The Block and Morph Join Forces to Present an Essential Digest Catalyst for the ConsumerGrade Cryptocurrency Ecosystem Building Decentralized Applications for Everyday Users

Infrastructure layer of the Internet refers to the underlying systems and protocols that support efficient and secure transfer of digital assets, execution of smart contracts, and data storage. This subfield encompasses blockchain layer networks as well as networks built on top of existing consensus layers. These infrastructures form the backbone of the crypto ecosystem, providing the foundation for decentralized applications and services to operate. The emergence of new blockchain networks such as Solana, Base, and Flow has brought significant improvements to the infrastructure layer. These networks prioritize faster transaction speeds, low latency, and cost-effectiveness, making them more suitable for consumer-grade use cases. The representative projects are as follows:
(9) Identity Management
Identity management refers to the system and protocols that allow users to manage their digital identities in a decentralized and autonomous manner. These solutions aim to give users control over their personal data, allowing them to selectively share information with third parties while maintaining privacy and security. On-chain identity management solutions address the limitations of traditional centralized identity systems. The representative projects are as follows:
(10) Metaverse
Metaverse refers to a collective virtual shared space that is a crucial infrastructure component in the consumer-grade crypto domain. In this digital environment, users can interact with digital assets and decentralized applications in a more immersive way. Metaverse platforms provide a user-friendly and intuitive interface for consumers to access and interact with various on-chain products and services. Metaverse platforms enable a wide range of consumer-grade use cases, creating new opportunities for brands and businesses to engage with consumers. The representative projects are as follows:
(11) Analytics
Web3 advertising and growth analytics platforms play a crucial role in the consumer-grade crypto ecosystem. They provide necessary tools and analytical insights for projects and developers to attract their target audience. The solutions offered by these platforms assist users in acquiring, advertising, and optimizing growth. By aggregating data from various sources and analyzing user behavior across different touchpoints, these platforms enable projects to make data-driven decisions, measure the effectiveness of their marketing efforts, and ultimately drive adoption and growth. The representative projects are as follows:
(12) DEPIN
DEPIN is an emerging category of cryptographic networks that utilize token incentives to deploy location-dependent hardware devices and generate irreplaceable consumable resources. These networks play a critical role in the consumer-grade crypto ecosystem by monetizing unique real-world data assets, supporting various consumer-grade applications and services. The representative projects are as follows:
The report also predicts the development directions of several subfields. For example, decentralized social media platforms offer customizable content filtering algorithms. The future of the on-chain gaming sector will expand to include different types of games, platforms, and economic models to cater to different player preferences. In the media subfield, blockchain technology will enable dynamic and interactive media assets such as artworks or music. In the communication subfield, we will see the emergence of more complex and feature-rich communication platforms that leverage the unique properties of blockchain to achieve secure, private, and censorship-resistant communication. In the community and brand engagement subfield, the next generation of “digi-physical NFT” platforms will become more immersive and interactive, utilizing advanced technologies to achieve dynamic, context-aware interactions between NFTs and the real world.
In addition, the report discusses the potential of emerging subfields, such as on-chain AI agents and tokenized personal data markets.
The report also compiles data from the Fortune 100 companies to measure the adoption of consumer-grade crypto initiatives within traditional consumer brands.
The data shows that nearly 1/3 of the companies (27 companies) have engaged in a consumer-grade crypto protocol at some stage. These 27 companies have a total of 55 crypto protocols between 2019 and 2023. The chart below shows an increase from 7 protocols in 2019.
By 2022 and 2023, there will be 19 protocols each, more than doubling the number of protocols.
If the protocols are classified into one of four different stages: conceptualization, development, pre-release/testing, and public release, to measure maturity. The chart below also shows an improvement in the maturity of crypto protocols from 2019 to 2023. The proportion of protocols in the conceptualization stage decreased from 43% in 2019 to 37% in 2022 and 11% in 2023.
Meanwhile, the proportion of protocols in the public release stage increased from 29% in 2019 to 47% in 2022 and 58% in 2023. This trend indicates that companies are gradually moving beyond the initial conceptualization stage and actively focusing on developing and refining their consumer-grade crypto projects.
In the three key subfields, there is a high concentration of protocols: community and brand engagement, media, and gaming, which together account for 99% of the protocols, with specific proportions of 57%, 26%, and 16%, respectively. The main reason is that these subfields can help brands establish direct connections with their target audience, and the applications and tools in these subfields are relatively more mature and popular, with distinct characteristics corresponding to the traditional markets familiar to traditional consumer brands.
In different industries within the traditional consumer sector, the level of penetration of consumer-grade crypto varies. The technology, retail, and food and beverage industries emerge as clear leaders, accounting for 65% of all protocols, with specific proportions of 27%, 20%, and 18%, respectively; the penetration level in the other six subfields is relatively general, with each subfield’s proportion of protocols accounting for less than 10% of the total protocols.
The report points out that the consumer-grade crypto field is still in its early stages and highlights key barriers to mainstream adoption, such as high transaction costs, complex user experiences, negative public perception, and regulatory uncertainties, and provides corresponding recommendations:
User Experience:
The development of user interfaces and experiences will be prioritized for on-chain consumer-grade products. Developers need to leverage several key infrastructure components, such as wallets and key management solutions, various abstraction layers and middleware, and interoperable identity solutions.
Public Perception:
Reduce the use of crypto jargon to lower the cognitive threshold; improve product services to enhance user experience and increase public awareness; increase transparency of messaging.
Regulatory Uncertainties:
Lack of standardization between different countries and regions further complicates the regulatory landscape for on-chain projects. Legal risks and uncertainties surrounding on-chain products may limit their ability to form partnerships with mainstream brands and enterprises.
The report also explores the regulatory directions for consumer-grade crypto by analyzing past enforcement actions and their potential impact on future consumer-grade crypto products, with a focus on the regulatory landscape in major markets in North America, Europe, and Asia (China and Singapore).
Finally, the report summarizes several notable trends and developments in the consumer-grade crypto field:
Mainstream Adoption Potential:
Nearly 1/3 of the Fortune 100 companies are developing consumer-grade crypto protocols, indicating their growing recognition of the potential of blockchain in consumer-grade applications. Additionally, certain on-chain consumer-grade products show signs of product-market fit.
Infrastructure Development:
The emergence of user-friendly wallets, efficient payment systems, and robust identity management solutions is laying the foundation for a more accessible consumer-grade crypto experience.
Regulatory Competition:
The diverse global regulatory environment is creating a “natural experiment” for the development of consumer-grade crypto. This divergence may lead to unexpected innovations in less regulated markets and may force more stringent jurisdictions to reconsider their approaches to maintaining competitiveness.
Emerging Use Cases:
The rise of on-chain AI agents and tokenized personal data markets may fundamentally change how consumers interact with digital services and manage their personal information.
User Experience as a Key Driver:
The success of consumer-grade crypto largely depends on its ability to shed technological complexity and provide users with intuitive and value-added experiences.
Consumer crypto represents a growing field that intersects blockchain technology and the consumer domain. While the field is still in its early stages, it demonstrates the potential to reshape how individuals interact and transact in their daily lives. The consumer-grade crypto field holds promise for the future.
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