Table of Contents
ToggleConcept of Ecosystem
In the technology field in general, an ecosystem is a network of connected devices and software that interact and support each other. For example, Apple or Samsung's technology ecosystem includes products like phones, tablets, computers, components, and accompanying services, all designed to work smoothly and complement each other.
For the Crypto ecosystem, it is a system of projects that can connect and interact with each other to support blockchain development. Blockchain plays the role of a basic platform, similar to a forest or water body in a natural ecosystem. Projects built on blockchain are like trees and microorganisms, they link and support each other to promote the development of the entire ecosystem.
The Crypto ecosystem provides users with access to many decentralized financial (DeFi) services such as payments, money transfers, trading, investment, and asset management without relying on central institutions. This brings transparency, safety, and global accessibility to financial services.
What is a Comprehensive Ecosystem
Off-chain Piece
- Developers: Create and maintain basic blockchain technology, develop blockchain wallets, exchanges, and other applications.
- Miners/Validators: Confirm transactions and add them to the blockchain ledger, rewarded with crypto.
- Exchanges: Places to buy and sell cryptocurrencies.
- Businesses: Accept crypto as a payment method, promoting cryptocurrency usage.
- Investors: Buy cryptocurrencies for investment and hope for value appreciation.
- Users: Use cryptocurrencies to buy goods, services, or invest.
On-chain Piece
- Oracle: Connects off-chain data with blockchain and smart contracts, acting as an intermediary between off-chain and on-chain data.
- Payment: Cryptocurrency wallets, gateways leading funds into the ecosystem
- DAO & Governance: Decentralized autonomous organization, operating based on smart contracts and community consensus, ensuring transparency and democracy.
- DeFi (Decentralized Finance): Decentralized finance where financial organizations, services, and products operate through smart contracts on blockchain networks. These services include lending, borrowing, trading, payment, staking, farming, bridging...
- GameFi & Metaverse: A combination of games and finance. It refers to blockchain games combined with earning money, providing economic incentives for players. The GameFi ecosystem uses cryptocurrencies, Non-Fungible Tokens, and blockchain technology to create a virtual game environment (Metaverse)
- SocialFi/DeSoc: A combination of social networks and DeFi. This is considered the social revolution of Web3, where users control their content instead of depending on central platform powers.
- Non-Fungible Token: A type of token encoded on blockchain, representing a unique asset
- DePIN (Decentralized Physical Infrastructure Network): Web3 combined with the real world, making traditional asset layers (Web2) easily accessible to Web3
- Identity: A decentralized method of managing digital identity, providing individuals with more control over personal information, reducing dependence on centralized authorities.
- Launchpad: Platforms supporting Web3 startups to conduct initial token/Non-Fungible Token sales through methods like IEO, IDO... The purpose of launchpads is to connect users with potential projects at an early stage, while helping startups raise capital from the community.
- Data, Analytics, Tooling: Creating places to retrieve information and search data on blockchain, supporting dApps, blockchain explorers, and analysis platforms.
Notable Ecosystems
2020 – 2022
The previous cycle was mainly a battle of Layer 1
- Ethereum
- BNB Chain (formerly Binance Smart Chain)
- Fantom
- Avalanche
- Polkadot
- Cardano
- Polygon
- Near
- Celo
- Metis
2022 – 2025
- Solana
- Ton Blockchain
- Sui
- Aptos
- BeraChain
- Sei
- Sonic
- Blast
- Ethereum Layer 2 Ecosystems: Optimism, Base, Arbitrum, ZKsync, StarkNet,…
Conclusion
Allinstation has explained what an Ecosystem is and pointed out the important aspects that each Ecosystem needs to have. Which Ecosystem are you most interested in? Please leave your comments below.
