The Eve of Large-Scale Application Explosion: A Review of the Current Development of Web3

What is Web3?

Web3.0, also known as the “decentralized Web” or “distributed Web,” is a new generation of internet technology that transforms traditional centralized architectures into decentralized ones. The biggest feature of Web3 is that it allows people to exchange value and transfer data directly on the internet while ensuring the security, transparency, and decentralization of transactions. Web3 is an inevitable trend in the evolution of internet technology, and it will completely disrupt the current business models and operational methods of the internet.

The evolution from Web1 to Web3 can be understood as:

Web1: read. Centralized organizations generate content, centralized organizations hold the permissions;

Web2: read, write. User-generated content, centralized entities hold the permissions;

Web3: read, write, own. User-generated content, users have ownership rights.

The significance and current state of Web3

The significance of Web3 lies in its realization of decentralization, removing intermediaries from the internet, and empowering users to become the masters of the entire network. Moreover, Web3 not only features decentralization but also provides services that are more secure, efficient, transparent, and private.

Currently, the concept and related technologies of Web3 are gradually being promoted, and there have been some applications in various industries such as education, the Internet of Things, finance, and social media. It is believed that in the future, Web3 will lead to a larger-scale transformation than the traditional internet era.

Current Development Status of Popular Web3 Applications

Compared to Web1 and Web2, Web3, as an integration of multiple technologies, involves more subcategories and a wider scope. In the Web3 domain, there are many popular applications that deserve everyone's attention.

public chain

A public chain is a blockchain that is open to the entire network and does not require permission. It can support the development of various application scenarios and is an essential infrastructure in the Web3 era. Public chains have characteristics such as decentralization, security, and transparency, while also supporting functions like smart contracts and token issuance.

Ethereum is currently one of the most well-known public blockchains, providing platform support for the development of dApps (decentralized applications). With features such as smart contracts, Ethereum offers a fertile ground for various innovative applications in fields like finance and gaming, becoming a leader in the Web3 space. Today, a large number of developers are building Web3 applications on Ethereum.

In addition, there are various public chain projects in the market such as Solana and Polygon, each with its own advantages in terms of decentralization, security, and performance, providing different technical support for the development of decentralized applications.

NFT (Non-Fungible Token)

NFT is a special type of digital asset. Unlike ordinary digital assets, each NFT is unique and non-fungible. Initially, NFTs were mainly applied in the fields of collectibles, game items, and so on, but in recent years, their applications have expanded to multiple areas including art, music, sports, and real estate. The emergence of NFTs has provided an alternative digital asset for the Web3 world, offering a safer and more efficient solution for the circulation of digital artworks and virtual game items, greatly promoting the development of digital assets.

DeFi (Decentralized Finance)

DeFi refers to financial services based on blockchain technology, aiming to establish a decentralized financial system that frees itself from the constraints of traditional financial institutions. In DeFi, users can also experience services such as trading, lending, and insurance, while ensuring security, transparency, and decentralization during the service process.

For example, on decentralized exchanges, users do not need to pre-deposit their assets with the platform, but can complete exchange transactions in their personal wallets, saving a lot of intermediary processes and eliminating concerns about the asset security of trading platforms. The development prospects of DeFi are very broad, providing new space and possibilities for financial service innovation in Web3.

Digital Identity

Digital identity is an identity authentication and management system based on blockchain technology, primarily used to address security and privacy issues in traditional verification systems. The digital identity system can provide more reliable identity authentication methods for the interconnectivity of the digital world while ensuring personal privacy and data security. The application fields of digital identity are also very broad, including finance, healthcare, the Internet of Things, and many other areas. With the continuous acceleration of the digitalization process, digital identity will become one of the important directions for the future development of Web3.

Gavin Wood proposed the concept of Web3 in 2014, and so far, Web3 remains a young and continuously evolving ecosystem. Overall, Web3 is an inevitable trend in the current development of the internet, with many innovative applications constantly emerging. It is believed that in the near future, Web3 will experience a period of explosive growth in application, and a brand new internet revolution will arrive, which we look forward to. **$COMMON **$MON