Written by: a16zcrypto
Translation: Ismay, BlockBeats
Some trends we are focusing on.
a16z has released a comprehensive list of "Major Ideas" for the coming year based on its partners' observations in AI, American vitality, life sciences/health, cryptocurrency, enterprise services, fintech, gaming, and infrastructure, aimed at inspiring technology builders.
Here are some key ideas shared by members of the cryptocurrency team; for more exciting content, please read the full article.
For insights on policy, regulation, and other outlooks for 2025, please refer to this article published in November.
1. Businesses will increasingly accept stablecoin payments.
In the past year, stablecoins have found product-market fit — this is not surprising, as stablecoins are currently the lowest-cost way to send dollars, enabling fast global payments. Furthermore, stablecoins provide entrepreneurs with a more convenient platform to develop new payment products: no intermediaries, minimum balance requirements, or exclusive SDKs. However, large enterprises have yet to realize the significant cost savings and new profit opportunities that switching to these payment rails can bring.
While we have seen some enterprises show interest in stablecoins (and early applications in peer-to-peer payments), I expect a wave of larger experimentation to come in 2025. Small to medium-sized enterprises (such as restaurants, cafes, and convenience stores) with strong brand influence, loyal customer bases, and facing high payment costs may lead the shift from credit cards to stablecoin payments. These businesses do not benefit from the fraud protection of credit cards (especially in face-to-face transactions), and the high transaction fees significantly impact their profits (30 cents per cup of coffee is a huge loss in profit).
We should also expect larger enterprises to start adopting stablecoins. If stablecoins can accelerate the evolution of banking history, then companies will attempt to disintermediate payment service providers — directly adding 2% to their bottom line. Additionally, businesses will begin seeking new solutions to address issues currently solved by credit card companies, such as fraud protection and identity verification.
——Sam Broner (X platform @sambroner | Farcaster platform @sambroner)
2. Countries exploring putting national debt on the blockchain.
Putting national debt on the blockchain will create a government-backed, interest-bearing digital asset while avoiding the regulatory privacy issues posed by Central Bank Digital Currencies (CBDC). Such products could provide a new source of collateral demand for lending and derivatives protocols in DeFi (decentralized finance), thereby adding more stability and credibility to these ecosystems.
As governments around the world further explore the advantages and efficiencies of public, permissionless, and immutable blockchains this year, some countries may pilot issuing on-chain national debt. For example, the UK has already explored digital securities through its sandbox project set up by the FCA (Financial Conduct Authority); the UK Treasury has also expressed its intention to issue digital bonds.
In the US, due to the SEC (Securities and Exchange Commission) planning to require clearing national debt through traditional cumbersome and costly infrastructure next year, more discussions are expected about how blockchain can enhance the transparency, efficiency, and participation of bond trading.
——Brian Quintenz (X platform @brianquintenz | Farcaster platform @brianq)
3. 'DUNA' will become the new industry standard for blockchain networks in the US.
In 2024, Wyoming passed a new law officially recognizing DAOs (Decentralized Autonomous Organizations) as legal entities. DUNA (Decentralized Unincorporated Nonprofit Association) is specifically designed to support decentralized governance for blockchain networks and is currently the only viable legal structure for projects in the US. By incorporating DUNA into the decentralized legal entity structure, crypto projects and other decentralized communities can give legal status to their DAOs — thereby promoting broader economic activities while protecting token holders from legal liabilities and properly addressing tax and compliance needs.
DAOs, as communities governing the affairs of open blockchain networks, are important tools for ensuring that the network remains open, fair, and avoids unreasonable value extraction. DUNA can unlock the potential of DAOs, and multiple projects are currently pushing for its implementation. As the US further supports and accelerates the development of its crypto ecosystem in 2025, I expect DUNA to become the industry standard for crypto projects in the US. Additionally, other states may follow suit, adopting similar structures (Wyoming was the first to lead this trend; they were also the first to adopt the now widely used LLC) — especially in light of the rise of other decentralized applications outside the crypto space (such as physical infrastructure/energy grids).
——Miles Jennings (X platform @milesjennings | Farcaster platform @milesjennings)
4. Developers will reuse infrastructure more rather than reinvent it.
Over the past year, teams have been continuously 'reinventing the wheel' in the blockchain technology stack — for example, developing yet another set of custom validators, consensus protocol implementations, execution engines, programming languages, and RPC APIs. These attempts may show slight improvements in certain specific functions, but often fall short in broader or foundational functionalities. For example, a programming language specifically designed for SNARK: ideally, this language could help top developers build more efficient SNARKs, but in practice, it may lag behind general-purpose programming languages (at least currently) in areas such as compiler optimization, development tools, online learning resources, and AI programming support, potentially leading to poor SNARK performance.
Therefore, I expect that in 2025, more teams will leverage existing成果, reusing ready-made blockchain infrastructure components — from consensus protocols and existing staking capital to proof systems. This approach not only helps developers save a significant amount of time and effort but also allows them to focus on creating the unique value of their products or services.
Today, the infrastructure required to develop Web3 products and services for the masses is essentially in place. Like other industries, the teams that ultimately succeed will be those that can effectively leverage complex supply chains, rather than those that scoff at 'non-self-developed' technologies.
——Joachim Neu (X platform @jneu_net)
5. The crypto industry welcomes dedicated app stores and content discovery channels.
When crypto applications are blocked by centralized platforms like Apple's App Store or Google Play, their user acquisition channels are limited. However, we now see some emerging app stores and markets offering distribution and content discovery capabilities without strict review processes. For example, Worldcoin's World App market — which not only stores verification information but also provides access to 'mini-apps' — brought hundreds of thousands of users to multiple applications in just a few days. Another example is the zero-fee dApp Store exclusive to Solana phone users. These cases also indicate that not only software but hardware (such as phones or verification devices) may become a key advantage for crypto app stores, just as Apple devices once propelled the early application ecosystem's growth.
At the same time, there are other stores containing thousands of decentralized applications and Web3 development tools (such as Alchemy) and blockchains serving as game publishers and distribution platforms (like Ronin). But this is not entirely an entertainment-focused ecosystem: if a product already has established distribution channels (like messaging apps), migrating it to the chain is not easy (with the exception of the Telegram/TON network). This is also true for applications with significant distribution advantages in the Web2 ecosystem. However, we might see more of such migrations occurring in 2025.
——Maggie Hsu (X platform @meigga | Farcaster platform @maggiehsu)
6. From holders to users: the transition of crypto users.
In 2024, the crypto sector achieved significant political progress, with many key policymakers and politicians expressing positive views on it. At the same time, crypto as a financial movement is also continuing to evolve (for example, Bitcoin and Ethereum ETPs have broadened investor participation channels). In 2025, crypto is expected to further develop into a movement of computational technology. But where will the next user base come from?
I believe it's time to reactivate those currently 'passive' crypto asset holders, converting them into more active users. Currently, only 5-10% of crypto asset holders are actively using crypto technology. We can bring the 617 million people who already hold crypto assets onto the chain, especially as blockchain infrastructure continues to improve and user transaction costs decrease. This means new applications will gradually emerge for existing and new users. At the same time, some of the early applications we've already seen — covering areas like stablecoins, DeFi, NFTs, gaming, social, DePIN, DAOs, and prediction markets — are starting to become more accessible to mainstream users, as communities increasingly focus on user experience and other optimizations.
——Daren Matsuoka (X platform @darenmatsuoka | Farcaster platform)
7. 'Hiding technical details' facilitates the birth of killer applications for Web3.
The technological advantages of the blockchain industry make it unique but also somewhat hinder mainstream user adoption. For creators and fans, blockchain technology offers new possibilities for connectivity, ownership, and monetization... however, industry jargon (like 'NFTs,' 'zkRollups,' etc.) and complex designs have become barriers for those who could benefit the most. I have felt this deeply in countless conversations with executives in media, music, and fashion about Web3.
The widespread adoption of many consumer technologies has followed a similar path: technology leads, followed by a signature company or designer abstracting the complexity, thus spawning breakthrough applications. Think back to the development of email — the SMTP protocol is hidden behind the 'send' button; or credit cards, where most users today do not care about the payment rails behind them. Similarly, Spotify's music revolution was not achieved by showcasing file formats, but by delivering playlists directly to users' fingertips. As Nassim Taleb said, "Over-engineering leads to fragility, while simplicity is scalable."
Therefore, I believe that in 2025, our industry will adopt the concept of 'hiding technical details.' The best decentralized applications have already begun to focus on more intuitive interface designs, making operations as simple as clicking a screen or swiping a card. In 2025, we will see more companies dedicated to clean design and clear communication; successful products do not need explanation; they directly solve problems.
——Chris Lyons (X platform @chrislyons | Farcaster platform)
Six major trends in decentralized governance for 2025.
2025 is expected to be an exciting year for decentralized governance. Decentralized Autonomous Organizations (DAOs) are continuously breaking through innovations, exploring new models for collective governance among anonymous token holders. Investment management companies are striving to persuade clients to participate more frequently in online shareholder voting. At the same time, AI companies are beginning to use citizen assemblies to set norms for large language models (LLMs). These efforts will prompt multiple decentralized governance experiments to unfold simultaneously, including:
Websites to help voters delegate their votes;
AI-assisted delegation mechanisms;
AI acting as an agent;
Smarter participation incentive mechanisms;
More efficient funding support for public goods;
More experiments in lottery governance.