Rollup as a Service Is Over-hyped, ABCDE Capital Report

In Q1, the ABCDE team looked at potential projects and tried the water temperature. From there, they extracted three hot tracks of the industry today including Appchain, ZK, and Gaming.

Based on the team’s comments, the report argues that there are too many options to work with Appchain, such as creating EVM chains using Supernet, building Composite Application Chains using OP Stack, or using the Cosmos SDK to build build the chain if there is no EVM.

The team also applauded the OP Stack superchain’s vision. According to ABCDE, the more Total Chains that are deployed against the OP Stack or OP Stack Fork in the future, the more probable the OP superchain will become a Polkadot-like architecture that does not need a duel, has its own communication protocol, and is totally asynchronous and composable.

Projects that follow the ZKEVM path, such as ZK-Sync and Scroll, emphasize compatibility and may compromise some efficiency in their circuit design, making it harder to optimize for dApps. As a result, there are no significant technical restrictions; though, commercial growth remains the essential factor, and it is not as mature as the OP (Optimistic Rollup) series.

The second is about ZK, several major ZK-Rollup mainnets went online this year, but there are still some issues regarding completeness, performance, cost, and security.

Finally, GameFi, the report says, is still one of the hot topics.

“GameFi may be the hottest track at present, without a doubt. If we count all the projects we have seen and discussed in the past few months, GameFi should have the most sub-tracks.”

However, with the difficulty of balancing finance and games, very few projects can grow or survive for a long. According to ABCDE, connecting to Web3 or the underlying blockchain would inevitably reconnect Gamefi to the real world through some form of financialization, and this, in turn, could disrupt the game’s functionality.

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