Summary

The Internet has evolved from the "read-only" Web 1.0 to the current socially driven and participatory Web 2.0. Today, we are gradually moving towards the next stage of the Internet, namely Web 3.0, often referred to as "Web3" in the digital asset world. Entering the Web3 era, people are expected to own digital items, easily trade online, and have greater control over personal data. The blockchain and cryptocurrency ecosystem has already built products for Web3. For example, users can make peer-to-peer (C2C) payments and collect digital items using cryptocurrency wallets. Many blockchain projects are decentralized and can be used by everyone.

Introduction

The new Web3 Internet is expected to solve the current network problems. For example, a few centralized social media platforms have centralized power and are good at using users' personal data. Digital assets can become an inherent part of Web3. The decentralized and permissionless nature of blockchain helps distribute communication power rather than granting it to a central authority.

Digital assets bring native digital payments to Web3, and can also be programmed as tokens, playing a wide role in the digital economic system effect. Through decentralized autonomous organizations (DAOs), blockchain and cryptocurrencies can make Web3 more community-centric.

What is the difference between Web3 and Web2?

The main development process of the Internet is usually divided into Web1, Web2 and Web3 stages according to qualitative changes. In the Web1 era, users could not change online data or upload their own content to interactive websites. The Internet at that time consisted of static HTML pages, which allowed for simple one-way experiences, such as browsing information forums.

Web1 allows users to consume content and simply interact. Web2 has gradually developed into a more interactive Internet, and users can participate more in content creation. These online interaction models are primarily driven by social media, and Web2 has witnessed the rise of emerging centralized technology giants.

The current flaws of Web2 are increasingly exposed, and its ecosystem has once again undergone changes. For example, Internet users are increasingly concerned about data tracking and ownership, as well as censorship issues.

Major centralized companies have begun to intervene to prevent specific users and organizations from building their own platforms, and the power of centralization is clearly revealed. Major Web2 companies also use data to retain users on the network and deliver targeted advertisements that meet the interests of third parties. Driven by such financial incentives, these companies may not necessarily act in the best interest of their users.

Web3's vision is a new step towards a better Internet era. Its core commitments include decentralizing online platforms, Trustless and permissionless. Web3 may enable digital ownership, digital native payments, and censorship resistance, setting new standards for online products and services.

Blockchain and cryptocurrency itself have decentralized characteristics, allowing everyone to record information on the chain, tokenize assets and Create a digital identity. Therefore, both of them are sufficient to become the key technologies of Web3.

How can blockchain and cryptocurrency be integrated into the concept of Web3?

Decentralization: As mentioned above, one of the core issues of Web2 is power and data centralization In the hands of a few major players. Blockchain and cryptocurrency can promote the widespread distribution of information and power and decentralize Web3. Web3 leverages a blockchain-driven public distributed ledger to increase transparency and decentralization.

Permissionless: Blockchain-based projects replace traditional company proprietary code with open source, available code. There is a system. Applications built on the blockchain are permissionless, allowing anyone around the world to access and interact with them without restrictions.

Trustless: Blockchain and cryptocurrency eliminate the need to trust banks or individual intermediaries. third party necessary. Web3 users do not need to trust any other entity, only the network itself to transact.

Payment Channels: Cryptocurrencies can be used as the native digital payments infrastructure for Web3. Digital assets are truly borderless and require no intermediaries, which is expected to improve Web2's expensive and bulky payment infrastructure.

Ownership: Cryptocurrencies already offer tools like self-hosted cryptocurrency wallets that eliminate the need for Intermediaries step in and users can store funds. Users can also bind wallets to decentralized applications to use funds or display personal digital items in a variety of ways. Everyone can verify the ownership of these funds and items through a transparent and open public ledger.

Censorship Resistance: The blockchain is censorship resistant, that is, any party can Transaction records cannot be changed unilaterally. Once a record is added to the blockchain, it is almost impossible to delete it. This feature helps protect speech of all kinds from government and corporate censorship.

Are blockchain and cryptocurrencies crucial to Web3?

Web3 may rely on technologies that have nothing to do with blockchain or cryptocurrency. For example, augmented reality (AR), virtual reality (VR), Internet of Things (IoT), and the Metaverse will all become indispensable technologies in the new era of the Internet. Blockchain will play more of a role in Web3 infrastructure, but these technologies and solutions will make the Internet more immersive and connected to the real world.

The Internet of Things connects various devices through the Internet, augmented reality embeds digital visual elements into the real world, and virtual reality builds computer-generated environment, populated by digital asset items. Eventually, these technologies will expand and integrate, making Web3 a truly unified metaverse.

Cryptocurrencies can provide native digital payment channels and more, while utility tokens can unlock a series of important use cases for Web3. In addition, non-fungible tokens (NFTs) can effectively verify identity and ownership in the digital realm without affecting users’ control over personal data.

What will happen to Web3 with cryptocurrency and blockchain?

Blockchain technology will be a cornerstone of Web3, and users may not even be aware of it. As long as applications built in blockchain are intuitive and easy for users to use, people don’t think much about their underlying infrastructure, just as we rarely think about the data servers and internet protocols that underlie various everyday social media platforms.

Users can display NFT digital collections to others and create and maintain unique digital identities with NFT. NFTs can also be used for other practical functions, such as being the basis for many key processes in online gaming.

Through decentralized autonomous organizations (DAOs), blockchain and cryptocurrencies can change the way Web3 users coordinate and execute collective actions. Way. Decentralized autonomous organizations help people organize around common interests without the need for a central decision-making body. Token holders vote on the best option for collective action. Additionally, all activities and votes are visible on the blockchain. Therefore, decentralized autonomous organizations can promote the degree of decentralization, openness, transparency and community-centeredness of Web3.

Summary

Web3 is expected to solve the major problems of today's Internet and try to curb the power of technology giants. However, this is still very much a lofty vision and will not be realized overnight. Nonetheless, the core technology for the next iteration of the network is indeed already under development.

Blockchain and cryptocurrency are designed to promote decentralized, permissionless and trustless interactions, so they are often regarded as It is the key technology most expected to lead the transformation of Web3. In addition, blockchain technology and digital assets do not compete with key network components such as augmented reality, virtual reality, and the Internet of Things. Instead, the combination of various technologies can become the most potential solution.