The section below higlights some of the macro trends that are happening at a global scale and underscore the need for a blockchain intelligence platform such as Azorus.
Over the past decade, the world has experienced a parabolic rise in data generation capabilities which has spawned a data analytics industry estimated at $198 billion in 20201. This trend is expected to continue with a projected market size of approximately $235 billion by 20262 and $346 billion by 20303. Although it is a fledgling technology, we can extrapolate from this that blockchain ledger data will also play a crucial role for the future of web3 infrastructure. Thus, we can anticipate the growth trajectory and the need for blockchain intelligence to mirror that of the early big data industry.
The dramatic rise in data has outpaced the traditional labor market to produce specialized individuals who can analyze and draw insights from it, primarily data scientists and machine learning practitioners. For example, one study estimated a shortage of 250,000 individuals4 in 2020 to fulfill data science/analytics related positions. With a +300% YoY increase in demand in 2019 for blockchain developers5, we can also expect a similar skills shortage for the blockchain data science industry in the coming years.
Programming on a local environment can be daunting for new developers when they are not sure if their machine will be limited by hardware performance. For veterans, it can be frustrating to setup a consistent development environment where correct syncing is required to collaborate with others. With an increasingly distributed workforce since the COVID-19 pandemic, and a worldwide chip shortage that is driving up consumer prices6, it becomes mission critical for us to ensure anyone can access blockchain data at scale even if they do not have the top of the line hardware, but just a web browser and a stable internet connection. To secure a competitive advantage, future projects will also need to achieve this minimalist yet seamless user experience.
UTXO vs Account Model
There has been a lot of literature7 published8 on this topic9 over the years so we will not dive too much into it. With that being said, we believe the UTXO model will be the industry standard to efficiently and securely deploy financial contracts in the future.
The current market mindset focuses too much on price action and very specific product “features.” Ergo, however, is one of the very few cryptocurrencies being developed where individual privacy, security, and decentralization is a first class citizen. Technology will always come and go, but having a vision that galvanizes builders from all over the world to turn this idea into reality is a force to reckon with, and why we intend to first launch on this blockchain.
We encourage everyone to read the Ergo Manifesto10 if they have not already done so.