Web3 Track Analysis and Outlook 2024

In 2023, there have been significant advancements in various Web3 sectors, with new technologies and applications continuously emerging. This article reviews and looks ahead at the main sectors, aiming to provide a reference for industry professionals.

ZK Technology

ZK technology has seen broader application in 2023, with key advancements including:

• zkEVM technology route differentiation, each has its advantages and disadvantages.
• zkWASM has become the mainstream direction for zkVM, and RISC V architecture is also being explored.
• In the field of ZK Mining, GPUs, FPGAs, and ASICs each have their advantages.
• ZK middleware expands to more application scenarios

MEV

The MEV track presents the following trends:

• The front-end link of the trading supply chain is receiving attention.
• New DEX design improves liquidity
• Private Auction/Trading Pool Technology Development
• Permissionless is the long-term direction
• OFA is rising and may capture more market share.
• Blockbuilder market concentration is high
• The relay market is facing concentration and incentive issues.

Account Abstraction (AA)

AA is mainly divided into two categories: smart contract wallets and modular services.

• The competition in smart contract wallets is fierce, and wallet factory is worth paying attention to.
• Bundler and Paymaster become standard services
• The AA development of L2 is doing well, EF is considering native support.
• Support for AA in DApp still needs improvement
• Private mempool or converging with MEV and intent

Intents

Intents are developing rapidly, with major trends including:

• The prospects of combining MEV and AA are broad.
• The Telegram Bot may evolve towards Intent.
• Need to address issues such as order flow trust.

Data Availability (DA)

The DA track presents the following characteristics:

• There are not many participants, and the head effect is obvious.
• Security, customization, and cost are the main evaluation dimensions.
• Large Rollup projects tend to choose Ethereum as the DA layer.
• Some emerging DA projects have potential in niche areas.

Rollup Framework and RaaS

• The rollup market is becoming saturated, and RaaS competition is intensifying.
• OP Stacks and other frameworks have gained widespread adoption.
• Specific applications such as DePIN may use customized execution environments.
• New technologies such as FHE and ZKP offer new possibilities for Rollup.

Cosmos Ecosystem

• Cosmos Hub continues to strengthen its ecological position
• Application chain development is influenced by L2, but still has resilience.
• Multiple technology upgrades in the roadmap

Security

Security tools and protocols cover multiple levels:

• On-chain detection and interception
• On-chain tracking tool
• Manual Audit and Bounty Services
• Development Environment Tools
• Various technical methodologies applied

AI and Crypto Integration

The main directions include:

• Underlying computing power infrastructure
• Training based on specific data sources
• Chat Tool
• Data Labeling Platform

DeFi

DeFi shows the following trends:

• Actual yield products are favored
• DEX opportunities increase, especially L2
• The potential of projects aimed at non-crypto native users is significant.
• Leading perpetual DEX fee revenue
• The growth of liquidity staking continues.

Games and Entertainment

Game studios can be divided into the following categories:

• Casual Games
• Large Games
• Moderate gaming
• IP Building
• AI Featured Games

The game UA and distribution platforms are undergoing transformation.

User/Fan Interaction

Mainly involves entertainment, sports events, and the film and television industry, divided into two models: direct operation by IP parties and authorized cooperation.

Institutional Services

Mainly includes:

• Trading/Brokerage Services
• Asset Management
• Bank/Payment
• Other Services

Compliance construction and division of responsibilities are the main trends.

Bitcoin Ecosystem

The main directions of the Bitcoin ecosystem include:

• Side Chain
• Layer2
• Client Verification
• Lightning Network
• BRC20 type assets
• DLC

DePIN

DePIN is a highly regarded track, with main considerations including:

• Decentralized mechanism design
• Market Timing
• Industry fundamentals

The prospects of DePIN projects vary with different hardware types and need to be analyzed specifically.

Overall, various sectors of Web3 are in a rapid development phase, with new technologies and applications constantly emerging. We need to continuously pay attention to industry trends and seize development opportunities.