Dr. Kong Jianping of Nano Labs and the Hong Kong Cyberport Council explains that Web3 has reached certain developmental milestones over the past 10 years. The initial phase was marked by Bitcoin giving rise to decentralized digital money. The second wave was led by Ethereum, which diversified the use of blockchain by introducing smart contracts and decentralized applications.
The third phase of Web3 is currently underway, including integration into regulatory policies, institutional engagement, and physical financial use. The acceptance of Bitcoin exchange-traded funds (ETFs) in the US and Hong Kong is now a new phase that signals increasing acceptance of blockchain by traditional financial systems. In the next couple of years, Dr. Kong believes that additional financial assets and services will be moved on-chain as blockchain continues to penetrate mainstream finance.
Stablecoins are Web3’s most successful real-world application
Stablecoins are the most successful example of blockchain application in the real world, compared to other Web3 sectors. Its development occurred in three mutations, each of which expanded its influence in the global financial system.
The initial wave was driven by cryptocurrency trading, as stablecoins provided liquidity to those markets that could not access the traditional banking system. This allowed transactions and users to interact efficiently without having to use fiat currency infrastructure.
The second wave faced decentralized finance (DeFi), where stablecoins were essential for lending, borrowing, and providing liquidity. This has greatly increased their use and made stablecoins an essential part of the blockchain financial infrastructure.
The third and most recent wave revolves around payments, especially cross-border payments. Stablecoins can also be used to conduct international transactions faster and cheaper than financial systems, which is extremely valuable. In the real world, tokenization of real-world assets (RWA) is an emerging focus of significant growth in Web3. It is associated with registering ownership of traditional assets (stock, currency or commodity) on blockchain networks.
Dr. Kong noted that effective RWA applications must provide clear benefits, whether in the form of enhancing financial efficiency, reducing operating costs, or enabling new economic value. Stablecoins themselves can be considered a successful model for tokenized real assets, proving that blockchain technology can revolutionize traditional finance.
The use of stocks, financial products, and tokenized payment systems is likely to become increasingly widespread in the coming years, further narrowing the gap between traditional finance and decentralized infrastructure.
Hong Kong is positioning itself as a global hub for Web3
Hong Kong has become one of the most active regions promoting Web3 development. Regulatory clarity and legal frameworks. Since 2023, government policy frameworks have put in place regulatory clarity and legal frameworks to facilitate blockchain innovation, such as regulating stablecoins and licensing digital asset exchanges.
Several digital asset exchanges have already been approved in the region, and the regulatory infrastructure is still being expanded. Future stablecoin issuance platforms and OTC trading systems will only strengthen Hong Kong’s position as a global hub for Web3.
Hong Kong Cyberport is at the heart of this ecosystem and powers over 2,000 technology companies, many of which are 300+ Web3 companies. The government is still allocating funds and infrastructure incentives to drive blockchain and fintech innovations.
Besides using blockchain technology, Hong Kong is spending a lot of money on developing AI infrastructure. Cyberport has formed one of the largest AI computing centers in the region due to the increasing integration between AI and Web3 technologies.
This intersection is likely to drive new applications in finance, automation, and digital ownership. Blockchain technology can provide a secure and open architecture for digital asset management, while artificial intelligence is driving demand for decentralized data, computer systems, and financial systems. Trends show that blockchain-based assets are able to enjoy greater efficiency, frugality and financial opportunities.
The post From Narrative to Necessity: DePIN and AI Gain Real Economic Benefit appeared first on Metaverse Post.
