CoinWorld reported:
“Mass Adoption” has become the most frequently mentioned phrase during this year’s Token2049, and unlike past contexts associated with “beautiful visions,” this time the term carries a sense of urgency in the market—only “To C” can save the market.
Written by: Wu Tianyi, DeThings
Once again, Singapore hosts Token2049, where the Merlion remains a familiar sight. However, unlike previous events, this year’s gathering occurs against a stark backdrop of industry challenges. “Mass Adoption” has emerged as the most frequently used phrase, and its renewed mention in the current market context suggests a pressing need—only “To C” can rescue the market.
The market environment is becoming increasingly severe. The previous cycle showed poor performance, leading liquidity providers to adopt a more cautious stance towards risk, with venture capitalists becoming stricter in their selection of entrepreneurs, further complicating financing efforts. Additionally, the listing requirements of exchanges are tightening, eroding industry confidence and causing project valuations to decline. Furthermore, user activity for Web3 projects has significantly decreased, and airdrop strategies have proven ineffective in retaining users.
In this context, project teams are gradually returning to real applications. To reach users, true applications must bridge the “last mile”—this applies both online and offline. It requires not only improvements in deposit and withdrawal processes and payment systems but also genuine engagement with offline stores covering ordinary users’ consumption scenarios.
The market is compelling project teams to revert to practical applications. During the conference, the Tada ride-hailing bot on Telegram was perhaps the closest Web3 application to “Mass Adoption,” encompassing real-life scenes. The reason for its use is simple: new users receive a free quota of 60 Singapore dollars and a subsequent 50% discount. However, using this bot requires connecting a crypto wallet and paying with USDT or TON.
For a “crypto person,” this is straightforward. But for other users, it necessitates registering for a crypto wallet, converting fiat currency into cryptocurrency, and then connecting the wallet to the application. Compared to other ride-hailing apps, which only require binding a credit card, how many users would be willing to “enter” the crypto world without any discounts?
In 2023, among 617 million global cryptocurrency holders, there is not merely growth but a saturation point. The industry faces a barrier akin to that presented by Tada—how to bring those who have never engaged with the crypto industry into the fold is key to Mass Adoption.
However, during this Token2049, one can observe an “invasion” of internet thinking into Web3, reflecting an emphasis on user-centric approaches. “Every additional interface a user clicks reduces their desire to consume by 20-30%,” a founder of a payment project told me in an interview. Another founder of a Depin project stated, “Users don’t care about which version of the web it is; we must first create a user-friendly product.” This consensus is prevalent in the internet industry, yet rarely heard in the Web3 domain.
Financial maneuvers alone are insufficient to satisfy the current market. As Ethereum founder Vitalik sheds the almost religious idolization, the Ethereum and DeFi sectors are experiencing a downturn. The traditional routes of attracting financing through white papers and PPTs are no longer viable; the industry urgently needs to return to practical applications.
Moreover, “Mass Adoption” requires not only bridging the “last mile” for users entering Web3 but also places higher demands on infrastructure development. Consequently, projects in tracks such as Depin, RWA, stablecoins, and payment systems are beginning to surge. Simultaneously, the savings, payment, lending, and investment represented by these sectors cannot remain isolated systems but must be closely integrated.
Industry giants are responding. By focusing on practical applications and user-centric thinking, an increasing number of industry leaders are engaging. One of the hot topics at this conference was Solana Foundation President Lily’s proposition of “PayFi,” which aligns with the “consumer applications” mentioned in Vitalik’s speech. The crux of PayFi lies in the processes of sending, receiving, and settling cryptocurrency rather than trading behavior. It emphasizes the “time value of money,” suggesting that due to opportunity costs and interest rates, current money holds more value than an equivalent amount received in the future.
PayFi aims to help users maximize the time value of money; for instance, “Buy Now Pay Never” utilizes that time value for payments, while creators can monetize and collect receivables through the time value of money.
This model genuinely moves away from a speculative-driven approach to cryptocurrency adoption. It encompasses not only cryptocurrency payments and trading but also lending, wealth management, and cross-border payments. Through decentralized technology, PayFi makes financial activities quicker, safer, and reduces friction and costs inherent to traditional financial systems, thus facilitating seamless value transfer and financial inclusion on a global scale.
This concept raises higher requirements for current blockchain technology. With transaction volumes surging, the Solana network may experience congestion, leading to slower transaction speeds. Moreover, Solana has only achieved 1.6% of its theoretical maximum speed of 65,000 TPS. Additionally, from January 2022 to February 2023, Solana experienced interruptions for seven out of thirteen months, with the longest downtime exceeding 24 hours. This year in February, Solana also faced an interruption. Such occurrences would be unacceptable for large banks or multinational payment networks in the current Web2 landscape.
Furthermore, achieving PayFi or “consumer applications” requires more than just online consumption; it necessitates bridging the physical “last mile.” For example, institutions like Visa and Alipay realize large-scale application scenarios where users can conveniently pay using Visa POS machines or Alipay QR codes in offline stores. Only when crypto applications reach the offline realm can mass adoption become feasible.
Indeed, to realize the true meaning of Web3 as the “next-generation internet,” merely using dApps or crypto credit cards for convenient payments online and offline is insufficient. Instead, users should see their cryptocurrencies stored on-chain and circulating unobstructedly while generating returns through lending projects, significantly reducing entry and exit frictions, all while preserving the original advantages of cryptocurrencies against centralization and immutability. Only then might cryptocurrencies demonstrate their appeal beyond mere “money laundering,” and Web3 may genuinely transition into the “future.”
When Bitcoin reaches $100,000, will our lives improve?
Reflecting on the inception of cryptocurrency, Bitcoin’s original vision was to create a peer-to-peer electronic payment system while countering centralized finance. However, over time, Bitcoin has transformed into a value storage system. The approval of Bitcoin ETFs has further fortified its financial attributes. If, in the context of a sluggish market, MEME coins represent retail speculation, then Bitcoin ETFs signify institutional speculation.
Yet, consider this question: if Bitcoin someday reaches the $100,000 mark, will financial inclusion be realized? Will our lives become more convenient? The future of Web3 must move away from the revelry of a few speculators and into the real world. The good news is that such a trend is gradually emerging, even if it takes ten years, twenty years, or until 2049.
At a Solana hackathon, a project founder shared this perspective: “The role of Web3 is to improve production relationships rather than increase productivity; in fact, Web3 may somewhat lower productivity.” This implies that for Web3 to achieve mass adoption and attract a portion of the remaining 6 billion people worldwide, it must not only retrace the path that Web2 has taken but also enact further transformations
