For this week’s episode, Jacquelyn is sharing a panel she moderated live at Avalanche House, while she was in Seoul, South Korea for Korea Blockchain Week. The panel focused on the biggest opportunities and challenges facing web3 enterprise and included the following speakers: - Dan Sun, startup success manager for web3 APAC lead at Google Cloud - Gagan Mac, head of product and senior director of web3 services at Circle - Johann Eid, chief business officer at Chainlink Labs - Lihan Lee, co-CEO and founder of Xangle
Welcome to Chain Reaction.
A podcast that unpacks and dives deep into the latest trends, drama and news in crypto with some of the biggest names in the industry to break things down block by block for the crypto curious.
For this week’s episode, Jacquelyn is sharing a panel she moderated live at Avalanche House, while she was in Seoul, South Korea for Korea Blockchain Week.
The panel focused on the biggest opportunities and challenges facing web3 enterprise and included the following speakers:
We discussed the state of web3 enterprise adoption today compared to past quarters and years and dove into the ripple effects that catastrophic events from 2022 had on the space.
We also talked about:
Chain Reaction comes out every Thursday at 12:00 p.m. ET, so be sure to subscribe to us on Apple Podcasts, Spotif, or your favorite pod platform to keep up with the action.
Jacquelyn Melinek 0:01
Hey everyone, its Jacqueline melanic Welcome to chain reaction, a show that unpacks and dives deep into the latest trends drama and news with some of the biggest names in crypto breaking things down block by block for the crypto curious. Pay friends so this is Jacqueline as you probably recognize my voice but I am pretty jetlag this week because last week I was in Seoul, South Korea for Korea blockchain week. And avalanche how Seoul or I moderated some panels met with a bunch of investors and founders and people in the industry just to get a better grasp on the crypto space out there. As someone who is based in the US, I'm in New York City, a lot of times my conversations and coverage has been centered around America, or even a more holistic global perspective, because crypto in itself is a pretty global industry. But this gave me a really great chance to dive into the massive and continuously growing Asian crypto market on the ground in real time. Anyways, for this week's News episode, we decided to switch it up a little bit and share one of the panels I moderated out there while I was at the avalanche House event, it was titled The biggest opportunities and challenges facing enterprise web three 420 24. Obviously, there's a ton to discuss there. And we did just that. So without holding off any longer, we're going to be sharing the live recordings. I hope you all enjoy. Hi, hi, everyone, hope your day is going well. As he mentioned, I am Jacqueline melanic. I'm a senior crypto reporter at TechCrunch. And next to me, I have Dan son from Google Cloud. And then gaggan Mac from circle, and Johan Eid from chain link. And then at the end, we have Leon Lee from Zingle. So I guess to start the panel is obviously about enterprise adoption. I'd love to know all of your thoughts on what is the state of web three enterprise today? How do you see it compared to like the past quarters or years with everything that's been going on?
Speaker 2 2:05
Okay, I guess I'll start. So hi, everyone. My name is Dan from Google Cloud. I work on the web three stops in the APAC region. So just a quick answer from us. This is a growing market. And as a marketer, we're real people to watch too. So we've been seeing what value we could bring to the new emerging markets and what kind of a positioning we should be taking. So we're still discussing, we're still learning, and we're still seeing which values we can provide,
Speaker 3 2:32
Hey, everyone, I'm Gagan Mac, I lead a product team at circle. So I think the where the enterprises are with web three, it varies by region, what I see is that in LATAM, there is a lot of acceleration on money movement. In APAC, there's a lot of acceleration on customer engagement use cases, and the rest of the world is a little bit of a mix. It's a mixture of skepticism, and optimism. There's a lot of experimentation. So where we have moved from last two quarters, is that thing, there's skepticism because of the battles, has starting to subside. And it's very encouraging to be here in a pack where the large enterprises are actually have been investing and continue to invest in the use cases. So I think there's a lot to look forward to.
Speaker 4 3:15
Perfect. Hello, everyone. I'm zubi over attending clubs. And thank you for over lunch for hosting us. So enterprise, I've seen kind of two distinctions. One has been banking partners starting to dip their toes very actively into the blockchain works, right. I think they took their time for a while. I think they've been observing this industry for at least 10 years, right? Since 2014 13. And now is there actually a regimen so as they started experimenting, as they started deploying rewarded sets, they're now moving, and I think we're starting to see is the beginning of an exponential growth in terms of financial offerings offered by truck fi companies, right. So that's mainly happening from what I've seen in the West, in the US in Europe. In Asia, I've actually been seeing a huge boom in terms of traditional gaming companies entering the crypto space to start leveraging some of the potential we have in terms of offering an economy to a game right so when you have an any more Digi when you have different types of games in web two, today, it's very hard to set up an economy around this game. You have black markets, you have tons of different places where people trade items, but it's full of counterparty risk, you can actually get, I don't know how to explain betters and discharge rugs in quote unquote, by as a game developer, in crypto, you do actually have NFT marketplaces to allow for trading. You do other things like verifiable randomness to allow to create items in a fair way. Right. So I've seen these two distinctions. One is Asia and gaming companies leveraging crypto for which we can offer to them issues which have been around for years and which have prevented the growth of potentially huge ecosystems in gaming. And the other one, which is banking trod by companies really actively dipping their toes in crypto, and REITs. They actively it means POCs. It means issuing assets. It's really happening at this point. It's not a dream anymore. So
Speaker 5 5:24
hi, my name is Talia, I'm the co founder of Sango. We're working quite closely with enterprises who are trying to adopt Lyft. Three into their businesses. Here in South Korea, South Korean market has been quite active in terms of adopting web three point enterprises, especially for the larger ones. I think the reason behind this is because Korean companies have the experiences how much of a certain platform change would affect their businesses in the past experiences like the IT revolution, like the mobile revolution, as well as the social media, how much they have affected their businesses. And from those experiences, they know that there is opportunities as well as the risk if they do not engage into that. I think Johan has mentioned about gaming companies, I think almost every South Korean major game studios are trying somehow to adopt that strain to their gaming businesses. Not only are they trying just their POC, but they're bringing their billion dollar eyepiece into our ecosystem. And they've started to do that since maybe one or two years ago. And I think over time, the results will come what people don't give enough attention is I think entertainment, entertainment businesses, because you don't have any stakeholders who would prohibit that Epicerie. But the other hand, if you for payment, for example, you have a lot of stakeholders who are against a blockchain to enter their market. But for entertainment, nobody is against web streaming, because it will boost up the businesses overall. So entertainment is um feel that we have a lot of expectations as well.
Jacquelyn Melinek 6:57
Are there any metrics you follow Li Han that kind of track enterprise adoption over the past quarters or so? Are there metrics that you're following that have you've been tracking over the past quarters or so that kind of show that enterprise adoption is happening at scale?
Speaker 4 7:13
So in my view, okay, you have metrics, which can be very useful, right? Number of transactions and volume. Those are usually very useful, right? However, I think at some point you're in in zoo industry, and volume and other metrics, they're not sure present that to you because we're seeing a small industry. So those are actually easy to interpret in the wrong way. They're easy to kind of get wrong, right? What I like to see is actually what product is being launched. And the frequency at which we see new products being launched from let's say, banking, trade fi partners, right? A good example, we had I think a while ago now maybe a year ago. So cetacean of all French bank start experimenting with Stable coin, right. And for a while nothing happened. And then we started seeing in the last few weeks, actually, the trends where you have paper, launching a Stable coin, where you have central banks starting to kind of experiment with this field. Right. So that was for the banking threat by industry. And it's not only Stable, just to be clear, I think we have already some really good providers in this space. There is also for windward assets, right, I'm seeing a trend where you're going from one exciting real world asset being launched every three months to a new one being launched every three weeks. And this frequency of new launches is really what we've been looking at, at least on our sites, and volume, you know, we're always keeping track of volume, right. But that will be a metric that will be more important as industry because in my view,
Speaker 3 8:53
I actually look at so it's related to what you're saying when I look at three metrics. So related to the frequency of launches, I look at the total number of developers who are actively building. If you think about how many people code in the world, it's about 100 million people who actually write code in the world. And out of that only point 5% right now are building blockchain apps, that number has to go, we need million plus developers building applications for new use cases to come. So is the frequency of product launches that will keep accelerating I agree with you. But for that to happen, we need like more developers, which is a leading indicator, the product launch is a lagging indicator. So that's one. The second thing I look at is the total number of active transacting wallets. Because these wallets they're not a perfect representation, because you know, anyone can spin up multiple wallets, but the rough approximation of how many users are engaging. Ideally, we would have what I call verified wallets. These are like wallets that belong to each user. And these wallets are when issued by an entity that it's easier to measure. So total number of transacting verified wallets, which describes the user activity And if we have enough users and enough developers, that should create a flywheel where the whole technology grows, the third metric that I look at is actually your monetary value that enterprises get out of using Blockchain. So we saw recently, I think, do you publish these numbers that Nike made 180 6 million on their crypto kicks? That is phenomenal, because it's a short program. And that's a real net new value. So want to keep an eye on how much value our enterprise is actually getting out of investing in this technology, because it brings not just UX innovation, its business model innovation, if this number keeps going up, then we'll see acceleration and enterprise flushing,
Speaker 5 10:39
I think the industry has recently come up to a certain consensus about three metrics. I think, one, as I mentioned, number of addresses, whether it's active, allowed to SSH or whether it's new addresses whether it's cumulative address count, these are one of the indicators that assesses the overall health of a DMO or network second would be TBL. Whereas it's it's very hard to manipulate TVL. But it has some limitations that it only can assess defi related product or army. Now, there are applications that are irrelevant of TBL. So that's the limitation. The last one will be number of transactions. So it's similar to number of addresses. But it's also some applications, they do not generate any addresses. But for enterprise example, a small number of addresses can generate meaningful number of transactions. So that's also an indicator, what I would like to mention is that you'd have to be very cautious because in terms of on chain space, it's very easy to manipulate those metrics. So for TVL, it's a little harder. But if you think about the case of Luna, Luna had had a very high level have TBL for a longer period of time. So for that you need to have proper research, whether that is a mechanism that that you support that TBL is sustainable, that's something that you need to be very cautious. And for other metrics, you have to cross check with other sub metrics that support that whether or not it is manipulate or not. So in that aspect, I think research is really important to to interpret that this metrics.
Jacquelyn Melinek 12:14
I'm glad you brought up the Terra Luna situation, which was obviously extremely unfortunate. And it was by dokkan, who is based in South Korea. And I think that situation coupled with the US regulatory quote unquote crackdown has kind of impeded the industry. I'm curious if you guys think that's true when it comes to enterprise adoption and businesses coming in? Are you feeling like they're not as inclined as they were prior to those events? Or is the situation with the US potentially getting a Bitcoin ETF actually making it more appealing?
Speaker 4 12:49
Yeah. So I think in any industry that grows as fast as we're growing, and we're you have, you have two things going in crypto. One is that we're completely global. Anyone can build in this industry, anyone can really sell products no matter where they are. Right. And second one is that it's a free markets, which means very fast experimentation. So when you start combining these two factors, one is the fact that you're a global means it's very easy for anyone to launch a DAP. And the nature of the free market economy, which is basically moving fast moving fast, and things do break is then I think, incidents like what happened with Luna or the metropolis. FTX are unfortunately part of the experience rights. And we need to see the full picture because there is good and there is bugs. So those are the two bad things, right? However, the good, the good is very, very easy to see. Right? Three years ago, four years ago, we were in a very, very different industry. I remember when you go into a conference 200 300 was probably, you know, Max, you should expect you didn't have conferences of 3000 6000 people, you didn't have a fully decentralized financial system, you didn't have trillions of dollars that flowed into crypto overall, right? I mean, it's been, it's an industry that has secured then where is the amount of value enabled, has been in the trillions, right? So I think the goods far far outweighs the bad. When you grow, you have good, you have bad and I think what we've had in the last few years fully kind of compensates for is about stuff that happens
Speaker 3 14:31
actually have a slightly different take. I actually think that incidents like Terra Luna severely erode trust. And I find it ironic because blockchain as a technology is supposed to instill trust because everything is on chain. It's verifiable mathematically. And it's ironic that people lose trust in the technology. And I think like the question you asked earlier about metrics is a really important one because it's easy to fool ourselves with optimism. And with top of funnel metrics from what is actually driving value. And while we can have really high numbers at the top of fun, right, like we can think about the amount of investment that's going in, we can think about the number of people who start developing like 1.5 million developers, downloading web three Jas and the big name. But then unless that translates that optimism needs to translate into lasting value. And when incidents like Terra Luna happen when incidents like FTX happen, a lot of companies lose trust. If you have, if I'm the CEO of a company, and I want to invest my finite resources, I'm going to invest in the highly probabilistic bet where I'm going to make a large return. And the risk is that when the hype cycle fades away, then the investment goes into the next new thing like crypto downturn, is there any correlation between crypto downturn lasting longer because of the AI cycle growing really fast? Why is VC investments moving from crypto into AI so rapidly? That is what happens when we focus on top of funnel. That is what happens when lasting value is not proven over a period of time. So to me, it's like, every time there is a tobacco like that, it is a big dent for the industry. Now the good part is that I reviewed that there's good parts, the good part is that we haven't lost our optimism. The good part is that when I come to AIPAC, and I see like companies like SK Telecom, who are a traditional telecom have been investing for last five years, and they continue to invest in their web three programs, companies like Lyne they are built like such a fast growing NFT platform within a span of a year, companies like Kraft and they announced their own blockchain. These are a phenomenal examples of enterprises who are not losing optimism. Now, what we have to do as a community is like just hunker down and make sure that we're delivering value. And unless that happens, we will always always be stuck in this hype cycle where top of funnel metrics determined whether we all are making an impact or not.
Speaker 5 16:53
Yes, and I definitely agree with scaling that Donatella our instance, like FTX, has been a big push back for industry, regulators are now much more cautious into opening up the market for the public, especially. And enterprises, they do tend to care about regulation, because the most risk they can take is like they can try web three, and it might not turn out to be a good investment. But if that trial affects their existing businesses, and undermines their businesses, then that might cause problems. So in terms of enterprise decision making, it hasn't been a push back, what I think is more fundamental than the incidence of FTX alunos. Arevo, however, is that we didn't actually come up with an application that we can represent and say webserie has done something very good for the world. Like we haven't come up to any any kind of application that we say that didn't make our lives better. And that has several reasons. One of the reasons I think is our infrastructure wasn't ready. Like if you think about three, four years ago, we weren't ready even for crypto kitties. But throughout the years, I think we made a lot of progress in terms of infrastructure. I think chain link did a lot of job in that sense. So we're getting there. Now we are getting close to a matured infrastructure. Now, we need applications. And I think enterprises are a very good option for us in terms of our ecosystem, because they are less inclined to short term incentives like native webserie applications, we thought we have found the killer application that could feed us we thought defy would suffice. We saw NF ts p2p as Dallas, please sufficient to to nurture our equal application or ecosystem. But it turned out to be as soon as the market sentiment changed all the users that there were for short term and sound. So they've vanished. And now we need help from enterprises because they can help us with series this thing assets and users to utilize our infrastructure. And I think enterprises should have much more support from the rest of the community.
Speaker 3 18:59
That's such an important point, I'll get to it's like the fact that enterprises who have proven applications that are being used by a lot of people, them succeeding with web three is so critical for proving out that this technology actually can add lasting value. So I couldn't agree more.
Speaker 2 19:16
Yeah, I mean, I totally agree to what the whole Luna and FTX issues like so there were definitely goods and Bad's the password. Of course, like these things happen, the work to solve the credential crisis, like we're gonna get scared, or we're going to be more careful, I'm coming to have three, but also, it's going to take longer for us to adopt the whole concept and try to move what we'll be doing into a new completely new industry that will not the fullest first mover in the industry. But then on the other hand, like my friend, it teaches us a lesson, right? Like there's a lesson that me coming from a FinTech background like these were issues that were never supposed to happen in the web two industry. So what's the whole optimism in the market and people just it's not the blockchain or the technology that had the issue, but it was more than the company or the product. That's where the entire like how they market the entire services. So I think it does give us a good pure, good medicine to help us learn that. So we still need to be careful. And we still need to learn what's the core of the technology and the idea behind it rather than what's being shown about outside. So with these things, I think will help the web to slowly but also surely to get into the industry with market.
Speaker 3 20:21
There's one more thing to add on applications. It's very interesting. So when we think about applications like going all the way back, right, when the Wright brothers invented the plane, there was no airport, there was no infrastructure for the planes. When the light bulb was invented, there was no electricity grid, the light bulb was an application, the Wright Brothers invention of a glider that was an application, the infrastructure helped scale it worldwide brought it to a millions of people, we are at a point where the infrastructure has matured, it's good enough for us to now find that application that actually is a lighthouse application that works conclusively without an iota of doubt that it adds value. And the infrastructure will take care of itself.
Jacquelyn Melinek 21:01
So obviously, there are crypto use cases and blockchain technology use cases for enterprise adoption. But do you think that the big wave or the moment the aha moment Me, like what aI had with chat GPT will come from an internal web three native company? Or will it be created by a big brand or enterprise outside of the industry that uses this technology to create that use case for a big wave of adoption?
Speaker 2 21:30
Well, we provide Bart, so we call it parks right in touch with VT. But then, so we see ourself more as like a support infrastructure provider, where the provider for the foundations of the tech or the hardware and the industry. And we work with the Web3 starves to have them build a stronger application is stronger AI that's adaptable to the web to a specific markets for its individual markets, the apps. So we ask Google, I think we concentrate on what we can provide or what value we can provide in the market as a Google and what we do best. And at least at this point, we don't see ourselves going heavily into making a wealthier product, especially for certain markets, especially on the AI side, too.
Speaker 3 22:10
So whether it will be a startup or an enterprise, I can tell you what signals we see right now. And what my personal belief is, the signals that we see right now are that the innovation is coming more from enterprises, and they're able to prove out the innovation more like the examples I take our customer engagement, I look at Nike, Starbucks, another interesting statistic, right? Nf T's are 98%, down in value. 95% of the creators are losing money on NF Ts, but every single person who mentored a Starbucks and ft with their Odyssey program, they're all positive, the value of their nfts has grown. Right? So we have evidence to suggest that the value is coming from enterprises. However, I believe, like the startups are going to be disruptive, I believe, like there will be incremental value that the enterprise's bring in, because they have a set customer base. So for them, it's easy to prove out how technology how blockchain is going to add value, net new value to their use cases. But then when we think about like the breakthrough, the breakthrough innovations, the breakthrough business models that will have to be a startup just by mechanics of it that we have seen over and over in the tech industry again,
Speaker 4 23:16
yeah, I tend to agree with you. And by the way, this does kind of go is my point earlier, which is obviously Tarah FTX. Very, very bad. And you know, these events have been terrible. That's why we've been we've been focusing on security for the past five years attending to prevent hogs from Oracle hogs fridge hucks. Now is this GOP, right? So whenever someone loses money, it's extremely bad. However, the good aspects right coming out of it is that enterprise adoption didn't slow down. It's actually been accelerating. Bank adoption didn't slow down. But it's been going up gaming, from web two companies in Japan in Korea, is accelerating, right. So that's pretty soon good aspect which makes me positive, which, you know, having been in this industry for so long you do need to be because we go through a lot of very, very rough patches. And at the end of the day, it's always about seeing satellites, at the end of the tunnel. Right. And to me, that's the light, it hasn't stopped, it's actually been accelerating. And my take is that web three startups have been experimenting for years. And they've actually shown unique use cases you can have with fully programmable money with money markets with derivatives running on chain, and I think what will happen is that is a big big breakthrough moment will happen as his tech which already exists, which is already secure, gets adopted by web two, by banks, by gaming biopsies folks which are flowing into the industry, because those use cases are here already is a is already exists, right? What we need now is adoption and liquidity and these We'll come through zoom to the enterprise's adoption goals. So yeah, that's my take on this one.
Speaker 5 25:07
I think both parties have chances. I think those organizations have its strengths in in different applications. So why I think enterprises have their edge is that they tend to think about users in a more neutral sense. You know, Reddit, for example, they have managed, by the way 80 million wallets was there are NF T's. And they didn't even use the term NFT. They use the term digital collectibles. The problem is that we in this industry, we tend to link our identity as being one of the Web3 people. And we use terms that a usual person can hardly understand like NF Ts, d phi, these alone are very difficult terms. Now we're talking about a countless fraction that we are talking about CCI B's, and all this technical jargon, I think, as a barrier for ordinary people to get used to it. So in that sense, I think enterprises have a lot of edge. On the artist side, as directly mentioned about AI. I think AI and this kind of revolution that AI has the level of sophistication that AI has reached recently gives this webserie industry a lot of chance, because if you think about it, enterprises are now willing to pay for AI services. And what are the ingredients that makes AI models? It's the data, and what's the infrastructure that can deal with those data? The best, I think, and what's the incentives that contributes to those data? I think it's a blockchain. It's a public chain. So that sense, it has opened up a lot of opportunities for those kinds of applications. I would rather bet on the startup side, because startups I tend to think more radically, and they tend to capture those opportunities very quickly. So so hope that answers your question.
Speaker 3 26:43
So you actually both your comments part on other thought, right like that. It depends on the use cases also, like you're seeing the acceleration from banks. Right. The interesting part is that in money movement use cases, there is a regulatory and licensing barrier for startups, it's like very expensive to acquire MTLS and pull value from Fiat into crypto. And that barrier is is hard to overcome. And that's something that I think with a little more legal clarity, it'll become better, it'll become better there are companies that are there compliance firms that are solving a company's zero hash are helping startups with that. So that's where the TRad fie folks have a little bit of an edge in customer engagement use cases where anything to do with and FTS in gaming ecommerce media, they're I think startups are on the edge, right? Like they're you can do a lot more without getting bogged down by being shut down from a regulator in a few months time. So they're, I think, like startups will definitely have an edge innovating on business models
Jacquelyn Melinek 27:38
for the crypto companies on stage. And, Dan, please feel free to chime in as well. But for you three, are there specific sectors out of the ones that you mentioned, of banks, gaming, small to medium businesses, whatever it may be, that you really want to drive the most enterprise adoption from? Like, is there a focus on one of those verticals as opposed to others? And if so, what's kind of pushing that for you?
Speaker 4 28:04
So I think for us focus for a while has been providing secure infrastructure for these enterprises to come into the first place, right, because of the thing, which was really freaking galette. Companies was also hypes, you had heartburn in 2019, and 2020, we're still bridging space, right? When you have a system which failed, it's kinda like what happened with FTX, etc, that's a risk is it's proper to the system, right? But when you have failures on Aetherium, due to Oracle issues at the time, bridge hawks, et cetera, those are in phrase us, which could affect the whole space, right? So for us, the focus has been in general sort of infrastructure security, through CCIP, through crypto price feeds through all of these items, right. And then regarding industries or industries, some of them move faster than others. Gaming is moving very fast. Banking is starting to move fast insurance, we would love to see insurance, but insurance does move slower. However, we've been discussing insurance for years at this point, because we think this is a huge, very important kind of crypto can basically make this industry as a whole, so much more efficient and so much more accessible to the global world. Right. So their issue is insurance, is that it's hard to get in Asia, in some places in Asia, it's hard to get in some places in Africa, crypto through its global nature, and through the elimination of some counterparty risks, may exists insurance products so much more accessible, right? So for us, we've been aiming to secure the infrastructure to make it secure to make it safe to accelerate adoption from gaming banks. And we do want to see more and more of these kind of use cases like insurance coming, but each enterprise does move at their own pace. So we try to support the ones that move faster, while making sure the other ones can also onboard once they're ready to go.
Speaker 3 29:59
In our case I'm most excited about like you asked about, like which vertical cross border money movement in my mind is the one that is a slam dunk use case for acceleration. That's something which we're already starting to see. And then the number two on my list is like customer engagement. I've mentioned it a couple of times, that encompasses gaming, e commerce, I forget all of that in customer engagement, because that's the end goal of the companies. So they're like vertical agnostic in a way, because I think the learnings from one vertical apply very easily to the other one. Now, I'm a big fan of CCIP CCDP, the technologies that are abstracting away going back to Leon's point about like, you know, abstracting away the blockchain primitives, and connecting the fragmented spaces. So that's why we are building like web three services to just enable enterprises across verticals to be able to benefit from the core constructs of the technology. But yeah, cross border money movement and customer engagement across verticals in my mind.
Speaker 5 30:53
I think I already answered by answering the other questions. I think gaming, of course, gaming, a lot of people have exploitation for gaming industry Disrupt. But I think less people are focusing their attention to entertainment, like entertainment, they're the users are putting March, the younger generation who can easily digest the only luxury experiences, there is nobody in inside and entertain businesses, who is against adopting nfts or webserie infrastructure, and it has the least correlation to regulation. So it doesn't have any regulatory hurdles. So that's another advantage. Another industry that I I'm focusing on are is advertising, because advertising there, you have lots of entities, and you would distribute some incentives based on their contribution. So back in 1010 years ago, when we had our first smartphones, we had a lot of application utilizing that personal device environment to distribute incentives. So now, because blockchains are very efficient, and infrastructure to distribute into incentives based on your contribution, I think there are a lot of opportunities to dig into. So these three,
Jacquelyn Melinek 32:03
okay, to wrap things up, I would love to hear all of your thoughts on where do you see this going? In 2024? If you had a crystal ball, what do you see in it?
Speaker 2 32:14
Well, a bull market for sure, hope. But overall. So we do see the entire industry of getting more mature. So we see companies that are actually providing local mentions or services where they do apps that have a monetary values, or they're providing values to the customers and the users, you have a real user base and actual meu, nada, you're coming out. So we do see a more healthier industry being built, especially at this fair market. So hopefully we see some actual application services or products in the market, that brings value to the customers. And through that we can build an entire industry at a more healthier stage. So
Jacquelyn Melinek 32:54
you have 2024, right, you can say the rest of 2023 to 2024. So like six months
Speaker 3 32:58
out, I would think like, we are on a cusp of like massive improvements in user experience. Because I do believe like account abstraction solves a lot of problems. And we will start seeing the technology become much, much easier to use for user. So through that. I do believe like with the projects in the pipeline that I'm seeing, we will see the super apps of the word like the larger applications of the world that had existing users more than let's say a million plus users, them accelerating adoption. So I see that existing web to enterprises, who are aggregators of users, we'll see multiple of these having crypto wallets. So that's like the number one thing I would say. The second is I do believe there will be better clarity on the money movement use cases because of the progress we are seeing in Hong Kong, Singapore, Japan, somewhat in United States also with regulation. So I do believe like companies will start taking more chances with to your point on trade fi I do believe that there'll be like more real world connections and more real world assets that will get tokenized and more finance use cases, we'll start seeing adoption, but I think it'll still be early 2024. So I have my hopes in 2024. With the web two enterprises that are like super applications leading the way.
Speaker 4 34:09
Yeah, and I'm going to make a summary of what they've been saying earlier to me the next probably 12 months, right? We're going to keep seeing three things in my view. The first one will be enterprises. As we all know, it's always going from zero to one here, right? Zero to One has happened in many sectors in gaming and trade fi. I hope it happens soon. Insurance. Entertainment is something we've been looking at for for some time. And it's already been happening there. Right. So now we're actually in the phase of one to N scaling. And the one to n is going to mean that the frequency of new launches from overseas companies is going to accelerate. And these companies for most of them will bring some of their user base slowly They'll bring some of their liquidity slowly into the space. This will mean more users. That's a second thing. Adoption will come from these enterprises, users will follow because users kinda like companies, they do waits until they see others doing it tries to lead to mass adoption. Most people will wait and cheese have confirmation that something is good to use and usually is a consider it's good to use by seeing some parties a trust gets into it, right. And they trust companies, they trust banks, they trust web to gaming companies, etc. Right? So adoption will start coming from people, right people, we get more and more into crypto more and more into blockchain. I think we have the right baseline of infrastructures, right secure baseline with cross chain, we have price feeds, we have randomness for games. So they're in phrase there. And the third thing that will keep improving once you have enterprises and users who follow will be usage. It will be a how friendly is a UX when we get into crypto, people have been working on UX for a long time. I think we've done some good things there. Some less good things. But some companies have done amazing work here. So I do think we were really on the right path for Z adoption to keep going. Basically, we have the companies, we have zoo users. And I think UX is already very, very good. And it will keep pushing better for our space. So I'm super optimistic for the next one year. Yeah.
Speaker 5 36:31
And I think the other panelists have covered a lot. And I 100% agree with the other panelists. Just to add a small thing. I think we've been through the bear market for about two years, looking at the past bear markets didn't last that long. So towards the end of the year, I think the markets sentimental will be better and next year is going to be better. And this actually will help enterprises to make decisions to decide to enter the market, we will feel it much more comfortable to open up the market. And I know a lot of gaming studios there already built their applications, but they're waiting for the market and conditions to be better. So those kind of application will also coming up. So I'm pretty optimistic what our future.
Jacquelyn Melinek 37:12
All right, love to hear it. Thank you guys for taking the time to share your insights. And thank you to everyone else for listening in. Thank you. Thank you, thank you.
We'll be back next week with conversations around what's going on in the wild worlds of web three with top players in the crypto ecosystem. You could keep up with us on Spotify, Apple Music or your favorite pod platform and subscribe to our companion newsletter, also called chain reaction. Links to the newsletter and stories we talked about can be found in our show notes. And be sure to follow us at chain underscore reaction on Twitter. Chain Reaction is hosted by myself Jacqueline melanic and produced by Maggie Stamets with assistance from Rashad Kearney and editing by Kel. Bryce Durbin is our Illustrator and Henry pic of it manages TechCrunch audio products. Thanks for listening in. See you next time.
Transcribed by https://otter.ai