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Analyzing Blockchain Projects Using AIGC Tools (Part 2)

作者: Ash Li


In the previous article, we mainly discussed how to research and analyze a blockchain project and how to use the ChatGPT tool to help us analyze in more detail and efficiently. In the previous article, we primarily provided an overview of the Arbitrum project. In this article, we will continue with a more in-depth analysis of the Layer 2 project Arbitrum.


Example Demonstration

Project Token Details Overview

Next, we can input relevant details to ChatGPT to assist with responses. We sent the following query: "Please tell me the establishment time, country, sector, token symbol, market cap rank, current coin price, fundraising status, circulating market cap, circulating supply, total token supply, trading pairs, and all-time high (ATH) of Arbitrum." Additionally, if any relevant information is not provided, we can supplement it by saying, "you may find the XXX(information) at https://www.XXX.com/," and we can make multiple inquiries to complete the output content. For ease of reading and understanding, we can input "please provide all the above source in spreadsheet markdown format" to generate a tabular output. Afterward, we can inquire about Arbitrum's fundraising status ("Does Arbitrum have ICO?") and token economic model ("Please show me the token economic information of Arbitrum"). Here is the response content:

 

Based on the information from CoinGecko, here are the details for Arbitrum:

  • Current Price: $0.822197 USD

  • Market Cap: $1,048,790,071 USD

  • Market Cap Rank: #41

  • 24-hour Trading Volume: $77,101,542 USD

  • Fully Diluted Valuation: $8,225,804,479 USD

  • Circulating Supply: 1,275,000,000 ARB

  • Total Supply: 10,000,000,000 ARB

  • Max Supply: 10,000,000,000 ARB

  • All-Time High (ATH): $8.67 USD, recorded on Mar 23, 2023 (6 months ago). The current price is approximately -90.50% lower than the ATH.

  • Trading Pairs: Some of the exchanges where ARB tokens can be traded include MEXC (ARB/USDT), Toobit (ARB/USDT), BingX (ARB/USDT), Bitget (ARB/USDT), and DigiFinex (ARB/USDT). MEXC is highlighted as the most popular exchange for trading Arbitrum.


Coin information




Arbitrum (ARB) Tokenomics:

  • What is the allocation for Arbitrum (ARB)?

    • Investors: 17.53% of the total supply.

    • DAOs in Arbitrum Ecosystem: 1.13% of the total supply.

    • Individual Wallets: 11.62% of the total supply.

    • DAO Treasury: 42.78% of the total supply.

    • Team and Future Team + Advisors: 26.94% of the total supply.

  • Airdrop Details: According to the Arbitrum website, 12.75% of the $ARB token supply will be airdropped on 23 March 2023, with 11.62% allocated to users and 1.13% to DAOs.

  • Initial Supply: The initial supply of the $ARB token is 10 billion.

  • Sources: The information is sourced from Arbitrum's official documentation and a Medium article.

  • Last Updated: 16 March 2023

Disclaimer: The dates and unlock values might differ from the provided information. For the most accurate and up-to-date details, referring directly to the project's official sources is recommended.

 

Ecological Data and Industry Overview Analysis

After analyzing the project and token overview of Arbitrum, we can conduct a comparative analysis of the Arbitrum ecosystem and its position in the Layer 2 race. We can input "Please tell me all the projects in the ecology of Arbitrum" and "Please display the above content in markdown format table, with serial number, project category, project name, and project introduction as titles" to filter out the list of projects in the Arbitrum ecosystem. Then, we can further supplement the analysis by asking "Where can I find the status of the ecological project, such as the TVL and address number of the ecological project?" to make the analysis more comprehensive. The generated content is as follows:

 


 

Next, we will analyze the industry. We can input "Please tell me the industry overview of Layer 2 public blockchain," "Please show me the industry overview of the top 5 Layer 2 public blockchains," and "Please show me the top 5 in a markdown format, with rank, project name, project introduction, and real-time TVL" to analyze Ethereum's Layer 2 public blockchains. This will provide a deeper understanding of the overall landscape and current status of this sector, including the position of Arbitrum and its future prospects. The generated content is as follows:

 

Overview:

The article delves into the significance of Layer 2 crypto projects, which have emerged in response to the challenges faced by the Ethereum network, such as slow transaction speeds, frequent congestion, and high gas fees. Layer 2 solutions aim to enhance Ethereum's scalability and performance by offloading transactions from the main Ethereum network, thereby increasing transaction speed and reducing costs.


Key Projects Highlighted:

  1. zkSync Era: Description: An upgraded version of zkSync Lite, zkSync Era is a Layer 2 solution that employs Zk Rollups technology to boost transaction speed and enhance network security. Notable Features: Developed by Matter Labs, which has secured significant funding from major investors. Aims for "hyperscalability" to process an unlimited number of transactions without compromising security or incurring high costs. Over 200 projects, including major players like Chainlink and Uniswap, have shown interest in deploying on zkSync Era.

  2. Arbitrum: Description: A Layer 2 solution designed to enhance Ethereum smart contracts by increasing their speed, scalability, and adding privacy features. Notable Features: Offers an experience almost identical to using Ethereum but at a faster and cheaper rate. Employs a multi-round rollup protocol to address disputes.

  3. Optimism: Description: An extension solution on Ethereum that reduces gas fees and increases transaction completion speed. Notable Features: Provides a unique vision known as Retroactive Public Goods Funding. Supports EVM, allowing Ethereum DApps to run on Layer 2 with minimal code changes.

  4. StarkNet: Description: A Layer 2 project using Zk Rollup technology, built on Ethereum, that enables limitless operation and scaling of dApps without compromising Ethereum’s composability. Notable Features: Smart contracts and operating system are written in the Cairo programming language. Transactions are batch-processed and validated using STARK proofs.

  5. Polygon: Description: Initially known as Matic Network, Polygon is developing scaling solutions and infrastructure with products like Polygon PoS. Notable Features: Vision to build the Value Layer of the Internet. Offers low transaction fees and supports various market trends like NFT and Gaming.


Conclusion:

Layer 2 crypto projects like zkSync Era, Arbitrum, Polygon, Optimism, and StarkNet are making significant strides in addressing the challenges of scalability, cost-efficiency, and user experience in the blockchain landscape. Their collective efforts are paving the way for a more accessible and sustainable blockchain ecosystem, pushing the boundaries of decentralized applications and blockchain technology.




 

Competitive Analysis

After gaining an understanding of its ecosystem and the playing field it operates in, it's crucial to conduct a comparative analysis of other Layer 2 solutions. This can help us gain a more comprehensive insight into Arbitrum's strengths and weaknesses, enabling us to make more informed decisions and strategies. We can inquire about its competitors and request ChatGPT to provide a brief introduction to each competitor. You can input the following queries: "Arbitrum as a Layer 2 public blockchain, what are its competitors" & "please introduce the competitors in 300 words each." You will receive the following responses:

 

Arbitrum, as a Layer 2 public blockchain, has several competitors in the space. Some of the notable competitors include:

  1. Optimism: Another Layer 2 scaling solution that uses Optimistic Rollups to improve Ethereum's scalability.

  2. zkSync: Mentioned as one of the rivals to Arbitrum, it's a Layer 2 scaling solution using zkRollups technology.

  3. Polygon (MATIC): Initially known as Matic Network, Polygon offers a multi-chain scaling solution for Ethereum-compatible blockchain networks.


Other potential competitors can be found in various sources that list alternatives to Arbitrum:

For a more comprehensive list and understanding, you can explore the search results here.

 

接下来,我们可以將其與 OP 鏈進行一下對比,輸入 “Please compare and analyze Arbitrum and Optimism in detail”,並可以詳細對比相關鏈的信息 ”Please help me list the main net launch time, TPS, number of nodes, number of developers, programming languages and other information of each public chain of Arbitrum and Optimism, and display it in the markdown format table.” 以下是答復的內容。



 

Technical Differences

  • Fraud Proofs: The main technical difference between the two chains is their approach to fraud proofs. Optimism uses single-round fraud proofs executed on layer 1, making it faster but potentially more expensive due to higher gas fees. On the other hand, Arbitrum uses multi-round fraud proofs executed off-chain, which takes more time but is more cost-effective.

  • Virtual Machines: Optimism operates using the Ethereum Virtual Machine (EVM), limiting its programming language to Solidity. In contrast, Arbitrum has its own Arbitrum Virtual Machine (AVM), supporting all EVM programming languages.

Growth Metrics and Ecosystem

  • Total Value Locked (TVL): Arbitrum has a clear lead in terms of TVL, boasting more than double the total value locked compared to Optimism.

  • Protocol Activity: Arbitrum leads Optimism in several metrics, including the number of protocols (256 to 119), daily active addresses, and daily transactions. Arbitrum's recent airdrop accentuated this lead, with the platform processing more daily transactions than Ethereum and having more daily active addresses.

Key Growth Drivers and Future Plans

  • Optimism:

    • OP Stack: Optimism's next phase of scalability, introducing modularity and allowing separation of consensus, execution, and data availability layers.

    • Optimism Bedrock: The first official release of the OP Stack, promising reduced transaction fees, optimized deposits and withdrawals, and faster node syncing.

    • Collaboration with Coinbase: Optimism is working with Coinbase to develop its new Base layer-two blockchain, aiming for a "Superchain" comprised of a network of rollups built using the OP Stack.


  • Arbitrum:

    • Arbitrum Nova: A sidechain with up to 90% lower gas fees, ideal for gaming, social, and other high-bandwidth applications.

    • Arbitrum Orbit: Enables developers to launch L3s and leverage Arbitrum's technology.

    • Stylus Upgrade: Aims to introduce "EVM+", allowing contracts written in Rust, C, and C++ to interact synchronously with existing Solidity-based contracts.


Conclusion

Currently, Arbitrum holds a significant lead in the optimistic rollup L2 space, with a higher TVL, more daily active users, and more transactions. However, Optimism's collaboration with Coinbase and its focus on modularity and scalability could position it well for future growth.


It's worth noting that the landscape of Layer 2 solutions is rapidly evolving, and both Arbitrum and Optimism have their unique strengths and strategies. The ultimate "winner" in this space will likely be determined by a combination of technical innovation, ecosystem development, and user adoption.


Based on the information gathered, here's a comparison between Arbitrum and Optimism:


 

After obtaining basic information about both chains, we can assume the role of an investor for ChatGPT to conduct investment analysis. This can help us broaden our perspective. We input the question, "If you were an investor, after understanding and analyzing the specific situations of Arbitrum and OP, how would you choose?" Below is the response content:

 

Technical Aspects:

  • Arbitrum: Uses multi-round fraud proofs executed off-chain, which is more cost-effective. It also has its own Arbitrum Virtual Machine (AVM) that supports all EVM compiled languages.

  • Optimism: Uses single-round fraud proofs executed on layer-1, which is faster but might be more expensive. It operates using the Ethereum Virtual Machine (EVM) and is limited to Solidity.

Analysis: Arbitrum seems to have a slight edge in terms of technical innovation, especially with its multi-round fraud proofs and broader programming language support.

Ecosystem Growth:

  • Arbitrum: Has a higher Total Value Locked (TVL) and a larger number of dApps. It also has a more significant social media presence.

  • Optimism: While it has a mature ecosystem, its TVL and number of dApps are lower compared to Arbitrum.

Analysis: Arbitrum appears to be leading in terms of ecosystem growth and user adoption.

Community Engagement:

  • Arbitrum: Managed by Offchain Labs and has recently launched community events like Arbitrum Odyssey.

  • Optimism: Has a decentralized governance model with its governance token $OP and has made efforts to engage the community through initiatives like the Optimism Collective.

Analysis: Both have their strengths. While Arbitrum is engaging its community through events, Optimism is focusing on decentralization and community governance.

Future Potential:

  • Arbitrum: The information about its future plans is not publicly available, but its current trajectory suggests continued growth.

  • Optimism: Has a clear roadmap until 2024, with plans for next-generation fraud proofs, sharded rollups, and a decentralized sequencer.

Analysis: Optimism seems to have a clearer vision for the future, which might be appealing for long-term investment.


Conclusion: Both Arbitrum and Optimism have their unique strengths. Arbitrum is currently leading in terms of technical aspects and ecosystem growth, while Optimism has a clear future roadmap and a focus on community governance. As an investor, my decision would depend on my investment goals:

  • If I'm looking for a project with current momentum and growth, Arbitrum might be the better choice.

  • If I'm focused on long-term potential and a clear vision for the future, Optimism might be more appealing.

However, it's essential to note that the blockchain space is highly dynamic, and both projects are still evolving. It would be wise to continuously monitor both projects, diversify investments, and consult with financial advisors before making any decisions.

 

Summary

In today's rapidly evolving landscape of AI technology, having tools that are adept at utilizing AIGC can significantly enhance our research efficiency. ChatGPT can swiftly search and extract the latest information and data related to web3 from the internet, providing users with real-time market dynamics and technological advancements. Leveraging its deep learning capabilities, ChatGPT can conduct in-depth analysis and interpretation of web3 technologies, applications, and market trends. Users can engage in real-time interactions with ChatGPT, posing specific questions or requests and receiving targeted answers and suggestions. It can integrate and reference data and reports from various sources, offering us a comprehensive and multi-dimensional perspective. Being proficient in obtaining research information through Q&A format can expedite the process.


About Us

Spectrum Labs is a team composed of master's and doctoral graduates with a focus on blockchain research, as well as seasoned professionals within the blockchain industry. We are dedicated to researching blockchain technology and its applications to help people better understand blockchain. Spectrum Labs' primary activities include writing research reports, developing courses, and creating tools.


Alibaba Cloud Academy is the official training and certification institution of Alibaba Cloud, committed to providing comprehensive training for global users on Alibaba Cloud technologies and solutions. This academy offers a range of courses designed for users of different levels and domains, catering to both cloud computing beginners and professional solution architects, making it a valuable resource for training.

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