This 40,000-word annual report attempts to answer a core question: Why did the development direction of the Web3 industry experience a clear shift in 2025?

The answer is actually quite simple—the golden age of infrastructure has passed.

In the past few years, the entire crypto ecosystem has invested massive resources into underlying technology. Automated market maker algorithms, innovative clearing mechanisms, customized consensus protocols, zero-knowledge proof optimizations… one breakthrough after another has emerged. But the reality now is: these improvements are barely perceptible to ordinary users. Your wallet interaction experience hasn't improved, gas fees are still annoying, and cross-chain bridges remain complex.

This is a typical case of diminishing marginal returns—continuing to refine technical details yields increasingly subtle benefits.

**So what’s next? The industry is turning its attention to three new directions:**

**Real-world applications of payment and settlement.** No longer just concept validation in labs, but truly enabling people to use crypto assets for daily payments. Stablecoins, cross-chain payments, atomic swaps—these are not just for technology’s sake, but to solve real payment pain points.

**Mapping real-world scenarios.** Truly connecting on-chain and off-chain worlds. Real assets and rights—such as real estate, goods, securities, and identities—how to effectively present and transfer them on the chain is a new focus of exploration. This is not a repeat of NFT hype, but a re-understanding of the essence of digital assets.

**Programmable collaboration mechanism design.** The rules framework is becoming clearer, and on-chain mechanisms are gradually standardizing. This means different systems can start to cooperate in an orderly manner, rather than operating independently. This might be the most underestimated direction.

The underlying infrastructure and regulatory capabilities are continuously evolving. It’s not that censorship and regulation are loosening, but that the industry’s understanding of rules is becoming clearer, and systematic compliance frameworks are emerging. Against this backdrop, projects that can truly deliver are beginning to surface.

This report uses a panoramic perspective to dissect the structural changes, potential value, hidden risks of this shift, and what might happen beyond 2026.

Web3 is not about overthrowing something, but about truly playing a role in specific fields. In 2025, we are finally beginning to see some answers.