Binance's latest research report: "The Road to One Billion On-Chain Users" (Chinese)
Report original address: https://public.bnbstatic.com/static/files/research/road-to-one-billion-on-chain-users.pdf
·main conclusion
The adoption of blockchain networks has been significantly slower than that of social media networks. Since Bitcoin was launched in 2009, the total number of cryptocurrency users has reached about 560 million, while it took TikTok and Facebook only 5 and 8 years, respectively, to reach 1 billion users.
Decentralized systems are inherently more complex than centralized systems, and multiple decentralized systems in a multi-chain world multiplies the complexity from a user perspective. Improving blockchain UI/UX and cross-chain interoperability is the next step to attract the masses.
Many blockchain projects strive to create decentralized alternatives to existing centralized products and services. The DeFi summer of 2020 laid the foundation for on-chain financial systems. In order for decentralized applications (dApps) to gain significant market share, they must be at least as convenient and easy to use as existing centralized products.
The report will analyze three types of future users: (1) institutions, (2) retail users, and (3) crypto skeptics, and explore the infrastructure-related barriers each type of user faces when adopting decentralized systems, as well as how some prominent projects are addressing these pain points.
·status quo
In the exponential age of technology, new technologies are being adopted faster than ever before. Although the adoption rate of cryptocurrency has not reached the level of social media giants or ChatGPT, its growth rate cannot be ignored. Since the launch of Bitcoin in 2009, the total number of cryptocurrency owners has reached about 560 million.
However, a large portion of these 560 million users hold their assets in centralized exchanges or other digital asset custodians. The actual number of users on the chain is much lower than this number.
Institutional adoption
As institutional investment in digital assets and tokens increases, the demand for on-chain functions will naturally increase, as well as the need for custody solutions that provide greater security and flexibility. MPC wallets have more operational flexibility than multi-signature wallets and are particularly suitable for institutional users.
Retail adoption
Retail users need more convenient and more secure solutions. Compared with institutional users, ordinary retail users pay more attention to convenience, but it is necessary to ensure that user-friendly solutions do not compromise security.
Retail users’ reliance on mobile devices makes building intuitive mobile app UI/UX critical.
Crypto skeptics
To eliminate distrust in the crypto space, the industry needs to continue to advance transparency and allow users to independently verify information.
Education and knowledge sharing are crucial for the global adoption of blockchain technology. Binance Academy is a leading blockchain and cryptocurrency education platform that offers free courses and in-depth reports in multiple languages.
·Summarize
For blockchain technology to achieve mass adoption and use around the world, two conditions are required: first, there must be on-chain applications that users want to use; second, people must be able to understand and easily access these applications.
On the path to a billion on-chain users, the crypto industry must build the necessary infrastructure, tools, and public awareness to make the concept of “digital ownership” understandable and accessible to the global community.
