As a professional translator, here is the translated news article:
Binance has reached 200 million registered users, reflecting the accelerated adoption of digital assets and blockchain development. The application and utility of blockchain and Web3 in real life have surpassed any previous technology. Throughout history, many companies have been eliminated due to their inability to adapt to new technologies, and now many companies are exploring and integrating blockchain technology. The astonishing growth of Binance’s user base represents a significant event for the entire industry. Cryptocurrency users have exceeded 2.5%, and companies are facing the choice of embracing innovation or being eliminated. The future may witness a fusion of cooperation and competition, and the growth rate of the Binance community portends the arrival of this future.
Title: From Our CEO: Incumbents and Insurgents in the Era of Blockchain Innovation
Author: Binance
Translated by: Kate, Mars Financial
Key Points:
• Over the weekend, Binance’s registered user count reached 200 million. The explosive growth of our user base reflects the accelerating adoption of digital assets and blockchain.
• This process bears important similarities to past cycles of technological disruption, from which we can learn as we move towards the milestone of 1 billion.
• The use and utility of blockchain and Web3 in real life have already exceeded any paradigm-shifting technology in its early stages of development.
• Similar to previous cycles, existing companies are facing a strategic choice between embracing innovation and facing the risk of being eliminated.
Binance’s user count has reached an incredible 200 million people. This milestone not only represents a tremendous achievement for our community but also a significant event for the entire blockchain industry and a milestone in innovation history.
Throughout human history, technological innovations have continuously disrupted existing industries and reshaped economies. This process repeatedly pits incumbents, old-established companies, against insurgents, innovative newcomers. A common pattern is that incumbents initially show indifference to new technologies, then gradually adopt them, forcing the old dominators to either adapt or face elimination.
Today, the rise of blockchain technology and the shift from the mainstream internet paradigm of Web2 to Web3 represent the latest wave of disruption. History does not repeat itself, but it often rhymes, so as we study how the current blockchain-dominated innovation cycle compares to historical cycles, we can identify similarities and draw lessons. As we celebrate our 200 million users, where do we stand in the current iteration, and where does Binance fit in?
Accelerating Technological Disruption
The pace of technological innovation accelerates with each cycle. The first spark of the Industrial Revolution began in the 1760s with the steam engine, taking decades to truly transform industry. Breakthrough experiments and inventions in electrical research and engineering in the early 19th century did not lead to widespread electrification until the early 20th century.
Decades later, the internet changed the world at a faster pace. Nevertheless, starting from the ARPANET in the 1960s and 70s, it remained a domain of academia and enthusiasts until the early 1990s when the World Wide Web (Web1) appeared, catalyzing widespread adoption globally due to its practicality and accessibility on existing internet infrastructure. After that, it only took a few years for this technology to fundamentally change communication, commerce, and entertainment.
Today, blockchain and Web3 are advancing at an unprecedented pace. Bitcoin, launched in 2009, laid the foundation for a new asset class that attracted global mainstream attention in less than a decade. The time between the emergence of this technology and the widespread deployment of consumer applications based on it is very short. Millions of people worldwide are already using digital assets to transfer value effectively online, engage in decentralized finance (DeFi) activities, and benefit from various functionalities driven by smart contracts, from digital art to decentralized autonomous applications.
Some still doubt that real-world utility is achieved slowly. However, viewed from a historical perspective, the use of blockchain and digital assets in real life and driving consumer value demonstrates more performance than any paradigm-shifting technology in the past – and in a very short time. Nonetheless, we are still in the early stages of the game, with enormous growth potential and a steep adoption curve, indicating that we are confidently moving towards the mainstream.
The Spread of Blockchain Innovation
I believe that the growth of Binance’s user base is sufficient to prove the exponential nature of digital asset adoption.
Binance was launched in July 2017, securing the position of the world’s largest cryptocurrency platform in just six months. However, it wasn’t until May 2021 – almost four years later – that we reached the milestone of 50 million users. The next 100 million, from 50 million to 150 million, took much less time, completing in just 26 months by June 2023. Then, it took us less than a year to surpass the threshold of 200 million.
Every time I see this curve, I think of Everett Rogers’ classic innovation diffusion theory. According to this theory, diffusion is the process through which an innovation spreads among the participants of a social system over time in a series of stages: knowledge, persuasion, decision, implementation, and confirmation.
People go through these stages at different speeds, leading to different adoption times. Rogers categorizes adopters into five groups based on their readiness to accept new technology: innovators (about 2.5%), early adopters (13.5%), early majority (34%), late majority (34%), and laggards (16%). Innovators are the first to adopt and willing to take risks, followed by early adopters, who are typically opinion leaders that facilitate further adoption.
Even if all cryptocurrency users are Binance users (which is clearly not the case), the proportion of 2 billion people in the global population is already slightly higher than 2.5%. In reality, we are far more than these. Nevertheless, innovators have joined, early adopters are currently collectively joining the movement, and spreading information as we move towards the early majority – as some theorists have summarized, this marks the beginning of large-scale or self-sustaining adoption. With such a steep curve, we may reach there faster than we imagine.
Adapt or Be Eliminated
Historically, incumbents often dismiss new technologies and the uprisings that drive them until later when they realize the utility and value of innovation. When Alexander Graham Bell invented the telephone in 1876, telegraph companies were not interested in it, considering it a strange novelty. However, the ability of the telephone to provide instant voice communication quickly demonstrated its value and was widely adopted. Similarly, personal computers were initially viewed primarily as toys for hobbyists, with widespread skepticism about their practicality. However, the rise of productivity software and the internet made personal computers essential tools for business and personal use.
In the current era, blockchain technology initially faced skepticism from traditional financial institutions. However, its unique value proposition – decentralization, transparency, and security – has driven increasing adoption by individual users and companies.
As new technologies prove their value, existing companies face a critical decision: either adapt or be eliminated. The transition from horse-drawn carriages to automobiles at the turn of the 20th century forced transportation companies to either adapt or close down. Similarly, the rise of digital photography left Kodak unable to adapt, leading to its decline, while companies like Canon and Nikon thrived by embracing the new technology.
Although there are still critics, many established companies today have chosen to actively embrace the wave of disruption led by blockchain, rather than ignore or resist it. Financial giants like BlackRock and Fidelity recently led the way by launching physical Bitcoin ETFs, perhaps the most vivid example. From JPMorgan to IBM, many other major players in their respective fields are exploring blockchain technology and integrating it into their operations to improve efficiency and security. With the increasing prominence of decentralized systems, those who cannot adapt may be eliminated. The current blockchain revolution reflects past innovation cycles, where existing companies must adopt new technologies or face the risk of being left behind.
As blockchain and Web3 technologies continue to develop, existing companies must recognize the potential for disruption and quickly take action to integrate these innovations into their processes. With blockchain reshaping the financial landscape and many other industries, the future may see a fusion of cooperation and competition. If the growth rate of the Binance community is any indication, this future is just around the corner.