Editor: OKG Research
In the blink of an eye, 2024 is coming to an end, and the Web3 industry has experienced an extraordinary year. This year is also destined to be an important one for AI. OKG Research has decided to team up with ChatGPT, the 'most insightful AI partner', to attempt to condense a whole year's worth of research content into highlights. We have invested over 40 research documents released by the institute this year to generate a special annual summary, reviewing this year's 8 industry keywords:
Pic Source from ChatGPT
In 2024, the cryptocurrency industry will undergo profound changes and transformations in the policy environment, technological innovation, and market evolution.
This year, with Bitcoin's fourth halving and its price surpassing $100,000, the cryptocurrency market has ushered in a new growth cycle, and investor confidence in blockchain technology has been further strengthened. At the same time, the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin spot ETF, accelerating the integration of crypto assets with the traditional financial system, marking an important step towards the mainstream market for crypto assets.
The global macro environment has also injected complex variables into the cryptocurrency industry. Trump's return to the White House has sparked widespread attention on the direction of U.S. cryptocurrency regulatory policy, with the market expecting a more lenient regulatory environment to unleash the industry’s potential.
In the technological field, innovations such as the integration of Web3 and AI, modular architecture optimization, and the popularization of Layer 2 network technologies have accelerated the large-scale implementation of blockchain applications, significantly enhancing user experience and privacy protection. The application scope of decentralized infrastructure is further expanding, with an increasingly close integration with the traditional economy.
Against the backdrop of market volatility and technological innovation, the cryptocurrency industry in 2024 shows dynamic changes from multiple dimensions, laying a new pattern and direction for future development.
01 Deepening Application of Tokenization
Tokenization reconstructs the storage, transfer, and settlement methods of assets by digitizing real assets. It breaks the complexity and barriers of traditional asset trading, bringing the value of finance, real estate, art, and other fields into the blockchain system, making asset circulation more efficient and transparent.
This technology will have a dual driving effect in 2024: on one hand, tokenization significantly expands the application boundaries of Web3, extending it from the digital-native field to the real economy, having a profound impact on traditional industries; on the other hand, the recognition of tokenization compliance in multiple countries and regions (such as Hong Kong and Singapore) provides clear legal and policy support for financial institutions, promoting more traditional capital to enter the Web3 field.
Furthermore, with the development of technology invisibility, tokenization products have become more user-friendly, allowing ordinary users to perform complex asset operations through simple interfaces. Tokenization serves as a bridge between Web3 technology and the real economy, and is key to promoting large-scale user adoption and practical applications.
02 The Technological Integration of Web3 and AI
The integration of Web3 and AI has become an important direction for technological innovation in 2024, with the core aim of solving key challenges in the Web3 ecosystem through intelligent means, including the balance between decentralization, security, and scalability. The introduction of AI significantly enhances the user experience and technical efficiency of Web3.
On the technical level, AI Agents optimize cross-chain interaction, solving the 'island effect' of on-chain assets and data flow. Additionally, AI enhances the security of on-chain transactions through real-time monitoring and data analysis, helping users avoid potential risks. In terms of user experience, AI makes complex blockchain interactions more intuitive. In the future, users will be able to perform cross-chain operations and even deploy smart contracts using natural language without needing to understand the underlying technology.
AI plays an important role in promoting the construction of a trustworthy digital society. Its ability to protect data privacy combined with the transparency of Web3 provides a new trust mechanism for decentralized applications. This integration brings more application scenarios to the Web3 ecosystem while laying the foundation for the diversified development of the industry.
03 Bitcoin Spot ETF and the Financialization Process
The launch of the Bitcoin spot ETF is an important milestone for the cryptocurrency market in 2024, marking a new phase in the transition of crypto assets from 'technological innovation' to 'financialization.' It allows individual and institutional investors to access Bitcoin through traditional financial instruments, significantly lowering the technical barrier and enhancing market transparency and liquidity.
ETFs play an important role in promoting industry compliance. Their strict regulatory requirements (including asset custody, daily clearing, and market transparency) set a standardized example for the industry, attracting more traditional funds into the Web3 ecosystem. Globally, the policy game between the U.S. and Hong Kong regarding Bitcoin ETF regulation has attracted widespread attention, providing references for other countries and promoting the global financial system's acceptance of crypto assets.
Bitcoin spot ETFs are not only important products in the capital market but also a bridge for the integration of traditional finance and virtual assets, paving the way for the financialization of more crypto assets (such as Ethereum) in the future.
04 On-chain Data as a New Business Center
On-chain data, due to its transparency, verifiability, and openness, is regarded as an important asset in the Web3 ecosystem and a core driving force for business model innovation. Its public characteristic provides a strong trust foundation for users, developers, and regulators, reducing fraud risks and enhancing transaction transparency.
On-chain data provides technical support and commercial value for various Web3 fields such as DeFi and GameFi. Data analysis tools provide important references for project parties and investors by gaining insights into user behavior and predicting market trends. For example, by analyzing on-chain transactions, developers can more accurately discover user needs and optimize product design.
In the future, as the process of data assetization deepens, cross-chain data integration and privacy protection will become key directions. On-chain data, as an open resource, can reduce information asymmetry and promote fair competition, providing power for the continuous innovation of the Web3 industry.
05 Improvements in Modularity and Infrastructure
Modular design and infrastructure improvements are key to driving the large-scale implementation of Web3 technologies. The modular architecture decomposes blockchain functions (such as consensus, storage, execution) into independent modules, providing developers with greater flexibility and efficiency. Developers can focus on application layer innovation without the need to repeatedly build underlying infrastructure.
In terms of scalability, Layer 2 (L2) technologies such as ZK-Rollups and Optimistic Rollups significantly improve transaction throughput and reduce costs by moving most transactions off-chain. These technologies provide fundamental support for high-frequency application scenarios such as DeFi and NFT trading.
Moreover, zero-knowledge proof (ZK) technology stands out in privacy protection and security enhancement. By verifying without disclosing specific data, ZK technology has broad application potential in sensitive data processing scenarios. The improvements in modularity and infrastructure not only enhance development efficiency but also promote industry standardization, laying the foundation for future large-scale user growth.
06 The Revival of Web3 Games and the Concept of Web2.5
The revival of Web3 games in 2024 indicates that decentralized technology is reshaping the entertainment industry. The Web2.5 concept combines the high-quality experience of traditional games with the economic incentive models of Web3, lowering the barriers for ordinary users to transition from Web2 to Web3.
Web3 games achieve asset verification and trading within the game through NFT and tokenization mechanisms, creating substantive economic value for players. Meanwhile, the application of AI technology in dynamic NPC design and content generation makes games more creative and interactive.
The commercial potential in this field is immense. Game developers are driving the evolution of games from 'play-to-earn' to 'play games and earn money' through refined operations and long-term community building. Web3 games are not only the core track for user growth but also an important exploration direction for the commercialization of the Web3 ecosystem.
07 The Balance and Innovation of Market Regulation
Market regulation is a guarantee of the healthy development of the Web3 industry and a balance point between technological innovation and user protection. A clear regulatory framework lowers the barriers for traditional financial markets to participate in Web3, attracting more institutional capital.
Policy differences between regions have brought about competition and innovation opportunities. For example, the U.S. promotes industry transparency through strict regulation, while Hong Kong adopts more flexible policies to attract global crypto companies. The collaborative development of technology and regulation, such as on-chain privacy protection and compliance for cross-chain transactions, is an important direction for the future.
A global trend of regulation is forming, and cross-border collaboration will further promote the standardization and stability of the Web3 industry. Regulatory innovation is both the foundation for market development and provides space for the industry to explore new business models.
08 Expansion of Decentralized Infrastructure Applications
Decentralized infrastructure is transforming the operational models of traditional industries through optimized resource allocation and transparency. In logistics, energy, and other fields, decentralized technologies reduce intermediaries through smart contracts and peer-to-peer transactions, improving operational efficiency.
Users in decentralized networks are both service consumers and resource contributors. By directly participating in governance and resource allocation, user stickiness and satisfaction are enhanced. This model not only lowers the entry barrier for infrastructure but also provides technical support for building a trustworthy society.
With the improvement of cross-chain communication protocols and the advancement of technological standardization, the application scope of decentralized infrastructure will further expand, creating more possibilities for innovation in various fields of society.
2025 Takes Flight
In 2025, the Web3 industry will enter a stage of accelerated integration of large-scale, intelligence, and standardization.
The deep integration of AI and Web3 will optimize user experience and technical efficiency, with modular architecture, zero-knowledge proof, and cross-chain technology being fully popularized, providing efficient support for multi-chain ecosystems.
Tokenization applications will expand to more traditional assets, accelerating the commercialization of on-chain data and driving the transformation of the global digital economy. Meanwhile, Web3 games and content economies are booming, with significant growth in emerging market users.
The policy environment will show diversified development. The direction of the Trump administration's cryptocurrency policy may trigger global regulatory competition, while Asia and the EU will attract industry innovation with a strategy of both leniency and regulation.
Capital flows are concentrated on leading projects, with industry consolidation coexisting with entrepreneurship. User experience has significantly improved due to friendly design and intelligent interaction, and the decentralized social services will also begin to take shape.
In 2025, Web3 will move from technological exploration to the deep integration of actual economies and social structures.
