How Web3 Product is Redefining Control, Privacy, and Innovation

Abstract

Thank you for joining me on this exploration of the innovative and future-driven world!

Imagine you're at a lively party, and the DJ is like the central controller of Web2 — he decides what music to play, and everyone has to listen. If the DJ has an issue, the whole party goes quiet. But in a Web3 party, it's completely different: everyone can be their own DJ, freely choosing the music and even taking their favorite tracks to other parties! Web3, powered by decentralized blockchain technology, gives users more control, data security, and transaction freedom. You no longer rely on a central controller, and your data is no longer tied to a single server.

Pain Points

1. Centralization risks: Traditional Web2 applications rely on a single server to store data, making them vulnerable to attacks and manipulation.
2. Insufficient user privacy: User data is typically stored on servers, where users don't have full control over the privacy of their data.
3. Limited assets and transactions: Web2 applications don't support cryptocurrency transactions and lack the ability to trade digital assets.

Question and Strategy

1. How to solve centralization risks?

   Web3 stores data in a decentralized way using blockchain, employing distributed technologies like IPFS and Swarm to enhance data security and availability, reducing the risk of single-point failures.

   Strategy: Store data and logic on the blockchain, reducing dependency on a single server and increasing system resilience.

2. How to enhance user privacy and data control?

   Web3 emphasizes user control over their data, ensuring privacy through encryption and giving users the ability to choose how and with whom they share their data.

   Strategy: Implement decentralized identities (DID) and Ethereum Name Service (ENS) to ensure user data is secure and controlled.

3. How to enable digital asset and cryptocurrency transactions?

   Web3 supports decentralized exchanges (DEX) and DeFi applications, allowing users to trade cryptocurrencies and digital assets automatically through smart contracts.

   Strategy: Leverage smart contract platforms like Ethereum and DeFi solutions such as Uniswap and Compound to enable secure, automated transactions.

Summarize

Web3 introduces significant distinctions from Web2 through decentralized technology, smart contracts, digital assets, and user control over their data. By utilizing blockchain and distributed storage technologies, Web3 not only enhances data security but also gives users complete control over their data and assets. As the Web3 ecosystem expands, it brings profound innovation and powerful services to the digital world.

In the Web3 ecosystem, over 60% of decentralized finance (DeFi) liquidity is powered by applications like Uniswap, Compound, and Aave. More than 40% of NFT transactions occur on marketplaces such as OpenSea and Rarible. The Web3 infrastructure is rapidly growing, with decentralized storage solutions like IPFS and Swarm supporting much of the data needs of Web3 applications. Today, there are about 12,000 active DApps, ranging from finance to art and gaming.

Web3 relies on several core protocols and infrastructures. Ethereum holds approximately 70% of the smart contract platform market, with Polkadot and Solana following closely, supporting hundreds of decentralized applications (DApps). Over 80% of DApps rely on these platforms for security and scalability.

Beyond finance, Web3 applications have expanded into social networks, decentralized gaming, digital identity management, and DAOs (Decentralized Autonomous Organizations). According to recent industry reports, decentralized social platforms have experienced 30% user growth, while the number of DAOs has increased by 200% in the past year, highlighting Web3's innovation in organizational collaboration and governance.

By 2025, Web3 users are projected to reach 1 billion, progressively becoming the mainstream approach to digital life.

I personally believe that achieving true decentralization is very difficult. Voting decisions, especially in DAOs, are often portrayed as decentralized, but in reality, voting power is based on token holdings, with those holding the most tokens dominating decisions, leaving power in the hands of a few.

Moreover, many token holders do not participate in voting, and decisions are often made by a small group of active individuals. So, while Web3 offers more opportunities for participation, there are still limitations to achieving true decentralization through voting mechanisms.

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Thank you for taking the time to read and explore the new world with me! We are focused on product technology, innovation, and business, driving forward the next wave of advancements. I truly appreciate your interest, and I’m excited to share more insights and innovations as we continue this journey. Let’s shape the future of the web together!