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Recently, a Messari report looked at how Oasis is solving more than just the traditional layer 1 blockchain issues as the platform aims to establish itself in a Web3 future.
The Oasis Network is a Proof-of-Stake Layer-1 smart contract platform with a multi-layer modular architecture. It is also highly regarded by VC funds, as Oasis’ ROSE token is the second-most commonly held asset of the 82 funds Messari Track through H1 of 2022.
Oasis’ infrastructure is purposefully built to address the traditional blockchain trilemma — solving for scalability, decentralization and security.
However, in a recent report from crypto research and data firm Messari, Oasis was identified as addressing an emerging issue that could be holding back blockchain from being a pillar of Web3: Privacy.
Blockchain adoption, and the growing trend toward Web3, has seen users seeking privacy solutions surrounding their activity or sensitive data. Lack of confidentiality in the current environment could hinder further adoption of new technologies, especially toward a Web3 future.
It is expected that as adoption grows, new platforms with privacy solutions may experience exponential growth. And, as the Messari report reads:
“With its unique architecture and deployment of confidential computing technology, the Oasis Network is planting the seeds for growing an open, data-responsible economy with privacy.”
The full report is available here, but it will be briefly summarized below, touching on: The state of the Oasis Network, an ecosystem overview, info on the latest ParaTimes, the competitive landscape and the road ahead.
The State of the Oasis Network
Messari looked into certain metrics on the Oasis Network. Though they found the value of the ROSE token to have fallen in tandem with the general market downturn, they did note ROSE’s relatively healthy liquidity.
With daily trading volume ranging from $100 million to $500 million, it equated to ~$125 million in trading volume on average YTD, at the time of publishing.
Additionally, network usage had experienced a noticeable upward trend.
At the beginning of 2022, the Consensus Layer of the network was averaging below 10,000 transactions per day. By the middle of January, transactions grew to greater than 140,000, representing an approximate 2,600% increase.
At the time of the report, daily transactions of 110,000 were outpacing the YTD average of 100,000, which also indicates an upward trend.
In March, consensus consisted of 153,000 active addresses and processed 7 million transactions in the aggregate. Furthermore, the launch of the Emerald ParaTime this year saw as many as 3.8 million transactions in a single day, leading to an average of about 650,000 transactions per day.
One of our most significant drivers in ecosystem growth has been the launch of the Emerald ParaTime. This EVM-compatible system is essential for Solidity-based smart contract execution and means that any token developed for Ethereum can be migrated through existing bridge infrastructures.
Having an EVM environment on Oasis means that it is simple for dApps to migrate onto Oasis or to utilize and work with the platform. Emerald also allows the ERC-20 token standard to run natively on the Network.
Following the success of Emerald, Oasis has two additional ParaTimes ready to follow. The Parcel ParaTime and Cipher ParaTime.
Parcel is the system that stores, governs, and computes confidential data. By integrating Parcel SDK into their applications, developers can incorporate privacy-preserving data storage, governance, and computation. This is the Tokenized Data engine, which can convert any data file into an NFT, for example.
With Parcel, Oasis intends to foster a responsible data society using Tokenized Data. Data providers on the Oasis Network will be able to put their Tokenized Data to use by earning rewards from applications that analyze or control how their sensitive information is used on different services.
Currently, Parcel is a permissioned ParaTime for use by enterprise partners such as Binance, Genetica, and BMW.
The Cipher ParaTime is the confidential smart contract system set to launch this year. Cipher is a core value proposition of Oasis that will support WebAssembly smart contracts that make confidential computing possible.
Messari, through competitor analysis, pointed out that Oasis has some lower metrics compared to the top five protocols by TVL. However, the report states the key to closing the gap will be the privacy value proposition and how that can edge the network to be a Web3 destination.
Additionally, there are a few key items that were pointed out.
Oasis launched its Consensus Layer later than most of the top L1s. It also didn’t launch its EVM ParaTime until January of this year. Lastly, none of the competitors has confidential compute technology at the center of their ecosystems.
When Messari evaluated each network over the same period, Oasis experienced greater growth in TVL than each of the top chains. From the start of the year to March, Ethereum had experienced a 23% decline in TVL, while Oasis experienced a 192% increase.
The Road Ahead
In closing, the Messari report pointed out a direction for the Oasis Network, and found it to be following that path. Messari suggests Oasis:
- Find strategies to launch additional ParaTimes successfully
- Maintain growth
- Pursue opportunities to close the gap with more mature networks
As it stands, Oasis already has Cipher and Parcel ParaTimes entering the network. Additionally, the Oasis Foundation has engaged with a group of backers, including Binance Labs, Pantera, Dragonfly Capital, and others, to pool around $235 million in funding for developers and projects looking to build on the Oasis Network.
The Oasis Foundation is also working with development teams through Grant and DevAccelerator programs to build applications and integrations on top of the Network. As a result of these programs, there are over a dozen recipients actively building.
Finally, the Oasis Network has implemented a strategy to build community through an Ambassador Program and University Program.
Oasis has organized an ecosystem fund, grant, accelerator program, and community programs to mitigate network risk by expanding network infrastructure and driving network activity for the foreseeable future.
To read the full report, please click here!