Core Viewpoint - Public chains are considered the "trust infrastructure" of the digital world, making them a worthy investment due to their foundational role in Web3 and their characteristics of decentralization, transparency, and smart contract execution [1] Investment Logic: Three Dimensions to Filter Potential Public Chains - **Technical Route**: Innovations that address the "impossible triangle" are crucial for public chains [1] - **Ecosystem Vitality**: Growth in developers and users is key to the success of public chains [1] - **Business Model**: Revenue generation and token economic models are essential for sustainability [1] Key Characteristics of Public Chains - **High Technical Barriers**: Public chains are the source of blockchain innovation, with technological iterations directly impacting industry dynamics, such as Ethereum's transition from PoW to PoS [2] - **Strong Ecosystem Network Effects**: High migration costs for developers and users create a "moat" for leading public chains, with Ethereum holding 70% of DeFi's Total Value Locked (TVL) [2] - **Policy Dividend Window**: As global regulations become clearer, compliant public chains are expected to have long-term growth opportunities, exemplified by Polygon's collaborations with financial institutions [2] Performance and Ecosystem Insights - **Modular Architecture**: Celestia focuses on the data availability layer, reducing Layer 2 development costs, with a projected market cap growth of over 200% by 2025 [3] - **High-Performance Optimization**: Solana achieves thousands of transactions per second (TPS) through Proof of History (PoH), with DEX trading volumes expected to surpass Ethereum multiple times in 2024 [3] - **Security and Decentralization**: Ethereum's sharding and Danksharding technologies could theoretically increase TPS to 100,000 by 2025, while reducing gas fees by 90% [3] - **Developer Community**: Ethereum boasts the largest developer community globally, with over 48 million smart contracts and more than 3,000 ecosystem projects [3] - **User Activity**: Solana has surpassed 1 million daily active addresses, with growth in on-chain gaming and high-frequency trading users [3] - **Cross-Chain Interoperability**: Polkadot and Cosmos are enhancing multi-chain ecosystems through the Inter-Blockchain Communication (IBC) protocol, with cross-chain DeFi TVL expected to exceed $20 billion by 2025 [3] - **Block Space Sales**: Ethereum's gas fees and EIP-1559 burning mechanism are projected to generate over $450 million in revenue by 2025, showcasing significant deflationary effects [3] - **Application Layer Fees**: Arbitrum, as a Layer 2 solution for Ethereum, is expected to capture transaction fees through Optimistic Rollup technology, with TVL projected to exceed $50 billion by 2025 [3] - **Ecosystem Subsidies**: BNB Chain leverages exchange traffic to maintain user engagement through token buybacks and burns [3] Individual Public Chain Analysis - **Ethereum (ETH)**: Recognized as the "operating system of the digital world," it has a clear technical route, deep ecosystem moat, and high institutional recognition, with risks including increased competition and regulatory uncertainty [5] - **Solana (SOL)**: Known as the "king of high-frequency trading," it offers high TPS and low gas fees, with risks related to centralization and network stability [6] - **Arbitrum (ARB)**: Positioned as the "core of Ethereum scaling," it benefits from EVM compatibility and leads in Layer 2 TVL, with risks tied to reliance on Ethereum's mainnet security [7] - **Sui (SUI)**: A "Move language innovator," it enhances transaction parallel processing and aims for significant growth in ecosystem projects by 2025, facing challenges in market education [8] - **Celestia (TIA)**: As a "modular infrastructure pioneer," it provides a data availability solution that lowers Layer 2 development barriers, with a projected market cap growth of over 300% by 2025, though it faces maturity challenges [9] Shift from Performance Competition to Ecosystem Collaboration - The competition among public chains has evolved from mere performance optimization to a deeper integration of technology, compliance, and the real economy [12] - **Cross-Chain Connectivity**: Polkadot and Cosmos are driving multi-chain ecosystem interoperability, with cross-chain DeFi TVL expected to exceed $20 billion by 2025 [12] - **Compliance Adaptation**: Exchanges like Messiah are providing secure entry points for institutions through compliance frameworks, promoting the mainstream adoption of DeFi [12] - **Integration with Real Economy**: Akash Network is integrating decentralized physical infrastructure networks (DePIN) to tokenize real-world assets like charging stations and solar power plants, facilitating the digitalization of traditional industries [12] Conclusion - Public chains represent the "trust infrastructure" of the digital world, with investment focus on technological iterations, ecosystem vitality, and compliance processes. Short-term opportunities lie in modular solutions (Celestia), Layer 2 (Arbitrum), and high-performance chains (Solana), while long-term prospects favor the continued evolution of the Ethereum ecosystem. The collaboration between Akash Network and Messiah Exchange highlights the potential for technological implementation and compliance adaptation [13]

Group 1: Blockchain Architecture - Consortium blockchains emphasize performance, privacy, and governance efficiency, widely applied in finance, government, and healthcare sectors[3] - Public blockchains represent openness and decentralization, driving innovations like smart contracts, digital assets, DeFi, and NFTs[3] - The relationship between consortium and public blockchains is evolving from competition to collaboration, creating a more resilient and diverse blockchain infrastructure[3] Group 2: Technical Features - Consortium blockchains are maintained by multiple institutions with authorized nodes, typically using high-performance consensus mechanisms like PBFT and Ripple[4] - Public blockchains face structural challenges such as performance bottlenecks, high transaction costs, and insufficient privacy protection[6] - Layer 2 solutions, like Rollup, enhance public blockchain performance by processing transactions off-chain and submitting results on-chain, significantly improving efficiency and reducing costs[10] Group 3: Future Directions - A hybrid chain architecture is proposed, where consortium blockchains handle sensitive data while public blockchains manage proof and value circulation, ensuring both privacy and openness[12] - The trend towards "chain selection" indicates that future blockchain infrastructures will be diverse and modular, allowing for tailored solutions based on business needs[12] - Governance issues are becoming increasingly important as blockchain technology integrates into core sectors like finance and government, with consortium blockchains more easily meeting regulatory requirements[15]

Group 1 - The Hong Kong Stablecoin Regulation officially comes into effect on August 1, 2025, marking the establishment of a regulatory framework focused on fiat-backed stablecoins [1] - There is a growing interest in stablecoins and Real World Assets (RWA) in the Chinese-speaking world, with industry leaders expressing cautious perspectives on the hype surrounding these developments [3][5] - Hong Kong's regulatory authorities are expected to be very strict in issuing licenses for stablecoins, with a focus on anti-money laundering measures and the financial risk management capabilities of applicants [6][7] Group 2 - The regulatory environment in Hong Kong is characterized by a cautious approach, contrasting with the enthusiasm seen in the market, as authorities are concerned about potential money laundering risks associated with stablecoins [6][19] - The discussion around stablecoins in Hong Kong is influenced by international financial trends, with a recognition that the region must maintain its reputation as a global financial center [5][6] - The potential for Hong Kong to become a global center for digital finance is linked to its unique position within the context of China and its common law system, which allows for more flexibility compared to mainland regulations [51][52] Group 3 - The conversation around RWA indicates a multi-stage approach to asset tokenization, starting with fiat currencies, moving to financial assets, and eventually to physical assets, which presents significant challenges [21][24] - The successful implementation of RWA requires addressing technical issues such as ensuring the integrity of off-chain assets and their digital representations on the blockchain [22][24] - The future acceptance of RWA in mainland China is anticipated, as it aligns with the need to support the real economy and respond to global trends in digital asset regulation [17][18] Group 4 - The emergence of stablecoins is seen as a response to the volatility of cryptocurrencies, providing a stable medium for pricing and trading crypto assets [43][44] - The underlying technology of stablecoins and RWAs is based on distributed ledger technology, which offers a new method of accounting and financial infrastructure [39][40] - The potential for stablecoins to facilitate cross-border transactions and their role in the evolving global financial landscape is emphasized, highlighting their significance beyond mere payment systems [41][43]

Core Viewpoint - Dongwu Securities outlines three potential approaches for the issuance of stablecoins in China, emphasizing the importance of public chains, digital wallets, and licensing acquisition [1] Group 1: Issuance Approaches - The first approach is central issuance, where the central authority directly issues stablecoins on-chain, allowing enterprises to build a stablecoin ecosystem around this central node [1] - The second approach involves a licensing system, where companies must obtain a license to issue stablecoins, requiring them to hold a corresponding amount of fiat assets in reserve [1] - The third approach combines central wholesale with enterprise retail, where the central bank manages the public chain and wholesale issuance, while banks and tech companies are authorized to issue stablecoins [1] Group 2: Market Implications - The manufacturing sector could drive the internationalization of the RMB through stablecoins, leveraging China's strong manufacturing background to enhance the influence of public chains via cross-border trade [1] - Companies in the public chain, digital wallet, and licensing acquisition sectors are recommended for attention as potential investment opportunities [1]