1.3 Industry Challenges

Despite the disruptive innovations brought by modular blockchain technology and cross-chain interoperability, the industry in which Luluchain operates still faces a series of specific challenges:

1. Privacy and Data Security: Existing social and entertainment platforms struggle to fully protect user privacy, especially concerning sensitive social and emotional data. Users remain concerned about privacy leaks and the misuse of their data. The centralized structure of current systems makes user data vulnerable to external attacks or improper use.

2. Difficulty in Personalized Services: As user demands become increasingly diverse, there is a growing need for personalized entertainment and social management services. Existing platforms fail to effectively leverage multidimensional information such as emotional and social data to provide users with precise, dynamically adjustable personalized services.

3. Lack of Incentives for Content Creators: In the current ecosystem of entertainment and social content creation, creators often do not receive fair revenue distribution and lack sufficient incentive mechanisms. This not only limits the production of high-quality content but also results in insufficient long-term investment and enthusiasm from creators.

4. Complexity of Cross-Chain Operations: Although cross-chain technology offers opportunities for asset and data interoperability in the blockchain ecosystem, current cross-chain solutions still face operational complexity, high transaction costs, and poor user experience, which hinder the large-scale application of these solutions.

5. Challenges in Converting Emotions into Value: The mechanism of converting emotions into value, which is based on user emotional interactions generating virtual assets, is still in its early stages. The technology and application scenarios need further validation and optimization, and users’ acceptance of its practical value and operational experience needs to be improved.