Particle Network’s Modular Chain Abstraction Solutions
As beneficial as they are, the proliferation of web3 projects has undoubtedly given rise to the problem of user and liquidity fragmentation. Put simply, there are so many protocols offering different solutions that they overwhelm the average blockchain user.
On the surface, this doesn’t seem like much of a problem. We use different service providers for real-world problems, too. However, price discrepancies, slippage, and increased cross-chain fees that arise due to this introduce friction for users.
Particle Network aims to solve this side-effect by introducing technology that unifies the web3 experience. In this article, we’ll explore exactly how it does that, its other use cases, and more.
Introducing Particle Network - one account, one balance, any chain
The average web3 user typically has wallets and liquidity in different protocols and blockchains due to the unique solutions each one brings. However, the friction involved in moving and accessing these funds due to fees and sometimes lack of cross-chain functionality can be frustrating.
Particle Network resolves this issue through its innovative Universal Accounts, Liquidity, and Gas. This enables you to have “one account, one balance, any chain,” effectively abstracting the underlying issues when navigating different protocols.
By allowing users to access all their blockchain accounts in one platform and pay gas fees with any token, Protocol Network is revolutionizing the Web3 user experience. It was initially introduced in 2022 as a Smart Wallet-as-a-Service solution that allowed developers to create smart contract wallets linked to Web2 social accounts for native dApp use.
Particle Network is now evolving into a more useful and accessible chain abstraction solution that solves user fragmentation on a larger scale. Let’s take a deeper look at the mechanism behind its functionality.
How does Particle Network work?
Particle Network is a modular L1 blockchain built with Cosmos SDK. It’s a chain abstraction solution that unifies your accounts and balances across different protocols. This means you can have a single wallet address and balance and still interact with different chains.
Powered by its native token, $PARTI, Particle Network also allows you to pay gas fees in any token you want, eliminating the need for different gas tokens like SOL and ETH on each blockchain.
Its three solutions, Universal Liquidity, Universal Accounts, and Universal Gas, are collectively termed Modular Chain Abstraction. They simplify cross-chain complexities, performing them behind the scenes for a better user experience.
A Universal Account, for instance, overlays over your existing wallets, “allowing you to deposit and use funds across the chain-abstracted ecosystem.” On the other hand, Universal Liquidity aggregates your crypto assets across different blockchains and simplifies transactions through atomic cross-chain transactions run by Particle Network.
Company, Founders, and Investors?
Pengyu Wang and Tao Pan co-founded Particle Network in 2021. They currently serve as CEO and CTO at the blockchain company headquartered in Singapore.
Since its inception, Particle Network has undergone three funding rounds. In 2022, it raised $1.5 million in a pre-seed funding round. A year later, in March 2023, it raised $7 million in seed investments and its most recent Series A funding saw the Layer 1 blockchain raise $15 million.
It has garnered nearly $25 million, with 30 investors over the past three funding rounds. Prominent investors include gumi Cryptos Capital (gCC), The Spartan Group, and LongHash Ventures.
gumi Cryptos Capital
gumi Cryptos Capital is a blockchain venture capital based in San Francisco, California. The VC specializes in funding crypto and blockchain projects and currently has over 78 investments. Gumi Cryptos Capital joined recent Series A funding for RedStone and Particle Network, raising $15 million each for each blockchain company.
The Spartan Group
Like gumi Cryptos Capital, The Spartan Group focuses on blockchain projects and is an expert in hedge funds, venture capital, and fundraising. They have participated in almost 200 investments, exiting only three. On June 20th, 2024, they co-led the third funding round for Particle Network, successfully raising $15 million for the project.
LongHash Ventures
LongHash Ventures is a Singapore-based investment firm and accelerator that specializes in funding blockchain technology and cryptocurrency startups.
In 2022, LongHash Ventures collaborated with other prominent startup investors to lead the pre-seed funding series for Particle Network, raising $1.5 million for the blockchain company. They have also invested in a significant number of crypto, DeFi, and NFT projects, prominently those from the Southeastern Asia region.
HashKey Capital
HashKey Capital is a more diverse venture capital firm specializing in blockchain technology, fintech technology, and digital assets. The institutional asset manager is based in Hong Kong and has invested in multiple successful blockchain projects over the past six years, including Cosmos, Polkadot, Galxe, and, more recently, Particle Network.
ABCDE
Like most venture capital firms we’ve covered, ABCDE focuses on blockchain projects. They have led significant funding rounds for over twenty blockchain projects despite being founded just two years ago.
They led Particle Network’s pre-seed funding in 2023, which saw the blockchain project raise 7 million dollars. ABCDE was co-founded and is currently co-led by Du Jun, a one-time chairman of HTX (formerly Huobi).
Testnets and Roadmap
As part of its rollup phases, Particle Network officially has at least three testnets and one mainnet planned this year. These testnets will enable users to try out some of its innovative features, earning $PARTI points and positioning themselves for future airdrops.
Testnet V1, which began on May 2nd and ended on June 21st, involved the rollout of Universal Accounts with Universal Gas.
Testnet V2, which began on June 21st, supports Universal Liquidity primarily.
Mainnet V1, which is yet to launch, will see the official stable release of Universal Accounts, Gas, and Liquidity.
Particle Network plans to begin its staking testnet in the fourth quarter of 2024. During this period, L1’s tokenomics will most likely become publicly available.
The decentralized application testnet will follow soon after the staking testnet ends and may span several months up to Q1 2025.
Testnet V1 kicked off with the launch of Particle Pioneer, a platform that encourages users to participate in the testnet. This first phase of the ended incredibly successfully, amassing the following highlights:
Over 1.3 million activated Universal Accounts in Particle Pioneer
One hundred twenty-two million transactions in total.
6.71 billion $PARTI points distributed
The second phase of the testnet began on June 21st and currently allows users to try out the Universal Liquidity features while earning $PARTI points. To participate, be sure to take the following steps:
Create a Universal Account: Visit pioneer.particle.network and create or log into a Universal Account using social, Web3, or Bitcoin wallets. Some wallets offer up to 150% additional bonuses, so explore your options.
Get an Invite Code: Use the invite code from the link above to access Particle Network then, connect your Twitter and Discord accounts and follow Particle Network to complete your registration.
Deposit Native Tokens: Deposit native tokens (ETH, BNB, BTC, etc.) from different Testnets to acquire Universal Gas (USDG). You can use USDG for daily check-ins and cross-chain transactions.
Earn Points: Invite friends, perform daily check-ins, and deposit Universal Gas to earn points.
Explore Universal Liquidity and Gas: Earn additional points by completing cross-chain transactions and purchasing NFTs with Universal Liquidity.
Hold Exclusive Tokens: Accumulate bonuses by holding tokens like $ALLY and CAPYBARA NFTs on your Owner Account. Points can also grant you a bonus on The People’s Launchpad.
Stay Tuned: Watch out for additional tasks and bonuses as they’re introduced over time!
Token Utility
The $PARTI token powers a wide range of Particle Network’s functionality. First, it serves as the protocol’s native gas token and is used to settle transactions paid by users in any cryptocurrency.
Moreover $PARTI is used for staking by modular nodes who validate the network. They earn node rewards and incentives for doing so.
In addition, $PARTI holders participate in ecosystem voting, shaping network development, and achieving native decentralization at a governance level. Like most native tokens, $PARTI is also used to settle Liquidity Providers (LPs) within the Particle Network, enabling cross-chain atomic swaps.
Particle Network Socials — Twitter and Discord
Particle Network’s X account, @ParticleNtwrk, currently boasts 890,900 followers. On this page, they share current updates on their developments, collaborations, rollout phases, and other news and events.
Additionally, the account provides a link to the protocol’s official website and warns against scam links. Notably, follower numbers have grown substantially since its inception in March 2022. Its Discord Channel also has an incredible number of members, currently at about 554,300.
USP
Particle Network’s central vision is to remove user experience friction in Web3. They’ve identified its cause: user and liquidity fragmentation. Although their initial Wallet-as-a-service tool tried to solve this problem, they are evolving to a more comprehensive modular chain abstraction solution with a suite of features.
These features include:
Wallet Abstraction, termed Universal Accounts, lets you connect all your wallets and execute transactions across different chains via a single unified account.
Liquidity Abstraction, called Universal Liquidity, pools your liquidity across chains through atomic cross-chain transaction execution.
Gas Abstraction, their complementary feature tagged Universal Gas, utilizes the $PARTI token to settle gas fees, removing the need to own chain-specific token units.
Competitor Analysis
While modular chain abstraction has not existed in any product as comprehensively as Particle Network’s combined offerings, a few other protocols solve these issues to a relatively limited extent, these main competitors include XION, NEAR, and Instadapp’s Avocado.
XION
Founded in 2022, Xion is a solid rival to Particle Network’s modular chain abstraction solution. It is a Layer 1 blockchain designed for mainstream adoption that integrates protocol-level abstractions across accounts, signatures, gas, and interoperability.
In April, the blockchain platform secured a 25 million dollar Series A investment from amicable investors, including Animoca Brands, Laser Digital (Nomura), Multicoin, and Arrington. By prioritizing user-friendly experiences, Xion aims to democratize Web3 for non-technical users, positioning itself as a formidable contender in the evolving multi-chain landscape.
NEAR
Even though NEAR is a multi-functional blockchain platform, it’s a formidable competitor to Particle Network due to its account abstraction service. This feature enables users with NEAR accounts to seamlessly execute transactions on other chains without needing to create accounts on those chains.
Although its chain abstraction service was recently rolled out, NEAR has been in the Web3 market since 2017 and has raised over $1 billion from multiple investors.
Avocado
Avocado prides itself in being “the crypto wallet that transacts anywhere.” It’s a comprehensive solution that offers wallet and gas abstraction alongside robust security as its major features.
However, Avocado only supports EMV-compatible chains, giving Particle Network a significant advantage over this solution. Currently, it has raised $12.4 million in funding from several blockchain-centric investors.
Final Thoughts
Particle Network’s complete suite of chain abstraction tools is currently the most comprehensive solution to siloed web3 problems. Its Universal Account, Liquidity, and Gas features are well-thought innovations that, when launched, will completely revolutionize the fragmented blockchain landscape. With its current adoption rate, it’s almost bound to be a success when its mainnet launches.
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