Interviewing 75 ETHDenver attendees, what wealth secrets did they discover at the conference?

Author: Will @FinanceYF5

On March 5th, the Ethereum Denver Developer Conference is nearing its end. This conference is unprecedented in scale, with over 40,000 participants, and more than 300 projects involved in the preliminary hackathon. Crypto researcher Will @FinanceYF5 traversed over 20 venues, interviewing 75 attendees to briefly discuss their feelings about the conference and industry trends. Let's take a look at how investors, developers, and crypto enthusiasts view the current development status of various sectors.

Interviewees generally expressed satisfaction with the quality of the event, which attracted many core teams from top projects (founders, CTOs). However, the large number of venues made it difficult for attendees to find their way, making the organization feel more like a DAO. Enthusiasm was higher for side events.

In terms of sector direction, zk is a hot topic this year, although some interviewed investors indicated that valuations are slightly high. However, there are also steadfast investors who believe the valuations are within a reasonable range. Additionally, GameFi and SocialFi are two main innovative directions, with "breaking the circle" becoming this year's keyword.

Of course, the Ethereum conference wouldn't be complete without discussions on the Shanghai upgrade. LSD and MEV also attracted considerable attention from attendees, but many believe that while storage has potential, its development still requires observation. Perhaps Binance's Greenfield this year can help the storage sector achieve new developments. Compared to last year's hot DAO discussions, this year's venues are regrettably sparse.

BlockBeats has organized and excerpted the interview content with Will, hoping that these attendees can help readers identify the next trend.

Investor Perspectives

Matt Huang

1) Feelings about attending Denver: As an entrepreneur, I really enjoy the developer vibe. There is indeed a large developer community here, witnessing the core blood of the ecosystem. I love sitting next to developers and chatting; I really enjoy this.

2) Investment direction: Many middleware solutions are emerging, the industry is returning, evolving, and accelerating. In the past, vertical integration was common, but now many industries have matured and specialized, with a focus on the industrial value chain, APIs, SDKs, and developer integration.

3) However, the challenge remains in playing with oneself; it's a 50-50 situation, with no breaking out of the circle. It's difficult to enter, as everyone prefers to play alone. Self-praise has no impact; breaking the circle is crucial, and I'm particularly interested in how to achieve that.

An investor from Fund J

1) For individuals, unless they are founders of projects or have particularly good relationships, the information gap closes too quickly. It's not worth doing primary investments unless it's a top-tier computer science project; it’s actually very competitive.

2) There isn't anything particularly new in the narrative. Many tools are developer-focused, not at the ETH level, but rather narratives about tools built on ETH, making it difficult to capture value economically. What can be captured are mostly older concepts.

3) The overall position of the Chinese ecosystem has improved significantly compared to the bear market in 2019. However, Chinese individuals still lack a voice. We still need leading foreign institutions to guide us.

4) I still feel that application layer development is in its early stages.

5) Things that seemed impressive back then now have emerged with even more impressive projects; it's uncertain whether they will succeed. This includes MEV, LSD, and ZK; middleware also feels crowded. There are already 3-4 projects focused on decentralized execution layers. APIs and security also feel similar. After listening, I feel a bit of aesthetic fatigue.

6) The internet is vertical, connecting users, while the underlying Web3 is horizontal; everyone has laid out their groundwork. Competing on the same level, everyone knows what is being discussed, but it’s unclear which is better.

Investor Zhenzhen

1) A lot of the core is about creators and fans; the rise of fan economy raises the question of how to better serve fans. Earn regulations are quite strict, making it difficult for many consumers to enter.

2) Domestic entrepreneurs should express their opinions more. They should speak up; for example, in the case of "Fantasy Westward Journey," they could find ways to mentor games or applications, being more confident and vocal.

Waterdrip Capital investor Elaine Yang

1) Experience at the Denver conference: The overall quality is much higher than Consensus and Token2049. Founders and developers can directly connect at booths, making it very efficient for institutions to set up booths here.

2) Discussion focus at the conference: The overall Ethereum ecosystem's main themes still revolve around L2/ZK/wallets/security/storage/DeFi, with more developer tool platforms emerging, primarily focusing on APIs and SDK middleware. Last year saw good financing, with AI and Social entrepreneurs discussing SBT and reputation systems coming out.

NGC investor Rick

1) Experience at the Denver event: Overall satisfaction with the event; found many new projects with good quality and innovative ideas. It feels different from being online, with many willing to express their thoughts.

2) From an investment perspective, the narrative changes aren't significantly different; there are some wallets and ecosystems, LSD, and new bright projects. ZK feels like a beacon for the Chinese community. Overall, I gained a lot from the culture and atmosphere, which is very inclusive.

3) Personally, I feel that there will be social layer opportunities in the next two years, applications or opportunities that bring downstream industry chances. The human touch in Denver is very friendly, with good public safety. NFT liquidity, AMM, and DeFi also have opportunities.

Investor Victor from alephcrypto.xyz

1) Smart contract applications are very important; Layer 1 is complete, and Layer 2 is nearing completion. Although Layer 1 has some sporadic issues, like Polygon experiencing a second block reorganization, which poses a significant threat to bridges, the ETH mainnet has not encountered any issues for months. Layer 2 chains and rollups are waiting, and there are still many centralized and semi-centralized bridges waiting for ZK. Layer 2 is wrapping up, with a massive explosion of applications based on smart contracts, building some infrastructure on the dApp layer. Therefore, I am very focused on the value released in this field. The most important thing about blockchain is still its utility; there must be user-oriented products.

2) Views on the storage sector: Storage is in high demand; it is a gap that needs to be filled. Existing projects can be divided into 3-4 levels. The most primitive is storage in Ethereum's smart contracts, akin to what's on the dining table. Ethstorage is like hot storage, things on the desktop, while AR is like cold storage in the fridge, which cannot be too large but has high retrieval efficiency. IPFS belongs to the warehouse and hard disk sector. It's a layered solution, similar to computer theory. Ethereum addresses computation issues, while storage has not been well resolved.

Anonymous investor Ferris from a fund

1) There are many builders here, which is a significant difference from domestically, where it's hard to see original projects. Domestically, there are many copies, with more discussions on technology and practical developments. Things are definitely happening here. There are no media outlets here; domestically, there are many, but real projects are relatively few. The feeling here is quite different from other foreign events, similar to the style in Lisbon. Another difference from domestically is the teams; many here work independently, with few grassroots efforts. One idea can be executed, and there are always lead investors. Domestically, it's often about making money, while abroad, it's about freedom.

Asian culture is empirical, inductive, and superficial. Here, logic prevails. Lisbon doesn't have as many hardcore developers; this place has a large number of hardcore developers. Lisbon's scale is small; the atmosphere here is very strong, and there's nothing to fear. Lisbon is more relaxed, with a softer temperament. I haven't seen any particularly impressive projects; just minor innovations.

2) I see two directions: privacy-focused public chains and ecosystems that are very brave in doing risky things without considering regulations. Another is Desci, which feels like the next thing after DeFi that can push the industry forward, but it's still far off. I haven't researched it in detail, but the vision is good, though it's hard to implement.

3) There are a few projects that will advance; minor innovations are also meaningful. I haven't seen them before; minor innovations in DeFi are quite normal because the big problems have been solved, and traditional finance has been largely brought over. I still focus more on DeFi.

Investment suggestions and feedback:

1) You must find your positioning accurately, considering changes in domestic and foreign markets, the location of entrepreneurship, and the backing capital to see where your point lies.

2) I've seen some pretty bad projects; some Web2 projects are quite poor, and transitioning to Web3 feels forced. Some hardware and software projects from Web2 failures are even more complex than Web2; how can they succeed?

3) This time, I took a deep look at two areas and was quite disappointed with the larger positions. The team's starting point and technical capabilities are good, but implementation is challenging. In the end, the story can only be told once; the second round is still quite difficult. Cosmos is relatively good apart from ETH, with good consensus and many builders, attracting many project parties. The other two rollups will have new projects, but that is part of ETH's DeFi progress, which is moving quickly. BNB resources are also decent, but I don't consider it a public chain; it's an extension of Binance, so it carries Binance's risks. I have little interest in Sui and Aptos.

4) Doing things and making money are two different matters. Doing things is certainly difficult, but I hope the entire ecosystem can develop.

Hackathon Participants

Hackathon Mentor Greg

1) Experience at the Denver conference: This is my second time in Denver; I was here last year too. There are twice as many people this year, with 35,000 participants and 7,500 hackers. Last year was just a showcase; this year, I acted as a mentor and spent almost all my time talking to hackers, discussing technology rather than selling my products. Being a mentor feels great.

2) Views on the zk sector: In terms of narrative, zk-SNARKs have finally come into use after five years of discussion. L2 is also usable now, and the AA field finally has standards and has gone live. There are improvements every year; zk and L2 are cheaper, faster, and allow more interactions, which is a good thing. AA is very useful; I spent a day mentoring and had no time to study. Developers are facing very small and specific problems. This hackathon emphasizes getting beginners started; in two weeks, usually three days, there will be many courses, with many tutorials at the beginning, which is a very good thing. So many people are beginners.

3) As a developer's perspective: Many Web2 developers find it challenging to understand Web3 and need time to grasp the differences. There is a huge learning curve. This year is different; last year, VCs were throwing money around, but this year has tightened up considerably. There are millions of Web2 developers and tens of thousands of Web3 developers; some of the best developers are in Web3 because it's easier to make money. I spoke with several developers who are resigning because it's easier to get funding, and the things they build can directly earn money. It's possible to build things at a very low cost. I am also an investor; I will invest in companies I am familiar with, especially knowing the CEO or CTO well. Generally, I look for an experienced CTO while I handle the business side.

Developer Perspectives

Ethstorage Developer Zhou, Qi

1) Views on the event: This event is excellent; most attendees are builders, and it's very globalized, with developers from Asia and Africa. It's a feast with a diverse range of projects participating. The entire exhibition hall has been significantly optimized, and everyone has enough space to showcase themselves.

2) Views on the storage sector: With the issuance of BTC NFTs, there is a strong demand for pure on-chain ETH. However, ETH's native storage remains a significant issue. The ETH Foundation just announced support for Ethstorage, indicating they are also laying out plans in this area.

Filecoin Developer Jenks

1) zk is very popular; I believe in its future and am personally optimistic.

2) The distributed sector is at a turning point.

3) The ETH Foundation hasn't done much in terms of activities.

4) Personally, I believe ETH has set a precedent; whether ETH will continue to be relevant is uncertain. Bitcoin is a promise, while ETH has issued and can only solve mainstream problems through iteration, making it not a very good reference. BTC, while solving trust issues, is very expensive. ETH has relatively cheap solutions for many problems, and what's most frightening is its simplicity and ability to achieve human coordination without relying on the state, making it revolutionary, akin to personal computers, printing, and writing tools.

An anonymous developer

1) Views on the sector: I have no particular views on the sector; Web3 is quite good during this bear market. If you don't invest in this cycle, you'll regret it. Infrastructure is still quite good; if it dies, it dies; those that survive will do well in the next cycle.

2) Experience at the Denver event: The event is primarily builder-focused, and as someone with a technical background, I find it great. There are many opportunities, and everyone understands the topics without commercial fluff. Storage is a large market, and FIL is at the forefront. There will also be new projects, but currently, the Arbitrum ecosystem isn't large enough. I am optimistic about BNB Greenfield; it has strength, but it's uncertain if it can dominate the ecosystem. Market recognition is hard to say; early investments in zk don't seem overheated, and middleware looks promising.

Hexlink Developer Shu

1) Experience at the event: This event is more focused on development, with diverse discussions. The currencies and discourse are much larger, and projects are more diversified. At Consensus, I saw mining or projects that don't require much development; here, the focus is on the Web3 topic. Although it's called ETH, projects not belonging to ETH will also appear.

2) Views on the DID sector: I work in the ID sector, which is heating up. When AA appeared, everyone was optimistic. Last year, many thought it was unappealing, but this year, attention is significantly increasing, and more projects are emerging.

3) Views on other sectors: Besides ID, I also see potential in NFT utilities (NFTs beyond PFPs) and wallets with better experiences, as well as fan economies, which can effectively drive traffic to Web3 because they provide benefits to KOLs, allowing them to bring their fans over.

A developer from a DeFi+NFT project dy:

1) How do you view your DeFi and NFT sectors: DeFi is already quite mature, but there is still space. The NFT sector is relatively new, with only two years of history, and there is considerable room for development. The industry landscape changes every year; we believe everything can be an NFT. In the early stages, the industry was mostly about images and PFP gameplay, but the concentration will gradually shift in the coming years. Now, we see multi-media NFTs emerging, such as in sports and music. The application of DeFi within NFTs is still relatively early, and some brands in the market provide intuitive services but lack many financial configurations, such as derivatives, leverage, and liquidity protocols.

The entire industry is still exploring diversification, and in the coming years, we will see multiple types and dimensions of NFTs. For example, in the second half of 2022, many Web2 companies launched their NFTs to incentivize their users and give back to the community, which also instills confidence and endorsement in the industry.

The NFT industry is gradually returning to rationality, increasing functionality. Although speculation still exists, the market will gradually develop healthily. At the same time, NFTs are a great entry point for newcomers; many people may not understand cryptocurrencies but are attracted to the visual impact of NFTs, allowing them to enter this space. This provides a great entry point for Web3 to break the circle. This is also one reason why the NFT sector has been relatively resilient during the bear market.

2) Event: The event is good, with many people and a wide range of projects. Due to the pandemic, everyone flew in, and there are attempts in every sector. Success or failure doesn't matter; zk is very hot and intense, while CEX pressure is quite large, with fewer attendees. I spoke with several VCs, and they feel the market is warming up, with many observing but fewer investing. There are quite a few Chinese attendees.

Developer Jessy

Public chains are very proactive, while VC investors are not as enthusiastic. There is increasing collaboration between projects, and American projects are interested in Asia. It's becoming harder to secure funding at this time; we still need to build. It used to be hard to get funding, but now it's even more challenging.

Collaboration is good; domestic and foreign perspectives on issues are very different. When encountering overseas projects, for example, some new public chains have very little presence abroad, and the Chinese community plays a significant role in determining whether DeFi remains mainstream. Users and project parties are all centered around DeFi, which is very core; if they stray too far from money, they will be overlooked.

Developer Nick

1) Experience at the Denver event: The event was primarily to attend Hackerhouse. The standards feel high; East Asia is somewhat lacking. There are many good developers on the mainland. Auditing starts halfway through, and once it's done, it can't be rewritten. If you get in early, it's better. The only early involvement was talking with the CTO, who has good ML capabilities. The Hacker activities are excellent, especially the GitHub activities, which have 100 rooms, better than the main venue. Overall, the participating companies are great.

2) Views on the zk sector: It's the best. I've participated and focused on developers, which is better than the 2049 and NYC conferences. There are too many investors and too few projects, creating an imbalance. Finding developers is a trend; last year was all about DAOs, and they all collapsed. ZK is the largest; everyone is working on zkEVM and similar projects. I don't think it's overheated; from a security perspective, zk and upgrades are significant themes. This year has many security audit issues, reflecting on these two areas, so I am optimistic from a technical perspective, believing there will be many development opportunities.

A developer from a GameFi institution Alex

1) Views on the sector: The GameFi sector, with decentralized protocols for game assets, allows for collateralization of game assets to release loans. The essence of the business is DeFi, but it also involves NFTfi, NFTs, GameFi, and Infra. The industry is at the early stage of a massive explosion, just like the mass adoption of the internet was driven by games; Web3 is the same. From CryptoKitties in 2017 to Axie Infinity in 2021, GameFi is now at the beginning of its third wave. The first two waves were pixel-level games with poor experiences, but their influence is undeniable.

From 2017 to 2021, many strong teams began developing AAA games, balancing economic models and playability. The characteristic is free-to-play, with good playability, but players need to spend money to become advanced or seasoned players, so part of the incremental value is presented in the form of NFTs. This is deduced from business logic. Additionally, from a first principles perspective, the reason games are the next big explosion is that people play games to escape reality, not because they like reality.

In the future, the metaverse will become a mirrored or parallel existence, reconstructing the property rights system of the real world in the virtual world, including rights, property, collateral, lending, and derivatives. We can see that most personal assets will exist in the form of virtual assets, providing lending and collateral solutions for virtual assets, becoming one of the applications. According to research, in the next 3-12 months, many AAA games will be released, and it can be anticipated that if 1-2 games are popular, they will lead the gaming sector and even the next bull market.

2) Views on the event: My feelings about the Denver event are very similar to those of the Colombia Devcon; it's truly a developer-focused event that respects ideas. Whether in Bogotá or Denver, the environment is somewhat rudimentary, the food is average, and the venue is a large factory, but it is filled with the sparks of innovation and decentralized thought. The speakers are all very high-level; whether investors or project parties, they can express many insights representing developmental directions. Moreover, the hackathon cycle in Denver is long, fostering a great atmosphere for developers.

Students

Tsinghua Association Student Luna Lau

1) Experience at the Denver conference: Coming from Tsinghua to Denver, I feel there is a significant difference in the industry information accessible to students in China and abroad, as well as a substantial difference in the level of industry participation. For instance, in Web3 entrepreneurship, Chinese students face more resistance and find it challenging to directly access cutting-edge resources in the industry. Therefore, we need to continuously motivate ourselves to step out of the comfort zone of Web3 in Chinese and actively participate in English-speaking events to learn.

2) Rich alumni resources at Tsinghua: On the other hand, the richness of Tsinghua's alumni resources in Web3 far exceeds my previous expectations. Tsinghua has a strong tradition of mentorship in many traditional fields, and I can feel that this valuable spirit has extended into the crypto industry. I sincerely hope that the Tsinghua Blockchain Association can carry on this legacy and go further on a global scale.