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What is DeSci, the decentralized science? Sora Ventures: Why DeSci will be the next wave of Web3

2023/8/18

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After multiple cycles of bull and bear market transitions, each round of different narratives has focused on how blockchain will change human life. However, to date, there has not been a truly inclusive application. DeSci, a decentralized science described by Jason Fang, Managing Partner of Sora Ventures, may bring about significant changes in the development of scientific research for the betterment of humanity through DAO and token economics based on blockchain, or it may be a major narrative in the next bull market.

This article is written by Jason Fang, Managing Partner of Sora Ventures.

“Science” is a very broad term, covering chemistry, biology, physics, robotics, rocket research, and the Internet of Things, reflecting almost everything that improves human life. However, the process from research to application requires a significant amount of capital investment, time, and resources, historically supported by centralized entities that also hold intellectual property and determine the lifecycle of research.

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What is DeSci, Decentralized Science?

Decentralized Science, or "DeSci," is a concept of open-source scientific projects funded by community organizations, accomplishing missions through knowledge sharing or other forms of resource sharing. This is significant as it provides researchers, professors, and scientists with greater autonomy, not bound by any centralized authority's commands.

The most important thing is that we saw this investment trend in 2015 and 2016, where the core investments of blockchain funds were focused on enterprise use cases revolving around companies with a hybrid tech stack, usually 90% non-blockchain and 10% blockchain. However, most of these companies could not proceed to the next round of funding because they lacked the concept of tokens or the teams were too conservative. Many of the companies invested in by these funds also involved biotechnology, healthcare, IoT, and other scientific categories.

Until today, the only enterprise blockchain company founded in 2015 that survived and ranks in the top 100 on CoinMarketCap is VeChain. VeChain was initially a supply chain company, helping companies leverage blockchain technology to enhance transparency, traceability, and source verification. However, during the ICO frenzy in 2017, they shifted towards releasing a whitepaper and launching the first-layer concept of a supply chain solution.

DeSci's Significance Compared to Other Narratives

Different eras call for different outcomes, but history often repeats itself, and the idea of tokenized scientific projects is more appealing and meaningful than the current frenzy surrounding gaming, metaverse, and entertainment.

These trends will continue to evolve, but our industry will also seek new and attractive things in the next bull market, never looking back.

If you look at the history of every Web3 bull market, it tends to benefit very specific talents for a period of time. DeFi Summer greatly favored those with traditional finance backgrounds, the Play-to-Earn model greatly benefited gamers and the entertainment industry, while NFTs significantly favored the art and music industry. Interestingly, blockchain does not touch upon these categories in every new bull market, so we know that the next wave of talent will not revolve around these categories. This is similar to Web2 investments where certain industries have their special periods, attracting funds easily, but over time, this trend will slowly fade, and funds will shift to another industry benefiting a different group of talents.

Coinbase's Involvement in DeSci Development

Although DeSci is still in its very early stages, we have already seen significant growth in the use cases of DAOs (Decentralized Autonomous Organizations) used to fund early scientific projects. For example, HairDAO was founded to invest in hair loss research, VitaDAO was established to address longevity issues, BeakerDAO focuses on general science, MoleculeDAO focuses on biotechnology, and ValleyDAO invests in synthetic biology research. Initially, these DAOs were mostly operated by fixed-cap scientists and researchers, but in the past 3 months, we have seen venture capital firms showing significant interest in DAOs and enhancing value through their experience in token economics and structures.

Coinbase CEO Brian Armstrong has also launched his DeSci company Research Hub, supported by BoostVC and Sora Ventures, which has become a primary community platform for researchers' open-source collaboration.

DeSci as the Next Wave, Degen Improving Human Life

DeSci has already changed the way scientists, researchers, and product developers achieve goals in the field of science. This is a category that cannot be ignored, and Web3 will only strengthen the interest and incentive structures of research communities aiming for large-scale expansion, funding, and growth in the shortest time possible.

Tokenization is a powerful tool that aligns interests with common shareholders, whether these shareholders exist in the form of investors, users, or token holders. This is the power of decentralization, which has already occurred in other industries, such as gaming.

Science is poised to be the next wave, and Degen will play a role in how Web3 improves human life.

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