Blockchain technology is all about decentralization and virtualization, so it’s a bit ironic that folks love to fulfill in person at big blockchain events. That’s what happened last week in Seoul, where a record 17,000 people and 300 speakers gathered for Korea Blockchain Week.

Like traditional technology conferences, the event highlighted many famous names in the field, each well-known (including Vitalik Buterin, Richard Teng of Binance, and Mark Karpeles) and unknown (researchers, professors, and plenty of founders of recent startups).

Unlike the usual chats, this time it was also possible to get to know the scientific profile: the list also included monkeys, penguins, geese and bears.

No one would ever accuse the crypto world of lacking in cheerful pranksters. Despite all this, there stays a powerful, underlying undercurrent of unease in the crowd. Widespread adoption seems to have stalled, and with the US election approaching, there may be a giant query mark over what future regulation will appear to be.

We walked the event corridors and spoke with a lot of the attendees. Here are a few of our impressions:

Beyond the protocols

Scalability has historically been a significant concern for blockchains with high fees and slow transaction speeds. Now, second-layer blockchains (so-called “layer 2 blockchains”) have made transactions faster and cheaper, meaning scalability isn’t any longer a difficulty for many use cases. The hottest layer 2 blockchains can handle tens of millions of transactions per day with none disruptions.

But despite this, usage shouldn’t be necessarily growing, partly because we still live in something of an application vacuum.

“I think the expectations of what the app actually contains have increased significantly,” said Simon Kim, CEO Hasheda enterprise capital firm focused on blockchain and crypto. In an interview with TechCrunch, Simon emphasized the need for more practical use cases.

There are some glimmers of this, especially in the world of IP tracking. Last month, Story raised $80 million to construct a blockchain that can help IP owners more effectively track the use of their content. And Sony Block Solutions Labs, a three way partnership between Sony and Startale Labs, exposed its latest public blockchain network, Soneium, which guarantees to make it easier for users to guard creators’ rights and fairly share profits.

“This is an industry first in trying to create a content-centric IP ecosystem,” Simon said.

Other show attendees said they were searching for more practical applications that will be comprehensible to consumers.

“We’ve been building infrastructure — roads and highways — in the cryptocurrency world for the past six years. Now we need to focus on the things that people like or use, like convenience stores, clothing stores, and department stores,” said Steve Lee, co-founder Neoclassical Capitola Miami-based cryptocurrency investment firm backed by enterprise capitalists Marc Andreessen, Chris Dixon, and Tampa Bay Lightning owner Jeff Vinik.

The company, it seems, is concentrated on applications in consumer and financial services. “From a consumer perspective, we’re particularly bullish on use cases in IP gaming, entertainment, and social applications,” he said.

Neoclassical launched its first fund in Apriland the company intends to pursue more investment opportunities in these sectors. “While the West may continue to lead in infrastructure development, we believe Asia has greater potential in this area (consumer Web3 use cases) compared to the West,” he said, citing the large variety of bitcoin transactions in the region and its history in areas resembling gaming and entertainment. Countries resembling Japan and Korea, he said, “are leaders in adopting new technologies faster than any other country in the world.”

Tradition with a touch of cryptocurrency?

While some cryptocurrency firms are still searching for breakthrough successes, others try to persuade traditional businesses that they need to add a crypto twist to their existing products.

Justin Kim, Head of Asia at Ava Laboratoriesa blockchain platform focused on decentralized applications (“dApps”) and enterprise blockchain deployments, has seen increasingly organizations launch their very own custom blockchains on top of Avalanche.

“The list includes California DMV, Konami Digital Entertainment, Nexon MapleStory Universe, OtherWorld Solo Leveling Animationand financial institutions resembling JP Morgan AND City“- he said.

Tokenization of recent asset classes can be a recent trend, Justin added. For example, RepublicNew York-based investment platform tokenizes funds to support film financingIT consulting firm Questry and Japanese bank Mizuho Securities tokenize fund to support the production of animated contentJustin noted that each projects are based on the Avalanche platform.

Stablecoins are also finding their way into popular financial and messaging apps.

One notable event was PayPal’s introduction of a stablecoin called PYUSD and other messaging apps resembling Japanese line AND Telegram integrating cryptocurrency wallets. Naver, co-owner of Line, also recently launched a cryptocurrency wallet on its payments app in Korea. “Stablecoin trading activity is picking up,” Simon said.

Hashed has partnered with other traditional firms, resembling the Korean entertainment company IT’S MOVINGa gaming company based in Japan Nexonand financial institutions KB Kookmin Bank in South Korea and Siam Commercial Bank in Thailand, Simon said.

Another area that’s attracting attention from the industry, he identified, is the gaming space. The gaming industry is certainly one of the fastest-growing sectors, especially as a result of the growth of online transactions, Simon added.

“So there’s content, and then AAA games will start pouring out of the market later this year,” Simon said. In the past, blockchain games with experimental tokens or NFT ownership were released while they were still experimental. “Now, you’re seeing well-executed, high-quality games coming out.”

Yat Siu, Co-Founder and Executive Chairman Animoca BrandsThe Hong Kong-based gaming and software firm, which also runs VC firm web3, disagreed, saying gaming projects, which were essentially launch pads for tokens, had underperformed thus far.

“People aren’t excited about (games) right now, but I think we’ll come back,” Siu said.

Similarly, NFTs have not caught people’s attention yet, but proponents are still hopeful.

“Before, when people didn’t see the internet as interesting or real, they just built it and eventually it just grew, right? That’s how I see the (NFT) space,” Siu added.

Big Sponsors and Bigger Regional Forces

In 2023, lower- and middle-income countries drove cryptocurrency adoption; this yr, adoption is more evenly spread between richer and poorer countries, said Diederik van Wersch, regional director for ASEAN and Hong Kong at blockchain data platform Chain evaluation.

“The widespread adoption of cryptocurrencies may be a result of the launch of Bitcoin-based ETFs, which has driven up the total value of Bitcoin-related activity across all regions,” van Wersch told TechCrunch.

In line with that, institutions are facilitating cryptocurrency adoption in countries like Singapore and Indonesia, he said. The United States has followed an analogous path. When the United States launched a Bitcoin ETF, Siu said it was a step change for the market.

“Tokens that have institutional backing do better. That’s how things are shaping up in the future of cryptocurrencies,” Siu said.

“In Singapore, we have seen an increase in the use of cryptocurrency trading services, while in Indonesia, cryptocurrencies are used as a trading instrument and have become one of the fastest growing cryptocurrency markets in the region, with the highest year-on-year growth of almost 200%,” van Wersch said.

It’s not all excellent news: As more people adopt them, there’ll likely be more crime, he added. “As adoption increases, crime will increase. And today, cryptocurrencies span all types of crimes—including fraud and narcotics.”

Optimistic about Telegram’s future (despite Durov’s arrest)

The arrest of Telegram founder Pavel Durov in France last month actually led to an aftershock for Telegram-linked Toncoin, which plummeted in price following the news. But when KBW emerged per week later, the mood was already upbeat.

Rushi Manche, Co-Founder Movement Laboratoriestold TechCrunch that Telegram has grow to be a useful communication tool for a lot of in the cryptocurrency community, and that is unlikely to vary anytime soon.

“What happened with Pavel Durov and what’s happening with Telegram and TON is proof that decentralization works quite well. Despite the fact that Pavel was arrested, everything still worked,” Siu told TechCrunch. “I would say that’s a net positive and, in my opinion, shows the resilience and the power of decentralization and the benefits of running something on a blockchain. So I’m very bullish on TON and Telegram in the long term.”

Animoca Brands is an investor in TON, a blockchain technology tightly integrated with a messaging app.

Simon admitted that this incident made us realize that it’s obligatory to create latest regulations that can allow for the independent management of those virtual spaces, because in the digital world there are not any physical borders and states cannot control what’s on the Internet.

Regulation stays a significant obstacle

The issue of regulation repeatedly got here up as a top concern amongst those we spoke to at KBW, and not only amongst those working in the cryptocurrency industry in Asia, but additionally those from other regions.

“Until a few years ago, many blockchain developers would set up shop in Singapore,” Simon said. “Recently, the UAE has emerged as the most industry-friendly country, providing clear regulations and guidelines in the country.”

Regulation — and particularly the clear establishment of lighting regulations — shaped the areas wherein development has thrived.

“The main concern we hear about is the need for clarity in the regulations across Asian jurisdictions,” said Manche, Movement Laboratories“However, this is driving a push for more coherent, innovation-friendly policies. Regulatory clarity should improve globally, potentially accelerating institutional adoption. We also anticipate a focus on sustainable blockchain solutions and the innovative token economy.”

Much of this, nevertheless, has been piecemeal. Japan was an early mover in the space, and Singapore also got in early, with a light-weight regime focused on anti-money laundering (AML) and counter-terrorism financing (CFT), in keeping with Chengyi Ong, head of APAC policy at Chainalysis. Hong Kong and India followed suit, creating their very own regulatory frameworks. “And that’s how we ended up with a regulatory patchwork,” she said.

The U.S. election in November may very well be the moment when a few of this finally involves a head in the country. “Depending on who wins, this industry will accelerate. But I think cryptocurrencies will continue to grow in America regardless,” Siu said. “This is not an endorsement, by the way.”

It looks increasingly likely that OpenAI will soon change its complex corporate structure.

Reports earlier this week suggested the AI ​​company was in talks to boost $6.5 billion at a pre-funding valuation of $150 billion. Now Reuters reports that The deal is contingent on OpenAI successfully restructuring and lifting the profit cap for investors.

In fact, based on FortuneCo-founder and CEO Sam Altman told employees at a company-wide meeting that OpenAI’s structure will likely change next year, bringing it closer to a standard for-profit business. OpenAI is currently structured in order that its for-profit arm is controlled by a nonprofit, which seems to have frustrated investors.

“We remain focused on building AI that benefits everyone, and as we’ve said before, we’re working with our board to ensure we’re best positioned to deliver on our mission,” OpenAI said in an announcement. “The nonprofit is core to our mission and will continue to exist.”

I actually have a weakness that I’m ashamed of, and it isn’t that I’ve watched all of Glee (yes, even the terrible later seasons) or that I’ve read an incredible amount of Harry Potter fan fiction in my life.

My little weakness is playing LinkedIn games.

To answer the plain query: Wait, LinkedIn has games? Yes. In May, LinkedIn launched three puzzle games via LinkedIn News, like New York Times game knockoffs. There’s the logic puzzle Queens (my favorite), the word game Crossclimb (pretty good), and the association game Pinpoint (not great, but oh well).

LinkedIn is taking the classic tech strategy of seeing what works for one more company after which trying to copy that success, even when it could appear odd to play games on knowledgeable networking platform. But it’s no wonder NYT Games inspired that inspiration. In a way The New York Times is a gaming company now – from December 2023 users I spent more time within the NYT Games app than within the news app.

LinkedIn isn’t alone. Everyone has games now. Apple News. Netflix. YouTube. There are so many games we are able to take pleasure in. And yet, once I finish my various New York Times puzzles, I still want more. It’s not that I feel like playing Crossclimb LinkedIn before Connections, however the games are adequate to provide me that sweet dopamine rush.

I often play LinkedIn games in the course of the workday (sorry to my boss). Sometimes it’s because I’m on LinkedIn to envision facts or look up a source, but then I remember I can spare a number of minutes for slightly game. Other times, my mind is foggy from gazing the identical draft of an article for too long, and taking a break to resolve a colourful Queens puzzle makes it easier to return and revisit that Google doc.

But it turns on the market’s a scientific explanation for why we love these quick, once-a-day puzzles a lot.

I recently spoke with DeepWell DTx cofounder Ryan Douglas, whose company relies on the concept playing video games (moderately) can have a positive impact on mental health. In some cases, the transient distraction of a game can pull us out of a negative thought spiral or help us approach an issue from a brand new perspective.

“If you’re playing Tetris, for example, you can’t have a long conversation in your head about how terrible you are, how much you suck, what’s going to happen next week, and so on,” Douglas told TechCrunch.

On a neurobiological level, Douglas explained that after we play, we activate the limbic system within the brain, which is answerable for coping with stress. But even when these stressors are simulated, they accustom the brain to coping with that stress in some ways.

“You start learning on a subconscious level, creating new neural pathways at an accelerated rate and preferentially selecting them on a subconscious level to deal with those problems in the future,” he said. “If you deal with (the stressor) in that particular environment, you gain agency. You have control.”

That’s to not say we must always play Pokémon all day—the video game development tools DeepWell creates are approved for therapeutic use in 15-minute doses. Maybe that’s why we’re so infatuated with games like Wordle, and other games The New York Times (and LinkedIn) has written which have a finite ending. You solve one puzzle a day, and then you definately move on to the following.

Wordle creator Josh Wardle spoke to TechCrunch about his viral success even before The New York Times picked up his game.

“I’m a little suspicious of apps and games that want your endless attention — I worked in Silicon Valley, for example. I know why they do that,” Wardle said. “I think people have an appetite for things that clearly don’t want anything from you.”

But Wardle is correct—after all my beloved LinkedIn games want something from me: my attention. And to be honest, I’ve spent rather a lot more time on LinkedIn in recent months than I ever have.

According to LinkedIn’s data, my behavior isn’t an anomaly. The company found that latest player engagement has increased by about 20% week over week because the starting of July. LinkedIn has also seen strong traction in users starting conversations after playing games. After you finish a game, you may see which of your connections also played, which I imagine some people see as a chance to #network. I don’t do this, but on the other hand, most of my LinkedIn conversations are just me messaging my friends “hi” because for some reason I find that funny.

So go on LinkedIn and have a good time as much as you may… after which, about 4 minutes later, return to the relentless grind of worldwide capitalism.