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Web3 and Blockchain: From a Target of Skepticism to a Disruptor of Traditional Finance

2023-06-05 16:00:00

Since the emergence of blockchain technology, people have held various views on its prospects and potential. At first, many were skeptical of blockchain, seeing it as a trendy concept without practical applications. Yet over time, blockchain technology is showcasing its power and rapidly developing in the wave of Web3. Today, it is increasingly recognized that Web3 and blockchain can disrupt traditional financial systems and open up new possibilities for the future digital economy. As a financial center of the world, Hong Kong has also joined the Web3 space this year and vigorously advocates its development.

Web3 space

Though once subject to doubt and seen as hype and bubbles, Web3 and blockchain technologies are quietly transforming traditional financial systems and business models.

Decentralized finance (DeFi) has substantially reshaped traditional banking models. Decentralized exchanges (DEX) based on blockchain technology allow people to directly engage in peer-to-peer crypto transactions without the need for third-party intermediaries. Whether it's borrowing, paying, or investing, DeFi provides decentralized solutions. With a host of Web3-related applications, Web3 is also gradually reshaping the financial industry in daily life. These applications are reshaping the architecture of financial services and would ultimately redefine the role of traditional banks.

Moreover, blockchain assets extend access to global financial markets to more individuals. As mainstream institutions have launched bitcoin ETFs (exchange-traded funds) and crypto trusts, blockchain assets are moving into the mainstream. This fully demonstrates that more and more institutional and individual investors have recognized the blockchain industry. Over time, the pace of growth within the blockchain industry is steadily accelerating. Amid rapid development, CoinEx, a well-known crypto exchange, has been committed to “Making Crypto Trading Easier” and aims to provide easy-to-use crypto trading services for numerous users around the world, as well as low-cost, efficient financial infrastructure for users who are not covered by traditional finance.


In addition, blockchain and NFTs are advancing the digitalization of assets. NFTs unlock the potential to tokenize a broader range of physical assets and intellectual property (IP), thereby creating new possibilities for the consumption, trading and investment of assets such as arts, gaming equipment and IP. This trend makes us believe that more assets will be tokenized and circulated via blockchain in the foreseeable future.

The value of blockchain goes beyond technological innovation. More importantly, it reshapes the way trust is built between individuals as well as between individuals and institutions. This trend is fundamentally redefining the trust mechanism that serves as the bedrock of the financial market.

Overall, Web3 and blockchain have demonstrated their potential, triumphing over initial skepticism. With economies of scale emerging, they promise to further reshape the business world and every aspect of our lives in the future. This trend deserves our close attention as traditional financial enterprises must either adapt to it or face the risk of being rendered obsolete. Amid this trend, emerging companies also identify an opportunity to transform financial services. This revolution is just getting started. Let’s stay tuned. 

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