With the increasing development of blockchain technology and the growing adoption rate, more and more use cases are experiencing explosive growth. Applications in the fields of media, sports, entertainment, and gaming are booming, leading to the emergence of a new and unique ecosystem called the consumer-grade cryptographic ecosystem.
Recently, the global consumer-grade public chain Morph commissioned overseas research institution The Block Pro to conduct a research on the consumer-grade cryptographic ecosystem. They have written a detailed industry report of over 50,000 words, aiming to reveal the future development trends of the industry and provide important references for crypto investors, startups, developers, and regulators. The report aims to help stakeholders understand and explore the consumer-grade cryptographic ecosystem.
Morph is a global consumer-grade public chain that uses optimistic and zkRollup technologies to enhance the accessibility, efficiency, and usability of developers and consumer-grade 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-grade cryptographic domain.” The consumer-grade cryptographic domain 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-grade products on the blockchain aim to fundamentally reshape the way we interact and experience products and services, creating more efficient, transparent, and user-centered solutions that disrupt traditional consumer industries.
The report mainly focuses on consumer-grade blockchain applications that emphasize daily practicality and participation, rather than financial-focused speculative ecosystems. Therefore, DeFi, GameFi, or NFTFi are not within the scope of discussion.
The report explores the current market landscape of the consumer-grade cryptographic ecosystem and traditional consumer brand activities, and systematically classifies the consumer-grade cryptographic domain 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 notable projects and investment trends in each subdomain. The specific content is 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, as well as subscription and membership products.
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. It emphasizes resistance to censorship, user control over data and content ownership, and incentivization through tokens.
3. Gaming: Blockchain-based games redefine the relationship between players, developers, and in-game assets, transforming the traditional gaming industry. These games create a unique player-driven economy where users can truly own, sell, and trade their digital assets, overcoming the limitations of traditional game models. The open-source nature of blockchain games promotes permissionless innovation, allowing developers to create game modifications (mods), plugins, and custom game modes that can interact with the main game.
4. Media: Blockchain-based media applications leverage the immutable and transparent nature 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 whenever 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, communication 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 entry points 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 always 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 barriers for consumer participation.
7. Payments: On-chain payment infrastructure plays a crucial role in the digital asset world by 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 and enhances the usability of their on-chain funds.
8. Networking: The networking subdomain focuses on decentralized messaging platforms that aim to overcome the limitations of centralized messaging platforms. In on-chain communication, communication 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. This decentralized approach ensures that no single entity controls the data, reducing the risks of data breaches, unauthorized access, and potential misuse of personal messages.
The report provides insights into the current market landscape of the consumer-grade cryptographic ecosystem and highlights key projects and investment trends in each subdomain. It offers valuable information for investors, startups, developers, and regulators to understand and explore the potential of the consumer-grade cryptographic ecosystem.