Outlook for the Web3 Space in 2024: Technological Innovation and Ecological Development

In recent years, the blockchain and Web3 sectors have made significant progress in various aspects, including scalability solutions, cross-chain interoperability, decentralized finance ( DeFi ), non-fungible tokens ( NFT ), and emerging standards such as ERC-404. The Ethereum ecosystem, as one of the most mature platforms in the industry, continues to attract a large amount of attention and investment.

The upcoming ETHDenver 2024 is expected to bring together over 20,000 community members to explore innovative ideas and shape the future of blockchain technology. This event not only showcases technological advancements but also fosters a sense of community and collaboration among participants, making it an unmissable event in the industry.

In the Ethereum ecosystem, the implementation of rollup technology and EIP-4884 is expected to bring significant improvements to layer two scalability. In addition, advancements in areas such as decentralized identity (DID), DeFi, decentralized autonomous organizations (DAO), and hybrid applications are also worth looking forward to. These developments highlight the importance of privacy, as well as the diversity of Ethereum as a payment method and a governance platform for decentralized applications (DApp).

Decentralization, public participation, censorship resistance, and trusted neutrality are the core principles of Ethereum. Technologies such as rollups, zero-knowledge proofs, account abstraction, and privacy solutions help reinforce these values. Ethereum technology is expected to be applied in a broader range of areas, including secure and privacy-preserving online interactions, as well as facilitating more democratic forms of governance.

Looking ahead to 2024, several key sectors in the Web3 space are expected to undergo significant transformations and growth:

DeFi Field

1. Regulation and Transparency: There is expected to be greater focus on compliance and regulatory clarity, especially for hybrid finance (HyFi) projects. Pure DeFi projects may still remain on the fringes of regulation, but regulators may strengthen oversight of HyFi.

2. Stablecoin trading volume: On-chain stablecoin trading volume is expected to surpass traditional payment networks, reflecting that financial transactions are migrating to blockchain infrastructure.

3. Ethereum Ecosystem: The proportion of liquid-staked ETH is expected to increase, enhancing liquidity and usability across the entire ecosystem. Additionally, private transactions and gas-free transactions may become more common, and the trading volume of rollup technology on layer one networks is also expected to increase significantly.

Web3 Games

1. Deepening Blockchain Integration: The use of blockchain elements in game mechanics will become more complex, and the types of Web3 games will be more diverse. Collaboration between the traditional gaming industry and Web3 startups may increase.

2. Opportunities Brought by New Standards: New standards such as ERC-404 may revolutionize the ownership, trading, and cross-platform integration of in-game assets, promote interoperability among game universes, and enrich the player experience.

3. Mainstream Adoption Challenges: Attracting a broader player base remains a challenge, but improvements in development tools and simplification of blockchain components may drive wider adoption.

NFT Market

1. Growth and Diversification: NFTs are expected to be a major driving force for Web3 adoption in 2024, and successful projects may differ from current trends, with a focus potentially shifting towards unique applications and broader digital ecosystem integration.

2. Improvement of liquidity and accessibility: New standards like ERC-404 enable NFTs to be traded as fungible tokens on decentralized exchanges while retaining their uniqueness. This hybrid approach aims to address the core issues faced by the NFT market by increasing liquidity and accessibility, potentially attracting a broader range of market participants.

In 2024, the Web3 space is expected to present deeper integration, maturation, and adaptation to regulation. Interoperability across chains and ecosystems, along with innovations in the gaming and NFT sectors, will drive the industry towards significant maturity and mainstream breakthroughs.