As a professional translator, here is the translated content:
Binance registered users reach 200 million, reflecting the accelerated development of digital assets and blockchain. 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 rate of Binance users represents a significant event for the entire industry. Cryptocurrency users have exceeded 2.5%, and businesses are facing the choice of embracing innovation or being eliminated. The future may see a fusion of cooperation and competition, and the growth rate of the Binance community heralds the arrival of this future.
Title: From Our CEO: Incumbents and Insurgents in the Era of Blockchain Innovation
Author: Binance
Translated by Kate, Marsbit Finance
Key Points:
– Over the weekend, Binance’s registered user count reached 200 million. The explosive growth of our user base reflects the accelerated adoption of digital assets and blockchain.
– This process bears important similarities to previous cycles of technological disruption, from which we can learn as we progress towards the milestone of 1 billion.
– Blockchain and Web3 have already demonstrated more real-world utility and usage than any paradigm-shifting technology in its early stages.
– Similar to previous cycles, existing companies are facing a strategic choice between embracing innovation and facing the risk of obsolescence.
Binance’s user count has reached an incredible 200 million. This not only represents a significant achievement for our community but also a major event for the entire blockchain industry and an important milestone in innovation history.
Throughout human history, technological innovations have continuously disrupted existing industries and reshaped economies. This process has repeatedly pitted incumbents, i.e., established companies, against insurgents, i.e., innovative newcomers. A common pattern is that incumbents initially ignore new technologies, then gradually adopt them, forcing old giants to either adapt or face elimination.
Today, the rise of blockchain technology and the transition from the mainstream internet paradigm of Web2 to Web3 represent the latest wave of disruption. History may not repeat itself, but it often rhymes, so as we examine how the current blockchain-dominated innovation cycle compares to historical cycles, we can find similarities and lessons to learn. As we celebrate our 200 million users, where do we stand in the current iteration, and where does Binance fit into it?
Accelerating Technological Disruption Cycles
The pace of technological innovation is accelerating 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 the field of electricity in the early 19th century led to widespread electrification only at the beginning of the 20th century.
Decades later, the internet changed the world at a faster pace. Nonetheless, starting from ARPANET in the 1960s and 70s, it remained a domain of academia and enthusiasts until the early 1990s when the World Wide Web (essentially Web1) catalyzed widespread adoption globally by adding practicality and accessibility on top of existing internet infrastructure. After that, it only took a few years for this technology to fundamentally alter communication, commerce, and entertainment.
Today, blockchain and Web3 are advancing at a pace never seen before. The introduction of Bitcoin in 2009 laid the foundation for a new asset class that attracted mainstream attention globally in less than a decade. The time between the emergence of this technology and the widespread deployment of accessible consumer applications based on it is very short. Millions of people around the world are effectively transferring value online, engaging in decentralized finance (DeFi) activities, and benefiting from a variety of smart contract-driven functionalities, from digital art to decentralized autonomous applications.
Some still doubt that real-world utility is achieved slowly. However, from a historical perspective, in terms of real-world usage and driving consumer value, blockchain and digital assets have shown more performance than any paradigm-shifting technology in a very short time. Nonetheless, we are still in the early stages of the game, with significant upside potential and steep adoption curves, indicating that we are confidently moving towards mainstream adoption.
The Spread of Blockchain Innovation
I believe the growth of Binance’s user base is sufficient to demonstrate the exponential nature of digital asset adoption.
Binance was launched in July 2017 and secured the position of the world’s largest crypto platform by trading volume within six months. However, it took almost four years until May 2021 to reach the milestone of 50 million users. The next 100 million, from 50 million to 150 million, took much less time, only 26 months, and was completed in June 2023. Then, it took less than a year to surpass the threshold of 200 million.
Every time I see this curve, I think of Everett Rogers’ classic theory of innovation diffusion. According to this theory, diffusion is the process by which an innovation spreads among participants in a social system over time in a series of stages: knowledge, persuasion, decision, implementation, and confirmation.
People move through these stages at different speeds, leading to different adoption times. Rogers classifies adopters into five categories 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 usually opinion leaders that promote further adoption.
Even if not all cryptocurrency users are Binance users (clearly not the case), the proportion of 2 billion people in the global population is already slightly higher than 2.5%. In reality, we have far more than this. In any case, innovators have already joined, early adopters are currently collectively joining the movement, and spreading information as we move towards the early majority – as some theorists have concluded, signaling the beginning of mass 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 insurgents driving them until later when they realize the usefulness and value of innovation. When Alexander Graham Bell invented the telephone in 1876, telegraph companies were not interested, 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 seen mainly as toys for hobbyists, with widespread skepticism about the practicality of personal computers. 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 propositions – decentralization, transparency, and security – have driven increasing adoption by individual users and companies.
When a new technology proves its value, existing companies face a crucial decision: either adapt or be eliminated. At the beginning of the 20th century, the transition from horse-drawn carriages to automobiles forced transportation companies to either adapt or close. 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 proactively adapt to the wave of disruption led by blockchain, rather than ignore or resist it. Financial giants like BlackRock and Fidelity recently took the lead in launching spot Bitcoin ETFs, perhaps the most vivid example. From JPMorgan Chase 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 decentralized systems becoming increasingly prominent, those who cannot adapt may be eliminated. The current blockchain revolution reflects past innovation cycles, where existing companies either adopt new technologies or face the risk of being left behind.
As blockchain and Web3 technologies continue to evolve, existing companies must realize 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.
