With the increasing development of blockchain technology and the growing adoption rate, more and more use cases are experiencing explosive growth in categories such as media, sports, entertainment, and gaming. A new special ecological field is emerging – the consumer-level encrypted ecological field.
Recently, global consumer-level public chain Morph commissioned overseas research institution The Block Pro to conduct research on the consumer-level encrypted ecological field. They have written a comprehensive report of over 50,000 words (read the full article: English version, Chinese version) to reveal future development trends in the industry and provide important references for crypto investors, startups, developers, and regulators, helping stakeholders understand and explore the consumer-level encrypted ecosystem.
Morph is a global consumer-level public chain that uses optimistic and zkRollup technologies to improve the accessibility, efficiency, and usability of developers and consumer-level blockchains. It has received support from top capital firms such as Dragonfly, Pantera, Bitget, Spartan Ventures, and Foresight Ventures. As a resource distribution center, Morph can provide support to developers throughout the entire process from project initiation to large-scale market expansion.
The report first defines the “consumer-level encrypted field.” The consumer-level encrypted field refers to platforms, use cases, and services designed for public use that support blockchain technology to facilitate daily activities. It includes tokenized loyalty programs, encrypted collectibles, blockchain-based games, and decentralized social media platforms. Consumer-level products on the blockchain aim to fundamentally reshape our interaction and experience with products and services, creating more efficient, transparent, and user-centered solutions that challenge the conventional practices of the traditional consumer industry.
The report mainly focuses on consumer-level blockchain applications that emphasize daily practicality and participation, rather than speculative ecosystems focused on finance. Therefore, DeFi, GameFi, or NFTFi are not within the scope of discussion.
The report discusses the current market landscape of the consumer-level encrypted ecosystem and traditional consumer brand activities, and systematically classifies the consumer-level encrypted field into two major categories: application layer and infrastructure layer.
The application layer subdomains include community/brand engagement, decentralized social, gaming, media, and communication. The infrastructure layer subdomains include wallets, payments, DePIN, metaverse, on-chain analytics, and identity management. The report also highlights noteworthy projects and investment trends in each subdomain. The specific contents are as follows:
(1) Community/Brand Engagement: This subdomain includes applications aimed at strengthening internal community connections, including loyalty reward programs, social and fan tokens, NFTs and digital collectibles, and subscription and membership products. These applications aim to increase user engagement, encourage continuous interaction and loyalty.
(2) Decentralized Social: This subdomain covers blockchain-driven social networking applications that allow users to create, share, and exchange messages and content in a decentralized manner. DeSo represents a shift in the way users interact, share content, and participate in online communities. Its core features emphasize censorship resistance, user control over data and content ownership, and incentivization through tokens.
(3) Gaming: Online gaming redefines the relationship between players, developers, and in-game assets by utilizing blockchain technology. It creates a unique player-driven economy where users can truly own, sell, and trade their digital assets, overcoming the limitations of traditional gaming models. The open-source nature of online gaming promotes permissionless innovation, enabling developers to create game modifications (mods), plugins, and custom game modes that can interact with the main game.
(4) Media: Blockchain-based media applications utilize the immutability and transparency of blockchain technology to authenticate and establish ownership of digital content. By turning media assets into NFTs or other blockchain-based tokens, creators can prove their authorship and maintain control over the distribution and monetization of their works. Smart contracts enable automatic royalty payments, ensuring that creators receive a fair share of income every time content is consumed or resold, reducing the need for intermediaries.
(5) Communication: Blockchain-based communication protocols aim to address the limitations of centralized messaging platforms. In on-chain communication, messaging occurs directly between wallet addresses, eliminating the need for centralized intermediaries. Messages are encrypted and stored on decentralized networks such as IPFS or the blockchain, ensuring that no single entity controls the data and reducing the risks of data breaches, unauthorized access, and potential misuse of personal messages.
(6) Wallets: Wallets are the key gateway for users to interact with and manage digital assets in decentralized applications. Cryptocurrency wallets are software programs that allow users to store, send, and receive cryptocurrencies and interact with blockchain networks. Improving the user experience of wallets has been a key priority in driving mainstream adoption of on-chain products. Account abstraction and embedded wallets, among other solutions, can simplify the user experience and lower the barrier for consumer participation.
(7) Payments: On-chain payment infrastructure plays a crucial role in the digital asset world, primarily in facilitating the exchange between traditional finance and cryptocurrencies and enabling transactions within the Web3 ecosystem. On and Off-Ramping solutions allow users to convert fiat currencies into cryptocurrencies and vice versa, making it easier for individuals to enter and exit the cryptocurrency space. On-chain payment infrastructure simplifies the process of managing cryptocurrencies for consumers, enhancing the practicality of their on-chain funds.
(8) Networking: The networking subdomain focuses on addressing the limitations of centralized messaging platforms. In on-chain communication, messaging occurs directly between wallet addresses, eliminating the need for centralized intermediaries. Messages are encrypted and stored on decentralized networks such as IPFS or the blockchain, ensuring that no single entity controls the data and reducing the risks of data breaches, unauthorized access, and potential misuse of personal messages.
The report provides a comprehensive analysis of each subdomain, highlighting notable projects and investment trends. It presents data on fundraising amounts, funding rounds, and transaction volumes, showcasing the growth and potential of the consumer-level encrypted ecosystem.
Disclaimer: This article is a sponsored article written by Morph and provided by Morph. It does not represent the position of Dynamic Zone and is not investment advice, buying or selling advice. Please refer to the responsibility warning at the end of the article.