Insights from Yat Siu on the Future of Web3 and Blockchain 🌍
Engaging with Yat Siu, the Co-Founder and Executive Chairman of Animoca Brands, offers valuable perspectives on the evolution of Web3 and blockchain technology. Known for his advocacy for decentralization and digital property rights, Siu’s insights reflect a deep understanding of the challenges and opportunities facing the crypto industry. The following discussion encapsulates key points he raised during a recent dialogue at the World Economic Forum 2025 in Davos.
Key Focus Areas at WEF 2025 💼
FP: What prominent issues are you addressing at the WEF this year?
YS: A significant topic during this year’s WEF is enhancing institutional engagement within the blockchain and crypto sectors. Recent years, particularly post-FTX and other incidents, have presented hurdles for the crypto landscape, yet Bitcoin has emerged as a standout success. Our aim is to replicate Bitcoin’s achievements throughout the broader Web3 ecosystem.
At WEF 2025, my main message is to promote expansive adoption of blockchain and to create supportive frameworks for Web3’s advancement. It’s vital for the public to grasp the core principles of Web3, including the importance of transparency and network effects, which ultimately enhance participation and benefit everyone involved. Today’s understanding of these concepts is perhaps limited outside the Web3 context, making it essential to elevate public knowledge concerning the advantages of an open metaverse designed on a decentralized architecture, which promises greater equity, security, and transparency.
While fostering this understanding can be challenging, the WEF creates an excellent venue for conversing with business executives, political leaders, and other influential entities. Davos serves as a platform for impactful discussions aimed at deepening awareness and fostering collaboration for Web3’s advancement.
Integrating AI and Blockchain for Enhanced Experiences 🤖
FP: AI is generating significant buzz. How do you envision blockchain intertwining with AI to enhance user experiences?
YS: Cryptocurrency tokens are emerging as a vital currency within the AI domain. The concept of Agentic AI represents a potential evolution of this technology, where blockchain’s capabilities create innovative avenues to reward both AI agents and the users they serve, all while ensuring transparency. This type of AI generates value that benefits its user community.
It’s crucial to offer users genuine utility and equitable compensation, which in turn fosters engagement and adoption. Creating shared value for all stakeholders is instrumental for sustained success. This dynamic isn’t solely about advanced technology but rather about how much value can be delivered to the community. For instance, TikTok’s rise is largely attributed to its ability to empower users and provide creators with improved rewards compared to older social media platforms. Well-structured financial incentives highlight the significance of a value-first approach.
Moreover, the intersection of copyright and trademark protection within AI lends itself well to blockchain’s capability to safeguard digital rights and maintain authenticity. Decentralized Autonomous Organizations (DAOs) represent another pertinent application for AI, enabling community-driven technology that promotes shared ownership among various stakeholders, thus decentralizing control effectively.
Reflections on the Evolution of Web3 and Blockchain 📈
FP: After years of developments in Bitcoin and a decade of Ethereum, how do you feel about the current state of Web3 and blockchain?
YS: Despite facing significant reputational and market obstacles in 2023, I maintain an optimistic outlook on Web3’s resilience and prospects, albeit with some dissatisfaction regarding current progress. It’s important to note that there are an estimated 200 million users actively engaging on-chain, while 500 million or more people use cryptocurrencies in various capacities. Ideally, we should aim for 1 to 3 billion individuals participating on-chain to unlock the comprehensive benefits of Web3, including network effects and universal digital property rights.
It is crucial for blockchain initiatives to stick to their foundational tenets, despite the temptation of immediate success and financial rewards, which can shift focus. For example, Bitcoin’s evolution has often leaned towards being a store of value rather than a medium of exchange. To advance meaningful progress, Web3 projects must stay oriented toward their original missions. We need devoted founders who prioritize long-standing visions over fleeting gains. Progress in this field is a long-term journey.
Considering Quantum Computing and Its Potential Impact 💻
FP: There isn’t much discourse about quantum computing yet. Is this a technology you’re monitoring?
YS: We are indeed investigating certain facets of quantum computing, particularly regarding security measures like quantum-proofing. While this field is still in its developmental infancy, our interest has mainly been theoretical at this point. The practical applications of quantum computing will take time to materialize, but we’re intent on tracking its progress and the potential implications for our technology strategies.
The Growing Significance of Digital Product Passports 📜
FP: Do you see digital product passports as a pivotal advancement in enterprise blockchain adoption?
YS: Absolutely, digital product passports are becoming increasingly relevant, and several companies in our portfolio are exploring this avenue. Yet, our primary concentration remains on enhancing digital identity and reputation—focusing on how to cultivate trust within the Web3 ecosystem.
Anonymity offered by crypto necessitates a method for users to establish their reputation without disclosing their identity. Our flagship Moca Network project aims to facilitate this by creating a digital identity and reputation infrastructure that is compatible across various platforms, thereby delivering a cohesive experience for asset management and personal identification.
Using blockchain for trust enhancement also aligns with compliance needs, such as the EU’s GDPR, which is particularly beneficial for small and medium-sized enterprises that may be more vulnerable to risk. Techniques like zero-knowledge proof (ZKP) for reputable validation can substantially foster trust and encourage the broader adoption of blockchain technologies.
Future Directions for 2025 🔮
FP: What key priorities do you have in mind for 2025?
YS: Our priorities for this year encompass several critical domains. First, we are dedicated to adapting to and influencing the shifting regulatory environment. Current developments regarding US regulations appear positive.
We are also emphasizing the importance of digital identity to build trust within the Web3 framework, a vital component in creating a reliable digital space robust enough to support billions of users.
Education and decentralized scientific initiatives are another focus of significance, particularly through our Open Campus project, which currently serves over one million students. Our intention is to transcend short-term tactics in favor of emphasizing sustainable, long-term growth.
This year heralds the onset of an institutional era for crypto. Animoca Brands is positioned to thrive, having navigated through various industry challenges to emerge stronger than before. I believe exceptional opportunities lie ahead, and we possess the leadership and organizational culture required to capitalize on these prospects, while remaining committed to stakeholder capitalism, aligned with the broader vision of the WEF.
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