Compiled | Wu Blockchain

Some trends we're focused on

a16z has released a list of "big ideas" that technology builders may face in the coming year, covering insights from partners in the areas of AI, US dynamics, bio/health, crypto, enterprise, fintech, gaming, and infrastructure.

Here are some key points raised by members of the crypto team. For more exciting content, please read the full article. You can also review the ideas from previous years here and here.

For an outlook on 2025 policy, regulation, and other areas, please refer to the article from last November:

https://a16zcrypto.com/posts/article/what-the-election-means-crypto/

1. Enterprises will increasingly adopt Stablecoins as a payment method

Over the past year, Stablecoins have found product-market fit - unsurprisingly, as it is the cheapest way to send US Dollars and enables fast global payments. Stablecoins also provide a more accessible platform for entrepreneurs to build new payment products: no gatekeepers, minimum balances, or proprietary SDKs. However, large enterprises have yet to realize the significant cost savings and new revenue opportunities that can be gained by switching to these payment rails.

While we've seen some enterprise interest in Stablecoins (and early adoption in peer-to-peer payments), I expect a bigger wave of experimentation in 2025. Small/medium-sized businesses with strong brands, captive audiences, and clear payment cost pain points (like restaurants, coffee shops, convenience stores) will be the first to shift from credit cards. For in-person transactions, these businesses don't benefit from credit card fraud protection, and the loss of transaction fees is particularly painful for them (a 30 cent fee per coffee cup significantly impacts their margins).

We should also expect larger enterprises to adopt Stablecoins. If Stablecoins do indeed rapidly advance the historical trajectory of banking, enterprises will try to bypass payment providers - directly adding 2% to their profit margins. Enterprises will also start seeking new solutions to address the problems currently solved by credit card companies, like fraud protection and identity verification. - Sam Broner (X: @sambroner | Farcaster: @sambroner)

2. Countries will explore putting government bonds on-chain

Putting government bonds on-chain can create a government-backed, interest-bearing digital asset - without the surveillance concerns of a CBDC (Central Bank Digital Currency). These products can unlock new sources of demand for collateral use in DeFi (Decentralized Finance) lending and derivatives protocols, further enhancing the integrity and robustness of those ecosystems.

As innovation-friendly governments around the world further explore the advantages and efficiencies of public, permissionless, and irreversible blockchains this year, some countries may experiment with issuing on-chain government bonds. For example, the UK has already explored digital securities through the FCA (Financial Conduct Authority) sandbox; its Treasury/Chancellor has also expressed interest in issuing digital bonds.

In the US - given the SEC will next year require the costly, cumbersome traditional infrastructure to clear Treasuries - there are likely to be more discussions around how blockchain can improve the transparency, efficiency, and participation in bond trading. - Brian Quintenz (X: @brianquintenz | Farcaster: @brianq)

3. We'll see broader adoption of DUNA (a new US blockchain industry standard)

In 2024, Wyoming passed a new law recognizing DAOs (Decentralized Autonomous Organizations) as legal entities. DUNA, or "Decentralized Unincorporated Nonprofit Association", is the only viable structure tailored for US projects, and by incorporating DUNA into the decentralized legal entity structure, crypto projects and other decentralized communities can imbue their DAOs with legal legitimacy - enabling greater economic activity, while shielding token holders from liability, and managing tax and compliance requirements.

DAOs are the communities that govern open blockchain networks, and are a necessary tool to ensure the network remains open, non-discriminatory, and does not extract value unfairly. DUNA can unlock the potential of DAOs, and many projects are already working to implement this tool. As the US is poised to foster and accelerate the growth of its crypto ecosystem in 2025, I expect DUNA to become the standard for US projects. We also anticipate other states adopting similar structures (Wyoming led the way; they were also the first to adopt the now-ubiquitous LLC) - especially as decentralized applications beyond crypto (like physical infrastructure/energy grids) start to emerge. - Miles Jennings (X: @milesjennings | Farcaster: @milesjennings)

4. Builders will reuse more, rather than just reinventing infrastructure

Over the past year, teams have continued to reinvent the "wheel" in the blockchain stack, developing more custom validator sets, consensus protocol implementations, execution engines, programming languages, and RPC APIs. These efforts sometimes improve on specific functionalities, but often fall short on generality or basic functionality. For example, a programming language designed specifically for SNARKs (Succinct Non-interactive Arguments of Knowledge): while an ideal implementation may enable developers to produce higher-performance SNARKs, it may actually be inferior to general-purpose languages in terms of compiler optimizations, development tools, online learning resources, and AI programming support (at least for now), and may even result in less performant SNARKs than general-purpose languages.

Therefore, I expect 2025 to see more teams leveraging others' contributions, reusing more off-the-shelf blockchain infrastructure components, including consensus protocols, existing staked capital, and proof systems. This approach not only helps builders save a tremendous amount of time and effort, but also allows them to focus on enhancing the unique value of their product or service.

The infrastructure is now mature enough to support the development of mainstream web3 products and services. Like other industries, successful teams will be those that can effectively manage complex supply chains, rather than those that refuse to use "non-homegrown" technology. - Joachim Neu (X: @jneu_net)

5. The crypto industry will have its own app stores and discovery platforms

When crypto apps are blocked by centralized platforms like the Apple App Store or Google Play, it limits their user acquisition capabilities. However, we're now seeing emerging app stores and marketplaces providing this distribution and discovery function, without gatekeeping. For example, Worldcoin's World App marketplace not only stores personal identity verification proofs, but also allows access to "mini-apps", attracting tens of thousands of users to multiple apps within days. Another example is the fee-free dApp Store for Solana mobile users. These examples also suggest that not just software, but hardware (e.g. phones, scanners) may be a key advantage for crypto app stores - just as Apple devices were once key to the early app ecosystem.

Meanwhile, there are other stores with thousands of decentralized apps and web3 developer tools (like Alchemy); and blockchains that are both game publishers and distributors (like Ronin). However, this is not entirely smooth sailing: if a product has already been distributed through messaging apps and the like, migrating it on-chain can be challenging (exception: Telegram/TON network). Similarly, there are analogous issues for apps already distributed through web2. But we may see more of these migrations happening by 2025. - Maggie Hsu (X: @meigga | Farcaster: @maggiehsu)

6. Crypto asset holders will transition to crypto users

In 2024, crypto made significant progress as a political movement, with key policymakers and politicians taking a positive stance. We also see it continuing to evolve as a financial movement (e.g. Bitcoin and Ethereum ETPs expanding investor participation). By 2025, crypto will further develop into a computing movement. So where will the next user base come from?

I believe now is the best time to re-engage the currently "passive" crypto holders and convert them into more active users, as only 5%-10% of crypto asset holders are active users. We can bring the 617 million people who already own crypto assets onto the chain - especially as the continued improvement of blockchain infrastructure is reducing user transaction fees. This means new applications will start to emerge for existing and new users. At the same time, we have already seen the early applications (such as stablecoins, DeFi, Non-Fungible Tokens, games, social, DePIN, DAOs and prediction markets) becoming more user-friendly for mainstream users as the community focuses more on user experience and other improvements. - Daren Matsuoka (X: @darenmatsuoka)

7. "Hiding the Wires" Will Drive the Birth of Web3 Killer Apps

The "superpowers" of blockchain technology make it unique, but also hinder mainstream adoption. For creators and fans, blockchain can unlock connectivity, ownership and monetization... but industry jargon (like "Non-Fungible Tokens", "zkRollups", etc.) and complex designs set up barriers for those who could benefit most from the technology. I've witnessed this firsthand in countless conversations with media, music and fashion executives.

The mass adoption of many consumer technologies has followed a path: starting with the technology; certain iconic companies or designers abstracting away the complexity; this transition helping to unlock certain breakthrough applications. For example, the SMTP protocol of email is hidden behind the "Send" button; or credit cards, where most users today don't need to understand the payment rails. Similarly, Spotify revolutionized music, not by flaunting file formats, but by delivering playlists to our fingertips. As Nassim Taleb said, "Overengineering leads to fragility. Simplicity is key to scalability."

Therefore, I believe our industry will adopt this notion of "Hiding the Wires" by 2025. The best decentralized applications have already focused on more intuitive interfaces, making it as simple as tapping a screen or swiping a card. By 2025, we will see more companies focusing on simple design and clear communication; successful products won't require explanation; they will directly solve problems. - Chris Lyons (X: @chrislyons)

Andrew Hall's 6 Trends for Decentralized Governance in 2025

2025 is set to be an exciting year for decentralized governance. DAOs (Decentralized Autonomous Organizations) are continuously pushing the boundaries, exploring new ways for anonymous token holders to govern collectively. Investment management firms are trying to convince their clients to participate in online shareholder voting more frequently. And AI companies are leveraging citizen assemblies to set norms for large language models (LLMs). This will mean many decentralized governance experiments will be underway, including:

• Websites to help voters delegate their votes

• AI delegation mechanisms

• AI proxies

• Smarter participation incentives

• Better public goods funding

• More experiments with sortition