OKX WEB3 DEX

The Internet is being rebuilt.

If you have visited crypto communities, video game forums on social media such as Twitter, or paid attention to information related to the metaverse, you are likely to encounter expressions like “Web3” \ “Web3.0”. In the past few decades, new and old companies have been “paving the way” for the arrival of a new generation of the Internet, involving technologies such as blockchain and AI. It can be said that humans are about to open a new chapter in the World Wide Web revolution.

Regarding Web3, as the well-known crypto blogger Ki Chong Tran said: “The next major iteration of the Internet is to allow users to take power from the centralized companies that dominate the Internet.”

As for how blockchain will play a role in the Web3 wave, the accusation of Internet giants in the preface of the Polkadot Lightpaper can clearly show the important role of the Internet in this transformation process.

The current Internet world is like this. After users provide personal data to technology giants for free, they have no choice but to pray to God that their personal privacy will not be leaked, stolen, or abused. These giants in the centralized world are like demons, swallowing us up bit by bit.

As open source and decentralized technologies like blockchain continue to advance, it is increasingly possible to build a new system where centralization no longer overrides personal sovereignty. In a new system, third parties will no longer be evil, and we will no longer be afraid.

——Polkadot Lightpaper

Although it is still unknown who will lead this Web3 revolution, blockchain will definitely play an important role in this process, and concepts such as NFT/DeFi, which are currently making great strides in the blockchain industry, will also play an important role in the Web3 wave.

1. Web1 and Web2
In order to understand why Web3 is so important, we must first examine the development of the network, from the first time humans used it as an online service platform to the current time when it is regarded as a vital part of daily life.

First, let’s look at Web1, which started in 1989 and ended in 2005.

Web1, also known as the static network, was the earliest and most reliable Internet in the 1990s. Because it only provided very limited information, there was almost no user interaction. Users could only browse HTML pages consisting of a limited number of articles and non-interactive content, which were mainly written by a few pre-selected editors.

Then let’s look at Web2, which started in 2005 and continues to the present.

Social networks or Web2 make the Internet more attractive, thanks to the progress of Internet technologies such as Javascript, HTML5, and CSS3. In this stage of Web2, the Internet is becoming interactive, programmable, and entertaining. The Internet has grown into an aggregator of content distribution, e-commerce, and entertainment. Until today, the Internet is composed of companies such as YouTube, Facebook, Twitter, Alibaba, and Tencent, who have created a large number of interesting and interactive web pages.

Together, they constitute Web2, which is our current Internet world.

Finally, let’s look at Web3, a future network, a network composed of blockchain and decentralized nodes.

Looking back at the development history of blockchain for more than 10 years, it can be said that it is the prosperity of blockchain that has enabled people to kick open the door to the back-end revolution. In this revolutionary wave, the network has changed from a centralized network that relies on the servers of technology giants to a decentralized network supported by distributed nodes.

Data can be interconnected in a decentralized way, which will be a huge leap for Web2, where most data is stored in centralized media. Web3 is essentially a new way for individuals to use and own the Internet without giving up privacy and valuable data. As described in the Polkadot Lightpaper at the beginning of the article, people can get back their own data and value through the blockchain.

Although there is still controversy about how Web3 will develop, some commonalities of Web3 are unanimously recognized by the crypto community. So what will be the future of Web3?

2. Introduction to Web3

1. Features of Web3

Let’s take a look at some of the features of Web3, which will become the features that drive Web3 innovation.

First of all, Web3 will be everywhere. With the popularization of mobile communication devices and the continuous improvement of network infrastructure, you can use Web3 anytime and anywhere. Web3 will not be used only on your laptop like Web1, nor on your mobile phone like Web2. Web3 will be omnipotent. When Web3 goes on the right track, most things around you can be connected online (IOT).

Then, Web3 will be decentralized. Web3 provides a democratic and user-centered platform without centralized control, which will be the first time in the history of Internet development. Although Web2 allows information to be transmitted across borders, this information is often controlled by centralized third parties. In the world of Web3, users can freely interact with information without the intervention of third parties, which will also eradicate the risk of information censorship by large companies.

Secondly, Web3 is based on computer logic. Applying computer logic in the network will enable machines to decode meaning and emotions by analyzing data. Therefore, by enhancing data connectivity, Internet users will have a better experience.

Thirdly, artificial intelligence plays a huge role in the progress of Web3. In Web3, by combining previous functions with natural language processing and computing power, computers will understand information like humans in order to provide faster and more relevant results. They become smarter to meet user needs.

Finally, Web3 performs well in immersion and 3D graphics. Three-dimensional design is widely used in Web3 websites and services. Museum guides, computer games, e-commerce, geospatial environments, etc. are all examples of using 3D graphics.

2. Core content and technology of Web3
As can be seen from the previous article, the Web3 field is a broad and rapidly developing field, which mainly promotes a decentralized Internet through various technologies. Here are some of the core content and technologies in the Web3 space:

Blockchain technology: Blockchain is the foundation of Web3, providing a decentralized, immutable data recording system that can be used to record information such as transactions and asset ownership.

Smart contracts: Self-executing contracts running on the blockchain that automatically execute the terms of the contract according to the encoded rules. Smart contracts are the basis for building DApps and performing decentralized finance (DeFi) operations.

Decentralized applications (DApps): Unlike traditional Internet applications, DApps run on decentralized networks and are usually built on blockchain technology to provide a variety of services, from games to financial products.

Decentralized finance (DeFi): A set of decentralized financial services and products that aims to provide decentralized lending, trading, investment, and insurance services without relying on traditional financial intermediaries.

Non-fungible tokens (NFTs): Tokens on the blockchain that represent unique assets (such as artworks, collectibles, etc.). NFTs prove the ownership and authenticity of digital or physical assets.

Cryptocurrencies and tokens: Digital or virtual currencies that are protected using encryption technology. Cryptocurrencies can be native to a network (such as Bitcoin or Ethereum) or tokens based on specific projects.

Decentralized Autonomous Organizations (DAOs): A form of organization based on smart contracts that allows members to jointly manage resources and decision-making processes in a decentralized manner.

Privacy and security technologies: Includes various technologies and protocols designed to enhance the privacy and security of network transactions, such as zero-knowledge proofs.

Cross-chain technology: Technology that enables information and value to be exchanged between different blockchains, promoting interoperability between different networks and applications.

The vision of Web3 is to create an Internet that is more open, more transparent, and where users have control over their data. This field is still developing rapidly, covering a wide range of content from infrastructure construction to application development.

3. Web3 and Crypto, NFT
For those who are in the crypto circle, stories such as Web3 collaborating with crypto networks are familiar. In fact, crypto protocols are the foundation of Web3. A large number of related DApps such as DeFi, NFT, GameFi, SocialFi, etc. are pushing Web3 into the mainstream world.

The most critical role of encryption technology is to put users above companies, and every participant can benefit from the incentive mechanism, provided that you participate in the creation of something. Although blockchain technology is not perfect, for example, none of the consensus mechanisms including PoS/PoW/PoH (Proof-of-History) is perfect. Although PoW is relatively energy-consuming compared to public chains, PoS is efficient but easily leads to centralization. However, in any case, blockchain is far better than centralized companies in supporting users to participate in project governance.

With the support of blockchain technology, Web3 has proposed a series of methods to take back the power of Internet giants, including decentralized storage, data exchange, financial transactions (DeFi), etc., allowing users to achieve data freedom and financial freedom (different from financial freedom). Web3 reintroduces ownership and verification methods in a decentralized way, which means that no single individual in the network can control the entire network. Every network user and user must follow the same hard code guidelines, that is, the consensus protocol, which also includes the founder. Of course, the premise is that there is no backdoor left in the protocol.

Web3 is also very different from Web2. In a closed-source business model like Web2, users trust company operators to ensure the safety of funds and to smoothly perform various services, that is, you need to trust a person 100%. In open source projects, users trust technology to perform these tasks, that is, trust mechanisms and code. In Web2, the larger network wins, and in Web3, any user who creates a large-scale network wins.

In short, Web2 trusts people, and Web3 trusts code. As a user, how will you choose?

Let’s take a look at how NFT contributes to the development of Web3.

Before understanding what role NFT may play in Web3, we must first understand what characteristics NFT has. NFT tokens are unique assets issued on the blockchain that are used to uniquely represent physical artworks or digital artworks. They are commonly known as indivisible tokens. In addition to their application in art, NFTs can also be linked to the real world without middlemen.

NFTs allow users to have the ability to own virtual things. They can be pictures, music, text, copyrights, secret keys, and anything else you own. For this reason, NFT also democratizes financial transactions. NFT is the key to ending Google/Apple/Facebook/Amazon’s ownership of user data assets.

4. The future of Web3
The future of Web3 lies in increasing usage, availability and scalability. Imagine a scenario where Web3 becomes a reality. With the help of encrypted cryptographic technology, these applications can be automatically updated. Scalability, user experience and interoperability are some of the features that the new protocol prioritizes.

There are already some projects that are completely changing the way people interact with each other and with the Internet. For example, Gitcoin is a platform that allows developers to get cryptocurrency rewards by participating in and handling open source issues. Another example is the YGG guild that was born in the early development of Axie Infinity. Under the DAO governance mechanism, all participants can get token rewards under the token incentive mechanism. There are countless similar projects, all of which are part of the future development of Web3.

In short, the possibilities of Web3 are endless, and this is just the beginning.