Three major directions of Web3

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Three major directions of Web3

Marc Andreessen, founder of A16Z, believes that A-Artificial Intelligence (AI), B-Biotech (Biotech) and C-Cryptocurrency (crypto) and Web3 are the three major technology directions in the future.

Among them, Web3, as an important direction in the current encryption field, has attracted the attention of many technology companies. Facebook even changed its name to Meta, and on twitter, discussions about Web3 have become a hot topic.

At present, Web3 is still in a very early stage, and even the definition of Web3 is still vague. People mainly refer to the three major formats in the encryption field, NFT, DeFi and DAO, as Web3.

NFT is the abbreviation of non-fungible token. As a certificate of equity, NFT itself represents consensus value. Secondly, as a unique artwork, it also has appreciation value. NFT allows public creators, engineers and communities to obtain, Transactions and verifications verify digital product ownership. While there are certainly other forms of establishing and proving ownership, through public chain proofs, middlemen and centralized institutions can be eliminated, which greatly reduces transaction costs, as well as the possibility of information being lost, tampered with, and exploited by people with ulterior motives, And thanks to the transparency of the blockchain, anyone can verify intellectual property.

Whether it’s BAYC, Cryptopunks or “Every Day: The First 5,000 Days”, it has not only been recognized by crypto enthusiasts, but also by art collectors and traditional industry companies. Both Li Ning and Longfor Real Estate bought a BAYC as a brand promotion. medium. The NFT trading platform Opensea has become a big gas fee burner on Ethereum.

While other forms of establishing and proving ownership certainly exist today, doing so on a public blockchain eliminates middlemen and centralized institutions. This reduces friction and the potential for this information to be lost, tampered with, or used for ulterior motives. Due to the public nature of the blockchain, anyone can verify these proofs of ownership at any time.

Decentralized finance DeFi is the best innovative direction of cryptocurrency. Since it can maximize the income of token holders, it has been popular in the circle since its development in 2020. Pledge mining, lending, liquidity Sex mining has become an important way for cryptocurrency holders to obtain benefits, and DeFi has become a killer for the crypto world to subvert traditional finance. What needs to be vigilant is that any financial product that promises high returns is a scam, especially in the field of encryption. Most cryptocurrencies have little value in themselves. . Compared with traditional financial products, the benefits of mainstream coins and stable coins are not much different. DeFi needs to find a new evolutionary path.

People in the crypto world get together because of common hobbies or goals. In order to achieve organizational governance, people make full use of the immutability of data on the chain and the value weight of tokens to maintain the operation of the organization through voting on the chain. This is DAO the original form. DAO is a tool for coordinating human, capital and resources in the encrypted world. Although the current governance capacity of DAO is limited, it has attracted widespread attention, and even regulators have begun to pay attention to the legal aspects of DAO.

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