Decentralization Science: The Prospects and Challenges of on-chain Research

In the past two weeks, Decentralization Science (DeSci) has become the hottest topic in the crypto market. This concept aims to utilize Web3 technology to build public infrastructure for the open funding, storage, and dissemination of scientific knowledge. DeSci encourages researchers to share their findings and gain recognition while allowing the public to easily access and contribute to research outcomes.

Currently, DeSci mainly focuses on the fundraising sector, with most projects raising funds for research and development through tokenization and putting research results on-chain to enhance transparency and protect intellectual property. This model opens up new financing channels for long-term research projects and is regarded by the market as one of the exemplars of meme coin utility.

The rise of the current DeSci craze originated from a strategic investment in BIO Protocol by a well-known trading platform. Subsequently, important industry figures discussed together at the DeSci Day event in Bangkok, further pushing DeSci to the forefront. The crypto community quickly ignited the DeSci craze, with projects like Pump.Science becoming an instant success, and projects such as RIF and URO generating astonishing returns.

However, despite the appealing vision of DeSci, the hype factor currently outweighs the actual utility. There is a clear contradiction between the long-term nature of scientific research and the short-term profit-seeking nature of the meme space. Research projects typically involve high investment and high risk, requiring sustained long-term investment support. In the crypto market, attention is key, and trends are hard to maintain.

Historically, DeSci is not a brand new concept. Launched in July 2021, VitaDAO is one of the earliest and most representative DeSci projects, dedicated to funding early longevity research. Although VitaDAO briefly sparked discussions, its subsequent development was relatively slow, only recently showcasing its first product, VD001.

In addition, while putting research results on-chain can enhance transparency and intellectual property protection, it may also conflict with the current closed nature of the research system. Many research teams maintain a high level of confidentiality regarding their results and data, especially when deep interests are involved. The introduction of decentralization may raise data security concerns.

Currently, DeSci projects are mainly focused on longevity research, which is of universal concern to humanity, and are jokingly referred to by the market as the "on-chain elixir of immortality." Although the DeSci sector has seen a significant surge recently, there has been limited activity in the primary market, and participation from large institutions is low. The performance in the secondary market has also been relatively mediocre, with the market capitalization of major projects still showing a significant gap compared to leaders in other sectors.

Compared to other meme coins, DeSci has a stronger narrative and fundamental support. Any scientific innovation or product development could strengthen its narrative. The biomedical field has a strong demand for funding, and its emerging nature makes it easier to integrate with blockchain technology. In addition, DeSci also has the potential for a breakout effect, which may attract well-known figures from the traditional medical and research fields in the future.

From a macro market perspective, meme coins have become the main carriers of market funds. Unlike the traditional bull market transmission path, the flow of funds has changed this year. The entry of institutions and project saturation has led to a significant influx of new liquidity primarily into the Bitcoin ecosystem, while the public chain ecosystem lacks strong application support, causing altcoins to fall into a supply-demand structural crisis. Against this backdrop, meme coins, characterized by quick in-and-out and concentrated wealth effects, have emerged.

However, the formation of consensus is highly random, and true meme gold mines are extremely rare. Data shows that only a very small number of meme coins are able to achieve significant market value. In the long run, seeking a balance between attention and sustainability will be key to the development of meme coins. For individual investors, ensuring the safety of funds and avoiding total loss remains the top priority.