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Talking about consumer encryption: an emerging trend or just old wine in new bottles?

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Original author: Ruthy

Original translation: TechFlow

Talking about consumer encryption: an emerging trend or just old wine in new bottles?

The term “consumer crypto” has been popping up in discussions recently, driven by some builders and thought leaders as a new trend or emerging topic.

So, what does it mean?

Is this really a new area for the industry, or is it a concept that has been repackaged and gained traction in different market conditions?

To understand the concept of consumer crypto, we need to delve into its definition, current relevance, factors that may drive its growth, and the obstacles it faces.

What does consumer encryption actually mean?

Cryptocurrencies are increasingly integrated into everyday consumer products, services, and behaviors. This means that people can use cryptocurrencies in real life, not just for speculative trading or decentralized finance protocols.

Consumer crypto focuses on the end-user experience, integrating cryptocurrencies into products used in everyday life, such as games, social platforms, e-commerce, and media.

Why is this topic gaining attention now?

  • Is it because consumer products with huge market potential like @Polymarket are emerging and showing signs of widespread adoption?

  • Is it because blockchain IP projects like @pudgypenguins are attracting global attention?

  • Is it because people, especially younger generations, are becoming increasingly frustrated with the traditional financial system?

  • Is it because blockchain technology and applications have matured and user experience has become the focus now?

It may be a combination of these factors.

Looking ahead to 2025, we’re likely to see more products emerge from the Web3 space and enter the global market, with venture capital firms also moving in this direction, investing in user experience solutions, such as @initiaFDN ’s $14 million round and @infinex_app ’s $65 million round.

With recent announcements from companies incorporating cryptocurrencies into their products, it’s clear that we’re heading towards a world where cryptocurrencies will become mainstream products and usher in new breakout moments.

  • PayPal announces its crypto service for business accounts

  • Visa is partnering with Transak to facilitate crypto-to-fiat transactions

I personally even ordered a @biptapofficial card to test this direct crypto-to-fiat payment model. It will make life so much easier.

What obstacles do we face?

Incentives and target audience

Many teams claim to be at the forefront of consumer crypto, developing applications for global markets. However, they often focus too much on attracting initial users to Web3 and design incentives around speculation and profit. They see this approach as part of achieving product-market fit and user onboarding.

But what would happen if these incentives were removed?

Talking about consumer encryption: an emerging trend or just old wine in new bottles?

Fragmentation and friction

Different blockchains and platforms often operate independently, causing friction. For users, fragmentation means having to deal with multiple interfaces, wallets, and token standards, which increases complexity. As assets are distributed across different platforms, liquidity is fragmented and efficiency is reduced.

This fragmentation has led to the development of specialized chains like @AbstractChain and @Ronin_Network , which are building vertically integrated ecosystems, while @infinex_app has created a horizontally integrated platform similar to a decentralized exchange by integrating cross-chain user experience and positioning itself as the user experience layer.

When I discussed with my team members, I found a striking similarity between Abstracts vision and the achievements of apps like WeChat or KakaoTalk.

Our team at Abstract is committed to building the premier destination on the chain, one designed to be the most fun place on the Internet – I call it cryptos digital playground or Disneyland of the Internet. The following figure shows our determination to focus on providing a distraction-free and excellent user experience. Over time, we hope to attract users by introducing new products and eventually develop into a universal chain.

WeChat started out as a messaging app in China and has since grown into a vast ecosystem of services including social media, payments, shopping, news and mini-programs.

Abstract can also be viewed as a similar ecosystem application that starts with an initial use case and scales horizontally once a strong vertical integration foundation is established.

Perhaps this is the path for specialized chains like @abstractchain and @Lucanetz ?

Product-market fit remains a major challenge. Despite rapid innovation in crypto, many products still fail to solve real consumer pain points or provide real entertainment value.

To date, we’ve seen a handful of Web3 products like Polymarket and Axie Infinity enter the mainstream, but these are isolated cases. For consumer crypto to become ubiquitous, we need more products that solve real problems or provide meaningful entertainment value. This means developing fun games that don’t just rely on “earn while playing” mechanics, or creating financial products that truly improve lives, rather than just attract speculators.

What do you think adoption means?

Consumer crypto adoption involves different stakeholders with different incentives, especially between builders and traders. While both stand to benefit, their motivations and approaches differ greatly.

Builders are responsible for developing the infrastructure, applications, and ecosystems that promote the adoption of cryptocurrencies. Their goals are not limited to short-term price fluctuations, but focus on providing value to users, earning income through transactions, and attracting investment through product-market fit.

Traders see adoption from another perspective. For them, adoption means increased liquidity and more opportunities for profitable exits.

What do you think? Feel free to share your thoughts.

This article is sourced from the internet: Talking about consumer encryption: an emerging trend or just old wine in new bottles?

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