# Part 3｜Market and Narrative Contexts

**Part III｜Market and Narrative Contexts**

### **3.1** Industry Trend: From Financial Assets to Entertainment Assets on the Chain <a href="#dlx9pqom0op1" id="dlx9pqom0op1"></a>

Since 2020, blockchain technology has been widely applied to DeFi, NFT, GameFi and other scenes, giving rise to a series of infrastructure innovations. However, with the gradual fading of the narrative dividend, the active users and real transaction behaviors on the chain have dropped dramatically, and a large number of public chains have fallen into the predicament of “idle transactions and false ecological activity”.\
Meanwhile, the real-world online entertainment, interactive entertainment and digital entertainment markets continue to expand:

* The size of the global entertainment digital market has exceeded US$3.5 trillion;
* The digital gaming market is growing at a CAGR of 11.7%;
* Web3 participants are increasingly shifting to high-frequency, lightweight interactive assets.\\

The next stage of the Web3 public chain ecosystem will shift from a **“financial asset-based” to an “entertainment asset-driven”** ecosystem.

### **3.2** Market Pain Point: “False Prosperity” and Practicality of Public Chain Ecology <a href="#ef6v3yylotit" id="ef6v3yylotit"></a>

| Current Problems                                 | Descriptions                                                                                                                                                                                  |
| ------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| 📉 Interaction on the chain is falsely high      | Serious data distortion due to the use of robotic trading, script swiping, and repetitive operations                                                                                          |
| 👻 Low user participation                        | The number of wallet activations is much higher than the number of real users on the chain.                                                                                                   |
| ⛽ Gas model imbalance                            | The number of wallet activations is much higher than the number of real users on the chain in order to attract users to lower the handling fee, long-term lack of real revenue model support. |
| 🧱 Lack of Consumption Scene in the Public Chain | Lack of on-chain scenarios that allow users to “consume and interact frequently”.                                                                                                             |

\
StarChain was created to solve the above structural pain points and to promote “Real Transactions + High-Frequency Entertainment + Revenue Closing Loop” as a new paradigm of public chain value.

### **3.3** New Trend Direction&#x73;**：RWE（Real World Entertainment）** <a href="#id-2kpluhl82j9m" id="id-2kpluhl82j9m"></a>

**RWE = Real World Entertainment Assets on the chain.**

\
StarChain proposes a new Web3 trend paradigm, RWE, which defines the main direction of the next cycle:

| **RWE**       | **Descriptions**                                                                          |
| ------------- | ----------------------------------------------------------------------------------------- |
| Real          | Real Transactions, Real Users, Real Consumer Demand                                       |
| World         | Targeting 4 billion entertainment consumers worldwide, covering cross-border interactions |
| Entertainment | Games, Guessing, IP Interactive, Live Streaming, Tickets, NFT Entertainment Assets        |

In the future, on-chain assets will no longer be just “investment targets” but will also be tokenized expressions of real-world entertainment interactions.

### **3.4** RWE and current trend&#x73;**（RWA / GameFi / L2）** <a href="#gua7qeb9lwi2" id="gua7qeb9lwi2"></a>

| Model             | Representative trend                                      | User frequency          | Application Lifecycle | Market Capacity                               |
| ----------------- | --------------------------------------------------------- | ----------------------- | --------------------- | --------------------------------------------- |
| RWA               | Real estate, bonds, and gold on the blockchain            | Low Frequency           | Long cycle            | Trillion-level (Finance)                      |
| GameFi            | P2E game assets on-chain                                  | Medium frequency        | Very short cycle      | High volatility, short life cycle             |
| L2 Rollup         | Optimization for scalability                              | No focus on asset class | Medium cycle          | Depends on the main chain application density |
| **RWE-StarChain** | Entertainment assets on the blockchain (lottery/poker/IP) | High frequency          | Strong viscosity      | Unlimited consumer market                     |

RWE is a new narrative thread that possesses the triple advantages of “real on-chain value + frequent user behavior + wide consumption scenarios”.

### **3.5 RWE** real market capacity and ceiling estimates. <a href="#vygrdnwtq8fh" id="vygrdnwtq8fh"></a>

* Global Online Gaming Market: Annual Value > $500B
* Global digital game market (including IP licensing) > $300B
* The NFT potential of global cross-border medical care, tourism, ticketing, performances and other scenarios is huge
* The estimated value of "entertainment trading assets" that can be mapped into the chain exceeds $1 Trillion+\\

**Compared with RWA's institutional, closed financial market, RWE targets 1 billion C-end users, with more than 10 million daily on-chain transactions.**
