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In a recent blog post titled Make Ethereum Cypherpunk Again, Ethereum co-founder Vitalik Buterin expressed concerns about the veering trajectory of Web3 from its original vision.

Buterin contends that the foundational principles of Web3 have gradually receded as various projects within the cryptocurrency space shift focus away from the core idea of decentralization.

Buterin identifies a substantial ideological divide, where segments of the non-blockchain decentralization community view the crypto world as a distraction rather than a kindred spirit and potent ally.

Initially coined by Ethereum co-founder Gavin Wood, the term Web3 was conceived not merely as Bitcoin plus smart contracts but as part of a broader set of technologies forming the foundation of a more open internet stack.

However, Vitalik Buterin observes that the practical use of cryptocurrency for financial transactions in many countries often relies on centralized means, such as internal transfers on centralized exchange accounts or trading USDT on platforms like Tron.

Vitalik Buterin points to a significant culprit behind the observed shift the surge in transaction fees. When the cost of interacting with the blockchain was minimal, ranging from $0.001 to $0.1, developers envisioned diverse applications using blockchain technology in both financial and non-financial realms. However, with transaction fees surpassing $100, Buterin highlights the increasing prominence of degen gamblers high-risk traders as a dominant user group.

As degen gamblers become the primary users on a large scale, Buterin argues that this reshapes public perception and internal culture within the crypto space. He emphasizes that the rise in transaction fees has played a pivotal role in steering Web3 away from its decentralized ethos.

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Vitalik Buterin Blames Rising Transaction Fees for Web3's Drift from Decentralization - Cryptonews

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On the surface, things now seem very different from a year ago, with Bitcoin (BTC) being more than double the $16,000-17,000 and the total market cap of crypto being comfortably above a trillion dollars.

While the prices do indeed reflect some form of recovery partly fuelled by speculation around the approval of Bitcoin ETFs, we havent progressed enough as an industry, as most of the barriers to crypto adoption still remain unresolved.

It may have been a grueling crypto winter, and the resurgence of bull-posting on X (former Twitter) is a welcome contrast, but the industry needs to regress and slow down to make meaningful progress in 2024. Otherwise, it will basically be going through a repeat of the previous market cycle, albeit with a few improvements or differences.

The industry is still nascent and only slightly over a decade old, and there are still solid use cases lacking as a resultbut this youth will not last forever, and neither should the status quo.

The fast-paced nature of the industry can be exhilarating and impressive at times, as a lot can change in the span of a day or week, like most technology-based industries. However, this can be a double-edged sword as it inclines us to focus on the new rather than the old and be stuck in an echo chamber of sorts.

While it may be counterintuitive, the industry needs to force itself to slow down instead of always looking to go faster. It also needs to look at what has been done outside of web3 that has already been tried, tested, and, more importantly, resilient and prosperous.

Sure, Metaverse-focused utilities such as NFTs, web3 gaming, and SocialFi may be refreshing ideas. Still, they are much too foreign to mainstream users to be effective pull factors for mainstream adoption. Such utilities serve as excellent, unique niches for the industry, generating curiosity and interestbut should not be misconstrued as drivers for mainstream adoption, at least not for the near future.

The reality is that blockchain technology is already complex enough as it is to understand for new users, and this hasnt changed much. Adding relatively foreign ideas to the mix as a focal point only exacerbates this further.

This is where battle-tested and more tangible utilities such as established payment systems and real-world assets (RWAs) come in as a more viable foundation for adoptionmost mainstream users already understand how most of these function, and the grounded nature of these utilities are much more appealing and suitable for institutional and mass adoption as compared to newer and riskier verticals. Unsurprisingly, the data and metrics also back this up; the total value locked (TVL) for RWAs is currently sitting at $5.7 billion in TVL, with projections for growth up to $10 trillion.

Estimated tokenization market sizing | Source: 21.co

As for payment systems, we are also seeing established legacy players such as Visa and Mastercard making moves to support crypto usage in 2023, and this trend will only continue to gain momentum in the coming year.

Accessibility has always been a problem hindering adoption for web3 and crypto, so having more convenient on and off-ramps for crypto will undoubtedly be necessary for user acquisition and retention. Coupled with regulatory compliance, these utilities will be the real backbone and foundation for adoption as they are stable and reliable enough to withstand the test of time.

While speculation undeniably fuels the web3 space, this creates a level of volatility and instability that intimidates and deters new entrantsthe web3 industry cannot rely on this if it is to scale beyond being treated simply as a decentralized casino.

Features such as memecoin trading also do not add much legitimacy to the industry for mainstream users to take web3 seriously, and this all needs to change.

As the industry matures, tokenomics, trendy narratives, and buzzwords will take a backseat to sustainable business models in 2024, as projects without actual value creation and revenue generation continue to be weeded out by increasingly discerning users. Weve already gotten important lessons from FTX, Luna, USTC, and most recently SafeMoon on the importance of decentralization, self-custody, and proper due diligence.

The crypto space does tend to have goldfish memory, and most users are happy as long as they are making money and forget about existing concernsbut this approach needs to change as ponzinomic projects do not bring any meaningful positives to the industry and do not last forever.

Frauds like FTX may have grown to a colossal size and lasted for a long time on empty promises and lies, but eventually collapsed and damaged the industrys credibility tremendously.

Conversely, projects like Pudgy Penguins and their move to introduce a real-world toy collection, in addition to typical NFT utilities, have done relatively well through the bear market, unlike most NFT projects. This isnt a mere coincidence and highlights the importance of having sustainable business models.

In 2024, we will see more and more positive examples as projects deliver on their product roadmap and drive actual utility triumph over competitors with empty promises and hype-based marketing. Both builders and users need to be practical and patient instead of hunting for moonshots or simply looking to make a quick buck to build and support projects with proper revenue sources.

Aside from projects requiring sustainable business models, another core issue is that web3 infrastructure cannot currently maximize the industrys full potential due to its nascency. As an example, decentralized exchanges (DEXes) provide an essential foundation for decentralized finance, which is a core vertical of web3but trading volume and liquidity for the top DEXes are still bested by the leading centralized exchanges due to the familiarity of the user experience, better slippage, depth of liquidity, and more.

While decentralization maximalists might not like the notion, many mainstream users are much too comfortable with custodial services to jump straight into self-custodyresulting in many centralized services acting as a bridge of sorts into web3.

We already see such a trend slowly growing, with Coinbase providing a gateway for its users into the Ethereum ecosystem with its L2 Base, Binance providing its users with an entry point into defi with its recently launched web3 wallet, and even Telegram-focused custodial wallet TON Space.

More and more of such web2.5 products and services, which are built on a hybrid mix of the decentralization from web3 and battle-tested efficiency from web2, will drive critical use cases and larger-scale adoption for the crypto industry.

The security aspect of the infrastructure also needs to be improved, as the web3 industry is still rife with scams and exploitswith $290 million being lost from just five hacks in November alone and legacy wallet providers like Ledger falling victim to an exploit which put many users at risk in December.

It is still far too early for decentralization alone to be the means to an end, as the web3 industry still requires more time to mature. User education also has a pivotal role, along with product UI and UX improvements. As it stands, decentralization and its autonomy should be an end state that the web3 industry strives to make accessible, safe, and easy to use even for mainstream users.

While this has not yet been achieved, the progression through regression for web3 in 2024 should be celebrated, as it will undoubtedly bring the industry closer to making significant breakthroughs and mainstream adoption possible.

Veronica Wong

Veronica Wong is the CEO and co-founder of SafePal, the comprehensive decentralized crypto wallet suite with over 10 million users across hardware, mobile, and browser extension wallet solutions. With a decade of experience in Fortune 500 companies like Tencent, Veronica took the leap of faith from Big Tech and e-commerce into web3 to set up SafePaland has been committed to solving security, UI, and UX issues for crypto users, in addition to cross-chain interoperability for 100+ blockchains (EVM and non-EVM) for the past five years.

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Web3 needs to regress before we can progress in 2024 | Opinion - crypto.news

As we stand at the precipice of a new era in digital interaction and online connectivity, the advent of Web 3.0 promises a radical redefinition of our online experiences. Within this transformative wave, Aleo emerges as a pioneering platform poised to play a pivotal role in shaping the Web 3.0 landscape. This 900-word article delves deep into the future of Web 3.0 and illuminates how Aleo is uniquely positioned to influence and define this next phase of the internet.

Web 3.0, often termed the semantic web, signifies the next generation of the internet. It envisions a decentralized, interconnected data landscape, fostering more intelligent, autonomous, and user-centric experiences. With the incorporation of blockchain technology, artificial intelligence, machine learning, and decentralized data architecture, Web 3.0 aspires to create a more open, connected, and intelligent web.

At the core of Web 3.0 lies the principle of decentralization, a departure from the current centralized control of data and intermediaries on the web. This paradigm shift finds resonance in blockchain technology, particularly platforms like Aleo. Aleo, committed to privacy and decentralized infrastructure, perfectly aligns with the ethos of Web 3.0, actively shaping this new frontier by enabling private, secure, and decentralized transactions.

Privacy and security take center stage in the vision of Web 3.0, where users demand greater control over their data and digital identities. Aleos innovative use of zero-knowledge proofs (ZKPs) introduces a revolutionary approach to privacy, allowing users to verify transactions without exposing personal data. This technological breakthrough is a linchpin in the Web 3.0 puzzle, ensuring that the future of online experiences is not just integrated but also more secure and private.

Web 3.0 envisions a user-centric world where individuals have unprecedented control over their digital interactions, assets, and data. Aleos platform actualizes this sovereignty, offering users the tools to engage in digital and financial activities with full privacy and control. This empowerment signifies a fundamental shift from the current webs landscape, where large corporations often wield control over user data. Aleo stands not merely as a participant in Web 3.0 but as a catalyst embodying its most fundamental principles.

The future of the web foresees a new economic model where cryptocurrencies, tokens, and digital assets play a pivotal role. Aleo, with its secure and private smart contracts, is strategically positioned to facilitate this economic shift. By enabling private and secure transactions, Aleo contributes to the creation of a financial ecosystem that is more inclusive, efficient, and aligned with the decentralized ethos of Web 3.0.

For Web 3.0 to reach its zenith, different technologies and platforms must seamlessly collaborate. Interoperability is paramount, and Aleos design acknowledges this necessity. By ensuring compatibility with other blockchains and technologies, Aleo not only readies itself for the future web but actively participates in shaping a more integrated and functional Web 3.0 ecosystem.

While the future of Web 3.0 and Aleos role in it appears promising, challenges lie ahead. Scalability, adoption, regulation, and user education are hurdles that need to be surmounted. Aleos commitment to ongoing development, community engagement, and collaboration positions it favorably to tackle these challenges and continue its trajectory as a key player in the Web 3.0 landscape.

A vibrant and engaged community is paramount for any platform seeking a substantial impact on Web 3.0. Aleo recognizes this and has cultivated a thriving ecosystem of developers, users, and enthusiasts. This community not only utilizes the platform but actively contributes to its development, advocates for its adoption, and shapes its trajectory in the future web. As Web 3.0 evolves, this community will play a pivotal role in guiding Aleos direction and ensuring its sustained relevance.

For those seeking to be part of Web 3.0 and leverage platforms like Aleo, proactive engagement is essential. This entails active participation in Aleos community, exploration of its technologies, and an understanding of broader Web 3.0 trends. Advocacy for privacy, decentralization, and user empowerment principles central to Aleo and the future web is imperative.

The future of Web 3.0 envisions a more connected, intelligent, and user-centric internet. In this landscape, Aleo emerges not only as a platform aligning with the principles of Web 3.0 but actively shaping them. Through its unwavering commitment to privacy, decentralization, and community, Aleo is poised to play a significant role in the next phase of the internet. Looking ahead, Aleos potential to influence and drive the evolution of Web 3.0 is immense, promising a future web that is not just secure and private but also aligned with the needs and rights of its users. As the digital landscape continues to evolve, Aleos foundational role in the dawn of Web 3.0 is unmistakable.

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Aleo and the Web 3.0 Revolution: Shaping the Future of Decentralized Connectivity - Medium

The PBS Foundation is opening applications for an initial $1 million in grants for research and development on Ethereum proposer-builder separation.

The non-profits pilot phase drew support from Coinbase, Consensys, Fenbushi Capital, Flashbots, Paradigm, the Uniswap Foundation and Vitalik Buterin.

Grants will be disbursed by a council. The council includes representatives from Blocknative, Consensys, the Ethereum Foundation and Flashbots, among others. The foundations grant lead is Eugene Leventhal from the research group Metagov.

Read more: For Ethereum rollups, dealing with data remains a bottleneck

First proposed by Ethereum founder Vitalik Buterin, proposer-builder separation (PBS) is the concept of separating proposers which submit transaction bundles to validators on a blockchain and builders, which organize the transactions in a specific order.

PBS represents an attempt at decentralization, as the combination of proposing and building gives well-heeled centralized mining pools a competitive advantage.

PBS first went into effect after Ethereums Merge to proof-of-stake. Now, the PBS Foundation aims to promote research and infrastructure to address some of the challenges the concept currently faces.

Notably, MEV-boost relays have become centralized since the Merge. Relayers operate between block builders and validators on maximal extractable value (MEV) boosted transactions, selecting blocks with the highest possible fees. Roughly 90% of transactions in the last 500 epochs, or roughly two days, made use of MEV-boost. Of MEV-boost transactions in the past 24 hours, roughly 97% have been handled by five relayers, according to relayscan.

Blocknative, once among those top relayers, discontinued its service in September, citing economic viability concerns. Relayers do not currently collect fees. Uri Klarman, CEO of bloXroute, which runs a large relayer, has advocated fee structures outside of public goods funding to incentivize more relayers to join the fray.

A spokesperson for the PBS Foundation said the grant funding could be used to fund relayers, with a particular emphasis on those who introduce novel designs for relaying.

The funding will also be focused on community and educational materials, data transparency on Ethereums mempool and blocks, and research on how PBS can be improved or even enshrined on both the primary network and on layer-2 networks.

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Buterin, Coinbase and more to fund Ethereum decentralization grants - Blockworks

In the evolving 'travelverse', where cutting-edge technology intersects with the timeless allure of exploration, the travel and hospitality industry stand at the cusp of a revolutionary shift. The integration of blockchain technology and Non-Fungible Tokens (NFTs) promises to redefine the landscape of travel experiences, loyalty programs, and the very essence of cultural interactions.

This short article delves into the opportunities presented by these technologies, drawing inspiration from an article of mine: Revolutionizing the Travel and Hospitality Industry with Blockchain and NFTs, published on Hospitality Net on 16 March 2023.

The core of travel lies in authentic experiences and cultural interactions. Blockchain technology, with its inherent data immutability and programmability, offers a unique platform to enhance these experiences without detracting from their authenticity.

Smart contracts, a pivotal element of blockchain, enable the automatic execution of agreements, ensuring reliability and efficiency in travel arrangements. This technological advancement can streamline processes, particularly repetitive ones, benefiting travelers and operators alike. It opens doors for small-scale operators to promote unique, local experiences, thereby preserving the authenticity of cultural interactions in the digital age.

Smart contracts are set to be the backbone of secure transactions in the travel ecosystem. By automating the verification and execution of contracts, they ensure transparency and reduce the potential for fraud. This aspect is particularly beneficial in areas like expense reporting and compliance in business travel, where smart contracts can streamline processes and ensure adherence to company policies.

Room tokenization, emerging through the innovative use of NFTs, offers a transformative approach in the travel and hospitality sector. This concept involves the digital representation of hotel rooms or unique travel experiences as non-fungible tokens.

These tokens, distinct and non-replicable, can be traded, sold, or even collected, introducing a dynamic new element to the travel market. This not only provides travellers with unprecedented flexibility and choice but also opens up novel revenue opportunities for service providers. By tokenizing rooms and experiences, the industry can cater to a range of traveler preferences, from those seeking luxury accommodations to those desiring unique, off-the-beaten-path experiences.

The role of NFTs extends beyond mere tokenization, playing a pivotal role in enhancing experiential tourism.

NFTs enable the sharing of a journey's narrative, encapsulating the essence of the places visited and the depth of connections made with destinations and cultures. This concept of "tokenization of emotions", as I"ve explored in my book "All about NFTs" by Hoepli publisher, allows for the representation of travel experiences as authentic, reputational values.

These tokens can be utilized for storytelling post-travel, adding value to the traveler's experience while simultaneously benefiting the destination and its operators. Through this innovative use of NFTs, the travel industry can create a more immersive and emotionally resonant experience, bridging the gap between physical travel and digital memorabilia.

Decentralization, a fundamental aspect of blockchain, can revolutionize loyalty programs in the travel industry. By removing intermediaries, blockchain enables a more direct and transparent relationship between service providers and customers.

This shift can lead to more personalized and flexible loyalty programs, where travellers have greater control over their rewards and experiences. The decentralized nature of blockchain ensures a more equitable and inclusive system, where smaller operators can compete with larger entities, offering unique and localized rewards.

As blockchain becomes more integrated into the travel industry, several challenges emerge. Adoption requires a significant shift in current operational models, and the industry must be prepared for this transition.

Regulatory frameworks are still catching up with the rapid pace of technological advancements, posing a challenge in terms of compliance and standardization. Ensuring a seamless user experience is crucial, as travellers vary in their tech-savviness. The industry must strive to make these technologies accessible and user-friendly.

The adoption of decentralized technologies is not without risks. Issues such as data privacy, security vulnerabilities, and the digital divide must be addressed. To mitigate these challenges, the industry needs to invest in robust security protocols, ensure transparency in data usage, and provide adequate digital literacy training to both travellers and service providers.

In an increasingly digital world, maintaining the human element in travel is paramount. While technology can enhance efficiency and convenience, it should not replace personal connections and human interactions that form the essence of travel. The industry must find a balance, leveraging technology to enrich experiences while preserving the personal touch that makes travel meaningful.

The integration of blockchain and NFTs in the travel and hospitality industry offers a plethora of opportunities, from enhancing the authenticity of travel experiences to revolutionizing loyalty programs and ensuring secure transactions.

However, it is crucial to manage these technological advancements with a keen awareness of their potential challenges and a commitment to preserving the human essence of travel. By striking this balance, the industry can step confidently into a future where technology and tradition coexist harmoniously.

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Embracing the future of travel ... decentralization | By - Hospitality Net