Outlook on the Web3 Field: Trends in Technology and Ecosystem Development in 2024

In recent years, the blockchain and Web3 fields have made significant progress in various aspects, including scalability solutions, cross-chain interoperability, decentralized finance (DeFi), non-fungible tokens (NFTs), and emerging standards such as ERC-404. The Ethereum ecosystem, as the most mature blockchain platform, has always been the focus of industry attention.

ETHDenver, as an important platform for blockchain innovation and community exchange, is expected to attract over 20,000 participants this year. This event not only showcases the latest technological advancements but also fosters collaboration and knowledge sharing within the industry. As a crossroads of blockchain technology, culture, and education, ETHDenver provides participants with a unique opportunity to discuss and shape the future development direction of blockchain technology.

Looking ahead to 2024, the Ethereum ecosystem is expected to make significant breakthroughs in multiple areas:

1. Scalability Improvement: The performance of Layer 2 scaling solutions will be significantly enhanced through the implementation of rollup technology and EIP-4884.

2. Enhanced Privacy Protection: The application of technologies such as zero-knowledge proofs will provide users with a higher level of privacy protection.

3. Decentralized Identity (DID) Development: New advancements are expected in identity verification and data management.

4. DeFi Innovation: Financial services will become more decentralized, offering a wider variety of products.

5. DAO Governance Optimization: The operational mechanisms and efficiency of decentralized autonomous organizations are expected to improve.

6. The Rise of Hybrid Applications: Applications that combine various Web3 technologies will provide users with a richer experience.

These development directions are closely aligned with Ethereum's core principles: decentralization, open participation, censorship resistance, and trust neutrality. Emerging technologies such as account abstraction will further strengthen these values and drive Ethereum towards a more secure and private interactive platform.

In the DeFi space, the following trends may emerge in 2024:

• Changes in the regulatory environment: A clearer regulatory framework is expected to emerge, especially for hybrid financial (HyFi) projects.
• Growth in Stablecoin Usage: On-chain stablecoin trading volume may surpass that of traditional payment systems, indicating that financial transactions are accelerating their migration to blockchain.
• Ethereum ecosystem optimization: The proportion of liquid staking ETH is rising, the popularity of private trading and gasless transactions is increasing, and rollup technology is driving a significant increase in transaction volume.

In terms of Web3 games, it is expected to see:

• Deep integration of blockchain technology and game mechanics
• The collaboration between traditional gaming companies and Web3 startups is increasing.
• The ERC-404 standard may revolutionize the ownership, trading, and cross-platform interoperability of game assets.

The NFT market may exhibit the following characteristics in 2024:

• Become the main driving force of Web3 adoption
• Diversification of application scenarios, integration with a broader digital ecosystem
• The ERC-404 standard improves the liquidity and accessibility of NFTs, with the potential to attract more collectors and investors.

Overall, the Web3 industry is expected to make significant progress in technology integration, ecosystem maturity, and regulatory adaptation in 2024. The enhancement of cross-chain interoperability, along with innovations in the gaming and NFT sectors, will drive the entire industry toward a more mainstream direction.