The current threshold of Web3 has been raised a lot compared to the previous bull market, especially the current multi-chain situation, which makes users feel very confused!
This high threshold is not enough to attract users for Web3, and it is also extremely disadvantageous for application developers. The high threshold means high customer acquisition costs and high development costs, which is reflected in the product. The probability of a project's payback is low during the project establishment and research phase, so no developer is willing to develop new products.
However, we have a huge number of Web2 users who have adapted to the Internet, and it is relatively easy to attract and convert them. What Web3 needs to do is to simplify the application form to Web2.
There are two important issues that need to be resolved: one is the decentralized feature, and the other is asset security (which can only rely on endorsement).
The basic principle of blockchain, "decentralization", has actually gradually faded. The first thing to talk about is that there are more and more projects and support in the CeDeFi track!
➤ CeDeFi
CeDeFi stands for Centralized Decentralized Finance, which is a combination of centralized finance (CeFi) and decentralized finance (DeFi). To put it simply, after the assets on the user chain are authorized to the corresponding CeDeFi protocol, they can take the user's assets to the centralized platform/institution for more financial operations and give us interest, and vice versa!
A large part of the industry's trends comes from the actions of top companies, and Binance has already demonstrated its support for CeDeFi by supporting centralized assets and launching BounceBit. A few days ago, it launched the $BNSOL liquidity staking token specifically for SOL's liquidity staking. In addition to supporting Solana, it is also a type of CeDeFi.
If we regard Binance Exchange as an application, it is a complete Web2 product before the Web3 wallet is launched. Launchpool is of course also a centralized function. Its support for on-chain assets (Lista's $slisBNB) is undoubtedly a kind of CeDeFi. Investing in and launching BounceBit is also a support for CeDeFi. After all, in addition to being a project in the Bitcoin interest-bearing track, another important feature of BounceBit is to entrust users' assets to centralized institutions for better interest-bearing.
We can find that Binance is working on some functions that support CeDeFi and has launched and invested in CeDeFi projects. There are also more institutions investing in projects that combine centralization and decentralization. These projects have not yet been exposed, but the trend can already be observed.
Why is this so? I think part of the reason is because of AI, and part of it is because of everyone's desire for external users.
➤ AI’s impact on decentralization
CeDeFi actually violates one of the most important principles of blockchain, which is complete decentralization!
If this narrative took place 21 years ago or earlier, it would have no way out. There were too many people defending the purpose of blockchain, and its birth was accompanied by original sin.
But the voice of encryption has changed. I think maybe the birth of AI has changed everyone's obsession with decentralization. When AI was born, the cryptocurrency market was in a bear market. AI, which is highly centralized and holds high the slogan of the Fourth Industrial Revolution, has completely destroyed the voice and position of blockchain.
But there is no way, GPT is so amazing that it has brought a lot of pressure to many front-line workers, especially entry-level artists, entry-level programmers, entry-level document editors, etc. It has brought great panic to practitioners in other industries. Even some well-known game companies in the industry have optimized their original painting departments.
Therefore, the former mission of blockchain, “changing the world”, has also been given to AI.
➤ Mass Adoption
Mass Adoption means large-scale adoption, and its core purpose is actually to “attract new customers”!
It has been frequently discussed since the beginning of this year. First of all, we have to admit that Web3 has not had any phenomenal products for several years, and there has been no growth, which has resulted in everyone’s dream of getting rich being unable to be realized, and they can only do PVP on the field!
After NFT, GameFi, Metaverse, STEPN and X to earn in the last bull market, the way to attract new users and expand the circle of the cryptocurrency circle was cut off. Although Binance launched two Web2.5 projects $HOOK $EDU to try to attract new users, it caused a war of words against Binance’s girlfriend coin (I don’t know the inside story, but it was indeed an attempt).
The explosion of inscriptions in 2023 did attract a wave of newcomers, but it has always been a MEME narrative. Just like what a big brother said, the builders of Web3 need to convert new users who are speculative by MEME into users who recognize the value of Web3. However, the development of the Bitcoin ecosystem is too slow, and users will naturally leave after not seeing the value for a long time.
Some time ago, SOLANA launched Blinks to attract new users, but it is still in the MEME stage, haha!
➤ Combination of centralization and decentralization
The trends of the industry's leading companies and everyone's concerns about attracting new users to Web3 have further aggravated everyone's weakening of the principle of "decentralization." However, this only proves that incomplete decentralization is also acceptable, and does not solve the problem of blockchain thresholds.
As for the high threshold for users, two directions have emerged: one is the pure blockchain technology solution "chain abstraction"; the other is the "intention" with more product thinking; chain abstraction will solve the fragmentation of user consensus caused by multiple chains, and intention will provide various possible solutions for users' purposes, whether on-chain or off-chain. These two directions will become the underlying technical cornerstones of every Web3 application in the future.
In fact, Web3 applications in the form of Web2 products have already been born, and there are many of them, such as the numerous GameFi products.
The development of GameFi products began in the form of dApps, and people were more interested in token economics. One reason is that dApps cannot support high-quality games, and the other is that Web3 is essentially about economics.
GameFi has gradually developed into web games, mobile games and PC games. In order to better attract users, the first thing game developers have to avoid is teaching users to create Web3 wallets. When users create game accounts, they will be provided with email and social apps in addition to wallets.
There are also many game developers who, in order to make players have more fun and feel more immersive, only require the use of Web3 wallets to go on-chain when users need to transfer and trade game assets. At other times, user data is stored on centralized servers.
GameFi is a type of X to earn. Tap to earn is very popular on Telegram recently. They will not issue coins for a long time until they are listed on the exchange. They are undoubtedly also displaying Web3 products in the Web2 model.
Telegram is currently the best Web3 product in the form of Web2, and it is also the largest. However, the most popular Web2 + Web3 product is definitely Binance Exchange!
➤ Final Thoughts
Web3 products can completely appear in the form of Web2 and include blockchain technology internally. This is why everyone says that Web3 is not a replacement for Web2, but a combination of Web2 and blockchain!
