Editor: OKG Research
As 2024 draws to a close, the Web3 industry has experienced an eventful year. This year is destined to be significant for AI as well. OKG Research has decided to partner with ChatGPT, the "most insightful AI partner," to condense a year's worth of research into its essence. We have invested over 40 research documents released by the institute this year, generating a special annual summary that reviews eight key industry keywords from this year:
Pic Source from ChatGPT
In 2024, the crypto industry undergoes profound changes and transformations in policy environment, technological innovation, and market evolution.
This year, with Bitcoin's fourth halving and its price surpassing $100,000, the cryptocurrency market is entering a new growth cycle, further strengthening investors' confidence in blockchain technology. Meanwhile, 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 crypto industry. Trump's return to the White House has sparked widespread interest in the direction of U.S. crypto regulatory policies, with the market hoping for a more relaxed regulatory environment to unleash industry potential.
In the technical field, the integration of Web3 and AI, optimization of modular architecture, and proliferation of Layer 2 technologies are accelerating the large-scale application of blockchain, significantly enhancing user experience and privacy protection. The application scope of decentralized infrastructure is further expanding, becoming increasingly intertwined with the traditional economy.
In the context of market volatility and technological innovation, the crypto industry in 2024 exhibits dynamic changes from multiple dimensions, laying a new pattern and direction for future development.
01 Deepening applications of tokenization
Tokenization reconstructs the storage, transfer, and settlement methods of real assets by digitizing them. 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 has a dual driving effect in 2024: on the one hand, tokenization significantly expands the application boundaries of Web3, extending it from digital-native fields to the real economy, having a profound impact on traditional industries; on the other hand, the recognition of tokenization compliance by 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, as the invisibility of technology develops, tokenized products become more user-friendly, allowing ordinary users to complete complex asset operations through simple interfaces. Tokenization is not only a bridge between Web3 technology and the real economy but also a 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. Its core is to address key challenges in the Web3 ecosystem, including the balance between decentralization, security, and scalability through intelligent means. The introduction of AI significantly enhances the user experience and technical efficiency of Web3.
At the technical level, AI Agents optimize cross-chain interactions, addressing 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 trusted 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 diversification of the industry.
03 Bitcoin spot ETFs and the financialization process
The launch of Bitcoin spot ETFs is an important milestone for the cryptocurrency market in 2024, marking a new stage in the financialization of crypto assets from "technological innovation." It allows individual and institutional investors to access Bitcoin through traditional financial instruments, significantly lowering the technical threshold and enhancing market transparency and liquidity.
ETFs play an important role in promoting industry compliance. Their strict regulatory requirements (including asset custody, daily settlement, and market transparency) set a standardized example for the industry, attracting more traditional capital into the Web3 ecosystem. Globally, the policy battle over Bitcoin ETF regulation between the U.S. and Hong Kong has garnered widespread attention, providing a reference for other countries and promoting global financial systems' acceptance of crypto assets.
Bitcoin spot ETFs are not only important products in the capital market but also serve as a bridge for the fusion 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 commercial center
On-chain data, due to its transparency, verifiability, and openness, is regarded as a crucial asset in the Web3 ecosystem and a core driving force for business model innovation. Its public nature provides a strong foundation of trust for users, developers, and regulators, reducing fraud risks and enhancing transaction transparency.
On-chain data provides technical support and commercial value for multiple 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 identify 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 momentum for continuous innovation in the Web3 industry.
05 Improvements in modularity and infrastructure
Modular design and infrastructure improvements are key to driving the scaling of Web3 technology. Modular architecture decomposes blockchain functions (such as consensus, storage, execution) into independent modules, providing developers with more flexibility and efficiency. Developers can focus on application layer innovations without having to rebuild underlying infrastructure.
In terms of scalability, Layer 2 (L2) technologies such as ZK-Rollups and Optimistic Rollups have significantly improved transaction throughput and reduced costs by moving most transactions off-chain. These technologies provide foundational support for high-frequency application scenarios such as DeFi and NFT trading.
Moreover, zero-knowledge proof (ZK) technology excels in privacy protection and security enhancement. By verifying without disclosing specific data, ZK technology has broad application potential in sensitive data processing scenarios. Improvements in modularity and infrastructure not only enhance development efficiency but also promote industry standardization, laying the groundwork 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 model of Web3, lowering the barriers for ordinary users to migrate from Web2 to Web3.
Web3 games achieve the confirmation and trading of in-game assets through NFT and tokenization mechanisms, creating substantial economic value for players. Meanwhile, the application of AI technology in dynamic NPC design and content generation makes games more creative and interactive.
This field has immense commercial potential. Game developers are promoting the evolution of games from the "play-to-earn" model to the "play games and earn money" model 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 Web3 ecosystem commercialization.
07 The balance and innovation of market regulation
Market regulation is a guarantee for the healthy development of the Web3 industry and a balancing point between technological innovation and user protection. A clear regulatory framework reduces barriers for traditional financial markets to participate in Web3, attracting more institutional capital.
Policy differences between regions bring competition and innovation opportunities. For instance, the U.S. promotes industry transparency through strict regulation, while Hong Kong adopts more flexible policies to attract global crypto enterprises. The collaborative development of technology and regulation, such as on-chain privacy protection and compliance in cross-chain transactions, is an important direction for the future.
A global regulatory trend is forming, and cross-border collaboration will further promote the standardization and stability of the Web3 industry. Regulatory innovation serves as both a foundation for market development and provides space for the exploration of new business models.
08 Expansion of decentralized infrastructure applications
Decentralized infrastructure is transforming traditional industry operating models by optimizing resource allocation and transparency. In logistics, energy, and other sectors, decentralized technologies reduce intermediaries through smart contracts and peer-to-peer transactions, enhancing operational efficiency.
Users in decentralized networks are both service consumers and resource contributors. By directly participating in governance and resource allocation, user engagement and satisfaction are enhanced. This model not only lowers the entry barrier for infrastructure but also provides technical support for building a trustworthy society.
As the cross-chain communication protocol improves and technological standardization progresses, the application scope of decentralized infrastructure will further expand, creating more possibilities for societal innovation in multiple fields.
Rising with the wind in 2025
In 2025, the Web3 industry will enter a stage of accelerated integration of scaling, intelligence, and standardization.
The deep integration of AI and Web3 will optimize user experience and technical efficiency, with modular architecture, zero-knowledge proofs, and cross-chain technology being widely adopted to provide efficient support for multi-chain ecosystems.
Tokenization applications will expand to more traditional assets, accelerating the commercialization of on-chain data and promoting the transformation of the global digital economy. Meanwhile, Web3 games and the content economy are experiencing explosive growth in emerging market user acquisition.
The policy environment will show diversified development. The direction of the Trump administration's crypto policy may trigger global regulatory competition, while Asia and the EU will attract industry innovation with a strategy of both relaxation and regulation.
Capital flow is concentrated in top projects, with industry consolidation and entrepreneurship coexisting. User experience has significantly improved due to friendly design and intelligent interaction, while decentralized social services are beginning to take shape.
In 2025, Web3 will transition from technological exploration to the deep integration of actual economy and social structure.
