Worldcoin's case study has shown that barriers to adoption for a worldwide digital identity standard are less tied to product architecture (e.g. iris scanning vs palm signatures) than they are to state agenda. It is unclear how @Humanityprot is overcoming this challenge.

Although @_BuildBear's product is functionally comparable with those of first movers (e.g. StealthTest), it is worth noting that this market space is uncrowded and has room for new entrants.

Although it is a late mover, @AvailProject will serve as a strong competitive threat to the 2 major market players in the data availability space because it:

• Can share security with a broader range of ecosystems
• Is building a more vertically integrated tech stack

Historical efforts to tether security to Bitcoin revolved around merge mining. @bounce_bit is instead hoping to achieve the same outcome with a novel primitive that offers restaking to validators staking BTCB, a token on the BNB chain that is 100% backed by a BTC reserve.

@eigenlayer packaged a research-driven insight as a novel web3 primitive, which in turn led to the development of an enterprise with first mover advantages, powerful network effects, and winner-take-all dynamics.

Although confidential smart contracts have a multitude of use cases, it is worth noting that FHE-based implementations are at best attempting to time the inflection point/technical breakthrough that will make FHE commercially viable in the hopes of securing first mover advantages.

The case for Bitcoin as the permanent center of gravity in crypto has always been strong. Other blockchains face an existential threat as Bitcoin-based solutions like @citrea_xyz reduce barriers to developer adoption via EVM compatibility and inherit Bitcoin's decentralization and security.

@sphinxdeploy provides necessary abstractions, such as 1-click multi-chain deployment and gasless deployments, that allow developers to focus on dApp development. Although well-funded incumbents in this market surprisingly do not support many of these abstractions today, it remains to be seen how quickly/whether they can ship something similar.

Although @InviteToMystery's ties to web3 can be considered trivial (tokenization of in-game assets), it is worth noting that the studio is penetrating a genre with a very limited # of web3 titles.

@WitnessCo_ has a simple and clever architecture that is:

• Schema-agnostic meaning that it is compatible with all types of data
• Privacy-preserving since it only submits hashes of the data on-chain
• Capable of achieving web2-scale throughput by writing provenance hashes to blockchains in batches

@bidflood’s unique value proposition is that:

• Its orderbook management services are fully configurable and composable
• It packages pre- and post-trade execution logic (on a per-order basis) into hooks to streamline advanced dApp development

@delegatedotxyz allows users to benefit from both the flexibility of hot wallets and the security guarantees of cold wallets while interacting with dApps. With over $889M in assets secured across 183k wallets and 150 project integrations, @delegatedotxyz has strong execution momentum.

Although EDX Markets does not disclose how it achieves institutional-grade speed, liquidity, and capital efficiency, its technology:

• Takes inspiration from an established product (MEMX), which is crucial for success in this product space
• Allowed customers to trade more than $1.4B in notional volume in December, which speaks to the merit of its technology

@zbyte_io is pursuing a product strategy that is not capable of building network effects, which is why its product will be difficult to monetize for venture-scale returns. And without network effects, it cannot build a meaningful dApp store

Unlike Google Analytics, @Safaryclub can provide site owners insights on users' wallet data and on-chain actions. Although there are a number of players in the market for web3 attribution analytics, it is interesting to see that their respective product/business strategies are diverging.

@RenzoProtocol is a first mover in developing a token primitive that capitalizes on the growing popularity of EigenLayer. In doing so, it is:

• Providing users net new utility and abstractions in the context of restaking
• Inheriting systemic risks associated with EigenLayer

@AltitudeFi_ is operating in a market with substantial whitespace with an industry-leading solution that provides interest rate optimization, yield aggregation, auto loan repayment, and collateral management.

@PowerPod_People is building a category-creating product to capitalize on the market tailwinds for EVs. To maximize adoption, @PowerPod_People is packaging charging hardware in various form factors, including a detachable charging adapter, a home AC charger, and an on-the-go charger.

On their mission to become next-gen game publishers, esports tournament organizers, and esports teams, gaming guilds need to clarify why the web3 gaming playbook will trend towards inaccessible models of asset ownership, which incentivize players to join guilds.

@OrdzGames explicitly emphasizes the use of the BRC-20 token standard (as opposed to the ERC-20 standard) as its core value proposition, which indicates that this project is merely hoping to capitalize on hype and speculation.

@Eclipsefi is making progress in producing feature-level differentiation. With that being said, long-term success in this product space primarily boils down to building an industry-leading:

• Deal pipeline
• Due diligence process

In addition to disrupting the venture-scale market for unused bandwidth, @WyndNetwork is hoping to provide a thoughtful alternative to traditional scraping services by:

• Allowing the buy-side to overcome traditional IP address restrictions
• Providing the sell-side stronger security guarantees

@TresDotFinance is hoping to differentiate by providing API-based access and transaction-level business context in a crowded market with a slow-moving incumbent that has already achieved unicorn status.

Although @addressableid has commendable momentum with 50 clients, it is worth noting that:

• The market space is becoming significantly crowded with functionally comparable products, verticalized counterparts, and new entrants (e.g. wallet-as-a-service providers)
• Visibility on user-specific on-chain data may decline over time

@dynamic_xyz is notable for:

• Shipping critical infra at a higher velocity than its peers
• Bridging the UX gap between web2 and web3
• Expanding its presence into new service categories (e.g. crypto on-ramps via a partnership)

@pave_bank is building strong differentiation by executing on crypto's promise to deliver greater:

• Transparency: @pave_bank is a full reserve bank
• Programmability: @pave_bank enables banking automations beyond those that are possible via API
• Efficiency: @pave_bank provides instant settlement

Details pertaining to its L2 and data platform are not public as of yet. @AndalusiaLabs is notable for going above and beyond in managing the risk profile of its own AMM/protocol by: (1) Pricing protection in a manner that allows the protocol to diversify obligations, (2) Preventing flash loan attacks, (3) Making it difficult for opportunistic actors to use the protocol as a vehicle for price speculation

@sonastream allows music artists to auction 70% of their streaming revenue/song (on @sonastream) to fans. Although this monetization feature is a net positive for creators, it is worth noting that @sonastream is not taking full advantage of the programmability of smart contracts.

@PythNetwork has impressive execution momentum on both the:

• Supply side: it has 90 data providers from both TradFi and crypto
• Demand side: 25% of all blockchain apps that use an oracle use @PythNetwork

‍@rhinestonewtf is building for a future in which:

• There is a rich ecosystem of apps that augment the functionality of wallets
• The market for wallets does not have winner-take-all outcomes & a cross-wallet app store is needed
• It can mitigate the risks of being permissionless
  

@Sagaxyz__'s:

• Thesis on modular blockchains is only partially correct: although the 1st wave of chain designs can indeed cause analysis paralysis, the 2nd wave is fixing that
• Value proposition is slightly unclear given it pitches IP that has already been popularized by Cosmos

Although @privy_io's non-custodial wallet offering has little differentiation, its authentication offering supports more fine-grained control over when to trigger authentication flows and wallet connections compared to competition.

Feature-level differentiation is becoming increasingly less defensible in the wallet market as:

• More and more standalone features become readily available for integration via SaaS models
• MetaMask grows developer adoption for "Snaps"

@Glacier_Labs is hoping to:

• Reduce barriers to adoption by supporting NoSQL/CRUD
• Achieve scalability with specialized L2/3 infrastructure
• Popularize database management innovation uniquely unlocked by blockchain technology (e.g. NFT-gated access to database rows)

Although KYC/AML are well-documented barriers to institutional adoption of DeFi, @KintoXYZ is:

• Restricting its SOM by addressing institutional barriers in a non-comprehensive manner
• Pitching a value proposition that can be implemented in other layers of the tech stack

Although @Uniblock lacks a technical moat, it has built a developer-friendly platform with net new features (e.g. node infra provider fallback configuration) and it can leverage this momentum as a wedge to build mindshare in the community.

The majority of incumbent execution platforms have yet to achieve a breakthrough b/c they are targeting retail investors with steep learning curves. To attract institutions, @DefinitiveFi provides:

• A low latency engine
• Positions customized to a client's needs
• Audit reports

@ritualnet is notable for:

• Developing middleware that abstracts away the complexity of marrying smart contracts with AI workloads
• Operating in a market with substantial whitespace
• Tackling issues in AI that can uniquely be solved with blockchain (e.g. model monetization)

While there is no shortage of access management frameworks (e.g. decentralized identity, multi-sig, zero-knowledge), @llama is a first mover in providing a solution that seamlessly embeds into the smart contract layer of the tech stack.

Although the concept of on-chain gaming may not appear revolutionary at the moment due to UX limitations (e.g. resolution), it will prove fundamental in making the Metaverse: persistent, fair, open, composable, interoperable, and economic, as blockchain infra matures.

Although players in this market space envision GPU-scale demand for zero knowledge processing units (ZPUs) in the long term, it is worth noting that their survival in the short-term is entirely dependent on servicing blockchain infra providers that have yet to achieve PMF.

@Trips_IP is targeting institutional investors with its offering, which will create:

• Opportunities to be a first mover in introducing data-driven online media investing
• Challenges: (1) investors are risk-off currently (2) the ROI profile of the asset class may not be a fit

AI app developers can access @ModulusLabs's zk-prover via an API integration to prove the correctness of model execution. Although @ModulusLabs can bring accountability to the AI stack, it is difficult to envision developer adoption at scale without a regulatory tailwind.

Although there are a wealth of blockchain indexers in the market, @smlxldotio discovered a coverage gap in the product space for dynamic analysis. As for its EVM client, @smlxldotio has a highly differentiated offering that provides support for net new functionalities.

@aerafinance is building a unique solution that:

• Capitalizes on the growing availability of decentralized, institutional-grade risk products
• Provides DAOs the agility & incentives framework to govern treasuries in a capital-efficient manner while maintaining decentralization

Although the market for this software is crowded, @blockaid_ has leveraged its proprietary technical moat to achieve industry-leading execution momentum and secure the biggest web3 names as customers, including MetaMask, OpenSea, and 1inch.

Web3 apps are maturing beyond a tunnel vision focus on onboarding users to web3 and focusing on user retention by building superior alternatives to web2 products. @HYTOPIAgg has everything Minecraft has and then some while shipping at a higher velocity & championing creators.

A decentralized approach to gathering economic data can provide improved:

• Accuracy: metrics like the CPI are calculated using outdated data collection methods & sources
• Objectivity: economic data is currently reported by the gov, which may have an incentive to embellish stats

@Coral_Finance has:

• An unsustainable strategy to generate outsized returns for LPs: the returns are derived from a purely speculative token with no utility
• A non-sensical approach to providing downside protection to LPs

In addition to reporting unique metrics such as 'liquidatable positions,' @parsec_finance envisions a moat in building a maximally customizable analytics dashboard. To win in this market, @parsec_finance will need to aggressively scale the number of metrics it supports.

Bots can meaningfully repurpose digital IP with rise of generative AI. @verisoul_ai uses zero-knowledge to preserve consumer privacy, integrates a range of fake user detection mechanisms, and faces competition from a plethora of alternatives (e.g. KYC, SSI, WorldCoin, etc.)

Account Labs' products lack the differentiation needed to displace incumbents in the heavily saturated market for wallets. To fix that, Account Labs may want to explore form-factor innovation (e.g. credit cards) or support for innovative standards (e.g. ERC 6551).

@Fair_Block is notable for its versatility given it:

• Can address use cases beyond (malicious) MEV protection (e.g. private governance, sealed-bid auctions)
• Allows developers to configure the validator set necessary for decryption
• Enables programmatic privacy policies

@L1Advisors is operating in a market with limited competition and building a product with immediate utility. Wealth managers do not custody funds in TradFi either and this product's differentiation revolves around supporting crypto-native custody solutions & financial strategies

@iyk_app provides a scalable solution for synchronizing ownership of physical items with that of their digital twins. With that being said, it is not a panacea for all the problems that can be solved by linking smart contracts with physical items (e.g. provenance).

The interoperable nature and upside generation potential of tokenized rewards solve for consumer adoption. In order to succeed, @blackbird_xyz has to overcome the resentment restaurateurs have for tech companies and the socio-educational barriers associated with crypto-economies.

While @FhenixIO may address developer adoption issues associated with FHE by maintaining EVM compatibility, it remains to be seen whether @FhenixIO

can:

• Make FHE-powered contracts economically viable
• Carve out a venture-scale market space
• Find a path to monetization

@orbapp_ lacks a creative value proposition. Furthermore, it highlights Lens compatibility as a core feature at a time when web3-native portable IDs are suffering from irrelevance (failed to attract Threads to their ecosystems and capitalize on a significant inflection point).

Bubble maps are consumer-friendly (e.g. compared to block explorers) and versatile (e.g. can help ID Ponzi schemes, create wallet graphs). With that being said, @bubblemaps needs to pinpoint its beachhead market and mature from shipping a feature to shipping a product.

Although the product spaces for wallets-(aaS) and user analytics are crowded, incumbent:

• Wallet providers with comparable security to @BastionPlatform have not expanded their service offerings
• Analytics providers have not ventured into building robust custody solutions

@intentessential is rearchitecting the transaction lifecycle to reflect user intent as opposed to subscribing to the constraints imposed by status quo infra on MEV resistance solutions. To boost adoption, @intentessential is packaging its solution in various form factors

@ProofOfPlay is extending its on-chain footprint beyond digital asset ownership in order to bring modding to the foreground. A design space that @ProofOfPlay may want to additionally explore involves the use of smart contracts to amplify the gaming experience itself.

As opposed to building overly modular and general purpose rollup infra that is neither developer- or app-friendly, @LayerN_Official has an opinionated construction of (1) the rollup infra needed to build performant DeFi apps and (2) the design space that deserves creative freedom

Although this layer of abstraction has been widely available to yield aggregation product developers for years, @portals_fi is extending the scope of abstraction by:

• Abstracting away token-level complexities
• Supporting a broader set of DeFi transactions (i.e. swaps)

Delivering outsized returns as a pure play data startup generally requires investment in data with an outsized risk of being useless. @SorareData can win big if its bet on web3 fantasy is directionally correct & player analytics need to be complemented by blockchain analytics

Technical differentiation is negligible in this product space. Helix has a leg up in executing given it was incubated by Helicap, a private credit platform that has disbursed more than $200M in loans in Southeast Asia since 2018.

@StoryProtocol has the venture-scale vision of building Git for creative IP. In order to materialize its idealistic vision, @StoryProtocol will have to implement coordination mechanisms that prevent creators from simply choosing not to subscribe to the terms of smart contracts.

@StroomNetwork creates a win-win for:

• Users by allowing them to tap into DeFi and LN fees (1) with their idle BTC holdings and (2) without having to maintain LN node infra
• The Lightning Network by increasing liquidity and throughput capacity in the network

Just as Docker and Kubernetes virtualize and abstract the deployment of web2 applications, @ironmill_xyz has identified an opportunity to virtualize and abstract the deployment of web3 applications that depend on zk-VMs and cryptographic compute.

Although @CryptoworthApp has notable clients including Axie Infinity, Big Brain Holdings, and Solana, it is worth noting that:

• There are numerous direct competitors, one of which counts the IRS as a customer
• The market space is further fragmented by operating systems for DAOs

@usefirstmatexyz is entering an incredibly saturated market comprised of both:

• Functionally comparable platforms with first mover advantages
• NFT studios that provide managed services to creators

In any case, @usefirstmatexyz has momentum with strong web3 brands.

Institutional adoption for crypto is positioned to grow as more and more countries progress towards regulatory clarity. Although @maplefinance has strong momentum, blockchain-savvy TradFi incumbents like JP Morgan pose an impending threat to its business.

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The feature set for web3 engagement platforms is converging rapidly (analytics + workflow automation + WRM). Although @RaleonHQ is hoping to differentiate with embedded quests, market prospects are less constrained by feature availability than they are by lagging demand.

The advantages of registering as a MIDAO are shown in the picture attached in the tweet. With that being said, it is unclear how @MIDAODS can deliver venture-scale returns.

@linera_io is achieving high:

• Decentralization by relaxing HW requirements for network auditability (as opposed to validation)
• Security by allowing microchains to leverage the same set of validators
• Scalability via elastic scaling and low latency cross-chain messaging

Major web2 game publishers, including Take-Two Interactive and @zepeto_official, are finally releasing web3 titles. The latest bull run led to the rise of web3-enabled gaming economies and the next bull run will (hopefully) lead to the rise of web3-enabled game designs.

Web2-based alternatives cannot provide comparable accessibility, configurability, and functionality. @jokerace_xyz can supersede governance and bounties platforms with a product that is less prescriptive and can support a bigger sandbox of features, use cases, and preferences.

AI-powered code scanners can be especially useful to analyze smart contracts given the wealth of open-source code available. @Olympix_ai will face substantial challenges in competing with IDEs that can support a more comprehensive feature set (e.g. code scanning + completions).

@mindnetwork_xyz is hoping to capitalize on the organic pull in the market for zero-trust security. In doing so, it is notably competing against centralized incumbents that are embracing privacy-preserving technologies, including confidential compute and FHE.

The @vextoken provides fans governance rights over the direction of @VeloceEsports and access to exclusive perks. By coupling centralized ownership with decentralized governance, @VeloceEsports may reveal that decentralized ownership is not necessary for community activation.

While incumbent protocols are exclusively focused on either paywalling and/or democratizing ownership of music, @formless_xyz is tapping into the broader spectrum of apps unlocked by the configurability of smart music contracts, such as playlist sub-licensing & time-bound access.

@d8x_exchange is hoping to supersede existing perp DEXs with a (undisclosed) tradfi-inspired derivative pricing approach and risk mitigation techniques that collectively bridge the cost differential between trading on CEXs vs. DEXs.

The market for automated liquidity provisioning delivers time-savings to liquidity providers and has substantial whitespace. With that being said, @ConicFinance is an overlay for a protocol that has recently faced an exploit of $61M+.

Malicious actors are preying on the composable nature of web3 by hacking open-source dependencies. Socket is differentiating from competitors by helping developers detect and block active supply chain attacks.

Although @hi_com_official may be spreading its resources too thin, it has commendable:

• Momentum: self-reported 3M sign-ups for its superapp
• Ambition: hopes to materialize the Metaverse by servicing the 4Cs of consumer tech (content, community, commerce, and capital)

Block explorers have defaulted to minimalist interfaces that are inaccessible to the majority of non-technical users. As it works to fix this, @cymbalxyz may:

• Face more competition from consumer-grade data platforms than block explorers
• Have an unclear path to monetization

Similar to how SHA-256 and GPU compute developers leveraged the growth of Bitcoin mining and AI as inflection points (respectively), @_f16y_ hopes to capitalize on the growing use case potential of next-generation cryptography primitives (e.g. zk proofs, homomorphic encryption).

In light of Bitcoin's upcoming halving event, miners are actively seeking new sources of income. Although these miners may have ambitions to join decentralized AI networks, it is worth noting that hardware designed for SHA-256 mining is not necessarily optimized for ML training.

@interfacedapp may want to articulate its differentiation given this market is incredibly saturated with functionally comparable products released by: exchanges, NFT marketplaces, game studios, NFT galleries, social networks, portfolio trackers, and DAO tooling providers

@RiscZero is strategically positioned to streamline developer adoption by:

• Developing a chain-agnostic shared execution layer instead of a native blockchain
• Iteratively releasing tooling that collectively span the value chain of zero-knowledge proof deployments

@8ballpool, @eyeball_games' web2 counterpart, achieved $100M ARR and a Guinness world record for 1B+ downloads. As web2 developers adapt their hits to a web3 framework, speculative activity will become increasingly dwarfed by genuine in-game utility for gaming NFTs.

@futureverse is notable for comprehensively packaging web3 trends —  including DIDs, decentralized notifications, and interoperable economies — in its gaming ecosystem. This can potentially backfire because it makes the learning curve for web2 devs that much steeper.

@awesomeqa_xyz's product lacks a technical moat given it is a mere wrapper around OpenAI's tech. In any case, @awesomeqa_xyz has been able to plug readily-available tech to address a glaring need for automation in web3 communities and win high profile customers.

@liquid_col is involving participants across the value chain (e.g. node infra, exchanges) to become the most liquid liquid staking primitive. Unfortunately, @alluvialfinance will face adoption challenges in the near-term due to regulatory action against staking service providers.

Anecdotal case studies from @soundxyz_ reveal that:

• Artists can live full-time from music earnings by diversifying revenue streams with NFT-gated offerings
• Programmatic biz models can grow the pie for all music artists and uncover the fair market price for proof of talent

The established market for unused bandwidth does not compensate the providers of unused bandwidth: consumers. In accordance with the broader ethos of web3, @WyndNetwork is a first mover in redistributing capital flow in this market and fairly compensating consumers.

Although B2C digital asset inheritance solutions have existed in the market for years and are projected to become increasingly commoditized, it is worth noting that @BequestFinance is tapping into whitespace in the market for a B2B/B2B2C solution.

Despite an influx of DAO OS, Discord/TG remain home to the majority of web3 communities. Although @Collab_Land_ has yet to disclose a path to monetization, it will continue creating value for communities via a marketplace of apps and an API/SDK for token-gated access

@superstatefunds has filed a draft prospectus with the SEC for a government bond mutual fund. It will fractionalize ownership in the fund by issuing tokenized shares. Pursuing a regulatory-compliant approach limits @superstatefunds' customer base to crypto-native hedge/VC funds.

@pwnxyz's is hoping to differentiate by supporting:

• Both fungible and non-fungible tokens as collateral with the same protocol
• Tokenized lending positions that allow lenders to access liquidity throughout the loan's duration