Reflections on Web3 Carnival and Industry Transformation

The recent Hong Kong Web3 Carnival has sparked a lot of thoughts. Although the atmosphere on-site was somewhat quiet, it also reflects that the industry is undergoing an important transformation.

The Gap Between East and West Cooperation Still Exists

The participants of the carnival are predominantly Asian, with a noticeable decrease in Western project parties. This highlights the divergence between the East and West in their concepts of Web3: the West focuses more on technological innovation, while Asia tends to view it as a speculative tool. This difference makes it difficult for both sides to collaborate deeply and also limits the overall development of the industry.

The RWA craze deserves caution

Real World Assets(RWA) has become a hot topic this year, but its essence is not much different from past NFTs, inscriptions, and so on. On a macro level, these concepts are correct. However, excessive hype around a certain concept often overlooks individual needs, ultimately making it difficult to sustain. The real challenge lies not in short-term growth, but in how to retain users.

Ethereum Faces a Dilemma

Ethereum founder Vitalik stands at a difficult crossroads. Betting fully on L2 scaling solutions seems reasonable, but it may also bring new problems. If L1 performance is good enough, is L2 still necessary? How will interoperability between L2s be resolved in the future? These are all pressing questions that need answers.

Web3 Games in Crisis

Web3 games were once filled with high hopes, but the reality is not as satisfactory. Both players and investors have lost interest in this field. The projects that are still persisting are more due to ecological layout or defensive considerations. The fundamental reason that Web3 games struggle to breakthrough is that their financial attributes often overshadow the enjoyment of the games themselves.

The industry is entering a period of adjustment.

After multiple rounds of cycles, the Web3 industry is undergoing a reshuffle. Institutional investors have begun to dominate the market, making it difficult to win by relying solely on entrepreneurial thinking. The future development direction may lie in deep cooperation between institutions and entrepreneurs. At the same time, tool-based and application-based projects with clear business models may encounter new opportunities.

Returning to the Essence is Key

High expectations often lead to disappointment. If we view Web3 as an extension of crypto finance rather than a disruptive infrastructure, we might be able to take a more rational look at the industry's development. The future should focus on providing quality tools and services for those pursuing freedom.

In this rapidly changing field, it is crucial to maintain a clear mind and a focused attitude. What truly deserves attention is always those who strive for excellence in their work. As the industry shifts from "market dream rate" to "market share rate", projects that place more emphasis on product-market fit, cash flow, and business models will stand out. This transformation signifies that the Web3 industry is moving towards a more mature and pragmatic phase.