Market Pain Points
Currently, the preponderance of decentralized ecological projects lack direct access to traffic and funding. For instance, DeFi, NFT, GameFi and so forth are all prone to be independent islands in the ecosystem now. When users engage in a particular dimension, they have to access through centralized trading platforms since deposit and withdrawal of assets are essential apropos of trade. This leads to a lengthy and cumbersome process that jeopardizes the user experience.
Web3, the decentralized ecological project, is not perfect without flaws. Aside from technical design limitations (e.g. smart contract vulnerabilities), the risks of facing cyber attacks ought not to be neglected. In addition, not all nodes involved in decentralized asset transactions possess a high level of security as there is possibility that the "short board effect" would imperil the safety of assets.
In traditional centralized asset trading, it is compulsory for users to carry out identity verification which transaction process and records will then be stored in the servers of the centralized institutions. This conceivably leads to the leakage of sensitive information without de rigueur supervision. On the contrary, integration of Web3 in decentralized exchange works relatively better in terms of privacy and safety as it decouples the storage of sensitive user information from user transactions.
The current decentralized Web3 applications lack diversity concerning scenario applications, which most of the Web3 mainly focus on DeFi, NFT and GameFi. Apart from that, the relatively narrow ecological upstream and downstream give rise to fierce market competition along with exceedingly high costs. By moving the scope closer, it is not hard to see that most of the Web3 applications have yet to be completely formed as a whole ecosystem.
There are currently ample Web3 projects in the market that target discreetly at community nodes, NFT, and GameFi. Meanwhile, the centralized exchanges that issue platform coins are plentiful to boot. When it comes to the combination of Web3 and centralized exchange, however, there is none at the moment which represents a gap between the two markets.