The "Star-Driven" Project of DeSci Narrative ------ BIO Protocol officially launched on Binance, OK, MEXC, and other leading exchanges on January 3, creating a huge stir. I have felt the explosive popularity of BIO from various chat groups and tweets. After reaching a high of $1.47, $BIO experienced a 50% pullback and is currently stabilizing around the $0.7 range, accompanied by various controversial opinions about $BIO.
So, what exactly is this new DeSci narrative of Bio Protocol? Is it a capital-driven tool for CZ and Vitalik in a dead end, or a milestone in Web3 innovation?

What is the "DeSci" that CZ and Vitalik are so focused on and admire?

On November 3, 2024, CZ shared pictures of his attendance at a small decentralized science (DeSci) entrepreneur gathering organized by Binance Labs on his personal social media. During the meeting: Vitalik introduced CZ to VitaDAO's first longevity product ------ VD001, a natural high-dose spermidine supplement approved by the Thai Food and Drug Administration. CZ expressed hope to see 1,000 DeSci-related projects emerge next year . From then on, the DeSci concept officially entered the minds of crypto enthusiasts. DeSci (Decentralized Science) aims to revolutionize the traditional models of scientific research, knowledge sharing, and research funding through blockchain technology and decentralization. It seeks to liberate scientific research from traditional centralized institutions (such as governments, universities, and large research foundations) and provide scientists and researchers with a more transparent, fair, and open ecosystem.

In simpler terms, I understand DeSci as a new entry point into the RWA (Real World Assets) field. From the various DeSci projects currently available, their core is to provide financing support for early-stage physical research projects. Through decentralized mechanisms, DeSci directly connects research teams with funders, bypassing the lengthy and complex approval processes of traditional centralized organizations. This not only addresses the issue of research projects stagnating due to lack of funding but also significantly enhances the capital efficiency of scientific research.

More importantly, DeSci introduces a more transparent and efficient way of research funding. The inflow and use of funds can be tracked in real-time through smart contracts, allowing funders to clearly understand the use of funds and project progress. This model not only makes funding for research projects more efficient but also greatly enhances public and investor trust in the research ecosystem.

Why has the DeSci concept emerged? Is it a product of capital narrative or a consensus of market development?

First, we need to ask ourselves: why has the concept of DeSci (Decentralized Science) been proposed in the context of Web3? To answer this question, we must review the development history of Web3 and its current dilemmas.

The Journey and Bottlenecks of Web3: From Prosperity to Confusion

Since the birth of Web3, public perception of crypto assets has mainly focused on several core narratives:

• BTC: The role of digital gold as a safe-haven asset.

• Ethereum: The infrastructure of the smart contract public chain ecosystem.

• Stablecoins: USDT, USDC, etc., have become important tools for on-chain payments and value storage.

However, during the early stages from 2012 to 2019, the crypto market experienced a period of wild growth, with numerous air coins and projects lacking practicality. This bubble created enormous wealth for behind-the-scenes players but did not promote the sustainable development of the crypto ecosystem.

The DeFi Summer of 2019 was a significant turning point in the history of Web3. It brought decentralized finance (DeFi) to life for the first time through on-chain lending, LP, mining, staking, etc., significantly improving capital efficiency and the leverage effect of funds. However, the subsequent emergence of narratives like NFTs, the metaverse, and AI, while sparking market interest in the short term, failed to create a long-term bull market effect similar to the DeFi Summer.

As global Web3 policies gradually become clearer and the RWA (Real World Asset) track rises, the market begins to explore how blockchain technology can deeply integrate with the real economy. However, RWA remains a highly challenging field for most retail investors. Investors find it difficult to understand its mechanisms, application scenarios, and participation paths, leading to a lack of strong market resonance in this track.
Furthermore, I summarize: The current Web3 has entered a liquidity and narrative bottleneck! From previously accessible participation, it has gradually become a competition among capital institutions, and the once "within reach" sense of participation is being replaced by high-threshold tracks dominated by institutional capital. Retail investors are gradually being excluded from the future wealth distribution system of Web3, which goes against the original intention of Web3's decentralization and openness.

The emergence of the DeSci narrative, to some extent, responds to this dilemma: it combines blockchain technology, the Web3 market, and the real industry, making Web3 no longer just an empty financial speculation market, but a real financial facility. DeSci provides ordinary investors with the opportunity to participate early in "potential leaders." In simple terms, DeSci allows the Web3 market to resemble the internet's transition around the millennium in 2000, where you can get in early on potential market cap companies like "the next Alibaba, Tesla, or Amazon."

However, based on the current situation of DeSci, I believe: The DeSci concept, viewed from the historical river of Web3 and from a god's perspective, belongs to a consensus product of market demand, but from the current node, it is indeed just a narrative driven by capital, without seeing any real essential changes! To truly develop DeSci, we need to see tangible forms of intersecting tracks like RWA, AI, DePIN, and the metaverse materialize: for example, successful cases of RWA in real estate, vehicles, and various physical assets, widely used.

Are various DeSci protocols merely tools for issuing tokens? Are they worth paying attention to? What should we be cautious about?

Currently, several DeSci projects that are gaining market attention include: Bio Protocol, pump.science, Sci-Hub, Amino Chain, etc. Among them, the BIO project has many supporters, including several celebrities. However, from the most core aspect of these protocols, they are also primarily launch tools and basic applications of DeFi, and we have not yet seen further innovative actions, more of which are driven by the capital effects of endorsements, institutions, and celebrities.

Therefore, when investing in DeSci projects, it is important to pay attention to the following points:

1. The authenticity of the team and endorsements

• Verify whether the founding team and core members genuinely exist, and whether their academic backgrounds and research achievements have been validated (such as published papers, awards, etc.).

• Check if the project has relevant research results offline, supported by credible documentation, patent sources, and application records.

• Assess the credibility of the supporting institutions, such as whether the collaborating research institutions, universities, or well-known companies are reliable.

2. The financial status of the project

• Understand the sources of financing and the flow of funds for the project, including whether it has received support from well-known institutions or venture capital.

• Verify the financial health of the founding team to ensure they are not overly reliant on fundraising.

• Analyze research expenditure costs and future income expectations to ensure that funding can yield actual results rather than becoming a "money-burning machine."

3. The prospects and feasibility of the research field

• Determine whether the research field of the project aligns with current market trends and future demands, and whether it has long-term development potential.

• Assess whether the project's goals are feasible, meaning they can be achieved through existing technological means and can be executed, rather than remaining at the level of idealism or utopianism.

• Ensure the actual significance of the research direction, avoiding investments in projects that have no commercialization prospects or cannot generate substantial social value.
  

How can the current situation of DeSci break through?

Current Situation: Labeling as Token Issuing Tools

• Primarily focused on financing: Most DeSci projects currently concentrate on raising funds for research projects through tokenization mechanisms, essentially a decentralized variant of "on-chain crowdfunding."

• Lack of application scenarios: Aside from fundraising, many projects lack actual pathways for converting research results, leading to doubts about their ecological functionality.

• Strong market speculation: Due to the immature token economic models, some projects resemble experiments in capital narratives, attracting speculators chasing short-term gains.

Future: Potential and Directions for Derivative Applications

The value of DeSci lies not only in its existing token issuance functions but also in providing a new framework for future scientific research and industrial innovation. Here are some derivative application directions worth considering:

1. NFTization and Traceability of Research Results

• Chain research results (such as papers, experimental data) in the form of NFTs to ensure their uniqueness and traceability.

• Provide a secondary trading market to incentivize profit-sharing between researchers and funders.

1. Decentralized Research Funding Platforms

• Scientists can directly publish project proposals through DeSci platforms, with funders supporting them in real-time via smart contracts.

• Smart contracts ensure transparency in fund usage, preventing misappropriation of research funds.

1. On-chain Management and Trading of Intellectual Property

• Use blockchain technology to manage patents, technology licenses, and intellectual property transactions, creating a global knowledge circulation network.

1. Decentralized Governance of Scientific Communities (DAO)

• Organize research teams and communities in the form of DAOs to collectively decide on research directions and fund allocations.

• Funders and community members participate in decision-making by holding governance tokens, enhancing research transparency and efficiency.

1. Open and Shared Research Data

• Utilize DeSci platforms to promote interdisciplinary data sharing, accelerating research progress.

• Data owners benefit from token incentive mechanisms while promoting the globalization of open science.

1. Integration of Physical Research and RWA

• DeSci can become an important component of RWA (Real World Assets), deeply binding the results of research projects with the real economy.

• For example, the commercialization benefits of research breakthroughs can be returned to early funders in the form of token dividends.

Challenges: How to Break Through the Limitations of Token Issuing Tools?

Although the future of DeSci is full of imaginative space, achieving these applications still requires overcoming the following challenges:

1. Insufficient Ecological Construction: Currently, DeSci protocols are more single-function and lack a complete ecological closed loop.

2. Market Trust Issues: Decentralization does not mean completely risk-free; ensuring the authenticity of fund usage and research results is a core issue.

3. Over-reliance on Capital: Excessive dependence on capital narratives can weaken the long-term value of DeSci, and it should avoid becoming a "capital game."

Conclusion: The Transition from Tools to Ecosystems

The current DeSci protocols indeed show a tendency towards "token issuing tools," but this does not mean that their future lacks potential. The key lies in how to shift from mere fundraising to truly serving value creation for research and industry.
The success of DeSci requires not only support from technology and funds but also finding a balance in the application transformation of research results, community governance, and value distribution. The future DeSci should be a bridge deeply connecting research and industry, rather than merely a short-term capital feast.