An App To Rule Them All

Hey there, welcome to Chaos Theory – where science meets tech, and both shape the traditional and decentralized markets of tomorrow. Together, we'll unravel the origins, discover new technologies made possible by science, and try to predict their impact on the future. If you're curious, visionary, and wonder how new technologies and science impact financial markets, you're in the right place!

In This Edition:

• 💡Opening Insights

• 💥Breakthrough of the Week: Creating new amazing materials

• 🔍 An App To Rule Them All

• 📈 The Super App Market

• 📖 A Glimpse Into the Future

• 💭 Closing Thoughts

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💡 Opening Insights

• The European Space Agency is launching a competition to develop a commercial space capsule in order to replicate NASA and SpaceX’s model

• TikTok will be shutting down its $2 billion creator fund that enabled creators to get paid for their content on Dec. 16

• Intel is said to be the leading contender in a multi-billion-dollar contract from the US government to build microchips for the military

•  China will mass-produce advanced robots as disruptive as computers and smartphones as soon as 2025

•  Amazon is working on its own 2 trillion parameters large language model Olympus to rival Google and OpenAI

• OpenAI will launch the ChatGPT Store at the end of November, enabling developers to earn money from their GPT creation

💥 Breakthrough of The Week: Creating New Amazing Materials

The Breakthrough

Scientists have discovered a new way to create electronic flat-band materials. They are materials that have electrons with constant energy, regardless of their position or direction. It’s as if you could make cars drive at the same speed, in the same directions, and without any obstacles.

The key to this discovery is a 3D crystal like atomic geometry looking like a Kagome. This material leads to remarkable quantum effects like superconductivity (no loss of energy) and topology (properties change when you twist or bend it).

Why It Matters

This new material could make sci-fi pieces of technology possible sooner than expected, like quantum computers. It could be used for transmitting green energy, like solar and wind power, without wasting any of it. Topological materials could be used for devices that can adapt to anything. It’s like finding a new way to play with Lego bricks where you can build anything you want with them.

🔍 An App To Rule Them All

What is a Super App?

Today, an astounding 83% of the global population is connected through mobile networks, reflecting the deep integration of smartphones in our daily lives. Now imagine leveraging this connectivity through a single app that lets you order food, plan holidays, pay rent, and even binge-watch your favorite shows. This is what a super app can offer – basically everything.

Super apps blend their core functionalities with seemingly unrelated services, simplifying user experience. They are more than just applications because they are similar to operating systems, where both internal teams and external teams collaborate to build a suite of modular mini apps.

Pioneered by Tencent's WeChat in 2011, originally a messaging platform, these apps have mastered a flywheel effect. This effect spirals user engagement and partner traffic which accelerates the app’s growth and reach.

This model has been replicated, particularly in Eastern societies and Latin America, with apps like Yandex Go (Russia), Careem (Dubai), Rappi (Colombia), Paytm (India), OMNi (Costa Rica), Alipay (China), Grab (Singapore), Gojek (Indonesia). The West is still catching up, with potential contenders like Telegram, X, Revolut, and Uber exploring similar models.

How do they work?

The essence of a super app lies in its mini apps - simple, specialized applications developed by various teams using diverse tools like PaaS, front-end frameworks, and LCAPs. These mini apps operate within the super app, creating an interconnected ecosystem where users benefit from a seamless, integrated experience, needing just a single login.

The Next Frontier: Telegram and Blockchain

A rather intriguing development is Telegram's evolution into a super app, integrating blockchain for enhanced privacy and freedom. In partnership with the TON foundation and Tencent Cloud, Telegram is expanding to offer a wide range of services, including diverse payment solutions. This strategy aims to blend WeChat's successful features with the added advantage of decentralization. Let’s see how this develops in such a tumultuous decentralized market.

Challenges and Future Outlook

If super apps are so great, then why don’t we have one already ? Because the super app model can negatively impact ad revenues in the short term (you give more screen time to you partners than to your service), even if it’s needed for the flywheel effect. Then, it raises questions about data privacy and user control. Overcoming these hurdles is essential for wider adoption, particularly in Western markets where these concerns are more pronounced.

TL;DR (Too Long; Didn’t Read)

Super apps combine many services in one to make life easier. WeChat led the way, and they're now popular in the East and Latin America. The West is slower to adopt them due to business and privacy concerns.

📈 The Super Apps Market

Global Market Forecast & Trends

The global super app market was valued at $61.30 billion in 2022 and is expected to grow at a CAGR of 27.8% from 2023 to 2030. Factors such as digital adoption and the growing adoption of mobile services, alongside with the governments support, are the main drivers of growth.

AI and blockchain will certainly play a big role in the next years as these technologies are being integrated in most apps nowadays. The integration of both technologies will enable existing apps to offer personalized and efficient services, from tailored recommendations to enhanced user experiences, and more trustworthy data systems.

There’s potential for an AI & blockchain-driven super app offering a new form of sophistication in the landscape. However, there are still limitations, like privacy and data security concerns, and high development costs.

Market Segmentation

Asia Pacific leads the market (46.4% in 2022) due to its large population, the growing internet and smartphone penetration, and the presence of major super app players like Wechat or PhonePe (India) that receive government support. Middle East & Africa is also expected to grow since its mobile internet user base is growing substantially.

Market Leaders

The market is consolidated but it’s likely that new players will make their way through by offering aggressive low prices to gain more users to get market share. The key players are WeChat (Tencent), Paytm, Gojek tech (goto) Tata Neu (Tata Sons Private Limited), Grab, Rappi Inc., Revolut Ltd, LINE Corporation, Alipay (Ant Group CO., Ltd.), PhonePe (Flipkart.com), Kakao Corp, and I expect Telegram to be among them a few years from now.

COVID-19 Impacts On Markets

The COVID-19 pandemic accelerated digitization, leading to increased screen time and a surge in demand for services offered by super apps,  like e-commerce and on-demand delivery. You probably remember the high interest in blockchain projects and the NFT boom at the same time. This trend could influence super apps by integrating the technology for enhanced security and efficiency.

Conclusion

The super app market is expected to register a significant growth fueled by digital adoption, a growing internet user base, and technological advancements like AI and blockchain. Asia Pacific and Middle East & Africa are expected to grow substantially. Despite challenges in privacy and development costs, the market’s potential remains vast!

📖 A Glimpse Into the Future

By 2050, super apps could have transformed our daily lives by being central to most of our interactions and transactions. On one hand, they would make our lives much easier: imagine being able to manage everything  from your morning coffee to your evening commute from your app. On the other hand, this could lead to concerns about over-reliance on technology, data privacy, and monopolies by a few tech giants. There might be a fragmentation between those who can and want adapt to super apps, and those who refuse.

💭 Closing Thoughts

Super apps are super convenient and are transforming the daily life in countries like China, while the West still suffers from a lack of true solution. However, we might see a change in the following years as more players could see the long term economic benefits of super apps.

There will be an adaptation time, and probably some data-related leaks or scandals. While they promise a more interconnected and efficient future, super apps also pose a challenge that society will need to navigate carefully. However, I believe that if well executed, a super app leveraging blockchain and AI could be a game changer for how we manage our lives.

That’s all for this week, stay tuned for next week’s debrief !

As always, this is not financial advice and you should do your own research. Stay curious, stay informed, and navigate the chaos with clarity !