Centralization has helped onboard billions of people to the World Wide Web and created the stable, robust infrastructure on which it lives. At the same time, a handful of centralized entities have a stronghold on large swathes of the World Wide Web, unilaterally deciding what should and should not be allowed.
Web3 is the answer to this dilemma. Instead of a Web monopolized by large technology companies, Web3 embraces decentralization and is being built, operated, and owned by its users. Web3 puts power in the hands of individuals rather than corporations.
Web3 has become a catch-all term for the vision of a new, better internet. At its core, Web3 uses blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership.
Web1 was read-only, Web2 is read-write, Web3 will be read-write-own.
Although it’s challenging to provide a rigid definition of what Web3 is, a few core principles guide its creation.
- Web3 is decentralized: instead of large swathes of the internet controlled and owned by centralized entities, ownership gets distributed amongst its builders and users.
- Web3 is permissionless: everyone has equal access to participate in Web3, and no one gets excluded.
- Web3 has native payments: it uses cryptocurrency for spending and sending money online instead of relying on the outdated infrastructure of banks and payment processors.
- Web3 is trustless: it operates using incentives and economic mechanisms instead of relying on trusted third-parties.
Hot sectors under Web 3.0
I. Decentralized Autonomous Organizations(DAO)
Decentralized Autonomous Organizations or DAOs are online member-owned communities governed by the consensus of their members instead of centralized leadership. DAOs represent exactly what they’re called, because they are:
- Decentralized—rules can’t be changed by a single individual or centralized party.
- Autonomous—votes are tallied and decisions implemented based on logic written into a smart contract, without human intervention.
- Organizations—entities that coordinate activity among a distributed community of stakeholders.
DAOs are examples of what is known as “on-chain governance.” In traditional corporate governance, for example, companies have bylaws that dictate certain policies, such as how a board is elected. A DAO extends this concept into the digital world by encoding these policies into smart contracts.
LunchDao(LUNCH)
LunchDao (LUNCH) is a community-driven DAO autonomous organization, which mainly raises target funds by issuing DAO governance token LUNCH and uses the funds raised to bid for “Buffett Lunch.” It aims to encourage Buffett and the traditional financial firms behind him to enter the crypto industry. LunchDao was officially launched on Juicebox on April 1 this year, with a total fundraising target of 2,000 ETH. As of May 28, 00:00 UTC, LunchDao has raised more than 850 ETH, which is equivalent to about $1.5 million.
II. Decentralized Finance(DeFi)
Decentralized Finance or “DeFi” refers to decentralized applications for finance, such as saving, lending, and exchange.
If fintech companies like PayPal or Venmo revolutionized the frontend of consumer finance, DeFi revolutionized the backend—laying new pipes and rails that are easier to use, access, audit, upgrade, and build on. Making it cheaper and easier to participate in the financial system will inevitably lead to greater financial inclusion. And, like credit unions, giving consumers control over and membership in the consumer finance products they use will lead to better outcomes.
Euler Finance(EUL)
Euler Finance(EUL) is a capital-efficient permissionless lending protocol that helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third-party. Euler Finance is currently backed by Paradigm, Lemniscap, and angel investors such as Anthony Sassano, Kain Warwick, and Hasu.
Euler’s key feature is that users can borrow multiple assets at once while also posting multiple forms of collateral at the same time, which will streamline loan management for power users.
III. SocialFi
SocialFi brings together the principles of social media and decentralized finance (DeFi). SocialFi platforms offer a Web3 approach to creating, managing and owning social media platforms and the content generated by its participants.
At the heart of SocialFi, applications are content creators, influencers and participants who want better control of their data, freedom of speech and the ability to monetize their social media following and engagement. Monetization typically happens in cryptocurrencies, while identity management and digital ownership are driven by nonfungible tokens (NFTs).
Step App(FITFI)
Step App (FITFI) is the development protocol of FitFi (Fitness Finance), which is a running chain game based on the Avalanche chain. FitFi is at the intersection of making physical and digital, augmenting reality through the use of NFTs and geolocation technology for better metaverse immersion. Step App (FITFI) is based on the running and earning model as the selling point, creating a socialfied and gamified metaverse world for the fitness economy, aiming to build a bridge between NFT games and the physical world.
Step App (FITFI) can migrate Web2 users to Web3 at low cost. After players purchase NFT sneakers, while they walk around in the real world, the system will calculate the approximate number of steps and bring it directly to the virtual world. The physical energy value will be converted into tokens, allowing players to earn money by walking or running.
IV. GameFi
GameFi, a combination of “game” and “finance,” refers to blockchain games that offer economic incentives to the people that play them. Typically players earn in-game rewards like crypto tokens, virtual land, avatars and other NFTs by completing tasks, battling other players or progressing through various game levels. Unlike traditional video games, play-to-earn games let you buy and then transfer in-game assets to outside of the game’s virtual world.
Revoland(REVO)
Revoland is a multiplayer team-based MOBA game on BSC, based on Play-to-Earn game economy. It is understood that the team plans to use the new financing to accelerate product and business development, game design, expanding the size of the team, while cooperating with some well-known game guilds, to create a Web3-based community. In this case, more game players can use its native token to unlock more Characters for level up purposes.
According to Revoland’s official introduction, Revoland will invest large amounts of resources to create a smooth online experience for players to minimize delays and other chain game problems. Revoland’s partners include companies in the traditional gaming payment industry such as Gamer Exchange and REVOLAND, as to expand the user base in the market.
Challenges for Web 3.0
Web 3.0 is still in the early stages of development, in which infrastructure is very important.In terms of applications, which will only explode on a large scale when the acceptance of cryptocurrencies increases to a certain level.
It also needs some early explosive applications to reach more users .SocialFi is still a focus in Dapp development，I am optimistic about projects that can change the existed social gameplay to satisfy real user needs and to improve the existed social experience.In addition to SocialFi, creator economy is also a very potential sector under Web 3.0, NFT can play an important role in this.
Web 3.0 still needs to solve the commercialization problem. In Web 2.0 , the main business model for social media is advertising revenue, in the Web 3.0 era, it is also necessary to obtain income through a suitable business model.
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