Year-End Review 2023: Navigating the Second Bear Market, Satisfaction Survey
#586
GM,
This is the last article of 2023. We are about to welcome 2024. Happy New Year in advance! Due to the New Year's holiday weekend, there will be no article on Tuesday and no podcast on Wednesday next week. The first article of 2024 will be published on January 4th (Wednesday).
I'd like to share with you that I lost my third cryptocurrency yesterday, which happens to be the first one temporarily unrecoverable. Fortunately, the amount is not significant. Looking at the positive side, since tuition fees always need to be paid, saving a bit can also be considered a gain. Let's get into the main topic.
Reviewing 2023
2023 was a year of chilly spring. Do you still remember the year-end review of 2022, where I wrote about "Building a Network Nation, Reasons to Stay 1"? Just from the title, you could feel the market atmosphere at that time—leaving is normal, and only a few choose to stay. At that time, I referred to those who stayed as builders of Network States, and looking back now, it is indeed the case.
In 2023, Web3 saw the fastest development in three areas: second-layer networks, decentralized identities, and digital public goods. The first two are infrastructure, while the latter is an application scenario. Throughout the year, the most frequently discussed topic in the blockchain space was digital public goods. On the one hand, it changed the economic incentives of the entire industry, allowing builders who aspire to engage in Web3 development to earn income while directly serving the community. On the other hand, it allowed people to experience the practical uses of second-layer networks and decentralized identities.
Whenever discussing what else cryptocurrencies can do besides buying low and selling high, people often like to use cross-border remittances as an example. However, even though cryptocurrency transfers are cheap and fast, not everyone is a foreign migrant worker, and convenient transfers may not have much to do with daily life. With the increasing prevalence of funding mechanisms for digital public goods, cryptocurrencies are no longer just a means of transferring funds across borders but can also be a tangible reward for some people's work.
Establishing a funding mechanism for digital public goods also requires addressing identity issues to prevent all resources from ultimately flowing into one person's pocket. Therefore, whether it's Gitcoin Grants or RetroPGF, people are required to provide varying degrees of identity verification. The more physical method is taking a selfie with a government-issued ID, while the more digital method is using Gitcoin Passport, where individuals must achieve a certain score.
However, the more operations on the blockchain, the higher the transaction fees. If blockchain transaction fees do not come down, no matter how large the funding pool for digital public goods is, there will still be only a few participants. No one would want to bear a $10 transaction fee to donate $1.
Before 2023, second-layer networks on Ethereum, such as Optimism and Arbitrum, had already been launched, but applications had not yet migrated, and exchanges did not support them. It wasn't until this past year that Optimism, through two consecutive OP airdrop rewards in February and September for early participants, announced that there would be several more waves of OP airdrop rewards in the future. Arbitrum also airdropped ARB governance tokens in March. It was only under the temptation of financial incentives that people finally had the motivation to move from the Ethereum mainnet.
Lowering the operational costs of blockchain is what will allow more non-financial application developers to see the potential of blockchain and drive the next bull market.
Navigating the Bear Market
Recently, I watched the Netflix documentary "Life on Our Planet," and I realized that the bull and bear market transitions people talk about are like an accelerated version of the natural cycle, constantly repeating between evolution, competition, and mass extinction.
Earth has experienced five major extinctions, each with different causes. It could be due to atmospheric changes leading to an ice age, ocean changes causing oxygen depletion, or even an unexpected meteorite strike from outer space wiping out everything. After each mass extinction event, over 70% of species on Earth disappeared, leaving a barren planet unsuitable for habitation. The surviving species, witnessing such a scene, would probably start questioning the meaning of life.
When the rules of the world operate completely differently, these survivors find ways to survive, develop new skills, and continue to write their history on Earth. Some species even continuously explore new frontiers, crawling from the sea to land and eventually flying into the sky, leading to the existence of us today and our living environment. The development of Web3 is also like the cycle of nature, constantly repeating between evolution, competition, and mass extinction. As "Web3 organisms," our primary goal is to find ways to thrive in different environmental rules.
In the recent period, Blocktrend experienced its second crypto winter since its founding in 2017, with a nearly 40% decrease in the number of paying members from the peak. Many once influential companies and figures, who once dominated the scene, unfortunately got eliminated in this wave of "mass extinction." Even though I personally experienced a chilling winter in 2018, the second experience was not any more comfortable.
Surviving these past two years has been truly challenging, but I believe what is even more commendable is that, in such a harsh environment, Blocktrend has over 60%, hundreds of members, continuously supporting us through paid subscriptions or small donations via crowdfunding. Thank you for being the strongest backing for Blocktrend!
The current market atmosphere is obviously different from the beginning of the year. Although it's too early to declare the arrival of a bull market, I believe most people would agree that we have passed the darkest moments. In the past year, Blocktrend has completed a total of 86 articles, approximately 260,000 words, and 40 podcast episodes, totaling around 45 hours of original Chinese content. We also tried a YouTube video and organized two successful in-person member gatherings.
At the beginning of 2024, I will have a new role in the family—becoming a father. The publication frequency will be temporarily adjusted from two articles per week to one article. If taking care of the newborn is not as challenging as expected (?), I may adjust it back, as I still enjoy writing articles. The podcast will remain unchanged, with one episode per week. These details will be officially announced in the 2024 publication calendar.
Satisfaction Survey
Lastly, I would appreciate it if you could take some time to fill out the 2023 content satisfaction survey. This will help me understand what Blocktrend is doing well and where improvements are needed, allowing us to do better in 2024.
I will also find some sponsored items such as cold wallets to hold a lottery as a token of appreciation for filling out the survey. Happy New Year to everyone!