Background

With blockchain technology’s continuous development and application, Web3 mobile phones and related hardware have gradually entered the public eye. These devices leverage blockchain technology, offering decentralization, anonymity, and encryption features, aiming to provide users with a more secure, private, and autonomous experience. As early as 2021, Samsung announced that its Galaxy series would support a hardware wallet for cryptocurrencies. Following this, HTC launched the metaverse phone Desire 22 Pro, equipped with a digital asset wallet and VR headset pairing capabilities, marking its further advancement in the Web3 space.

Market Outlook

Currently, there are 4.88 billion smartphone users worldwide, with 3.3 billion Android users, forming a massive market worth $409 billion. However, the smartphone industry and mobile operators generate huge profits by controlling user data, content choices, and advertising recommendations. While users enjoy the convenience of technology, they are gradually losing control over their personal data and online experience. Web3 aims to transform the 3.3 billion Android device users from passive consumers into active participants and builders of the network. Users can gain greater data autonomy through a decentralized mobile infrastructure integrated into these devices, reducing their reliance on operators or device manufacturers. This approach not only offers users more freedom but also has the potential to reshape the existing mobile network ecosystem, breaking the monopolies of tech giants.

Mobileization of Web3

The concept of Web3 originated from Gavin Wood, the founder of Polkadot and co-founder of Ethereum. He envisioned a world where ordinary people could access blockchain through DApps without understanding the underlying technology. These DApps are highly secure, with data stored in an encrypted form across nodes, using public-key cryptography to ensure tamper-proof access. Web3 also means that users can own and control their identities and data on decentralized networks.

In the Web3 era, all information and social network interactions will primarily depend on mobile users. According to WARC, by 2025, around 72.6% of internet users, nearly 3.7 billion people, will access the internet via smartphones. As many users around the world rely on mobile phones rather than desktop devices, and in many emerging markets, mobile accessibility is significantly higher than that of computers, developers are increasingly focusing on the needs and use cases of Web3’s emerging market users. The mobilization of Web3 has gradually become a trend.

The Essence of Web3 Mobile Phones

The purpose of Web3 mobile phones is to provide cryptocurrency users with a secure and convenient gateway to Web3, deeply integrating decentralized applications. Several public chains and well-known brands, such as HTC and Polygon, have launched similar products, but they have not gained significant attention in the crypto market.

The Solana phone is currently the most talked-about crypto phone on the market. It set a precedent by airdropping tokens from ecosystem projects to users purchasing the crypto phone, with $BONK being the most famous example. For these projects, phone owners are often high-net-worth users on the blockchain. The airdrop allows them to acquire numerous high-quality wallet addresses, becoming an efficient marketing strategy that also boosts token prices.

This model has created a win-win situation in crypto phone investment. Users who purchase the phones receive valuable tokens, while the airdrop issuers obtain high-quality wallet addresses, indirectly driving token price increases. Meanwhile, phone developers profit through hardware sales, built-in software, and advertising promotions. Public chains that rely on these phones also gain increased popularity and attention.

Differences from Traditional Mobile Phones

Web3 mobile phones differ significantly from Web2 mobile phones in terms of system architecture, information storage, asset circulation, and privacy protection.

Currently, mainstream phones are mainly based on Android or iOS operating systems, while Web3 phones are built on blockchain technology, emphasizing decentralization.

In terms of ownership, Web2 phones are typically owned by companies like Google or Apple, while Web3 phones are owned by individual user nodes, reflecting the concept of collective ownership.

Regarding information storage, traditional mobile phone apps store data such as chat logs, transaction records, purchase information, and identity details in company databases. In contrast, Web3 phones store this data on the blockchain, ensuring it is resistant to tampering or deletion.

For asset circulation, Web2 phone users are accustomed to using various payment apps for transactions, while Web3 phone users can complete all payment scenarios through specific Web3 wallets. Additionally, the login function of Web3 wallets and NFTs makes them symbols of the user’s unique decentralized identity (DID).

In terms of privacy protection, in the centralized internet era, user data is stored in large company databases, making privacy protection a luxury. However, with the widespread adoption of Web3 phones, user information is decentralized and stored on the blockchain, significantly improving security and resistance to tampering. Moreover, the integration of blockchain privacy technologies helps fundamentally protect user privacy.

In summary, the fundamental difference between Web3 phones and Web2 phones lies in the core interests of users. Web3 phones aim to reclaim user interests from large companies and, on this basis, create entertainment and business ecosystems that are entirely different from Web2 phones, such as the metaverse game Star Atlas on the Solana chain and NFTs.

Overview of Web3 Mobile Phones and Hardware

Solana

saga

The Solana phone is currently the most talked-about crypto phone on the market. Although the SAGA phone was initially unpopular, with the first product priced at $1,000, it was later reduced to $599 due to poor market response. As Solana’s ecosystem projects began airdropping tokens to phone owners, the first batch of phone holders broke even with the value of the airdropped tokens before receiving their phones. The practice of using token airdrops to attract users to purchase Web3 phones or hardware devices began to emerge from this point.

Seeker

Seeker is a mobile device designed specifically for Web3 to seamlessly integrate hardware and software. Its features include lightweight design, high brightness, excellent camera performance, and long battery life, all offered at a more affordable price. As the second-generation Web3 smartphone launched by Solana Mobile, a subsidiary of Solana Labs, following the Saga, Seeker began its pre-sale earlier this year under the code name “Chapter 2.”

Source: solanamobile

Main Highlights

• Native Web3 Experience

Seeker provides seamless access to various applications and services on the Solana blockchain, including decentralized exchanges, wallets, and games.

• Security Assurance

The device is equipped with a security chip to ensure the safety of user assets, while also supporting end-to-end encryption to effectively protect user privacy.

• Powerful Performance

Seeker is powered by the Qualcomm Snapdragon 8 Gen 2 processor and 12GB of RAM, delivering exceptional performance.

• Unique Identity

Users will receive a unique identity on the Solana blockchain for authentication and authorization.

• Seed Vault Wallet: Enhanced User Experience

The Seed Vault Wallet, specifically designed for Seeker, is a mobile-first crypto wallet that integrates a hardware Seed Vault. It supports fingerprint unlocking and double-tap transaction sending, greatly enhancing the user experience.

• Seeker Genesis Token

Each Seeker phone comes with a soulbound Genesis token, serving as a VIP pass for users to access rewards and content within the Solana ecosystem. Additionally, users who pre-order Seeker will receive Chapter 2 pre-order tokens.

• Integrated AI Features

Seeker users can use Alethea AI to generate tokenized AI agents, allowing interaction with the Solana community on-chain or within apps, unlocking new opportunities for participation and profit.

• Airship: Optimizing Airdrop Costs

Helius’ ZK compression tool, Airship, significantly reduces airdrop costs from $40,000 to just $100, automatically airdropping tokens to Chapter 2 pre-order token holders.

Ton Chain Phone—Universal Phone

Ton Chain is considered a project with the potential to surpass Solana, and as a result, its phone products have garnered significant attention. OysterLab’s Universal Phone is currently the most well-known product on the TON chain, especially after being showcased at the Hong Kong Web3 conference. OysterLab has already accumulated tens of thousands of real wallet addresses and users, with a solid traffic base and multiple rounds of airdrops completed.

Innovation and Pricing: Unlike the Solana phone, OysterLab has launched its own token, $OYS, with more extensive plans likely to come in the future. Currently, the price for the second batch of the Universal Phone is $129, plus $30 for shipping, making it more affordable than the Solana Saga phone.

Source: universalphone

Aptos Chain Phone—Jambo

Headquartered in Congo, Jambo is dedicated to building a Web3 portal centered around “learning, gaming, and earning.” Since 2022, Jambo has completed $7.5 million in seed funding and $30 million in Series A funding, with investors including well-known institutions such as Paradigm, Coinbase Ventures, and Pantera Capital.

Source: jambophone

Pre-installed Apps and User Experience

The main app pre-installed on the Jambo phone is Petra Wallet, the standard Google Play version that has not been customized. Additionally, the phone does not support a DAPP app marketplace, only allowing access to the native Google Play store. Upon first login or wallet import, users do not receive any on-chain credentials, meaning that even if they successfully log in, there will be no identifiable on-chain record left on the device. This is a significant flaw for users expecting airdrops, as any regular Android phone can download the same Petra Wallet app.

Problems and Challenges

The “Web3 super app” version of the Jambo phone has issues with wallet initialization, and users have reported similar concerns on social platforms. In current functionality tests, Jambo’s app version lacks significant customization and performs similarly to regular mobile apps. Other pre-installed apps also underperform, mainly in two ways: either they fail to launch, or they are entirely unrelated to Web3.

BSC Chain—CoralApp

CoralApp is the first Web3 phone project incubated by Binance Labs, backed by Binance Smart Chain (BSC), one of the three major global public chain resources. It offers millions of potential airdrop opportunities from high-quality projects, along with a vast user base in Web3. Additionally, CoralApp has partnered with well-known public chains like Solana, Scroll, Swam, and Tap, as well as their prominent projects. Through collaborations with top public chains and their high-quality projects, CoralApp aims to provide users with a richer and more diverse application ecosystem and an enhanced Web3 experience.

CoralApp is led by Binance Labs in the first investment round, with Unicornverse, Gate.io, Skry Labs, AC Capital, PAKA, and OX Consulting participation. The second round of investment institutions will be announced in Q4 2024, and the funding scale is expected to surpass that of Solana Saga.

Source: coralapp.network

Sui Chain—Suiplay

Mysten Labs (the developer of the Sui blockchain) has partnered with game startup Playtron to launch the gaming handheld SuiPlay0x1. The first 1,000 pre-order customers will receive a special soulbound NFT, offering exclusive access, rewards, and benefits.

Compared to other Web3 hardware on the market, SuiPlay0x1 shows notable advancements in its configuration. Especially when compared to products like Saga and Jambo, its hardware is on par with flagship entry-level configurations from the handheld market a year ago.

Source: preorder.suiplay0x1.com

Ecosystem Chain Games

SuiPlay0x1 will become the main platform for chain games supported by the Sui blockchain, compatible with multiple gaming platforms such as Steam, Epic, and GOG. Players may receive additional token rewards while playing these chain games on SuiPlay0x1.

Potential Airdrops

Airdrops have always been a focal point for users of Web3 devices. The first 1,000 pre-order customers of SuiPlay will receive a soulbound NFT, offering exclusive access, rewards, and benefits. Compared to the pricing and quantity of Solana Saga, SuiPlay’s $599 price and a total of 1,000 NFTs present a relatively higher potential return for investors. While the airdrop may not guarantee a return on investment, users can at least expect to receive a gaming device worth approximately 3,000 to 4,000 RMB in market value by the first half of next year.

Future Development of Web3 Mobile Phones

In the long term, the Web3 phone market has immense potential. The advancements in blockchain technology and the global digitalization process provide a solid foundation for developing this field. With the rapid growth of digital currencies and crypto assets, Web3 phones are expected to become a core tool for the storage and trading of digital assets. The integration of features such as smart contracts will further expand their use cases.

At the same time, Web3 phones still face numerous challenges in terms of technology and application. The high technical requirements and stringent security demands lead to higher production costs and prices. Moreover, the actual demand and use cases for such products are not yet fully defined. This requires manufacturers to continually innovate and expand their market reach to ensure healthy development in this space.

Despite these challenges, the development prospects of Web3 phones are undeniable. As technology continues to evolve and market demand grows, this market will showcase diverse use cases and enormous commercial potential.