Web 3 Ecosystem in Mongolia

Web 3 is the third generation of the World Wide Web, which focuses on the decentralization of the internet and the use of blockchain technology. It aims to create a more open, transparent, and secure internet that empowers users and gives them more control over their data.

In this blog, we will be focusing on the Web 3 ecosystem in Mongolia — an East Asian country with a population of 3.4 million people, where Web 3, blockchain, NFT, and crypto haven’t been around in a couple of years.

The Web 3 ecosystem is still in its early stages of development, yet there are a number of projects and initiatives that are helping to drive its growth and adoption in Mongolia.

What distinguishes it from other countries, like the U.S, is the fact that most of its dominant Web 3 players are also major Web 2 and Fintech players. One such major player is Ard Financial group — with 33 companies in their investment portfolio offering services in insurance, asset management, credit, securities, leasing, fintech, and so on.

Ard launched the very 1st Mongolia’s cryptocurrency, ‘Ard Coin,’ in 2019, and now more than 500,000 people — one in six Mongolians — own it.

Another major Web 3 scene in Mongolia is the ‘Mongol NFT’ — the premier marketplace for Mongolian NFTs — run by Infinite Solutions. This is bringing Mongolian artists to the world stage and promoting authentic cultural experiences to tourists through the Metaverse.

In fact, only two months after its launch, the platform has surpassed 100,000 registered users and close to 400 creators in various stages of their projects.

Another example — Coinhub, the largest local crypto exchange in Mongolia, was launched in 2021 and has grown to be the go-to marketplace for locals to invest in crypto assets.

Coinhub offers various cryptocurrencies to invest in, such as Bitcoin (BTC), Ethereum (ETH), and Tether USD (USDT). Plus, it offers other possibilities to invest in local businesses with a little transaction fee and a simpler registration process.

There is also a marketplace for tokenized carbon credit — Ureca, a company based in Mongolia and Singapore that applies a combination of IoT engineering, machine learning, and blockchain technology to provide an accessible marketplace for high-quality carbon credits.

Decentralized applications (dApps) are a key component of the Web 3 ecosystem in Mongolia.

These are applications that are built on blockchain platforms and operate in a decentralized manner, without the need for a central authority. This allows for greater security and autonomy, as well as the ability to create new business models and revenue streams.

One example of a dApp in Mongolia is Zeel.mn, a peer-to-peer (P2P) lending platform that allows individuals and small businesses to borrow and lend money directly, without the need for traditional banks or financial institutions.

This not only makes the lending process more efficient but also allows for the creation of new financial products and services. Furthermore, there are numerous Fintech companies that offer small short-term loans with no collateral, such as LendMN, Ard Аpp, K Mobi, and Numur. There are also wallets such as Most Money, Candy Pay, and digital banks like Mbank.

Overall, there are approximately 100 Fintech companies operating in Mongolia.

There are also associations such as the Mongolian Blockchain Association (MBA), which was founded in 2018 with the goal of promoting the development and adoption of blockchain technology in the country.

The MBA has organized a number of events and initiatives to raise awareness about blockchain and its potential uses, including hackathons, workshops, and conferences. In addition to the MBA, there is the Mongolian Fintech Association (MFA), which was established in 2019 to develop a financial technology ecosystem that fosters Mongolia’s socio-economic development.

The MFA has also organized a number of events and educational initiatives, including the Frontier Fintech Summit for the first time in Ulaanbaatar, Mongolia in 2019 under the theme “Fintech Innovation in Frontier Market”.

The Web 3 ecosystem in Mongolia is also driving innovation in areas such as artificial intelligence (AI) and the Internet of Things (IoT).

By using blockchain to securely store and process data, these technologies can be used to improve a wide range of industries and applications, from agriculture to transportation. In addition to these specific applications, Web 3 can also provide numerous benefits to the general population of Mongolia.

For instance, the decentralized nature of Web 3 can make it harder for governments or other organizations to censor or control the flow of information. This can foster greater freedom of expression and allow people to access a wider range of ideas and perspectives.

Additionally, Web 3 can help improve the security of the internet by making it harder for hackers to gain access to sensitive data.

Overall, the Web 3 ecosystem has the potential to bring significant benefits to Mongolia, including increased transparency, greater financial inclusion, and improved security.

However, even with all those things considered, there are still challenges to be addressed, such as the need for regulatory frameworks and the need to educate people about the benefits and risks of this technology.

As the Web 3 ecosystem continues to evolve, it will be important to carefully consider these issues and ensure that the technology is used in a way that benefits the people of Mongolia.