Outlook for the Web3 Track in 2024

The Web3 sector experienced rapid development in 2023, with varying degrees of progress across different tracks. Looking ahead to 2024, the following directions are worth paying special attention to:

ZK Technology

ZK technology further expanded from scaling and cross-chain scenarios to more application scenarios in 2023, mainly including:

• zkEVM: Different types of zkEVM have made progress, with type 1 being particularly outstanding in compatibility and experience.
• zkVM: zkWASM is the main technical route, RISC V and zkLLVM are also being explored.
• ZK Mining: GPUs, FPGAs, and ASICs each have their advantages, Prover DAOs are increasing.
• ZK Middleware: includes zkBridge, zkPoS, ZK Coprocessor, zkML and other directions

MEV

The development trends of the MEV track include:

• Focus on the early stages of the trading supply chain
• Next-generation DEX design and infrastructure
• Development of private auction/trading pools
• Permissionless is the direction of the future.
• OFA( Order Flow Auction ) Rise
• The concentration of the Blockbuilder market is high.
• The Relay market faces issues of concentration and incentives.

Account Abstraction (AA)

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

• The competition for smart contract wallets is fierce, and wallet factory is worth paying attention to.
• Bundler and Paymaster have become standard services
• The AA development of L2 is progressing well.
• The support for AA by DApp still needs to be improved.
• The integration of private mempool with MEV and intent is a trend.

Intents

Intents are developing rapidly, with major trends including:

• Closely integrated with MEV and AA
• The Telegram Bot evolves towards Intent.
• Need to solve issues such as solver malfeasance and order flow trust.

Data Availability(DA)

Characteristics of the DA track:

• The head effect is obvious, and there are not many participants.
• Security, customizability, and cost are key considerations.
• Large Rollups tend to choose Ethereum as the DA layer
• Some DA projects targeting specific scenarios may gain market share in niche areas.

Rollup Framework and RaaS

• The Rollup market is becoming saturated and awaits new developments.
• Some L2/L3 frameworks are favored by developers
• Specific applications may use customized execution environments
• New technologies such as FHE rollup are worth paying attention to.

Cosmos Ecosystem

• The Cosmos Hub plans to strengthen its ecological position
• Application chain development is affected by L2 and others, but there is still room for growth.
• High customizability is an advantage.

Security

The security track covers multiple aspects:

• On-chain detection and interception
• On-chain tracking tools
• Manual Audit and Bounty Service
• Development environment tools
• Various technical methodologies applied

The Integration of AI and Cryptocurrency

Main directions include:

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

DeFi

DeFi Development Trends:

• Demand for actual yield products is rising
• DEX opportunities increase, especially on L2
• Projects aimed at non-crypto native users have potential.
• Perpetual DEX, liquidity staking, and other sub-segments perform outstandingly

Games and Entertainment

Game Studio Categories:

• Casual Games
• Large games
• Moderate Game
• IP construction
• AI Featured Games

Game UA and fan participation are also important directions.

Institutional Services

The institutional service track includes:

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

Compliance construction and specialization are the main trends.

Bitcoin Ecosystem

The Bitcoin ecosystem mainly focuses on:

• Sidechain technology
• Layer2 solution
• Client Verification Technology
• Lightning Network
• BRC20 and related infrastructure
• Application of DLC Technology

DePIN

DePIN is a highly regarded track with the following main features:

• Decentralization and mechanism design are key
• Timing is very important.
• The industry fundamentals need to be considered
• Different types of hardware have different development potentials and challenges.

Overall, various tracks in Web3 are expected to continue developing in 2024, with new technologies and applications constantly emerging, which are worth ongoing attention.