In 2025, Web3 continued to grow gradually but steadily, showing tangible signs of consolidation across infrastructure, payment instruments, and the regulatory framework. Current developments are concentrated in the financial sector, but blockchain innovation should not be viewed as relevant solely to this field: it serves as the foundation for future use cases that are partially imaginable today, contributing to the creation of a more mature and reliable ecosystem that will also benefit other sectors.  

According to research by the Blockchain & Web3 Observatory at the Politecnico di Milano, there are 378 new blockchain projects registered globally, marking a 27% growth compared to 2024. This growth is driven mainly by the development of stablecoins, which reached a total capitalization of $310 billion (+50%) at the end of 2025, and by the many initiatives for the tokenization of financial assets, still largely in the experimental phase. It is no coincidence that 73% of projects focus on the financial sector, which remains the engine of development.  

Specifically, among the various categories, Internet of Value projects are expanding: 125, +44% compared to 2024, driven by numerous initiatives involving the issuance or adoption of stablecoins. Blockchain for Business projects are also on the rise: 202 projects, including the tokenization of assets in various sectors, +36%. Conversely, Decentralized Web projects are decreasing (51, -18%), reflecting a further decline in interest in NFTs and the absence of new corporate projects in areas such as DeFi. Overall, 194 Fortune Global 500 companies have adopted blockchain solutions, amounting to a total of 540 projects in recent years, 90 of which were launched in 2025 alone.  

One of the enabling frameworks: regulation 

The development of an enabling regulatory framework has been pivotal in shaping the market’s trajectory. Across the globe, the interplay between legal harmonization and infrastructural development has been decisive. In Europe, it has defined the field of the emerging digital landscape. 

In 2025, the entry into force of the MiCAR Regulation established the European Union as the first economic area in the world with a harmonized regulatory framework for crypto-assets. The regulation governs the issuance of digital assets and the services offered by operators in the sector, introducing uniform rules for all Member States. At the end of 2025, there were 141 authorized operators in Europe, including fintech companies and traditional banks, with a higher concentration in Germany and the Netherlands, and 17 regulated stablecoin issuers. Italy, despite benefiting from the passporting principle, currently lacks authorized operators.  

Simultaneously, the European Commission has initiated a review of the DLT Pilot Regime, expanding the scope of blockchain trials for financial markets. The new proposal raises the issuance cap for DLT platforms to €100 billion and extends the use of the technology to all covered financial instruments, reducing regulatory barriers.  

Regarding infrastructure, in July 2025, the ECB approved a blockchain strategy comprising two projects: Pontes, a short-term solution to connect DLT platforms to the Eurosystem payment systems, and Appia, a long-term initiative to create an integrated European ecosystem for digital settlement. These represent a strategic response to the growing dependence on foreign infrastructure and the proliferation of dollar- denominated stablecoins, aim at bolstering European autonomy in digital payments.  

The growth engine: main trend of 2025  

Market maturation in 2025 has been driven by a set of strong innovation trends that are shaping the next phase of development for blockchain and Web3 such as stablecoins, asset tokenization, permissionless blockchain infrastructures, and the increasing visibility of prediction markets. 

Stablecoins. Stablecoins have firmly entered the global financial system. Over the past year, the Observatory has surveyed 69 projects: from new issuances, such as Klarna's project based on Bridge technology (acquired by Stripe in February for $1.1 billion), to adoption in established payment networks. Mastercard and VISA, for example, have extended their use for real-time international payments and transactions.  

This expansion is driven not only by technological innovations, but also by regulatory developments and the growing strategic importance of economic and foreign policy, particularly in the United States. The implementation of MiCAR in Europe and the GENIUS Act1 in the US has legitimized the issuance of euro- denominated assets, while also fostering the proliferation of new dollar-pegged assets.  

In December 2025, the total capitalization of stablecoins reached 310 billion dollars (+50% compared to 2024), 85% of which was made up of Tether (USDT) and Circle (USDC). Meanwhile, other players are trying to capture market share: PayPal’s PYUSD quadrupled in market value in the second half of the year, reaching 3.8 billion dollars; Bank of America, Goldman Sachs, and Citigroup are exploring the development of proprietary stablecoins. Major payment operators have integrated these instruments into traditional circuits, investing in partnerships and acquisitions of startups. 

In Europe, ten banks, including Unicredit and Banca Sella, have established the European consortium Qivalis to issue a MiCAR-compliant euro stablecoin in 2026. Bancomat has announced the eur-bank stablecoin. Integration with the Web3 ecosystem also continues: Société Générale–FORGE and PayPal have integrated their stablecoins into DeFi protocols such as Morpho, Uniswap and Spark.  

Tokenization. In 2025, 101 new financial instrument tokenization projects were launched. Most of these initiatives remain confined to experimentation with limited systemic impact. However, select asset managers have launched significant initiatives: JPMorgan created a tokenized money market fund on Ethereum; BlackRock's BUIDL fund grew from $500 million in January 2025 to a peak of $2.9 billion in May. Other financial institutions have invested in dedicated infrastructure: Boerse Stuttgart Digital announced Seturion, a pan-European platform for the settlement of tokenized assets, while Clearstream introduced D7 DLT for the management of digital securities. The tokenized securities market has yet to mature. To fully realize the transformative potential of this technology, it is necessary to redefine the entire value chain, addressing the challenges across every stage of the process.  

Blockchain infrastructure. Projects in the fields of stablecoins, tokenization, and broader blockchain applications are increasingly developed on permissionless networks, reflecting the mainstream adoption of open infrastructures. Among the 284 projects documented in 2025 that declared their underlying technology, 84% used public blockchains, confirming their growing maturity and reliability. At the same time, several leading players are shifting toward direct infrastructure management to mitigate dependency on external networks. Two main strategies are emerging: vertical blockchains tailored to specific use cases, such as payments, and general-purpose ecosystems addressing multiple asset types. 

In the payments segment, Stripe (with Paradigm) invested in Tempo, a Layer 1 network for stablecoin transactions, and SWIFT announced blockchain integration within its global payment infrastructure. In parallel, Robinhood launched a Layer 2 built on Arbitrum for RWA tokenization and continuous equity trading. Among general-purpose initiatives, Google Cloud, in partnership with CME Group, introduced the Google Cloud Universal Ledger (GCUL), while Deutsche Bank advanced Project Dama 2 on Ethereum under Singapore’s MAS Project Guardian. Finally, Sony deployed Soneium, a Layer 2 based on OP Stack, marking its entry into proprietary blockchain infrastructure. 

Prediction markets. 2025 was characterized by the rise of prediction markets, operating at the intersection of finance and public data intelligence. Polymarket, the leading decentralized application (DApp) in the segment, became the leading blockchain-based operator by trading volume and user base, reaching 500,000 monthly users and over $11 billion in trades in 2025. Its rapid consolidation was driven by a $2 billion funding round led by Intercontinental Exchange (ICE) and the acquisition of QCEX, a CFTC-regulated exchange, for $112 million, allowing Polymarket to re-enter the US market after its 2022 ban. The sector’s growth highlights the increasing interest in decentralized forecasting and market-based intelligence as complementary infrastructures to traditional financial systems. 

Emerging dynamics: other trend of 2025 

Beyond the most visible developments, a set of emerging dynamics continues to consolidate beneath the surface. These trends — less mainstream yet increasingly strategic —include Web3 and finance convergence, the evolution of digital wallets, onchain payment protocols, and the rise of the Digital Product Passport. 

Web3 and Finance Convergence. Among the less visible but most significant trends is the convergence between Web3 and traditional finance. A growing number of operators in the crypto space are expanding their operational scope: centralized exchanges, such as Coinbase and Kraken, are integrating traditional finance services into their offerings, including stock investments, payments, and access to decentralized finance protocols. Consequently, they are entering into direct competition with fintech companies such as Trade Republic and Revolut, which – after securing MiCAR licenses – are pursuing the reverse path, moving closer to the crypto ecosystem. Simultaneously, select DeFi protocols are working to transcend the niche of expert users and reach a broader audience: Uniswap has launched an integrated mobile wallet, Ondo Finance plans to launch tokenized US stocks and ETFs in 2026, and AAVE has developed an application similar to a deposit account.  

The evolution of digital wallets. Another notable trend is the evolution of digital wallets to streamline the user experience and lower barriers to Web3 entry. Alongside traditional self-custodial wallets, Wallet- as-a-Service and embedded wallet solutions are emerging, enabling companies to directly integrate wallet functionality into their services. The Observatory has identified 26 well-funded startups operating within this space, often acquired or backed by major players to offer integrated B2B solutions. Among the most notable initiatives are Fireblocks, which launched an embedded wallet service after acquiring Dynamic in October 2025, and Privy, acquired by Stripe in June, which specializes in white label wallets.  

On-chain payment protocols. One area of development focuses on new on-chain payment protocols, designed to lower the time and cost of e-commerce transactions via stablecoins. A prime example is the Coinbase Commerce Protocol, which enables the management of complex payment flows to be managed via smart contracts and has already been integrated by platforms such as Shopify. Interest is also high among the most well-funded Web3 startups globally: 63 companies operating within on-chain payment services have raised a total of $2.2 billion over the past two years. Some protocols are designed to facilitate the paradigm of "agent payments", executed autonomously by software and artificial intelligence agents. The integration of artificial intelligence, smart wallets, and on-chain payment protocols could mark a pivotal step toward increasingly automated finance.  

Digital Product Passport. Traceability projects geared towards the Digital Product Passport (DPP) are consolidating. Traceability remains one of the most mature and established blockchain use cases, supported by stable ecosystem of providers and the absence of new specialized startups. Corporate interest is evident, driven largely by the introduction of the European ESPR regulation, which will mandate greater transparency regarding product sustainability data. Within this framework, traceability projects can evolve towards the creation of on-chain DPPs, laying the groundwork for more advanced Web3 projects capable of linking physical product data to decentralized applications, such as verified secondary marketplaces or incentive mechanisms for sustainable behaviour.  

The adoption of cryptoassets in Europe: a heterogeneous landscape 

Analysis of European consumers reveals a mixed landscape of crypto-asset adoption across key markets. The United Kingdom remains the most mature, with 27% of the population— about 12 million citizens—owning crypto-assets, followed by Spain, with 14% of owners (4.9 million), Germany with 11% (6.4 million), and France with 9% (3.7 million). Italy closes the ranking with 7% of consumers, representing approximately 2.8 million individuals.  

Expanding the analysis to those interested in owning crypto-assets in the future reveals a potential market of prospective investors: approximately 5.8 million in Spain, 5 million in Germany, 4 million in Italy, 3.8 million in France, and 3.1 million in the United Kingdom.  

Regarding purchasing channels, online exchanges remain the primary instrument across all countries analyzed, with adoption rates ranging from 41% in Spain to 49% in the United Kingdom. However, in markets characterized by higher adoption of non-custodial wallets, such as France and the United Kingdom, the on-ramp model reaches comparable levels of use (32% and 36% respectively), signalling greater familiarity with more advanced tools within the crypto ecosystem. 

Focusing on stablecoins, among European consumers who hold or have held stablecoins, The United Kingdom emerges as the clear leader in stablecoin adoption, with current ownership rates significantly exceeding those of continental European markets. This position reflects the UK's mature digital asset ecosystem. 

A notable pattern emerges when examining stablecoin penetration among existing crypto-asset holders. In markets where overall crypto engagement is higher, stablecoin integration follows proportionally. The UK's 22% current ownership rate, combined with its lower share of non- crypto users, indicates a sophisticated investor base. Continental markets display more homogeneous profiles, with Italy showing an interesting dynamic: a relatively high rate of former holders (4%) compared to current ones (2%). While Italy and Germany show low adoption level of stablecoins among crypto-asset holders, French consumer exhibit a higher penetration, with 10% of its population that is currently holding or previously held stablecoins. 

Strategic outlook: 2026 and beyond

Looking ahead to 2026, the global ecosystem must shift from a fragmented, reactive approach to strategic industrial planning. Blockchain implementation represents a comprehensive infrastructural shift, rather than just a technological upgrade. The year 2025 laid the critical groundwork by establishing the two pillars of this new ecosystem: stablecoins (cash) and financial tokenization (assets). 

However, the deployment of these components does not generate immediate utility until the supporting infrastructure is fully integrated and operational. Consequently, decision-makers must elevate their understanding of these dynamics, moving from a short-term focus to a long-term strategic perspective. This requires a profound cultural change that ceases to view blockchain as a 'grey area', recognizing it instead for what it is: a foundational infrastructure of the digital economy. 

About the Blockchain & Web3 Observatory 

The Blockchain & Web3 Observatory is one of the Digital Innovation Observatories of the POLIMI School of Management and is part of the Web3Hub, a center of excellence for blockchain and Web3 technologies established in 2017 at Politecnico di Milano, one of the world’s leading technical universities. By combining research and practical application, Web3Hub fosters a robust network of companies, public institutions, and startups in Italy and abroad, supporting the development of cutting-edge decentralized solutions. For more information, visit www.web3.polimi.it. 

Methodology 

The analysis relies on multiple research streams. The following section details the methodology for two key areas: the census of global business projects and the survey on European consumer adoption. 

Global projects. A non-exhaustive census was conducted via online research to identify key international announcements and implementation projects (including proofs of concept, pilots, and live projects) regarding the use of blockchain and Web3 solutions by companies and public administrations. A total of 1,955 cases were identified globally between 2016 and 2025 (378 of which in 2025). Furthermore, an analysis was conducted on blockchain projects implemented by the top 500 companies globally according to the Fortune Global 500 ranking (list updated as of 06/01/2025). 206 active companies were identified in 2025, comprising 194 demand-side companies with 540 projects and 12 supply-side companies with 101 projects. 

Adoption of crypto-assets among European consumers. An online survey was conducted in collaboration with Norstat on a representative sample of consumers across five key European markets: Italy, France, Spain, Germany, and the United Kingdom. The survey involved over 5,000 respondents from the internet population aged 18 to 75, with defined quotas for age, gender, geographic area, municipality size, education level, and occupation. 

In today's digital landscape, organizations face significant challenges managing data collaboratively while maintaining privacy, security, and integrity. Traditional systems typically require centralized control, limiting transparency and creating friction when multiple stakeholders need to interact with the same documents. The transition to web3 promises solutions, but implementing practical applications that balance transparency with privacy requirements remains complex.

Worldlog presents an on-chain attestation protocol that addresses these challenges by leveraging blockchain technology to enable more secure and transparent document management.

What is Worldlog?

Worldlog is an on-chain attestation system that leverages blockchain events to register claims about subjects. At its core, the protocol enables anyone to associate metadata with digital objects in a decentralized, secure, and verifiable manner.

The protocol works by emitting on-chain events that represent claims about subjects. These claims are structured with four key components.

• Claimer: the entity (address) making the assertion

• Subject: the identifier of the entity or object being referenced

• ClaimType: the format or nature of the claim

• Claim: the actual content or data associated with the subject

This simple yet powerful structure creates a foundation for a wide range of collaborative processes while maintaining cryptographic security while ensuring immutability and transparency through blockchain verification.

Key capabilities

If applied to documents, Worldlog can transform static documents into dynamic, evolving assets through two primary mechanisms:

1. augmented documents (traditional documents are static—distributing updates requires resending files to all stakeholders. Worldlog enables documents to evolve through added context, comments, claims, and signatures, all while maintaining the document's integrity and provenance);

2. coordinator pivot (documents become shared reference points that different actors can use for coordination. This eliminates the need for centralized distribution systems and enables true peer-to-peer collaboration).

A protocol designed for customization

As a true protocol rather than a rigid application, Worldlog is fundamentally designed for adaptation and extension. This protocol-first approach means any technical team can build custom solutions tailored to their specific needs. The extensible nature of Worldlog allows different industries to adapt the same underlying protocol to vastly different use cases. We've already integrated numerous capabilities, including:

• smart contract functionality (such as staked comments where users deposit tokens to signal importance);

• digital signature frameworks like eIDAS for enhanced legal validity;

• personalized front-end interfaces (as demonstrated in our Digital Product Passport application that visually distinguishes maintenance and repair records with custom icons);

• privacy management options (from public data to selective encryption that only document owners can access);

• off-chain storage integration with systems like IPFS; and multi-layer encryption for scenarios requiring higher security.

These features showcase how the protocol can be tailored to balance transparency, security, privacy, and functionality according to each unique implementation context.

Practical applications

Worldlog could be deployed in several scenarios:

• chain of custody (enabling secure, verifiable tracking of document handling for legal and compliance purposes);

• digital product passport (DPP) (creating a transparent, immutable record of a product's lifecycle and characteristics);

• financial declarations (secure sharing with regulatory compliance built in).

Let's make an example with the chain of custody scenario. In our judicial evidence system, police officers and forensic analysts can cryptographically sign on-chain metadata to document each handoff in the chain of custody. For instance, when evidence files are transferred from crime scene investigators to forensic labs to legal counsel, each party digitally signs their handling attestations using their official digital identities. The system employs asymmetric cryptography to ensure that while the accused party may have access to the base evidence documents (as required by legal disclosure), they cannot decrypt sensitive investigative comments, procedural notes, or strategic annotations made by law enforcement and prosecution teams. This creates a transparent yet privacy-preserving audit trail where the integrity of evidence handling is publicly verifiable, but sensitive operational details remain protected.

The path forward

Worldlog represents a significant step toward the promise of web3 for data management, though it's not the final destination. The protocol is open for adaptation and improvement—its strength lies in providing a foundation that others can build upon.

Getting involved

If you're interested in implementing Worldlog or developing enhancements for specific use cases, we encourage you to contact the WEB3HUB team at https://www.web3.polimi.it/. Whether you're looking to solve data and document management challenges, enhance supply chain transparency, or develop completely new applications on this foundation, the Worldlog protocol offers a robust starting point.

This growth has also been accompanied by technological advancements making web3 more accessible to average users. The improved UX brought by Account abstraction is gaining significant traction, with over half a million ERC-4337 accounts deployed across major networks already at its early stage of introduction3. As we have learned in the Observatory workshops over the past year, account abstraction allows for lower transaction fees, gasless swaps, and simplified login processes that eliminate constant approval requests.

In the B2B space, a 2024 survey by Adan and KPMG on French web3 companies revealed that 73% planned to raise funds in 2024, signalling strong investment interest. Additionally, 86% of these companies anticipated resuming hiring, suggesting a positive outlook for job creation.

Given these premises, in this article we will cover the demo presented at our annual convention back in January. We saw this as an opportunity to showcase that web3 ecosystems should not be seen in isolation, and that using complementary technologies can create an even more familiar experience without sacrificing the benefits of a trustless web.

From Web2 to Web3: the need for transitional technologies

The web as we know it began with a simple premise: clients request, servers respond. This Client-Server model formed the backbone of Web2, creating the digital world we navigate every day. In the early days, HTTP handled this communication in plain text, leaving data to travel across networks unprotected and visible to any interested observer.

Then came Secure Sockets Layer in 1995, later evolving into Transport Layer Security (TLS). These protocols wrapped our communications in encryption, adding that crucial 's' to HTTPS. Despite its revolutionary impact, this transition happened almost invisibly to users. One day you visited http://bestsite.com, the next day https://bestsite. com- same site, one extra letter. Yet beneath this subtle change lay a complete transformation of internet security, although mainstream adoption came surprisingly late. Only when Google announced in 2014 that HTTPS would influence search rankings, did businesses finally rush to secure their sites.

While Web2 secured communications, it failed to reinvent value exchange. Data flowed seemingly freely, but its extracted value met the same fate as money and assets for centuries—it remained confined in centralised systems. Bitcoin changed this in 2009, introducing and validating the concept of Internet of Value: a parallel internet where assets, possibly including user data, move as freely as information. But integrating this new paradigm with Web2 architecture revealed three fundamental tensions:

First, the legacy economic model of Web2 thrives on ads and data extraction, turning users into products. It's fundamentally at odds with Web3's model, which prioritises user ownership and decentralised value exchange.

Second, digital identity remains fragmented across countless platforms. We maintain dozens of accounts, each with different credentials and trust levels, creating friction and security vulnerabilities.

Third, data provenance and trust. How do we verify data origin? How can we trust information without relying on centralised authorities?

Web3 emerges as a paradigm that reconciles these tensions thanks to blockchain's decentralised consensus. This transition, however, cannot succeed by discarding Web2's foundational architecture. Instead, it must thoughtfully integrate with existing connectivity patterns and leverage the battle-tested UX knowledge accumulated over decades.

Of the three tension points mentioned above, our demo focused on the last:

how to overcome Web2's challenges by enabling trustless data verification.

Before even unpacking what trustless data verification means, why should this matter? In a "purist" Web3 vision, blockchain already provides that layer of consensus and shared truth upon which to integrate infrastructure components (decentralised storage, DAOs, DePIN, native oracles, etc.) to completely rethink applications and services without requiring trust.

However, we cannot ignore Web2's existence or replace it overnight without considering the combined resistance to change from established business models, user habits, technical infrastructure investments, and regulatory frameworks—all aligned with the current paradigm.

This reality creates demand for transitional technologies.

History offers instructive examples of such transitions. Notoriously, paper communication didn't immediately yield to email—fax machines bridged the gap, combining physical documents with electronic transmission. Internal combustion engines aren't instantly giving way to electric vehicles—hybrids serve as the steppingstone.

Perhaps the closest example, though less widely known, is the transition from the Internet pre- to post-TCP/IP. Initially, many independent networks existed, each isolated with proprietary protocols. Gateways emerged as critical transitional technologies, allowing these disparate networks to communicate with each other while a new protocol gradually achieved widespread adoption. Once TCP/IP became universal, these gateways largely faded, though their functions were integrated into modern networking infrastructure.

Adding proofs to web data

The transitional technologies we presented at this year's convention enable reliable verification of data from traditional websites without requiring server-side modifications. These "web proofs" bridge the trust gap between centralised Web2 services and the verification-centric Web3 ecosystem.

To comprehend how these proofs work, we must first revisit TLS—the cryptographic protocol securing most web communications today. When you connect to a website using HTTPS, your browser and the server perform a "handshake" to establish secure communication. This process creates a shared secret key known only to these two parties. All subsequent data exchanges are encrypted using this key, protecting your information from eavesdroppers.

However, TLS has a limitation:

While it proves to you that you're talking to a legitimate website, it doesn't help you prove to others what the website told you.

The website doesn't cryptographically sign its responses, so users cannot verifiably demonstrate to a third party what data they received. In fact, message authentication codes cannot serve as public proof. In the wide panorama of zero-knowledge decentralised application developments, two prominent technologies have stood out to address this limitation:

TLSNotary uses a multi-party computation approach where a trusted "notary" participates in the TLS session. The notary doesn't see the user’s plaintext data but can cryptographically attest that the website sent specific encrypted data. This technique leverages secure multi-party computation to split the TLS session keys between the user and the notary.

Reclaim Protocol takes a different approach by introducing “attestors” who act as proxies for your TLS connection. These attestors can only see encrypted traffic but can verify your TLS session was authentic. Reclaim then allows the user to create zero-knowledge proofs about specific pieces of data within the response, revealing only what they choose while maintaining cryptographic verification of its source.

Both approaches are nascent technologies that share a common challenge: trust in the intermediary. There's always a risk that the notary or attestor could collude with the user to falsify the attestation, except when the attestor is also the verifier. However, this isn't an intractable problem. Both technologies can implement decentralised verification mechanisms where multiple independent parties must attest to the same data. TLSNotary is exploring a multi-notary approach, while Reclaim Protocol has designed an economic mechanism that incentivizes honest behavior from multiple attestors through stake-based penalties for dishonesty.

Reclaim Protocol in action

We used the live developer portal of Reclaim to build our decentralised application. To understand the underlying protocol, we invite the reader to follow the next example. Valery wants to prove to Jack that she has over $5,000 in her online bank account without revealing her exact balance or account details. These are the steps:

1. Valery initiates a request to her bank's website and routes all traffic through a Reclaim Protocol’s attestor proxy.

2. Valery's browser uses the TLS 1.3 KeyUpdate feature to create separate encryption contexts for different parts of her request. She creates one key (Ksending1) for public parts of her request (like the URL and non-sensitive headers), another key (Ksending2) for private sections (like authentication tokens), and a third key (Ksending3) for the remainder. She only shares Ksending1 and Ksending3 with the attestor, keeping Ksending2 private.

   The attestor monitors the encrypted TLS traffic between Valery and her bank but cannot see the plaintext content due to TLS encryption. For the bank's response, the server uses a single receiving key (Kreceiving), which Valery keeps private.

3. Valery logs into her account normally, and the bank returns her account information within the encrypted response.

4. The attestor digitally signs the encrypted response, certifying that it genuinely came from the bank's servers.

5. Valery uses zero-knowledge proofs to selectively reveal only that her account balance exceeds $5,000. She does this by keeping the relevant parts of the encrypted response that show her balance, replacing everything else with placeholder symbols, and proving she can decrypt these specific portions using the correct Kreceiving key.

6. Valery sends this zero-knowledge proof along with the attestor's signature to Jack.

7. Jack verifies both the attestor's signature (confirming the data came from the bank) and the zero-knowledge proof (confirming Valery’s balance exceeds $5,000).

Throughout this process, the attestor never sees Valery’s account details, and Jack only learns what Valery explicitly chooses to reveal. Yet Jack can be mathematically certain that Valery’s bank confirmed her balance exceeds $5,000 and nothing else.

A blockchain application with web proofs

What if verification needed to be public, auditable, and transparent? In which scenarios might this be necessary? For example, in a Web3 application that regulates token issuance or manages digital rights, public verifiability becomes crucial. We can achieve this by transforming verification logic into smart contract code. This is mainly possible because proofs are "succinct" and efficient to verify on-chain. To showcase a practical application of these concepts, we set to demonstrate how web proofs can work with heterogeneous data sources from different Web2 sites.

We focused on three distinct categories of data:

• Institutional Credentials: To pull driving license points from Italy's government portal "Portale dell'Automobilista." This showed how citizens could prove their good driving record.

• Philanthropic Activities: To verify donations made through GoFundMe. The application let users to cryptographically prove their charitable contributions without exposing their personal information or exact donation amounts.

• Environmental Impact: Carbon footprint scores obtained from the WRen Agency platform, enabling users to verify their environmental consciousness through their carbon offset activities.

But one may ask how hard is it to bridge multiple traditional Web2 services into a cohesive Web3 experience? Nowadays it’s possible with a simple flow like that of our application:

1. Users began by logging in either through a traditional EOA wallet like MetaMask or with Coinbase's Smart Wallet using passkeys—showcasing both Web3 native and Web2-familiar authentication methods.

2. The application generated a QR code for each proof request from the Reclaim provider.

3. Users scanned these codes or clicked on the corresponding URLs, which initiated the attested TLS session and eventually enabled zk proof generation process entirely client-side.

4. Upon successful verification, users received tokens that unlocked special privileges in an interactive game.

Throughout the demo, we emphasized the advantage of using transaction fee sponsorship, which removes the financial barrier to Web3 interaction. Also, users didn't need to install any proprietary apps, as the experience with the original Web2 sites worked through instant app clips on mobile devices.

Naturally, our game-based demo is just a toy example where privileges directly reflected the web proofs obtained: with each proof unlocking cumulative advantages, where the more proofs a user collected, the more powerful their character became in the game. Countless other use cases could be developed, from DeFi credit scoring based on verified bank history to permissionless governance participation weighted by real-world credentials.

Final notes

Web3 is no longer a distant vision—it’s ready to use, and already compatible with familiar Web2 experiences.Web proofs offer a transitional layer that could remain relevant much longer than expected, helping integrate trustless verification into mainstream services.The tools are here, the UX is improving, and transitional solutions are viable: there are no more excuses to delay building meaningful applications.It’s time to fully embrace the internet of value—where users own their identity, assets, and data.

Blockchain & Web3 Outlook 24/25 reveals 3.5% growth in new initiatives developed by traditional companies and strong adoption (41% active companies) among Fortune Global 500 corporations in Web3

Despite an apparent lull in 2024 in corporate blockchain adoption, especially when compared to the renewed spike in cryptocurrency values and media buzz, the blockchain and Web3 landscape has been quietly unfolding behind the scenes. According to new findings from the Blockchain & Web3 Observatory of Politecnico di Milano, established enterprises continued to build infrastructure and experiment with new business models. As a result, 298 new blockchain and Web3 projects developed by traditional companies were launched globally in 2024, up 3.5% from the previous year.

The research, which focuses on the worldwide adoption of blockchain by companies, highlights a shift toward more mature implementations. While experimentation dipped by 43%, operational projects rose significantly, suggesting that organizations are moving beyond proofs-of-concept to full-scale rollouts. Notably, 204 of the world’s Fortune Global 500 companies have undertaken at least one blockchain initiative (totally they developed 482 projects), with 51 new projects launched in 2024 alone.

The Web3 sector’s advancement varies worldwide. In the United States, venture capital funding and corporate partnerships continue to support blockchain initiatives, and many consider Trump’s pro-crypto stance a potential boost for future projects. Across Asia, financial tokenization sees steady adoption in fintech hubs like Singapore and Hong Kong, where multiple token-based platforms are under development. In South America, stablecoins attract interest for their ability to mitigate currency risks and facilitate cross-border transactions. Meanwhile, Europe is centering its efforts on regulatory frameworks such as the Markets in Crypto-Assets Regulation (MiCAR) and the DLT Pilot Regime, aiming to unify standards and oversight within a complex but increasingly structured environment.

The Observatory’s analysis indicates that although 2024 appeared quiet on the blockchain and Web3 fronts, it was in fact a period of consolidation and infrastructure development, reminiscent of the early days of the internet. While cryptocurrencies are the most visible application, the Observatory points out that blockchain technology holds potential in many other areas and is steadily laying the groundwork for broader adoption.

Global trends and sector insights

According to the research, corporate initiatives can be grouped into three key areas for simplicity: Internet of Value, Blockchain for Business, and the Decentralized Web.

Internet of Value maintains momentum

“Internet of Value” projects, encompassing cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs), remained steady at 88 new initiatives in 2024, representing 28% of all projects. While the number of new endeavors held firm, there was a notable improvement in quality: production-ready implementations rose by 53%, and experimental pilots declined by 37.5%.

A key driver of these initiatives has been the growing stablecoin market. By the end of 2024, stablecoin capitalization reached USD 205 billion, a 57% year-on-year increase, with trading volume hitting an all-time high of over USD 37 trillion. Banks have increasingly adopted stablecoins to streamline cross-border settlements, facilitate corporate payments, and enhance interbank processes.

Blockchain for Business on the rise

The majority of 2024’s global blockchain initiatives, 149 in total, fall under the “Blockchain for Business” category, marking a 43% increase over 2023. These projects leverage tokenization and smart contracts to optimize internal processes, reduce supply chain friction, and streamline financial operations. The data shows a surge in fully operational applications, jumping from 55 to 122 year-on-year, while proofs-of-concept nearly halved.

The Observatory’s findings indicate that the tokenization of financial assets is especially strong, with further growth expected in 2025. The continued development of infrastructure and services supports broader business needs, and the financial sector appears particularly prepared to leverage large-scale tokenization.

Decentralized Web sees mixed signals

Decentralized Web initiatives among traditional enterprises, projects in which blockchain serves as an enabling infrastructure for the creation and development of innovative business solutions, such as decentralized applications (DApps) or token projects on public blockchains, dipped significantly, totaling 61 new projects compared to 98 in 2023. The NFT collectibles boom that fueled much of 2022–23 appears to have cooled. In contrast, native Web3 players reported substantial growth, with daily active users in DApps surpassing 19 million worldwide, up from 3 million the previous year. Meanwhile, the Total Value Locked (TVL) in decentralized finance (DeFi) doubled to USD 140 billion in 2024, laying the groundwork for potentially transformative business models, even if they have yet to emerge at scale.

Italy’s blockchain market: cautious growth

In Italy, the blockchain and Web3 market totaled EUR 40 million in 2024, a modest 5% uptick from 2023, indicating measured but cautious progress. The financial and insurance sector continues to dominate, accounting for 49% of all investments, followed by public administration (22%), real estate (9%), logistics (4%), and automotive (4%). Agrifood investments fell sharply, from 10% last year to just 2% in 2024.

Despite relatively low investment levels, Italy is showing increased enthusiasm and expertise in blockchain technology. In 2024, the Observatory registered 227 Italian blockchain startups, up 15% compared to the previous year, and over the last seven years, 231 companies have developed at least one blockchain project in the country (+27 compared to 2023).

Meanwhile, approximately 2.7 million Italians aged 18 to 75 (7% of the internet population) hold crypto-assets. Most of these investors (85%) have portfolios worth under EUR 5,000, with 57% below EUR 1,000. Additionally, 65% state that crypto-assets make up no more than 10% of their total investments, while only 15% allocate more than 30%.

17% of the Italian population is interested in buying crypto-assets in the future, while the share of individuals who have owned crypto-assets at some point but no longer hold them is 11%. Altogether, approximately 13 million Italians either hold, have held, or are interested in holding crypto-assets.

The Observatory’s research warns that Italy risks falling behind other European countries. Companies remain hesitant to invest, and many promising blockchain startups are opting for more supportive environments abroad. The findings call for greater collaboration among regulators, industry leaders, and citizens to create an ecosystem conducive to innovation.

Looking ahead: 2025 and beyond

The Observatory’s research predicts that 2025 will extend the trends observed in 2024, with a gradual increase in investments and the continued maturation of the blockchain infrastructure supporting Web3 services. Identifying use cases that offer tangible value and open up new market opportunities will be crucial to driving growth. Early adopters stand to benefit significantly, while those who delay may find it hard to catch up.

About the Blockchain & Web3 Observatory

The Blockchain & Web3 Observatory is one of the Digital Innovation Observatories of the POLIMI School of Management and is part of the Web3Hub, a center of excellence for blockchain and Web3 technologies established in 2017 at Politecnico di Milano, one of the world’s leading technical universities. By combining research and practical application, Web3Hub fosters a robust network of companies, public institutions, and startups in Italy and abroad, supporting the development of cutting-edge decentralized solutions. For more information, visit www.web3.polimi.it.

Web3 is a new version of the web grounded on key principles such as decentralization, composability of applications, service accessibility, and data privacy. It also includes the ability for users to own and exchange digital assets while managing their online identities without intermediaries. This evolution is made possible by blockchain technology, and it represents more than just a technological shift; it is a socio-economic movement that fosters transparency, decentralized governance, and new business models. Web3 empowers users and creates opportunities for a more equitable and inclusive internet.

Web3Hub and its mission

Web3Hub is a center of excellence for blockchain and web3 technologies. Integrating both research and practical application, Web3Hub fosters a network of Italian and international companies, public institutions, and startups. Web3Hub began as an initiative in 2017 within the Politecnico di Milano, one of the leading technical universities in Italy and globally, driven by the need to explore the potential of blockchain and decentralized technologies. Initially, it operated as the Blockchain & Web3 Observatory, focusing on research and knowledge dissemination. Over time, it evolved to include projects dedicated to applied research, allowing the team to support real-world blockchain implementations. This expansion marked a transition from pure research to the integration of practical applications, establishing Web3Hub as a comprehensive center for blockchain activities.

The mission of Web3Hub is to generate and share knowledge on blockchain and Web3, contributing to the growth of both the Italian and international markets, while also bridging gaps between academia, industry, and public institutions.

The Research

The research conducted by Web3Hub spans several key areas. The main research streams cover the following topics:

• Analysis of the development of web3: understanding what web3 is, its technological trends, its impact on business and society, and its sustainability.

• Adoption analysis: investigating how various sectors, including businesses, public administration, startups, and consumers, are adopting web3.

• Technology use cases: studying specific blockchain applications such as cryptocurrencies, NFTs and other tokens, DAOs, and decentralized applications.

• Crypto-assets: analyzing the adoption of crypto-assets, including cryptocurrencies, stablecoins, and Central Bank Digital Currencies (CBDCs). The research explores their market dynamics, regulatory compliance, use cases, and user adoption.

• Future trends: evaluating future directions and scenarios for blockchain and web3 technologies.

• Regulatory Landscape: mapping relevant regulations for web3 and blockchain across different jurisdictions.

The research includes both qualitative and quantitative methodologies, such as literature reviews, surveys, workshops with experts, and case studies.

Since 2017, the researchers of Web3Hub have analyzed over 1,300 blockchain and Web3 projects globally, including proof of concept, pilots, and fully operational solutions. The research focuses on the practical adoption of blockchain by companies and public administrations, highlighting key trends and use cases. To further understand blockchain adoption, they have developed multiple case studies focusing on different stakeholders, including enterprises, public administrations, and startups. Web3Hub conducts around 30 semi-structured interviews each year, analyzing real-world examples of blockchain adoption and implementation. Additionally, the research covers stablecoins and Central Bank Digital Currencies (CBDCs), examining major projects and their economic impact, offering a broad view of how the public and private sectors are shaping digital currencies' future. For three consecutive years, Web3Hub also partnered with DOXA to create a survey representative of the Italian population, gaining insights into the adoption of crypto-assets in everyday financial activities. Researchers of Web3Hub have also mapped over 150 blockchain and crypto-asset regulations across Italy and Europe, providing businesses and public entities with guidance on navigating the evolving regulatory landscape.

This comprehensive approach keeps Web3Hub at the forefront of blockchain innovation, supporting both academic inquiry and industry application.

The Projects

Web3Hub serves as a bridge between research and market needs. For that reason, in addition to research, it aims to promote, facilitate, and enable blockchain projects involving various players by creating a pre-competitive development environment for applied research. Here are the main types of projects on which it focuses:

• Ecosystem Coordination: thanks to its super-partes role as a public university, Web3Hub supports companies in coordinating with partners, competitors, and relevant stakeholders to innovate together.

• Research Projects: Web3Hub conducts on-target research to help companies better understand specific trends within web3 and blockchain technologies. This research could be both a technical deep dive on a topic (e.g., Zero Knowledge Proof) or a business-related focus (e.g., on how companies adopt blockchain and web3 within a sector or a country).

• Education: Web3Hub provides comprehensive and tailor-made educational programs that can have a business focus, a technical one, or a mix of these two.

• Decision Support: Web3Hub offers on-target research and frameworks to guide companies in their web3 and blockchain implementation strategies, ensuring informed and strategic decision-making.

• Business Model Evaluation: Web3Hub analyzes and evaluates how blockchain and web3 can disrupt existing business models, creating new revenue streams, reducing costs, and transforming the value proposition.

• Evaluation and Certification: as a super-partes player, Web3Hub also analyzes existing web3 and blockchain projects, potential partners, and startups to provide certification and validation of their capabilities, expertise, and alignment with industry standards.

Thanks to its interdisciplinary approach Web3Hub can assist companies and institutions in any phase of their project. With all these possible options, Web3Hub aims to connect theory to real-world implementation, promoting cooperation and favoring the adoption of these technologies.

The Network and Activities

Web3Hub is more than just a research center; it is a dynamic community actively engaging with the blockchain market every day. The hub brings together numerous companies and public institutions, fostering collaboration through a wide range of activities. Throughout the year, Web3Hub hosts workshops and conferences that cover critical topics such as decentralized finance, cryptocurrencies, and tokenization. These events provide a platform for industry leaders, academic experts, and European institutions to connect and exchange ideas. Web3Hub also regularly publishes detailed reports on regulatory developments, blockchain performance, and adoption trends, which are accessible to its community members through a repository of research documents, rankings, and charts.

By creating opportunities for networking, education, and practical collaboration, Web3Hub serves as a bridge between research and market needs. Through its public conferences, industry workshops, and frequent updates on blockchain trends, Web3Hub ensures that its community is not only well-informed but also actively engaged in shaping the future of web3 technologies.

Since its inception, Web3Hub has:

• Organized 8 public conferences in Milan, each with over 500 attendees.

• Held approximately 7 workshops per year, with an average of 40 participants each (CIOs, CTOs, IT Managers, etc.).

• In addition to workshops for the Italian community, in the last 3 years, Web3Hub hosted workshops in London (at UCL), Paris (at the OECD), and a public conference at the EU Parliament in Brussels.

• Engaged 30-40 companies annually as active supporters of research.

• Created a community of over 9,500 professionals in Web3 technologies.

Join us in shaping the future

Web3Hub is leading the next evolution of the internet by combining research, innovation, and practical application. By connecting companies, startups, and institutions, Web3Hub bridges the gap between academia and industry, turning the potential of blockchain into real-world outcomes. Through applied research and public education, Web3Hub isn't just studying Web3—it’s helping to shape it. Be part of our mission to build a decentralized, fair, and inclusive web that changes how we connect, transact, and innovate.

Learn more:

https://www.web3.polimi.it/