How Web3 can attract hundreds of millions of users: Morph's "consumer-centric" L2 incremental solution

Which is the most successful crypto financial product in the world in the past five years?

The most popular answer is neither the on-chain financial innovations such as Uniswap that ignited the DeFi Summer, nor the digital artworks such as CryptoPunks that set off the NFT craze, but rather the stablecoins that everyone has long been accustomed to.

That’s right. In addition to financial games with big user attributes such as DeFi and NFT, stablecoins for ordinary users have become the most widely used crypto financial use case. The number of accounts on the TRC20 version alone exceeds 40 million, which really makes it possible forBlockchainThe crypto economy is no longer a carnival for a few people, which has greatly broadened and deepened the user base of the crypto economy.

At the same time, this also reflects the strong demand of the general public for "Web3 consumer products". Web3 should not be a game for big players. Seeing this, Morph resolutely abandoned the minority strategy centered on crypto OGs and on-chain whales, and clearly launched the "consumer-level L2", choose to be "consumer-centric" and build for "majority" ordinary users and developers:

Imagine if Morph, through consumer applications such as payment, games, SocialFi, and entertainment, siphons existing Web3 users who have been exhausted by high-threshold on-chain financial games, and at the same time brings traditional Web2 incremental players with huge capital and user traffic into Web3, will it become a breakthrough point for the large-scale adoption of Web3?

Web3 may usher in "consumer-level DApp"dividend

The wind starts from the tip of the green reed. In 2024, TraFi and the regulatory level will usher in unprecedented changes. Consumers represented by Morph L2, perhaps it can provide a new option for the general public who are tired of "VC coins" and whale games.

It should be noted that the macro environment has improved significantly recently, both in terms of regulation and funding. First, on May 22, the 21st Century Financial Innovation and Technology Act (FIT21 Act) was passed by the House of Representatives with an overwhelming majority of 279 votes to 136. Then on May 24, the U.S. Securities and Exchange Commission (SEC) officially approved 8 19b-4 forms for Ethereum spot ETFs.

This means that the stance of US regulators has shifted from tough to soft. In particular, institutions that have already been exposed to Bitcoin spot ETFs are likely to expand their investment focus to Ethereum in order to seek portfolio diversification. However, this also creates an old problem:

With so many L2s and the threshold for on-chain dividends getting higher and higher, whether using on-chain financial services such as DeFi and NFT, or participating in testing, wooling, and other interactions to earn potential profits, they are becoming increasingly friendly to large users, and it is becoming increasingly difficult for the general public to get the opportunity to share the dividends of Web3 and project development.

Even if the Ethereum system sees an influx of funds in the future, how can this minority strategy that only serves OGs handle the massive amount of incremental users and funds?

To some extent, every time a financial game with big players on the chain is added, every time it ignores the interests of the general public,TokenDuring airdrop activities, a group of users will stop/refuse to use Web3, and the Web3 ecosystem will have nowhere to go without any new users. Therefore, the only solution is to start from a broader basic demand like stablecoin payments and attract enough general users.

This not only reminds people of Pinduoduo, which was once labeled with the false proposition of "consumption downgrade". In essence, it used the highways of the Internet, manufacturing, and logistics to reach the grassroots general public and the most mainstream but ignored "absolute majority", thereby miraculously subverting the first-mover advantages of giants such as Alibaba and JD.com and achieving an "impossible reversal."

A single spark can start a prairie fire. So there is no such thing as consumption downgrade, only a new traffic growth strategy that sinks to the general public, and the current Web3 also needs such a "sinking" and a new traffic growth strategy that focuses more on the general public - only those consumer-oriented networks that can connect to incremental users and funds can reap the biggest dividends.

You should know that the core reason for the rapid rise of Axie Infinity in 2021 is that it has captured the basic base of ordinary people in Southeast Asia - you can make money from playing with just a mobile phone. If you understand the strategy and have plenty of time, the income you get is several times the monthly salary of ordinary people. In short, the world of encryption and Web3 has more than just financial use cases.

In this dimension, the unique positioning of "consumer-grade L2" proposed by Morph is quite in line with this incremental demand, especially in the context of Dencun upgrade significantly reducing L2 fees, the gas friction of the pan-Ethereum system has dropped to a historical low, and the user interaction cost is even lower than that of consumer-grade L2. DAppThe prosperity of s has removed the most important obstacles:

• On the one hand, the consumer-level scenarios are rich enough, and the ecosystem has enough points to focus on. From satisfying the spiritual level of entertainment and leisure to satisfying the material level of on-chain assets, Morph can cover them one by one through continuous and in-depth ecological construction;

• On the other hand, the consumer-grade user market is also broad enough.BlockchainIn the current situation of seeking to break out of the circle, by providing a low threshold and seamless experience, it can become a gateway for massive Web2 users to enter the Web3 world;

While most pure on-chain native applications such as DeFi and NFT are still seeking to break out of the circle, trying to obtain the first wave of initial traffic, and then working hard to retain users, Morph has chosen a nearly opposite path:

Targeting the massive base of Web2 Internet grassroots users, and even cooperating with leading Web2 companies, using consumer applications and scenarios as a starting point, we directly bridge billions of existing Web2 users and traditional funds into Web3 incremental users and Web3 "New Money".

Morph: A "consumer-centric" L2 incremental solution

To make an analogy that may not be appropriate, Morph has, to some extent, adopted a strategy similar to "surrounding the city from the countryside" - starting from the actual needs of ordinary users, seizing this incremental group, and using consumer applications as an excellent entry point for breaking through traffic:

By making Web3 products and services accessible to everyone and enjoying consumer-grade on-chain scenarios and use cases, we provide every user withwalletOn-chain services including blockchain, payment, social networking, games, entertainment, etc., are gradually forming a pan-consumer-grade L2 ecosystem with billions of mass Internet users as the core.

Therefore, it may be a bit narrow to understand Morph as "the consumer-grade L2 of the Web3 world" in a literal sense. In essence, it wants to serve a wider range of the market with a low threshold, and bring more incremental users into the Web3 world by combining Web3 with a more universal scenario and a popular path for a wider range of consumers.

However, "consumer applications" seem to be a piece of undeveloped land for Web3. So what exactly can be considered a combination ofBlockchainWith Web3 Token经济学的消费者应用或消费级 DApps？该如何吸引足够的用户进入 Web3 并沉淀下来？

We can probably tell from the release of Morph last month, which is specifically forCommunityThe user's "Morph Zoo" multi-phase plan gives us a glimpse into the prototype of this vision:

Currently, there are 10 DApps available for interaction on the official website. In addition to on-chain protocols such as cross-chain bridges, liquidity protocols, lending protocols, and NFT trading markets, the official website also includes RapcHAIN, PingPong and other consumer & DePIN type DApps. (Extended readingA new interpretation of Morph in the L2 siege: How do users and developers share the benefits of ecosystem construction?》).

RapChain

RapChainIt is a fusionBlockchain,AI, meme and rap, allowing players to create unique meme rap works and get rewards by participating in games and competitions. Any user can use AI The technology automatically generates drafts of meme raps, and different virtual MCs can be selected to perform them.

It also includes a game mechanic similar to a variant of FOMO3D: user-created rap works will be added to the chain of works of other contestants. Players need to create and join the chain within the specified time and extend their chain length as much as possible. The winner will receive an ETH reward, and the creator of the longest chain will also receive an additional bonus.

As the game progresses, the cost of creating rap works will gradually increase, which requires players to choose the time to join the chain more strategically.

The reason why DApps for complex entertainment scenarios such as RapChain choose Morph also reflects the friendliness of Morph in the dimension of consumer-level DApps - a method of using complex technology to promote innovation without placing the burden of complexity on users.

Especially when it comes to AI-generated content (AIGC), intellectual property (IP) and NFTs, users don’t have to worry about anything happening in the background; they can simply enjoy the process of creating new types of shareable content.

PingPong

PingPongIt is a new solution to simplify DePIN mining, which aims to combine the tokenization of Crypto to give DePIN greater on-chain financial possibilities, thereby building an on-chain financial market centered on computing power resources.

Users only need to create an account, download and launch the application to start mining. PingPong's algorithm will automatically optimize the allocation of computing resources to achieve maximum benefits. At the same time, PingPong integrates multiple DePIN networks into one platform, so users do not need to manage multiple systems separately.

I believe everyone has discovered that these are consumer applications that already have mature user groups or underlying needs of potential users, and the reasons why they choose Morph are also very direct - combining with Morph can help these traditional Web2 consumer products enter the Web3 track at the lowest cost and provide Web3 users with consumer-grade DApps experience, thereby directly achieving incremental growth by providing differentiated advantages of richer on-chain scenarios.

Similarly, this is also Morph's exclusive competitive advantage over other public chains/L2s in cooperating with mainstream Web2 companies - not limited to pure on-chain scenarios, but instead seeking incremental growth in mature Web2 products and scenario use cases.

To some extent, this is also one of the focuses of Morph's focus on "consumer-grade DApps". By connecting incremental users/traffic with on-chain services, it is expected to reap the greatest incremental dividends while providing consumer-grade Web3 service experience to global users.

A new paradigm for “mass adoption” of Ethereum and L2?

"Useful" is the highest evaluation of a public chain, and it is also likely to be Morph's unique competitive advantage that will be difficult to replicate in the future.

In fact, the market has also discovered that the underlying logic of Web3's next competition has begun to be increasingly related to Web2. Unlike most current Web3 applications that actively seek to break out of the circle, the trend of native Web2 products colliding with Web3 and passively introducing massive Web2 mature users into the Web3 world may have arrived.

Just like the stablecoin mentioned at the beginning of the article, it enables a large number of Web2 and even "Web0" users in different countries and regions, especially those without bank accounts, to obtain convenient, almost free global instant payment services, while also potentially converting them into new Web3 users and reaping the benefits of this incremental increase.

Therefore, for the entire Web3 world, consumer applications have extremely realistic industry historical significance, and may be an innovation in Web3 product thinking - creating a low-threshold Web3 product environment that is incremental and close to the experience of traditional Web2 applications, returning to a user-centric product paradigm, and thus capturing the broadest underlying value.

For Morph, it helps RapChain and otherXiaobai NavigationJun Web3 is also a key node in its large-scale adoption layout of Web3, which is expected to make it a key network to connect incremental users/traffic with on-chain services:

In particular, if Morph successfully brings RapChain and others into Web3 in the future, and further leads other Web2 projects with similar strong DAU to continue to complete replication, it will to a certain extent verify the correctness and replicability of this Web3 incremental strategy.

In a nutshell, consumer-oriented may be the key entry point for Web3 to truly reach hundreds of millions of users, subverting the current Web3 incremental dilemma, bringing native Web2 users into Web3, and replicating the incremental miracle of Axie Infinity from another logic.

In this process, Morph "consumer-grade L2"CommunityPositioning gives it the potential to attract a large number of new users and achieve mass adoption:

• First, Morph benefits from the cooperation with top exchanges such as Bitget and MEXC.exchangeAs well as Bitget Wallet and Trust Wallet and other leadingwalletStrategic partnerships can help DApps obtain resource feedback from a huge user pool and have the opportunity to directly reach global users;

• Secondly, as the first L2 network on Ethereum to implement a decentralized sorter design from the underlying logic, Morph redistributes the sorter profits (or disposal rights) to the project parties/DApp developers on the chain, allowing the L2 ecosystem to truly have the attribute of "self-growth" (further reading "The first appearance of the "decentralized sorter" is here to understand Morph's self-motivated ecological flywheel》);

前不久 Morph 在测试网之外，还专门面向社区开展群策群力的共建倡议，针对早期消费者生态的培育推出了系列支持计划，致力于聚焦各式消费级 DApps 发展（参见《Morph Creative Ideas》).

The program not only welcomes DApps of various consumer scenarios/use cases to join, but also provides one-stop services from multiple dimensions such as funding, development and marketing:

• In terms of funding, the Morph program provides ample funding for promising new consumer projects;

• At the development level, the Morph developer community can provide technical guidance and solutions;

• In terms of marketing, Morph, with its rich experience and extensive resources, is able to tailor promotion strategies for DApps to enhance their visibility and influence in the market;

In short, Morph's current focus is to catalyze the emergence of numerous innovative consumer-grade DApps through these all-round supports.

If "Web3 in 2022 is Web2 in 2002", then the current cold market environment may be a good time to do something, and the focus is on how to connect traditional funds with massive Web2 users.

Whoever captures the institutional giants of the Web2 world and the billions of users behind them will win this war, and Morph will undoubtedly be at the forefront through its layout for consumer applications and developers - more and more users will be expected to join the Web3 ecosystem through Morph and achieve the goal of Mass Adoption.

summary

Objectively speaking, even as we enter 2024cryptocurrencyThe industry has begun to penetrate into "new" fields such as traditional finance and even political issues as never before, but Web3 as a whole is still on the eve of a massive influx of users.

For Web3 Builder, the most urgent need is to expand the coverage of Web3 scenario use cases and open the door to incremental new Web3 users.

We have no way of knowing whether the Bitcoin spot ETF approved this year, or even the Ethereum ETF that may be approved next, is the turning point for Web3 to achieve a breakthrough in traffic. After all, only from the perspective of historical review can we clearly see what kind of far-reaching impact that seemingly ordinary and insignificant moment at that time will have on the future.

But truly historic moments often sprout silently. This is the unknown of the Web3 era, and also the charm and opportunity of Web3.

This proposition is full of unknowns, but this is also the charm and opportunity of new solutions such as Morph's "consumer-centric" approach.

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