New business models and opportunities in Web3

1. What is Web3?

2. Basic Concepts of Web3

At its most basic level, Web3 refers to a decentralized online ecosystem based on blockchain. It is a new internet world that is decentralized, automated, and intelligent, premised on the complete return of personal digital identity, digital assets, and data to the individual. Every interaction of the user should be recorded and quantified, allowing the user to own and use their own data and fairly participate in the distribution of the benefits generated.

2. The main differences between Web3 and Web2

During the Web2 era, the rise of social media gave birth to a new interactive model dominated by user-generated content and sharing. Users can read and browse content, as well as create and publish their own content to enhance their personal fame, thereby influencing the platform's data and traffic. However, all this traffic and data ultimately belong to the platform, and the economic benefits derived from it cannot be directly participated in by the users themselves.

In the Web3 era, based on blockchain technology, all data traffic will be owned by users, who will have complete control over the ownership of their created content and the distribution of benefits generated from traffic.

2. What innovations does Web3 have? 1. NFT

Non-Fungible Token, abbreviated as NFT, is a data unit on the blockchain digital ledger. Each NFT represents a unique piece of digital content, possessing uniqueness and indivisibility, and is often used in the fields of art and collectibles.

2. DeFi

Decentralized Finance, abbreviated as DeFi. DeFi is like a blockchain financial institution or banking system where people can trade digital assets or cryptocurrencies without the need for intermediary institutions like central banks.

3. DAO

Decentralized Autonomous Organization, abbreviated as DAO, is a new way for human organizations to collaborate. A DAO brings community members together through common goals or consensus, and determines the organization's direction and operational model through a democratized voting mechanism. A DAO can be understood as a highly autonomous community or organization, where decisions within the organization are based on the votes of members under a consensus mechanism, and voting rights are generally based on the number of tokens held by the members.

3. The Different Business Models and Opportunities of Web3

4. What opportunities do NFTs bring to artists?

NFTs have introduced an innovative way to generate revenue, allowing designers to profit more easily from their works. Additionally, the rise of NFTs means that art collection can now be transferred online; just like social media, NFT platforms enable designers to immediately reach a global audience.

NFT also represents a collaborative mechanism. In the past, most artists worked independently, and the sale of each piece involved a very complex industrial chain of cooperation. With NFTs, the rights of artists can be better protected, significantly reducing the difficulties of collaboration for artists.

2. How DeFi Breaks Through Traditional Financial Models

Common scenarios in traditional finance include transfers, loans, cross-border transactions, and securities investments. Although CeFi (Centralized Finance) is indispensable in people's lives, it also has its drawbacks, such as cumbersome account opening procedures, lengthy cross-border transactions, and high fees, among others.

DeFi has the following main advantages over CeFi:

Firstly, high transparency and a reliable trust mechanism. The immutability of blockchain technology ensures the authenticity and reliability of traders' transaction information, thereby generating trust. The two parties to the transaction can conduct transactions without an existing relationship or the need for a third-party intermediary, avoiding the information access limitations and information falsification found in traditional financial models, and reducing trust risks.

Secondly, reduce transaction costs and improve transaction efficiency. Decentralized blockchain technology can lower the associated costs of searching, contracting, and executing for both parties involved in the transaction.

Thirdly, expand the scale of transactions. By reducing the participation of central institutions, the possibility of a single entity generating monopoly power is lowered, allowing everyone to benefit from network effects and expand the scale of transactions.

Fourth, enhance interoperability. Traditional finance tends to be independent, and transaction barriers exist between different financial institutions due to information silos. Decentralized finance is built on public blockchains and open standards, thus improving interoperability between different service platforms.

The application fields of DeFi involve trading, lending, borrowing, leasing, and blockchain-based quasi-banking operators, among others. It can be said that DeFi has acquired the basic core functions of traditional financial institutions and is shaking the dominance of the current traditional financial model.

3. Content Creation in DAO Mode

In the DAO model, creators have their own platform. DAO creates a way to break the centralized control of platforms over creators, allowing creators to collaborate without external regulations and terms.

The revenue generation under the DAO model is closely related to stakeholders, thus forming a democratized and decentralized content landscape. Here, creators can freely control their works, their promotion methods, and their value.

4. The Future of Web3

The biggest feature of Web3 is the concept of decentralization, which transfers the power originally held by Internet service providers to the users. Therefore, Web3 not only enhances user privacy and information security, allowing them to control their own digital identity, data information, and digital assets, but also breaks the monopoly of platforms over information management and algorithms. In the future, Web3 will reshape the boundaries of economic and social activities in both the real and digital spaces, promoting the integrated development of physical and digital industries. **$APE **$MAPO **$APT **