea, the ghost collection game Aavegotchi under the DeFi top lending platform Aave ecosystem, the virtual world platform Decentral Games, game development Animoca's racing game F1 Delta Time and so on.However, the Polygon side chain also has certain disadvantages. For example, the cross-chain operation is extremely troublesome and the cross-chain time is very long. It takes about 7 days to return from the matic wallet cross-chain to Ethereum. Currently, all exchanges that support the deposit and withdrawal of the Polygon wallet are AscendEX ( Bitmax), Okex, can save a lot of time and cost for cross-chain operations.

Flow

Flow is a brand-new Layer 1 blockchain created by Dapper Labs, the Crypto Kitties development team. The team pioneered the ERC721 NFT standard format, which is the pioneer level in the NFT field.In terms of public chain technology, Flow's expansion principle lies in node division and pipeline architecture, thus ensuring high transaction speed and throughput of the entire network. The biggest advantage of the Flow public chain at present is its market advantage. The out-of-the-circle game NBA Top Shot has been occupying the first place in the NFT trading volume rankings since its launch until today. In addition to the NBA, Flow's current heavyweight partners include UFC, NFL, music company Warner Music, well-known game developers Animoca, Ubisoft, SamSung, NFT trading platform Opensea, etc. But so far, there are very few projects on Flow, and the entire ecology has not yet been built. NBA Top Shot is also slow to withdraw funds due to AML/KYC.

Polkadot ecology

Although ETH is the birthplace of many excellent NFT products, but limited by the low-frequency contract interaction speed of Ethereum and Polygon itself and the expensive transaction fees of Ethereum, neither Ethereum nor Polygon can be said to be the most suitable soil for NFT development. The new NFT-focused public chain Flow has higher throughput and transaction speed, is technically more suitable for the development of NFT, and also has strong IP support, but it cannot be ignored that communication is also needed in the metaverse of the blockchain.

secondary title

Why invest in Efinity?

Efinity is highly scalable and currently can handle up to 700-100 transactions per second;In comparison, the Ethereum network currently operates at around 15TPS. At present, transactions can be confirmed within 6 seconds, which meets the fast response time required by mainstream applications. In the future, the runtime code optimization of Efinity and Polkadot will further improve TPS.

Efinity aims to be a highway for NFTs, not an ordinary computing blockchain. The creation, transfer, and transaction of NFT are the top priority, which can truly reduce user operating costs, transaction fees are only kept in the background, end users don’t even need a blockchain wallet, let alone worry about how the network works, users only need to concentrate to experience their collections.

The incentive layer is more suitable for the healthy development of the NFT network. Unlike Bitcoin or Ethereum, Efinity rewards network participants, not miners. From NFT creators and traders to developers and early adopters, everyone will receive EFI Token as a reward; Efinity is built on Polkadot, allowing all NFTs on any chain to be moved to Efinity, breaking information silos and realizing NFT Easily cross-chain and supercharge it with next-gen features, low fees, and fast transaction times.

As the founding team of Enjin, Efinity has rich market resources, a huge user base, and sufficient voice in the NFT field.Companies such as Microsoft (Azure Heroes), Samsung (Samsung Blockchain Keystore), and BMW (Vantage) have already integrated Enjin's products and services. As of June 2021, there are more than 120,000 users worldwide, and the market value exceeds US$1 billion. Efinity is an important part of our ArkStream Capital's layout of the NFT sector. The cross-chain NFT solution it proposes is an indispensable underlying infrastructure in the NFT field.

*Note: This article is only for research discussion and information sharing, not as investment advice.

text

Website：BlockArk.io

Medium: https://arkstreamcapital.medium.com/

Twitter: https://twitter.com/ark_stream