ETH Denver 2024 is recognized as one of the most significant and anticipated cryptocurrency events, celebrating the convergence of blockchain, culture, and education. Held between February 23 and March, the event featured the participation of renowned leaders from the crypto world, including Sota Watanabe, founder of Astar Network. Sota participated in the panel “Crypto Capitals: Web3 Around the World” alongside Richard Muirhead and Min Teo from Ethereum Venture.

Regarding organizational structure and projects, crypto protocols tend to be naturally decentralized. An example is Astar, which boasts a team of over 60 individuals from more than 19 countries, spread across 4 entities in 5 regions of the world.

From the user’s perspective, certain aspects, such as fees and regulations, rely on centralized entities. Therefore, cryptocurrency-related legislation must be transparent about what is permitted and what is not.

Most developers are migrating to locations deemed welcoming and favorable, such as Dubai and Singapore. However, in terms of capital markets, the United States continues to lead. It is important to highlight that the cryptocurrency adoption boom is centered in Asia, especially due to the growth of NFTs and Game-Fi.

One of the reasons for Asia’s leadership is the presence of the world’s largest population, which is increasingly engaged in the online environment and becoming familiar with the cryptocurrency universe.

Therefore, from an entrepreneurial standpoint, it is essential to understand the business dynamics to leverage the best conditions offered by each country.

• Devs: Europe and Dubai
• Users: Asia
• Finance: US

Japan Government — Web3 as a national strategy

From Japan’s perspective, regulators are not seen as adversaries of Web3 companies. The main challenge lies in the fact that regulators who are not familiar with cryptocurrencies are tasked with legislating on the subject, highlighting the importance of entrepreneurs and founders of crypto projects maintaining constant contact with governments and regulators.

It is recognized that Japan fell behind in the Web2 race, with the absence of global companies in this sector in the country. However, giant companies like Sony, Toyota, and others are present. Therefore, the country aims to recover lost time and take the lead in the Web3 race.

The government recognized that Web3 represents the next narrative and opted to make substantial investments in this area, especially after losing in the Web2 race, which led to the stagnation of the Japanese economy. This is one of the reasons why Sota Watanabe and Startale Labs have the opportunity to openly engage with Japanese regulators.

Two years ago, the Japanese government defined Web3 as a national strategy and since then, it has implemented changes in more than two taxes related to cryptocurrencies, addressing issues such as unrealized gains and taxes for companies in the sector.

Due to the guidelines set by the Japanese government and the adoption of Web3 as a national strategy, we have witnessed the entry of major Japanese companies into the cryptocurrency market.

Startale Labsreceived an initial investment from Sony and established a joint venture to develop a public blockchain for Sony in the coming months. Although the project is still in its early stages, once deployed, it will become one of the largest cryptocurrency projects worldwide!

Mass Adaption — Web3 for billions

Sota emphasized his desire to promote mass adoption of cryptocurrencies and make Web3 accessible to billions of people. With this goal in mind, he is working to create the necessary infrastructure for people to integrate Web3 into their daily lives, as naturally as using the internet.

Boosting existing projects is more feasible than starting new ones from scratch. Therefore, Sota encourages companies to adopt and integrate with established Web3 protocols, meaning to incorporate decentralized protocols into already established businesses.

The protocols must maintain their decentralization; however, in terms of interface and corporate strategies, it’s possible to adopt a centralized approach, as there are distinct levels of autonomy between the community and the protocol.

Sota illustrated his point with the example of Sony, which recognizes the difficulty of competing with giants like Google or Facebook on centralized platforms. Therefore, the strategy of adopting Web3 platforms emerges as a promising path for Japanese companies.

Thus, concerning capital and talent, the United States will likely lead the market; however, in terms of adoption, it is in Asia that crypto market entrepreneurs should focus their attention.