Lưu trữ cho từ khóa: Adoption

NFT

Web3 gaming mainstream adoption will happen gradually, then suddenly | Opinion

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The iGaming industry is witnessing impressive growth, with global market projections reaching $127 billion by 2027. A driving force behind this trend is web3 gaming, which offers enhanced gaming experiences through features like in-game asset ownership, community-driven development, and increased transparency. 

Unlike mobile gaming, which can be costly and require multiple in-app purchases to unlock a viable gaming experience, web3 enables users to monetize their spending and gain a sense of ownership of the game. Yet, web3 gaming is still in its infancy and has some headwinds to overcome before capturing the imagination of the mainstream.

The rising popularity of web3 gaming

Between February 2023 and 2024, the web3 gaming sector received a total of over $162 million distributed across early and mid-stage funding. Richer gaming experiences paired with new revenue streams for developers through token sales, NFT trading, and in-game assets create a more sustainable and diversified business model in a decentralized and transparent environment. Web3 gaming provides innovative and creative opportunities for developers to experiment with new ideas, such as DeFi integration and VR and AR experiences—and global gaming studios are taking note. 

According to a recent report by CoinGecko, 29 out of 40 of the world’s largest video game companies are investing in web3 gaming, including Microsoft, Tencent, Sony, and Nintendo. It includes investing directly in web3 gaming projects, actively engaging in blockchain game development, and hiring for blockchain-related roles.  Epic Games, an eSports pioneer, is also riding the web3 gaming wave with plans to introduce at least 20 NFT games to the Epic Games Store in 2024 alone.

Meeting gamers where they’re at—Telegram 

While opportunities in web3 gaming abound, it remains a niche segment. Gaming studios and developers need to employ creative tactics to capitalize on existing user bases and appeal to them on a deeper level. Telegram-based games are a prime example of this, with the rapidly growing ecosystem of token-backed mini-apps leveraging the vast social network’s over 900 million users and appealing to them with innovative gameplay, token rewards, and digital asset airdrops. Within weeks of launching during an airdrop for Notcoin (NOT) players in May of this year, the NOT token reached a market capitalization of over $2 billion. 

Understanding the importance of meeting gamers where they are to draw in a broader audience, Notcoin has since partnered with us at Helika to establish an incubator for the next generation of Telegram games. The Telegram Gaming Accelerator will aid the developers of Telegram-based mini-apps to better understand their users, cultivate exciting experiences, and entice newcomers with value-driven incentives. As more and more traditional gamers catch on to the possibilities of web3 gaming, mainstream adoption will happen gradually, then suddenly. 

Scaling web3 gaming for the mass market

Despite the undeniable groundswell, web3 gaming must overcome additional challenges to scale for mass market adoption. For non-crypto-users, the barriers to entry remain prohibitively high with complexities such as integrating web3 wallets and learning about self-custody best practices beyond the reach of the average gamer. Many web3 games struggle to gain traction due to high fees and high latency from the underlying blockchain architecture, and game developers suffer from a lack of quality analytics to gain visibility into their on-chain game economies. 

As blockchain-based gaming races to overcome these hurdles, abstract the complexities of interacting with the blockchain away, and scale the tech to overcome lagging, reliable data partners are essential. Web3 game developers need to understand which elements of their games are working (and which aren’t) to cultivate a user experience that feels as smooth and compelling as the one they are used to—with all the added benefits of web3. This remains pivotal to onboarding the masses.

As users seek more immersive gaming experiences, web3 gaming holds the key, and global gaming studios are throwing their hats into the ring. With almost one billion users globally, initiatives like the Telegram Gaming Accelerator mark a giant step toward triggering mass adoption and igniting the game theory that will onboard the next billion to the ubiquitous web.

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Survey finds 20% of Russians engaged with crypto

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Nearly 20% of Russians have used cryptocurrency, while 66% are aware of it but lack detailed knowledge, according to a new survey.

Nearly one-fifth of Russians have used cryptocurrency, while more than 65% are aware of them but lack detailed knowledge, Russia’s state-run TASS news agency reported on Monday, Sept. 30, citing data from a survey conducted by a local financial marketplace.

The survey of 1,200 respondents aged 18 and older across Russia highlights the gradual uptake of crypto among Russian consumers, with over 20% reporting some experience with crypto. The survey found that almost 80% of respondents have never used cryptocurrency, although 15% expressed interest in adopting digital assets in the future. Of those who have tried crypto, 63% indicated they did so out of curiosity, while 19% used it for savings or investment purposes. Only 2% reported regular crypto usage.

Despite growing awareness, most respondents — nearly 90% — do not currently hold any cryptocurrency. Of the minority who do, 6% reported holding less than 10% of their savings in crypto, with only 4% having up to half of their assets in digital form.

Russia’s evolving relationship with crypto comes as the government explores the use of digital assets for foreign trade, particularly in industries with potential military applications.

As crypto.news reported in mid-September, Russia formed a focus group to address challenges faced by importers dealing with dual-use goods, which have both civilian and military applications, and are subject to strict international payment restrictions. The move came shortly after China announced in early August that it would ban the export of all unregulated civilian drones, which have become increasingly used in military warfare in recent years, starting Sept. 1.

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GameFi investment is surging: Blockchain becomes a staple in every title | Opinion

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Web3 gaming has received a lot of skepticism over the past few years. However, the industry has undergone substantial changes in the developer’s approach to gameplay mechanics, reward models, and inclusivity factors. The result? We’re seeing GameFi emerge stronger than ever. 

It’s not just a theoretical observation but rather a statistical one. In the second quarter of 2024, blockchain gaming projects received a remarkable $1.1 billion investment—a 314% jump from the previous quarter. The positive investment sentiment is largely attributed to the growing adoption of web3 games, as they now account for 28% of all dApp activity.

So, it’s safe to say that GameFi is evolving. But what comes next? How does the industry maintain this momentum, and where is blockchain gaming headed on a global scale?

From web3 niche to industry standard

One thing is clear: Web3 gaming is no longer a fleeting trend. Blockchain technology has now cemented itself as an essential tool for the gaming industry, and the reasons are compelling. The most significant advantage that blockchain brings to the table is ownership. Players can now own in-game assets such as skins, characters, or items, creating real value that extends beyond a single title. Web2 games traditionally allowed players to make in-game purchases, but these assets remained tied to the game’s ecosystem, with no option for real ownership. Blockchain breaks this barrier by ensuring true asset ownership and secure transactions, allowing players to trade or sell items across multiple platforms.

Investors have taken notice. The massive capital injection we saw in Q2 2024 is just the start, and the strategic implications go beyond the numbers. Investors are now looking for games that offer long-term value—games where blockchain mechanics complement the gameplay, not overshadow it. This signals a new phase for GameFi, where the focus shifts from short-term speculative gains to creating sustainable ecosystems for both players and developers.

So, developers who ignore this shift risk falling behind. Those who embrace blockchain and web3 technology as part of their long-term strategies are more likely to survive in a market that is rapidly becoming blockchain-centric.

Removing the friction of web3 adoption

For blockchain gaming to achieve mainstream appeal, it must shed the complexity associated with web3 mechanics. One of the common critiques from gamers unfamiliar with web3 is that it introduces unnecessary complications. The integration of wallets, NFTs, and tokens can alienate players who simply want an entertaining experience. Games should be games first—whether they use blockchain or not. What sets blockchain gaming apart is that it adds layers of opportunity, not confusion, as long as developers focus on ease of use.

The solution lies in seamless integration. In successful blockchain games, the underlying technology becomes invisible to the player. They don’t need to understand the intricacies of NFTs or smart contracts. What they see is a game where they can trade, own, and invest in digital assets without any technical friction. Developers are increasingly focusing on making blockchain elements ‘background’ technology that improves player experience rather than becomes the experience itself. When this balance is struck, web3 gaming will see massive adoption from gamers who once dismissed it as overly complicated.

The future of GameFi: Long-term vision and strategic investment

As the market matures, the focus is moving from the play-to-earn business models and more to the competitive and efficient gaming environments. Many early P2E GameFi projects have already collapsed due to unrealistic tokenomics and shallow gameplay mechanics.

The lesson learned here is crucial: Games should not be built around profit motives alone. Fun and engaging gameplay must remain the priority, with blockchain providing opportunities for rewards and ownership as a secondary benefit.

We also learned to accept and adapt to this shift at Farcana, which initially launched as a P2E game but has now been rebranded as a “Bitcoin Shooter.” We have shifted focus to the competitive nature of the game first. Players earn Bitcoin (BTC) as a reward for mastering gameplay—not for simply logging in or participating. This model encourages true player investment and skill development, moving away from the short-term profit-seeking behaviors that characterized earlier GameFi projects.

Games that value experience and competitiveness will also resonate strongly with investors. Investors scrutinize the technology behind the games and the teams developing them. A key component to securing investment is showing that your game can stand the test of time. Building trust through transparent tokenomics and strong community engagement is essential.

Interoperability and cross-platform potential

Another promising direction for the GameFi business is interoperability, where assets are easily transmitted from one game, platform, or even a blockchain to the other. This cross-platform compatibility may change gaming at its core. E-sports leaders can also see a future where a sword attained in one game can be used in another or where a player can exchange in-game money in another game, creating an extra layer of the economy. This is exactly where blockchain technology is set up to advance the concept, and we are already witnessing the first attempts.

This will act as a major trend that will drive GameFi adoption around the world. Well, it’s no longer possible to provide games as stand-alone applications that work in isolation from other titles. People’s money should be protected and have a possibility of gaining value in other experiences, and the technology for this is already available. When web developers focus on ways to make games interoperable, they will be able to catch both the gamers and the investor’s attention and reveal completely new ways of monetizing.

Security and players’ trust

As GameFi continues to grow, security remains a critical concern. One of the biggest reasons why most web3 gaming projects failed after 2021 was the underlying security vulnerabilities. The decentralized nature of blockchain offers solutions to many of the traditional security problems that plague online gaming, such as fraud, hacking, and item theft. Blockchain’s immutable ledger ensures that assets are tied to players, not individual games, protecting player investments regardless of what happens to the game itself.

This ability to secure assets creates a trust-based ecosystem—a feature that will be crucial for mainstream adoption. Players need to feel confident that their in-game investments are safe, even if a game goes offline or a developer disbands. Blockchain’s security protocols, when implemented correctly, offer this peace of mind.

The road ahead

It’s evident now that, as an industry, we’re moving towards a future where web3 technology is a standard feature of most games. Mass adoption is inevitable, but it will require strategic investment, seamless integration, and a commitment to fun, accessible gameplay. 

New projects must understand that it isn’t just about earning a quick profit—it’s about creating immersive, engaging worlds where blockchain technology does not complicate the player experience. The key to unlocking this growth will be the industry’s ability to balance fun and accessibility while seamlessly integrating blockchain elements—an equilibrium that, once achieved, will usher in the next generation of gaming.

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DeFi

Finding blockchain harmony to encourage TradFi participation | Opinion

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Traditional finance has taken a U-turn from the industry’s initial dismissive reaction to Bitcoin (BTC)  and blockchain technology altogether. Earlier this year, we witnessed the SEC approve spot Ether and spot Bitcoin ETFs, including from leading asset manager BlackRock. Concurrently, State Street, a large global bank, plans to launch a stablecoin, and TradFi trading hub Robinhood has expanded its crypto operations. 

While rigidly centralized institutions playing an oversized role in crypto developments could introduce risks to the industry’s decentralized ethos, most web3 enthusiasts are open to TradFi participation as it would accelerate adoption. Regardless, ties between the broader financial world and the emerging digital assets sector are steadily moving forward.   

Despite high-profile ETFs, growing interest in DeFi, and tokenized real-world assets, many financial institutions are reluctant to engage directly with various blockchain networks. The reason for this isn’t due to worries of SEC lawsuits or crypto’s inherent volatility; rather, it relates to the very nature in which banks operate. 

As trusted intermediaries managing customers’ assets and providing financial services, most banks find it hard to engage with public blockchains where transaction history and other private data are available for all to view. While transparency and openness are core web3 principles and are used to build trust among decentralized communities, this could lead to exposing private customer information within institutions. 

Financial institutions will always need to comply with local regulatory frameworks, which makes engaging with public blockchains complicated and limits flexibility in the rapidly evolving digital asset space. As such, banks wanting to engage with blockchain and crypto, for one reason or another, typically elect to do so via private blockchains due to privacy and compliance considerations. 

Private networks provide banks with a controlled environment, enabling them to experiment within a compliant and secure space, allowing more partners to join over time. While this is good for institutions looking to understand blockchain technology or perhaps implement it to facilitate their own payment systems, it blocks access to the vast majority of DeFi products, apps, and protocols. It also denies access to any liquidity stored on public blockchain protocols.

Sure, there are cross-chain bridges, sidechains, layer-2s, and other solutions that financial institutions could leverage to gain a bit more exposure to crypto markets. However, these solutions risk introducing the same security threats and vulnerabilities that led financial institutions to select private blockchains in the first place.

This puts financial institutions, especially smaller banks lacking the resources to take calculated risks, in a bind when trying to establish the most robust digital asset strategies to meet the rising demand of both retail and institutional clients. However, new projects are working to bridge these gaps and broaden the scope of institutions entering blockchain.

Vixichain, for example, is developing a solution for this problem that is confronting institutions. Its layer-1 blockchain, set to launch early next year, allows institutions to interact with crypto and DeFi compliantly. The network bridges the gap between legal frameworks and the innovative potential of web3 by using a stablecoin built with NFT technology. While it may sound unorthodox, this enables traceability and verifies authenticity, combining the best aspects of public and private blockchains. 

Vixichain’s objective is to build a private blockchain where financial institutions act as validators. This allows users to receive quotes from available nodes and choose the relevant partner to execute payments, while its NFT stablecoin facilitates easy access to the wider crypto ecosystem. 

Those in the web3 industry understand the value behind mainstream adoption, and strategically cooperating with TradFi provides more rewards than risks. For example, experience with compliance, risk management, and added liquidity are just some of the benefits that TradFi brings to the table. The key to leveraging TradFi’s desire to partake in digital asset marketplaces requires innovative solutions that strike a balance between the pros of both public and private blockchains.

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Building trust: Transparency will drive crypto market growth | Opinion

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The crypto market is ripe with the potential to revolutionize the finance world, but a big obstacle is still getting in the way. That obstacle is trust. For any business, particularly in finance, transparency is the foundation of trust that needs to be treated with all due importance.

When people hand over their funds to a third party, they need to understand who is in charge and how things are regulated. It is also important for them to know where their cash is going. But without such clarity, how are they supposed to feel confident about trusting a company with their hard-earned money?

In the world of crypto, this issue is even more crucial. Unlike traditional financial markets, where regulations are well-established, the crypto industry is still a newcomer, unexplored in many ways, which makes it a prime target for various criminals and bad actors.

Just recall the collapse of the FTX exchange back in 2022—it’s a glaring example of how things can go wrong when transparency is ignored. What happened? When the company filed for bankruptcy, it came to light that FTX had mishandled user funds. Shady business practices and a lack of clear disclosure led to massive losses for investors and sent shockwaves through the entire crypto market. This scandal highlighted the urgent need for stricter regulations and greater oversight across the industry.

Transparency and regulation: How are they to mix?

Regulation is essential for the crypto industry to grow and be seen as legitimate. As more institutional investors show interest in digital assets, the need for clear and consistent rules also increases. Otherwise, they won’t feel confident about exploring new waters, never knowing when they might draw the ire of one watchdog or another.

With this in mind, a good regulatory framework should strike a balance between fostering innovation that comes with blockchain technology and protecting consumers, thus helping crypto gain broader acceptance.

Places like the Middle East, Singapore, and the European Union are already setting the pace with progressive regulations. For example, in April 2023, the European Union rolled out the Markets in Crypto-Assets Regulation framework, aiming to create a unified approach to crypto regulation across its member states. Around the same time, Hong Kong introduced a new licensing system for virtual asset service providers, requiring them to get a license from the Securities and Futures Commission.

Among the recent examples, the Monetary Authority of Singapore decided to tighten its AML/CFT regulations and introduce new requirements for crypto service providers. And the UK is also taking steps to get in on the action. In 2023, the government passed the Financial Services and Markets Bill, empowering itself to regulate crypto assets and stablecoins.

All these efforts are undeniably important for building trust, legitimizing the crypto market, and paving the way for mainstream adoption of digital assets.

However, making transparency a unified standard on a global scale is no small feat that is difficult to achieve. The borderless nature of crypto complicates things, requiring international cooperation in order to create comprehensive regulations. However, this cooperation is still fragmented as different regions interpret regulations in their own ways, making it tough for crypto firms to navigate multiple jurisdictions.

Barriers like these hinder innovation and growth in the industry, which is why improving regulatory consistency and collaboration will be crucial going forward.

Improving transparency, one company at a time

While global regulation remains a work in progress, that doesn’t mean individual companies can’t already take steps to boost trust in the market. How can they do it? The most straightforward way for them is to maintain open communication about their financial status and operations.

When stakeholders get timely and accurate information, it helps build credibility and ease fears among concerned parties. This is how users and investors can separate legitimate businesses from questionable ones.

It bears mentioning that the crypto media, unfortunately, tend to focus on the negative side of things—scandals, hacks, or overhyped coin offerings. On the one hand, it’s not hard to see why: such news attracts a lot of attention and readers, which is beneficial for media outlets. However, it also means that legitimate innovations often get overshadowed, and the industry faces a lot more skepticism that could be avoided.

This is why it’s important for crypto companies to proactively engage with the media and use various communication channels to share accurate information. Raising awareness of the public about the positive developments in crypto can build trust and make the industry overall less intimidating. By taking this course of action, companies can establish themselves as credible parties in the market, which, of course, would only be beneficial for their operations.

As far as what actual methods they can employ, there are several key ones to highlight. Firstly, by engaging with the media, companies can highlight achievements, innovations, and internal processes. This gives them a proper foundation that people can see and believe in. Secondly, businesses can promote their leadership through interviews and public appearances during industry events, showcasing their expertise and positioning themselves as thought leaders in the market. Lastly, by maintaining active social media profiles, companies can provide regular updates to their user base whenever something important comes up. Direct interaction with the target audience is also a powerful way to showcase a company’s openness.

The details of these approaches can differ depending on each company’s goals and how willing it is to be open with the public. The journey toward transparency is a complex one, and not all companies are ready for it from the get-go. It often takes time for the top management to build up to this point and achieve the necessary mindset, but these efforts are vital for the industry’s growth and maturation.

A transparent future is a trustworthy future

As the crypto market continues to evolve, ongoing efforts to enhance transparency and educate the public will be crucial in legitimizing this industry and driving mainstream adoption. Guardrails and restrictions will be necessary to protect consumers and ensure wider public acceptance.

In the long run, by combining effective communication with robust regulatory collaboration, the crypto industry can grow stronger and capture the interest of the global audience.

This article was co-authored by Su Carpenter and Valentina Drofa.

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Developer shortage in the crypto space is where the real problem lies | Opinion

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There’s a silent threat lurking beneath the surface—a developer shortage. While the crypto world thrives with a vibrant community of traders and enthusiasts, the developers who build the onchain products that drive long-term value are rare. Without a robust developer base, crypto’s potential to achieve mass adoption is significantly reduced.

Most people aren’t interested in trading or hyper-financial products—they want solutions that make their lives easier, more efficient, and more secure. We need builders who can create sustainable, long-term-focused products that go beyond short-term hype and speculation to achieve this. For crypto to reach mainstream adoption, blockchain technology must disrupt industries beyond just finance.

Here’s a brutal truth: crypto has roughly 1,000 times fewer developers than traditional tech. As of 2024, Electric Capital’s Developer Report indicates 26,037 monthly active web3 developers globally. In contrast, estimates from Evans Data Corporation and International Data Corporation suggest there are around 27 million developers worldwide, with GitHub reporting approximately 100 million active developers. This stark disparity highlights a significant problem: the crypto space lacks the developers needed to build the wide range of applications required for mainstream adoption.

Consider the example of Base, a project that has prioritized creating a developer-friendly environment. By providing a comprehensive suite of tools, documentation, and resources, Base simplifies the process of building onchain. This approach has attracted numerous developers, both experienced and junior, who are already working on a wide range of decentralized applications and tools. Base’s success demonstrates the powerful impact a vibrant developer ecosystem can have on crypto’s growth and adoption with a more mainstream audience. When developers are empowered with the right tools and incentives, they can create applications that will bring millions of users into the crypto ecosystem.

Developer shortage is the real pain

The shortage of web3 developers stems from several challenges. One major issue is the “cold start problem” in crypto. It would be easier to onboard new developers if they were already onchain users.  However, to onboard them as users, we need a broader range of apps beyond just financial use cases, and creating these apps requires more developers.

Another challenge is the perception of risk associated with becoming an onchain developer. Crypto is still viewed by many as a shady, unregulated area linked to scams and market volatility. Additionally, the lack of job security and clear career paths makes it a less appealing option compared to more stable, established fields. Consequently, the crypto industry tends to attract younger developers who have less to lose, while experienced professionals remain cautious about the potential risks.

In my personal opinion, building onchain is far more fun than building online, but this isn’t always apparent to developers from the outside. To them, crypto can seem dominated by financial products, shady projects, and complex technology, leaving little room for meaningful and impactful work.

So the question arises: How can we make building in crypto more attractive?

To address this developer shortage, the industry has leaned heavily on grants and hackathons. While these are valuable tools, they often result in crypto companies competing for the same limited group of existing crypto developers instead of working together to bring more builders onchain. Hackathons, while exciting and full of potential, are typically one-off events that don’t provide the long-term support developers need to sustain their projects. Grants are often too bureaucratic and centralized, with lengthy application processes and strict requirements that can be discouraging for new builders. 

Universal builder income is a new way

What if we could offer developers a more consistent and reliable way to make ends meet? This is where universal builder income comes in. UBI, an idea pioneered by Base and coined by Jesse Pollak, represents a novel approach to distributing financial incentives to builders more efficiently. By “builder,” I’m referring to all people directly involved in shipping software, not exclusively developers.

Think of UBI as a regular paycheck for new onchain builders—one that doesn’t require an application process but instead rewards actual contributions and verified reputations. We’re already seeing the early stages of UBI in action. For example, Drips Network—a decentralized toolkit aimed at funding essential software dependencies—is exploring how to distribute financial incentives more effectively and at scale.

For crypto to succeed, we need more builders. UBI offers a way to attract more builders onchain by acknowledging and supporting those who are committed to shipping great software. By providing a safety net, UBI empowers developers to focus on creating innovative solutions rather than worrying about their next paycheck. Additionally, UBI can further decentralize the crypto ecosystem. By distributing financial incentives directly to individual builders, we can reduce the reliance on centralized entities and foster a more equitable distribution of rewards. Eliminating intermediaries ensures that value flows directly to the edges of the network, prioritizing new over established builders.

Critics might question, “Who funds this?” However, we’re already investing substantial resources to attract developers, much of which is wasted on inefficient corporate strategies like employer branding or arbitrary sponsorships and events. By contrast, imagine a future where a portion of profits or ecosystem transaction fees automatically supports a UBI pool, rewarding those who are actively building the future of crypto.

UBI isn’t just about efficiency—it also has the potential to attract a more diverse group of developers, including those from underrepresented backgrounds. By providing financial incentives directly to individuals rather than startups, UBI fosters a more inclusive and experimental environment, unlocking a new wave of creativity and innovation. This approach can bring a variety of global perspectives, leading to more diverse solutions and driving crypto adoption in novel ways. Talent is everywhere, so the next big breakthrough could come from anyone, anywhere.

Anu Atluru talks about “The Rise of the Software Creator,” and it paints a beautiful picture: a future where anyone can be a builder. With AI making shipping software easier, we’ll see a wave of “low-code builders that specialize in concept, creativity, and distribution more than in technical prowess.” UBI fuels this movement by giving these software creators the freedom to experiment and chase their ideas. With more builders empowered, we can expect an explosion of apps that go beyond tooling—they become art, games, and experiences that enrich our lives.

It’s action time for crypto leaders

UBI is a transformative concept with various potential implementations. It represents a value system and worldview, offering a general direction rather than an exact recipe.

To the crypto leaders reading this: it’s time to start your own UBI experiments. Explore different funding models, evaluate their effectiveness, and share your insights with the community. The more we experiment, the closer we get to realizing universal builder income.

The crypto industry stands at a crossroads. We can either maintain the status quo or innovate to create a more resilient and inclusive ecosystem. By supporting builders through initiatives like UBI, we can ensure that the next generation of software creators has the tools and resources they need to succeed. The road to mass adoption doesn’t lie with traders but with the builders who will develop the applications and services that integrate crypto into the daily lives of billions.

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Shaping the future of crypto: Regulation and collaboration are the key | Opinion

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The rise of cryptocurrency and blockchain technology has opened new avenues for financial innovation, with digital token payments emerging as a transformative force in this evolution. However, for the crypto space to truly flourish—especially in payments—the regulatory environment must be conducive to growth while safeguarding consumer interests. 

Cryptocurrencies thrive on innovation, but without clear and consistent regulations, this innovation risks being stifled or, at the very worst, descending into chaos. An ideal regulatory environment strikes a balance between protecting consumers and fostering innovation. Regulations should be clear, consistent, and applicable across global jurisdictions to prevent regulatory arbitrage and ensure that businesses can operate confidently within a legal framework.

The importance of balanced regulation has been underscored by recent developments in regions such as the European Union, where the Markets in Crypto-Assets Regulation has set a precedent for global regulatory standards. MiCA’s comprehensive approach is already influencing regulations in the UK and Singapore, where authorities are developing frameworks that emphasize both consumer protection and industry collaboration​.

The digital token payment industry faces significant challenges, including regulatory uncertainty, inadequate infrastructure, and even distrust from some areas of the public. These barriers prevent the widespread adoption of crypto payments and slow the development of the broader web3 ecosystem. Both consumers and businesses are hesitant to fully embrace crypto payments without assurance that their transactions are secure and compliant with local laws.

Barries for financial inclusion

Recent statistics underscore the urgency of addressing these barriers. As of 2024, global cryptocurrency ownership has surged to 562 million, a 34% increase from the previous year​. However, this rapid growth has also highlighted the need for robust fiat-to-crypto on-ramps and other infrastructural developments.

Services such as fiat-to-crypto on-ramps act as a bridge between traditional finance and the digital token space, making it easier for users to obtain access to digital assets. Platforms such as Mercuryo play a crucial role in this ecosystem. The presence of multiple crypto-to-fiat, on-ramp providers is essential to mitigate risks such as technical issues or coverage gaps that could disrupt transactions and lead to deposits being rejected. By leveraging diverse solutions, the ecosystem remains resilient, offering users a seamless experience across different platforms. 

Ultimately, collaboration between the cryptocurrency industry and regulators is vital for developing frameworks that encourage innovation while ensuring security and trust. Recent events, such as the Consensus 2024 conference, have highlighted the growing alignment between institutional investors and regulators in the US, where there is increasing optimism about the future regulatory landscape​.

Crypto payments have the potential to significantly enhance financial inclusion, particularly in Latin America. According to World Bank data, approximately 122 million people in Latin America  (approximately 26% of the population) were still unbanked in 2021. Where access to traditional banking services is limited, digital token payments offer a way to participate in the global economy. This capacity is enhanced by the wide penetration of smartphones and mobile applications in regions such as Latin America, where the smartphone adoption rate is expected to reach 92 percent by 2030, up from approximately 80 percent in 2023, according to Statista. Stablecoins transferred on mobile apps represent a disruptive technology to traditional money transfer services that are laden with expensive fees and charges.

For regulators and stakeholders in the Global North, financial inclusion should be a priority. A more inclusive financial world aligns not only with ethical considerations but also with broader goals of economic development and global stability. By fostering crypto adoption in the Global South, stakeholders in the Global North can drive innovation and economic growth, benefiting the global economy as a whole. This interconnectedness makes it crucial for stakeholders to support regulatory frameworks that promote financial inclusion through crypto payments.

Crypto adoption as a solution

Even in Europe, cryptocurrency adoption is increasingly recognized as a powerful tool for enhancing financial inclusion, particularly in regions and demographics that have been underserved by traditional banking systems. With over 49.2 million cryptocurrency owners in Europe as of 2024, representing a 60.3% increase from the previous year, there is growing evidence that digital currencies are playing a significant role in broadening access to financial services even in the developed world​.

One of the key factors driving this trend is the region’s robust regulatory environment. The EU’s MiCA, which came into effect in 2024, is setting global standards for the crypto industry by providing clear guidelines that enhance market integrity and boost investor confidence. MiCA is expected to serve as a model for other jurisdictions, fostering a secure and inclusive environment for the growth of crypto assets across Europe​.

In addition, the World Economic Forum highlights that the growing digital finance ecosystem in Europe, supported by blockchain technology, is opening up new opportunities for financial inclusion. Digital assets and blockchain technology are enabling more efficient, low-cost financial services, which can be particularly beneficial for Europe’s unbanked or underbanked populations. This is especially relevant in Eastern Europe, where access to traditional banking services has historically been limited​.

Financial inclusion through the adoption

For regulators and stakeholders in Europe, the focus should be on continuing to support regulatory frameworks that promote financial inclusion through the adoption of digital assets. This approach not only aligns with the EU’s broader economic development goals but also positions Europe as a leader in the global push towards a more inclusive financial system.

For the average person, the evolution of digital token payments and the regulatory environment around them might seem abstract. However, the implications could soon impact daily life in meaningful ways.

Imagine being able to send money across the world instantly, with low fees and no concerns about exchange rates or bank delays. As crypto payments become more mainstream and regulatory frameworks mature, these transactions will become safer and more accessible. This shift means more people can enjoy the benefits of digital currencies without the fear of losing their money to scams or technical glitches.

The ongoing efforts to clarify and enhance the regulatory environment, as seen in the EU’s MiCA framework and similar initiatives, are paving the way for broader adoption and integration of crypto into daily life. As these frameworks are implemented, the average user will likely experience a more stable and secure crypto environment​.

In regions with limited access to banking, crypto payments could be transformative, providing a gateway to global financial markets and opportunities that were previously out of reach. As the cryptocurrency industry continues to evolve, the importance of a regulatory environment that encourages innovation while protecting consumers cannot be overstated. Overcoming existing barriers to growth requires collaboration between the industry and regulators, with a focus on building trust and facilitating adoption. Additionally, the potential for digital token payments to drive financial inclusion globally should be a key consideration for stakeholders.

By working together, the cryptocurrency industry and regulators can shape a future where digital token payments are not just a niche innovation but a mainstream financial tool that benefits everyone—especially those looking for a better, more inclusive way to manage their finances.

This article was co-authored by Max Zheng and Pascal Kurzawa.

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DeFi

SocialFi, web3, and UX: Cracking the trillion dollar creator economy | Opinion

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SocialFi is a web3 industry attempt at solving the problem of monetizing digital content—the genuine issue affecting millions of talented creators worldwide.

From the perspective of daily users, it might be hard to see creators struggling. However, despite producing quality content daily, the overwhelming majority do not make any money at all. Many SocialFi projects have been launched in the last couple of years, aiming to solve this very monetization part by rewarding every digital interaction for both creators and users. Unfortunately, most seem to have missed the mark by leaning too heavily on aspects of decentralization rather than offering real-world solutions to existing problems. 

The origins of mass interest in this space occurred during the pandemic lockdowns. With the idea of pursuing a passion-based career becoming more mainstream, the future of social monetization was catapulted into a new growth phase. This was also a time when the crypto industry saw a mass influx of retail investors, with industry narratives steering towards building pragmatic, real-world solutions. This led to significant advancement in the SocialFi movement, and plenty has been achieved since then in terms of on-chain innovation, tokenized community governance, integration of NFTs, and other DeFi products that authentically bridge issues around creator monetization and user rewards. 

Yet, as a sector claiming to be the future of the trillion-dollar creator and freelancer economy, the modest market cap of SocialFi tokens is over $2 billion. This indicates that the sector has a long way to go in establishing itself into a global financial ecosystem. Contrast this with DeFi’s market cap (around $70 billion) or even of NFTs (around $62 billion), and it’s clear that SocialFi has a long road ahead. 

Thankfully, there are signs that SocialFi platforms and the utility tokens that power them have a bright future. This is seen in the significant volume of new users willing to join a newly launched SocialFi platform. Sure, many of these users are only there for the free rewards, but that’s the current norm for web3, whether they like it or not.

The benefits of SocialFi

To benefit from such early user traction, builders in SocialFi must be real with themselves when designing a product. The reality is that very few creators care about (or will even benefit from) decentralized content ownership or on-chain proof of IP rights. Although this is a USP widely marketed in web3, it only benefits the top 1% of celebrity creators in the world. 

What about the masses? What USP will win their attention and loyalty? The answer to this holds the solution for how SocialFi platforms can finally win market share from Big Tech’s platforms, and central to this is building hybrid ecosystems. This means fusing blockchain features (such as tokenization) with non-blockchain architecture, providing an intuitive and seamless user experience for the masses. 

While DeFi and blockchain technologies have a variety of clear benefits and value, mass adoption won’t happen if web2 users are required to get past the web3 wall of creating a digital wallet, store a 20-word seed phrase, and interact with an unfamiliar user experience. If creating an account is harder than starting an Instagram account, you’ve already lost 95% of all potential users. From a user experience standpoint, people cannot be held back by the intimidating web3 gates. 

Appealing to the masses

The winners in this space will focus on the narrative that appeals to the masses, building a community of real creators, empowering them with web3 education, and implementing real-world token utility into a seamless user experience. That’s the formula for SocialFi’s success. 

Without a doubt, the SocialFi community is tackling these challenges, and 2024 remains a crucial year for projects in this space. The current wave of innovation is the most exciting one, as projects roll out user-centric features that focus on user experience and build upon the value that traditional platforms have already created for the creator community. Tokens matter, but as a secondary driver of growth, and should only exist as a medium to enhance the user experience. This realization will shape the sector moving forward.

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Theo Crypto News

Công nghệ

Gaming blockchains dominate the industry, and their number will grow | Opinion

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Gaming remains a key driving force behind web3, accounting for nearly one-third of dApps’ daily active audience. Its evolution is fueled by market demand: as millions of users embrace GameFi, blockchain games struggle to handle the load—and build new solutions like game-oriented blockchains to meet growing needs. This further simplifies UX and user onboarding, which will inevitably attract a wave of new players—sparking further growth in the number and quality of gaming-first blockchain networks.

How the idea for gaming blockchains popped up

Blockchain gaming is growing at a record pace. In May 2024, the number of daily unique active wallets in the industry hit the three million mark, setting a new all-time high. Just two months later, GameFi’s dUAW reached a new ATH of four million. It is roughly one-third of the daily users in the entire dApp market, which amounts to 15 million.

It wasn’t always that way. In the early days of Ethereum (ETH), blockchain games were mainly a niche for geeks who were so enthusiastic that they were ready to put up with numerous inefficiencies and poor user experience. Developers realized the ecosystem couldn’t grow like this: constant congestion crises plagued GameFi, forcing users to wait hours for their transactions to be approved, sometimes paying tens of dollars in fees. It became apparent that gaming blockchains had to become more scalable.

Another issue with building games on Ethereum L1 was the lack of control over the development process and the inability to adapt the network to the games’ needs. This led game studios to the idea of creating dedicated and GameFi-oriented blockchains.

The gaming chain pioneers

One of the first blockchains built with scalability in mind was WAX. In 2017, it was initially conceived to make e-commerce transactions faster, but then gained a strong gaming focus: today, WAX closes the top ten gaming blockchains by daily active wallets with 132,000 dUAW and partners with Amazon Prime Gaming and Epic Games Store. 

Many GameFi-oriented L1 blockchains have appeared since then, but one of them stands out—Ronin. By 2020, Sky Mavis, a company known for creating the pioneering Axie Infinity game, shifted to building an L1 ecosystem rather than just a specific game title. The studio migrated its leading games, Axie Infinity and Pixels, to Ronin and focused on developing the network.

The team released Ronin’s testnet roughly two years before Ethereum’s Merge, when scaling plans for the industry’s largest dApp network were still vague. At the time, Ethereum was still leveraging the PoW consensus algorithm, so Ronin’s proof-of-authority and later delegated proof-of-stake were a breakthrough—they reduced energy consumption to near zero and introduced faster block times and transaction fees below $0.001.

Ronin’s efforts have paid off. Today, the ecosystem features 15 games and promises that more are coming. In June 2024, the number of daily active users on the network surpassed that of any other blockchain, including Tron and Solana, reaching the two million mark.

The launch of GameFi-oriented blockchains boosted the industry but didn’t solve all of its problems. Building a dedicated blockchain is time-consuming and expensive, and it doesn’t allow devs to quickly integrate all the innovations that pop up along the way. That’s why the industry players have turned their attention to Layer-2 and Layer-3 infrastructure.

Exploring the potential of new layers for gaming

Soon after Ronin was launched, Ethereum embarked on its journey toward scaling. Optimism, Arbitrum, and other L2s emerged, significantly reducing gas fees and increasing throughput in the Ethereum ecosystem. Some of these networks took steps to strengthen GameFi, adapting their infrastructure for game developers.

The next step in this evolution was the emergence of L3 networks—and this is where it gets really exciting. They cut the block time to 100-300 ms and achieved near-instant transaction finality, opening the way to processing thousands of transactions per second (compared to Ethereum L1’s 12-15 TPS). In addition to the drop in block time and transaction fees, the simplicity of deploying L3s and their customizability created unparalleled opportunities for game development within the Ethereum ecosystem.

Gaming-focused L3s leverage the recent web3 innovations to take the blockchain gaming experience to the next level. For example, PlayBlock, a GameFi L3 blockchain that runs on top of Arbitrum Orbit, uses account abstraction to remove multiple transaction approvals, ensuring uninterrupted gameplay. Relayer technology allows the network to sponsor users’ transactions, introducing a completely gasless experience for players. Self-custodial wallet based on the ERC-4337 standard eliminates the seed phrase and private key management hassle. 

Simply put, gamers on the newest L3s don’t need to manage their wallets, confirm multiple transactions, and pay gas fees. This removes all the complexities typically associated with blockchain gaming, making it accessible to millions of web2 natives who were previously put off by GameFi.

More gaming blockchains are to come 

L2/L3 chains are a priority for GameFi-oriented developers today as they ensure unprecedented scalability and customizability. Another perk is the speed of innovation they can afford: large networks like Ethereum can’t implement groundbreaking changes quickly, while smaller ecosystems have the flexibility to do so.

Corporations give another boost to the industry as some of them are tapping into gaming networks: Sony Group recently announced the launch of Soneium blockchain, an Ethereum Layer-2 focused on security and user-friendly gameplay. It’s quite possible that we will soon see similar blockchains from Ubisoft, Rockstar, or Epic Games, considering Ubisoft’s plans for web3.

Compared to L1 solutions, L2s and L3s require much less effort to launch. For instance, there are rollup-as-a-service solutions that allow for the quick launch of new customizable L3 networks. Thanks to the interest of major players and existing infrastructure, we are likely to see the birth of new gaming-focused blockchains soon, allowing GameFi to go mainstream.

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