Exploring Web3: The Integration of Digital Entertainment and Innovative Technology

In today's digital age, the boundaries between the virtual world and real life are gradually blurring. People can interact and embark on adventures with anime characters in virtual environments, engage in fitness activities, and even showcase their digital avatars dressed in outfits from renowned designers. This novel experience that combines reality and the virtual not only adds a new dimension to users' leisure lives but also contains immense business opportunities and economic value.

The application and continuous development of innovative technology is one of the main driving forces behind the rapid expansion of the entertainment industry in recent years. Driven by digital technology, digital entertainment has become a highly potential economic industry. Research reports predict that global online entertainment market revenue will grow from $184.2 billion in 2021 to $653.4 billion in 2027, with a compound annual growth rate of 21%, demonstrating astonishing development potential and immense space.

The rapid popularization and continuous enhancement of mobile internet and smartphone technology have led to explosive growth in fields such as streaming music, video, social platforms, and mobile games over the past decade. Next, the next wave of breakthrough growth is likely to be driven by the third generation of the internet (Web3) and blockchain technology. Concepts such as NFT, GameFi, Play to Earn, and immersive entertainment are directions in which many global entertainment giants are currently investing resources to explore.

Recently, a digital entertainment leaders forum themed "Entertainment Power UP! Web3 New Horizon" was held in a certain technology park. More than 90 experts from over 30 countries and regions shared how digital entertainment technology brings new experiences to different fields such as art, education, sports, and life in the Web3 era, and discussed the applications and opportunities of Web3 in daily life. Over 3500 people participated both on-site and online, resulting in a strong response that highlights the vigorous trend of digital entertainment development.

This forum also serves as an important component of the urban event, featuring interactive projects such as augmented reality ( AR ) games, smart sports walls, simulated racing experiences, and application workshops, along with local snacks, providing citizens with a great weekend leisure and entertainment destination.

A high-quality entertainment experience can stimulate consumption and drive economic development. Currently, a certain technology park has gathered about 170 companies engaged in digital entertainment, covering multiple fields such as the metaverse, game development, game big data analysis, and esports equipment and peripherals R&D.

Among these companies, many actively apply Web3 and other cutting-edge technologies, achieving significant results. For example, a local digital health startup has partnered with a well-known entertainment company this year to launch the world's first immersive interactive fitness adventure app, where players can exercise alongside comic book characters. Another startup game company has successfully entered the Japanese market with its metaverse game, accumulating over 145,000 members in community channels in just six months.

The application scope of Web3 extends far beyond digital entertainment or virtual assets. Its core blockchain technology features decentralization, security, transparency, immutability, and low cost, and can be applied in various fields such as finance, commerce, trade, supply chain management, and even daily life, addressing real-world pain points and challenges through technological and application innovations.

To accelerate the development of Web3, the government has allocated 50 million yuan to establish a thriving Web3 ecosystem, which includes attracting businesses and talent to settle, as well as hosting related educational and promotional activities. Currently, more than 180 Web3-related tech companies have gathered, including unicorns and licensed virtual asset trading platforms, with over 20% of the companies coming from mainland and overseas.

As an international financial center and a metropolis that values innovation and technology, Hong Kong must maintain a sense of urgency to grasp the major trends in technological innovation. Under the premise of sound and appropriate regulation, it should actively lead and promote innovative exploration and development, enabling Hong Kong to ride the wave of this intense technological innovation and develop its economy for the benefit of its citizens.