In today’s issue, Kelly Ye, a portfolio manager and head of research at Decentral Park Capital, shares insights on how the combination of Web2 and Web3 will boost the adoption of blockchain technologies. She highlights three fast-growing blockchain ecosystems that are leading the way in this transition.
Web2 and Web3 Integration for Mass Adoption in Crypto
While the launch of spot BTC and ETH ETFs is a positive step towards mainstream adoption, true adoption should focus on on-chain usage rather than just ownership. Challenges such as complex wallet setups, gas fee payments, security concerns, and perceptions of fraud have hindered user onboarding.
To address these challenges, three blockchain ecosystems are bridging the gap between Web2 and Web3 to provide a seamless user experience while offering the benefits of sovereign ownership in Web3. For example, Base by Coinbase aims to simplify onboarding for crypto-curious users by providing easy fiat on and off ramps, UI improvements, and a vibrant ecosystem of DeFi and social applications.
Additionally, TON, integrated into Telegram, targets a massive user base of 900 million users. Through seamless wallet creation, in-app purchases, and fiat onboarding, TON is making crypto more accessible to a global audience. Notable applications like Notcoin and Catizen have already gained significant traction in the Web3 space.
Solana’s Blinks feature is another example of innovation in Web3, offering high-performance blockchain solutions that can be embedded into Web2 businesses. This simplifies on-chain transactions and makes it easier for businesses to integrate blockchain technology into their operations.
The Fusion of Web2 and Web3 for Blockchain Adoption
As we witness the fusion of Web2 and Web3, the adoption of blockchain technology is accelerating. On-chain fund management offers transparency, real-time tracking, reduced costs, and access to a broader range of asset classes. This shift is impacting traditional financial institutions, pushing them towards on-chain solutions for transparency, cost-effectiveness, and competitiveness.
Key Insights from Ask an Expert
A. Rafay, co-founder of Zignaly, answers questions on why fund managers should adopt on-chain fund management and how this shift will impact traditional financial institutions. On-chain fund management offers transparency, efficiency, security, and access to new asset classes, revolutionizing the way funds are managed.
In the crypto world, major developments are underway, with BlackRock CEO Larry Fink endorsing Bitcoin as a legitimate financial instrument, record-setting digital asset inflows, and the German government’s recent sale of Bitcoin. These developments signal a growing acceptance and integration of digital assets into mainstream finance.
In conclusion, the integration of Web2 and Web3 is revolutionizing the adoption of blockchain technology, offering new opportunities for users, businesses, and financial institutions. The shift towards on-chain solutions is reshaping the financial landscape, driving transparency, efficiency, and innovation in fund management and beyond.