The Eve of an Application Surge: A Review of the Current Development of Web3

1. What Is Web3?

Web3, also known as the "decentralized web" or "distributed web", represents the next generation of Internet technology that transforms the traditional centralized architecture into a decentralized one. The biggest feature of Web3 is that it enables people to exchange value and transmit data directly on the Internet while ensuring the security, transparency, and decentralization of transactions. Web3 is the inevitable trend as Internet technology evolves, and it will thoroughly transform the business models and operation methods of the Internet today.

The evolution from Web1 to Web3 is as below:

• Web1: Read. Centralized institutions generate content and have control over it;
• Web2: Read and write. Users can generate content, but centralized institutions still have control over it;
• Web3: Read, write, and own. Users can generate content and own it, with control over their data and content.

2. The Significance and Current Situation of Web3

The significance of Web3 lies in its decentralization, which removes intermediaries of the Internet and empowers users to become the masters of the entire network. Apart from decentralization, Web3 also features more secure, efficient, transparent, and private services.

The philosophy and related technologies of Web3 are gaining popularity, and relevant applications have emerged in many industries such as education, the Internet of Things (IoT), finance, and social media. It is believed that Web3 will trigger a wave of transformation more significant than the traditional Internet era.

3. Current Development of Popular Applications in Web3

Compared to Web1 and Web2, Web3, as an integration of multiple technologies, involves more specific categories and a wider range. In the Web3 field, there are many popular applications worth our attention.

Public Chain

A public chain is a type of blockchain that is open to the entire network without the need for permission. It supports the development of various application scenarios and serves as an essential infrastructure in the Web3 era. Public chains have the characteristics of decentralization, security, and transparency, and also support functions such as smart contracts and token issuance.

Ethereum is currently one of the most famous public chains, providing platform support for the development of decentralized applications (dApps). Utilizing functions such as smart contracts, Ethereum provides an enabling development environment for various innovative applications in fields such as finance and gaming, and has become the leader in the Web3 field. Nowadays, a large number of developers are building Web3 applications on Ethereum.

NFT: Non-fungible Token (NFT)

NFTs represent a special type of digital assets. Unlike ordinary digital assets, each NFT is unique and cannot be replaced. NFTs were initially used in fields such as collectibles and game items, but have spread to multiple fields such as art, music, sports, and real estate in recent years. As an alternative digital asset for the Web3 world, NFTs provide a safer and more efficient solution for the circulation of digital artworks and virtual game items, significantly catalyzing the development of digital assets.

Decentralized Finance (DeFi)

DeFi refers to financial services based on blockchain technology, with the goal of establishing a decentralized financial system free from the constraints of traditional financial institutions. In DeFi, users can experience services such as trading, borrowing, insurance, etc., without worrying about security, transparency, and decentralization throughout the service process.

For example, on decentralized exchanges, users do not need to deposit their assets on the platform in advance, but can instead exchange assets in their personal wallets, which greatly simplifies the process and eliminates concerns about the asset security on the exchange. DeFi boasts a broad prospect as it provides new space and possibilities for innovation in financial services in the Web3 era.

Digital Identity

Digital identity is an identity authentication and management system based on blockchain technology, mainly used to solve security and privacy issues in traditional identity authentication systems. The digital identity system can provide a more reliable identity authentication method for the interconnection in the digital world, while protecting personal privacy and data security. Digital identity is widely applied in various fields, including finance, healthcare, and IoT. As digitalization picks up its pace of development, digital identity will become one of the most important development directions of Web3.

Gavin Wood proposed the concept of Web3 in 2014, and so far, Web3 has remained a young and evolving ecosystem. However, overall, Web3 is an inevitable trend in the current development of the Internet, as evidenced by the continuous emergence of innovative applications. It is believed that in the near future, Web3 will witness an application surge along with a new Internet revolution. Let’s stay tuned.