Challenges and Opportunities in the Web3 Industry: The Transformation from Speculation to Value Creation

Recently, discussions within the Web3 industry regarding the development direction of Ethereum have attracted widespread attention. Some people question that Ethereum is too focused on technical details, neglecting user needs and commercialization exploration. This concern is not without reason, as a technological development path that is disconnected from market demand is hard to sustain.

However, when we shift our focus to the traditional financial sector, we find a completely different landscape. Governments and financial institutions around the world are actively embracing blockchain technology, viewing it as a significant opportunity to upgrade existing payment and financial systems. In 2024, the Bank for International Settlements ( BIS ) proposed the concept of "Finternet" (, the financial internet ), positioning tokenization and blockchain as the next generation of financial paradigms, which has attracted considerable attention from the traditional financial community.

This initiative is backed by years of in-depth research by the BIS. Since 2018, the BIS has systematically studied Web3 technology and published a large number of professional papers. In 2019, the BIS established an innovation center to carry out experimental projects related to blockchain and tokenization. The most representative of these is the mBridge project, which is a public permissioned chain based on EVM, used for CBDC cross-border settlement, involving multiple central banks.

Another important initiative is Project Agora, which is the largest public-private partnership project in the history of blockchain, bringing together seven central banks and more than 40 global financial giants. The project aims to leverage blockchain technology to build a global unified ledger system and optimize the existing financial monetary system.

In contrast, while the Web3 industry loudly advocates for the slogan of Mass Adoption, it is actually keen on hyping meme coins and short-term speculation. This stark contrast raises a fundamental question: what is true Mass Adoption? The so-called "blockbuster projects" of Web3 in the past few years are essentially speculative games dressed in the guise of innovation. The unsustainability of this model is obvious.

The deterioration of the industry environment is also concerning. According to an FBI report, in 2023 alone, the American public suffered over $5.6 billion in fraud losses in the cryptocurrency space. In this context, we must reflect: are we chasing the wrong direction of "Mass Adoption"?

Web3 should not stop at becoming a global casino. It needs to develop truly sustainable and practically valuable application scenarios. Payment and finance are undoubtedly the areas with the most landing potential for Web3 technology, which has been agreed upon by all parties.

For the industry, the core issue may be whether we truly understand what valuable applications are. If we continue to ignore market demand and focus excessively on technological innovation, could we end up in a situation where public permissioned chain systems dominated by traditional financial forces occupy mainstream application scenarios, while public chains are marginalized into niche "speculative playgrounds"?

In the face of this trend, the industry needs to rethink its development direction:

1. Solve practical problems: Based on real needs, focus on addressing genuine pain points.

2. Lower the barrier to entry: make technology more accessible.

3. Create sustainable value: establish a sustainable business model that does not overly rely on speculative hype.

Currently, the Web3 industry is transitioning from the "wild era" to the "new era of compliance". The regulatory framework is becoming increasingly完善, traditional financial institutions are participating in a standardized manner, infrastructure is being upgraded, and Web3 projects are embracing compliance. This signifies that an important turning point in the industry's development has arrived.

In the future, the main battlefield of blockchain technology will focus on payment innovation, tokenization of physical assets ( RWA ), the PayFi concept, and the integration of DeFi and CeFi. To achieve breakthroughs in these areas, the industry must directly face interactions with regulatory bodies and traditional financial institutions.

The Ethereum ecosystem is facing structural imbalances: infrastructure continues to stack up, but the development of the application ecosystem is relatively lagging. It must contend with the challenges posed by emerging public chains while also being wary of the compliance public permissioned chains set up by traditional financial forces. Seeking breakthroughs under this dual pressure is a key challenge for Ethereum.

The industry needs to focus more on solving real problems and creating sustainable value while maintaining technological innovation. Only in this way can Web3 truly achieve mass adoption and bring substantive changes to users and society.