As discussions to enhance blockchain utility continue, efforts to popularize it through smartphones are expanding. In a society where smartphones are essential, decentralized applications (Dapps), non-fungible tokens (NFTs), wallets, and airdrops are deemed suitable for smartphone integration. The success of Solana (SOL)’s smartphone, Saga, last year substantiates this view, with the Solana Foundation planning to launch its second smartphone, Seeker, next year.

# Web3-Specific Smartphones

According to DappRadar on the 30th, there are over 16,000 Dapps worldwide. However, most Dapps are distributed via decentralized app stores or web platforms, with limited availability on Google and Apple app stores. Apple restricts features unlocked through NFTs and imposes a 30 percent fee on NFT transactions via its in-app purchase system.

Roy Liu, co-founder of Up Network, stated, “Most Web3 users use smartphones based on Apple or Google, but Web3 applications face bans or obstacles due to unfavorable conditions in these app stores. We need smartphones tailored for the Web3 ecosystem.” Anatoly Yakovenko, co-founder of Solana, also projected that a breakthrough app leading the transition to Web3 could attract a billion users.

While the success of the Solana phone may not directly prove the utility of blockchain infrastructure like DeFi, NFTs, and Dapps, it sets a precedent. Initially, the Saga faced sluggish sales and failed to meet market demand comprehensively. However, the situation reversed with the airdrop of the Solana-based meme coin Bonk (BONK) through Saga. Buyers received 30 million Bonk tokens, whose skyrocketing value surpassed that of the Saga phone itself. Consequently, the 20,000 units of Saga sold out completely, fetching prices higher than the retail price on platforms like eBay.

Despite the impact of the Bonk airdrop, the launch of Web3 smartphones is significant in that it provides a growth trajectory for blockchain services, which are currently limited on traditional smartphones. Seunghwa Lee, head of research at Spread Research, noted, “Connecting blockchain projects with hardware devices to enhance user accessibility and induce a lock-in effect is noteworthy.”

Following Solana’s model, several blockchain projects are now developing smartphones incorporating blockchain technology. On the 25th, XProtocol announced the year-end release of DePIN smartphone XForge, which operates as a node. Through XForge, users can join the DePIN network and earn virtual asset rewards. Additionally, Movement Labs, a blockchain developer based on the Move language, plans to launch the AI and blockchain-integrated Web3 smartphone ‘Up Mobile’ in collaboration with Up Network.

# Challenges for Web3 Smartphones

Despite these initiatives, Web3 smartphones face numerous hurdles. Technically, the scalability and speed of blockchain networks are critical issues as current blockchain technology lacks the speed and efficiency of centralized services to support a large user base. From a user experience perspective, these services remain more complex compared to traditional ones.

Seunghwa Lee remarked, “Currently, Web3 smartphones merely imitate existing smartphones and ecosystems. Simply spreading Web3 smartphones will offer limited contributions to blockchain adoption. There is a need to build an environment conducive to running blockchain mobile apps conveniently to expand the ecosystem further.”