Blockchain expertise is all about decentralization and virtualization, so it's a bit ironic that folks love to assemble in particular person for large-scale blockchain occasions. Korea Blockchain Week, held in Seoul final week, attracted a file 17,000 attendees and featured 300 audio system.

Like several conventional tech convention, the occasion was attended by many large names within the area, together with each well-known figures (reminiscent of Vitalik Buterin, Richard Teng from Binance, and Mark Karpeles) and lesser recognized names (researchers, professors, and founders of many new startups).

Not like common conferences, there are additionally ha profiles: apes, penguins, geese and bears have been additionally on the listing.

Nobody would accuse the crypto world of not having its share of merry pranksters, however there stays a robust undercurrent of unease among the many public, as mainstream adoption seems to be stalling and with the US elections looming, there’s a large query mark over what future regulation will appear to be.

We walked across the occasion and spoke to many attendees, and listed here are a few of our impressions.

Past Protocol

Till now, scalability has been an enormous drawback for blockchains, with excessive charges and gradual transaction speeds. Now, second-layer blockchains (so-called “layer 2 blockchains”) make transactions sooner and cheaper, making scalability now not a problem for many use instances. The most well-liked layer 2 blockchains can comfortably deal with tens of millions of transactions per day.

Regardless of this, utilization just isn’t essentially growing, partly as a result of continued gaps in purposes.

“I feel the expectation for precise software content material has elevated considerably,” stated Simon Kim, CEO of Hashed, a enterprise capital agency targeted on blockchain and cryptocurrency. In an interview with currencyjournals, Simon emphasised the necessity for extra sensible use instances.

Indicators of this are starting to emerge, particularly on the planet of IP content material monitoring: Final month, Story raised $80 million to construct a blockchain that can permit IP homeowners to extra successfully monitor the usage of their content material, whereas Sony Block Options Labs, a three way partnership fashioned by Sony and Startale Labs, introduced Soneium, a brand new public blockchain community that guarantees to make it simpler for customers to guard creators' rights and distribute earnings pretty.

“That is an {industry} first try and construct a content-focused IP ecosystem,” Simon stated.

Others on the expo stated they have been on the lookout for extra real-world purposes that buyers might perceive.

“For the final six years, we've been creating roads, highways, and every kind of infrastructure within the crypto world. Now we have to concentrate on comfort shops, clothes shops, malls, issues that folks take pleasure in and use,” stated Steve Lee, co-founder of Neoclassic Capital, a Miami-based crypto funding agency backed by enterprise capitalists Marc Andreessen, Chris Dixon and Tampa Bay Lightning proprietor Jeff Vinik.

The corporate is targeted on purposes in client and monetary companies. “From a client perspective, we’re significantly enthusiastic about use instances in gaming IP, leisure and social purposes,” he stated.

Neoclassic is aiming to launch its first fund in April to pursue additional funding alternatives in these sectors. “Whereas the West might proceed to guide in infrastructure improvement, we see larger potential for these (Web3 client use instances) in Asia in comparison with the West,” he stated, citing the area's excessive bitcoin buying and selling volumes and monitor file in areas reminiscent of gaming and leisure. He stated international locations reminiscent of Japan and South Korea “have turn out to be leaders in adopting new applied sciences sooner than wherever else on the planet.”

Old-fashioned with a contact of crypto?

Whereas some crypto corporations are nonetheless chasing a breakthrough win, others try to persuade conventional companies that they need to add crypto components to their present merchandise.

Justin Kim, Asia head at Ava Labs, a blockchain platform targeted on decentralized apps (dApps) and enterprise blockchain adoption, famous that extra organizations are launching their very own customized blockchains on Avalanche.

“The listing contains the California DMV, Konami Digital Leisure, the Nexon MapleStory universe, Otherworld solo leveling animation, and monetary establishments reminiscent of JP Morgan and Citi,” he stated.

Justin added that tokenization of latest asset courses can be a latest development. For instance, New York-based funding platform Republic is tokenizing funds to assist finance films. IT consulting agency Questry and Japanese financial institution Mizuho Securities are tokenizing funds to assist fund anime content material manufacturing. Justin famous that each tasks are based mostly on the Avalanche platform.

Stablecoins are additionally being launched into mainstream monetary and messaging apps.

Notable developments embrace PayPal introducing a stablecoin known as PYUSD, and messaging apps reminiscent of LINE and Telegram in Japan integrating crypto wallets. Naver, co-owner of LINE, additionally just lately launched a crypto pockets inside its cost app in South Korea. “Stablecoin buying and selling exercise is selecting up,” Simon stated.

In keeping with Simon, Hashed has additionally partnered with different conventional corporations reminiscent of South Korean leisure firm HYBE, Japan-based gaming firm Nexon, South Korean monetary establishment KB Kookmin Financial institution and Thailand's Siam Industrial Financial institution.

One other space that has been getting consideration from the {industry} is gaming, Simon famous, which he added is without doubt one of the quickest rising sectors, particularly because of the rise in on-line commerce.

“The content material is there, and AAA video games will begin to flood the market later this yr,” Simon stated. Previously, blockchain-based video games with experimental tokens and NFT possession have been launched whereas nonetheless in an experimental stage. “Now we're seeing well-made, high-quality video games being launched.”

Yat Siu, co-founder and chairman of Hong Kong-based gaming and software program firm Animoca Manufacturers, which additionally runs the Web3 enterprise capital agency, disagreed, saying gaming tasks which might be basically launchpads for tokens haven't executed so properly to this point.

“Folks “Proper now I'm excited (in regards to the recreation) however I feel I'll be again,” Siu stated.

Equally, NFTs aren't garnering a lot consideration in the mean time, however their advocates are nonetheless hopeful.

“Within the early days, when individuals didn't assume the web was attention-grabbing or actual, they simply saved constructing it and it will definitely grew. I see the (NFT) house the identical manner,” Siu added.

Greater supporters and larger regional forces

Diederik van Welsch, regional director for ASEAN and Hong Kong at blockchain knowledge platform Chainalysis, stated that whereas low- and middle-income international locations led crypto adoption in 2023, adoption will probably be extra evenly unfold between wealthy and poor international locations this yr.

“Cryptocurrency went mainstream because of the launch of the Bitcoin ETF, which possible sparked a rise within the complete worth of Bitcoin exercise throughout all areas,” Van Welsch informed currencyjournals.

In keeping with that, he stated, institutional traders are driving crypto adoption in international locations like Singapore and Indonesia. The U.S. adopted an analogous sample. When the U.S. launched a Bitcoin ETF, it was an enormous change for the market, Siu stated.

“Tokens which have institutional backing are likely to carry out higher. That's the place crypto goes,” Siu stated.

“Singapore is seeing a rise in the usage of crypto service provider companies, whereas Indonesia, the place crypto is used as a method of transaction, recorded the best progress charge of roughly 200% year-on-year, making it one of many quickest rising crypto markets within the area,” Van Welsch stated.

But it surely's not all excellent news: As extra individuals undertake crypto, crime may even improve, he added: “As adoption will increase, so will crime. And right now, crypto encompasses every kind of crime, together with fraud and medicines.”

Bullish on Telegram's future (Regardless of Durov's arrest)

The arrest of Telegram founder Pavel Durov in France final month undoubtedly had repercussions for Telegram-linked Toncoin, whose value plummeted following the information, however by the point KBW emerged only a week later, the temper had brightened.

Motion Labs co-founder Rushi Manche informed currencyjournals that Telegram has turn out to be a helpful communication instrument for a lot of within the crypto neighborhood, and that's unlikely to vary within the quick time period.

“What occurred with Pavel Durov and what's occurring with Telegram and TON is proof that decentralization is working fairly properly. Despite the fact that Pavel was arrested, all the things was nonetheless working,” Siu informed currencyjournals. “I feel it is a constructive total and exhibits the resilience and energy of decentralization and the advantages of working one thing on the blockchain. So I'm bullish on TON and Telegram long run.”

Animoca Manufacturers is an investor in TON, a blockchain that’s deeply built-in into messaging apps.

Simon acknowledged that one of many classes realized from this incident is that for the reason that digital world has no bodily borders and nation states can’t management what's on the web, it highlights the necessity for brand spanking new rules to be enacted to independently govern these digital areas.

Regulation stays a serious impediment

Regulation was cited repeatedly as a prime concern amongst these KBW spoke to, not simply these working within the cryptocurrency {industry} in Asia, however elsewhere as properly.

“Till just a few years in the past, many blockchain builders had their headquarters in Singapore,” Simon stated. “Extra just lately, the UAE has emerged as essentially the most industry-friendly nation, with clear rules and tips in place.”

The clear institution of rules, particularly mild rules, decided the place improvement would flourish.

“The primary concern we hear is the necessity for regulatory readability throughout varied jurisdictions in Asia,” Motion Lab's Mansch stated, “however that is driving a push for extra constant, innovation-friendly insurance policies. Regulatory readability might enhance globally, accelerating institutional adoption. We additionally foresee a concentrate on sustainable blockchain options and progressive token economics.”

However a lot of it has been piecemeal. Japan was the primary to maneuver on this space, and Singapore was additionally an early mover with lightweight rules targeted on anti-money laundering (AML) and combating the financing of terrorism (CFT), in response to Cheng Yee Ong, head of Asia-Pacific coverage at Chainalysis. Hong Kong and India then adopted with their very own regulatory frameworks. “And so what we ended up with was a patchwork of rules,” she stated.

The US presidential election in November may very well be the second when a few of this lastly involves a head within the US. “Relying on who wins, the {industry} will speed up extra, however I feel crypto will develop within the US both manner,” Siu stated. “This isn’t an endorsement, by the way in which.”