Written by: a16zcrypto
Translation by: Ismay, BlockBeats
Some trends we are focusing on.
a16z has released a comprehensive list of 'major ideas' for the coming year based on observations from its partners in areas such as AI, American vitality, life sciences/health, cryptocurrency, enterprise services, fintech, gaming, and infrastructure, aimed at inspiring tech builders.
Here are some important ideas shared by members of the cryptocurrency team; for more exciting content, please read the full article.
For insights on the outlook for policies, regulations, and more in 2025, please refer to the article published in November.
1. Enterprises will increasingly adopt stablecoin payments.
Over the past year, stablecoins have found product-market fit—not surprisingly, as stablecoins are currently the lowest-cost way to send dollars, enabling rapid global payments. Furthermore, stablecoins provide entrepreneurs with a more convenient platform to develop new payment products: no intermediaries, minimum balance requirements, or proprietary SDKs. Yet large enterprises have yet to realize the huge cost savings and new profit opportunities that switching to these payment rails would bring.
While we have already seen some companies express interest in stablecoins (and early applications in peer-to-peer payments), I expect a wave of larger experimentation to occur in 2025. Small and medium-sized enterprises (like restaurants, cafes, and convenience stores) with strong brand influence, loyal customer bases, and facing high payment costs may lead the way in shifting from credit cards to stablecoin payments. These businesses have not benefited from the fraud protection of credit cards (especially in face-to-face transactions), and the high transaction fees significantly impact their profits (a 30-cent fee on a cup of coffee is huge in terms of profit loss).
We should also expect larger enterprises to start adopting stablecoins. If stablecoins can accelerate the evolution of banking history, then businesses will attempt to disintermediate payment service providers—adding 2% profit directly to their bottom line. Additionally, companies will begin to seek new solutions to address issues currently tackled by credit card companies, such as fraud protection and identity verification.
——Sam Broner (X Platform @sambroner | Farcaster Platform @sambroner)
2. Countries exploring the on-chain issuance of government bonds.
On-chain issuance of government bonds would create a government-backed, interest-bearing digital asset while avoiding the regulatory privacy issues posed by central bank digital currencies (CBDCs). 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 the issuance of on-chain government bonds. For example, the UK has already been exploring digital securities through the sandbox project established by its financial regulator FCA (Financial Conduct Authority); the UK Treasury has also expressed intent to issue digital bonds.
In the US, as the SEC (Securities and Exchange Commission) plans to require the clearing of government bonds through traditional cumbersome and costly infrastructure next year, more discussions are expected on how blockchain could enhance the transparency, efficiency, and participation in bond trading.
——Brian Quintenz (X Platform @brianquintenz | Farcaster Platform @brianq)
3. 'DUNA' will become a new industry standard for US blockchain networks.
In 2024, Wyoming passed a new law officially recognizing DAOs (decentralized autonomous organizations) as legal entities. DUNA (Decentralized Unincorporated Nonprofit Association) is designed to support decentralized governance of blockchain networks, and is currently the only viable legal structure for projects in the US. By incorporating DUNA into the decentralized legal entity framework, crypto projects and other decentralized communities can grant legal status to their DAOs—thus facilitating broader economic activities while protecting token holders from legal liabilities and addressing tax and compliance needs appropriately.
DAOs, as communities governing open blockchain network affairs, are important tools to ensure networks remain open, fair, and avoid unreasonable value extraction. DUNA can unlock the potential of DAOs, with multiple projects 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 US crypto projects. Additionally, other states may follow suit, adopting similar structures (Wyoming has led this trend; they are also the first state to adopt the now widely used LLC)—especially with the emergence of other decentralized applications outside the crypto domain (such as physical infrastructure/energy grids).
——Miles Jennings (X Platform @milesjennings | Farcaster Platform @milesjennings)
4. Developers will reuse infrastructure more rather than reinventing it.
Over the past year, teams have been constantly 'reinventing the wheel' within the blockchain technology stack—developing yet another set of custom validator sets, consensus protocol implementations, execution engines, programming languages, and RPC APIs. These attempts may have slightly improved on certain specific functionalities but often perform inadequately on broader or foundational functions. Take, for example, programming languages designed specifically for SNARKs: ideally, such a language could help top developers build better-performing SNARKs, but in practice, it may lag behind general-purpose programming languages (at least currently) in areas like compiler optimization, development tools, online learning resources, and AI programming support, potentially leading to subpar SNARK performance.
Therefore, I anticipate that in 2025, more teams will leverage existing achievements, reusing ready-made blockchain infrastructure components—from consensus protocols and existing staked capital to proof systems. This approach not only helps developers save significant time and effort but also allows them to focus on creating unique value for their products or services.
Today, the infrastructure needed to develop Web3 products and services for the mass market is largely 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 channels for content discovery.
When crypto applications are blocked by centralized platforms like Apple's App Store or Google Play, the top channels for user acquisition are restricted. However, we now see some emerging app stores and marketplaces providing distribution and content discovery functionalities without going through strict review. For instance, Worldcoin's World App marketplace—not only storing verification information but also offering access to 'mini-apps'—has 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 just software, but hardware (such as phones or verification devices) could become key advantages for crypto app stores, much like Apple devices once propelled the early application ecosystem's development.
At the same time, there are other stores containing thousands of decentralized applications and Web3 development tools (such as Alchemy), as well as blockchains acting as game publishers and distribution platforms (like Ronin). However, this is not entirely an entertainment-focused ecosystem: if a product already has an established distribution channel (like messaging apps), migrating it to the blockchain 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 may see more of such migrations occur in 2025.
——Maggie Hsu (X Platform @meigga | Farcaster Platform @maggiehsu)
6. From holders to users: the transition of crypto users.
In 2024, the crypto field made significant political progress, with many key policymakers and politicians expressing positive views. Meanwhile, crypto as a financial movement continues 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 group come from?
I believe now is the time to reactivate those currently 'passive' crypto asset holders and convert 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 blockchain, especially as blockchain infrastructure continues to improve and user transaction fees decrease. This means new applications will gradually emerge for existing and new users. Simultaneously, some of the early applications we have already seen—covering stablecoins, DeFi, NFTs, gaming, social, DePIN, DAOs, and prediction markets—are becoming more accessible to mainstream users as communities focus more on user experience and other optimizations.
——Daren Matsuoka (X Platform @darenmatsuoka | Farcaster Platform)
7. 'Hiding technical details' aids the birth of killer applications in Web3.
The technical advantages of the blockchain industry make it unique, but they also hinder mainstream user adoption to some extent. For creators and fans, blockchain technology brings new possibilities for connectivity, ownership, and monetization... However, industry jargon (like 'NFTs', 'zkRollups', etc.) and complex designs have become barriers for those who stand to benefit the most. I have experienced this deeply in countless conversations with executives from media, music, and fashion sectors about Web3.
The widespread adoption of many consumer technologies has followed a similar path: technology leads, followed by a flagship company or designer abstracting complexity, thus spawning breakthrough applications. Think back to the evolution of email—SMTP protocols 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.'
Thus, 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 design, 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 require no explanation, as they directly solve problems.
——Chris Lyons (X Platform @chrislyons | Farcaster Platform)
Six major trends in decentralized governance for 2025.
2025 will be an exciting year for decentralized governance. Decentralized autonomous organizations (DAOs) are continuously breaking new ground in innovation, exploring new models for joint governance among anonymous token holders. Investment management firms are striving to persuade clients to participate more frequently in online shareholder voting. At the same time, AI companies are beginning to utilize citizens' assemblies to set standards for large language models (LLMs). These efforts will prompt multiple decentralized governance experiments to unfold simultaneously, including:
Websites that 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.