A Brief Analysis of Web3.0 Technology

Part 01   Web3.0 concepts and features  

Web3.0 is a new generation of Internet based on the concepts of trustlessness, disintermediation and digital assetization, with blockchain as the underlying key technology and digital production and digital consumption as the main economic forms. Its main features are to reconstruct the application logic of Web2.0 using distributed ledger technology, further integrate information flow, business flow and value flow using blockchain's trusted collaboration, distributed execution, data protection, asset transfer and other capabilities, and replace existing Internet application services with more standardized and simpler on-chain smart contracts to eliminate dependence on central institutions. Web3.0 is an improvement on Web2.0. Users do not have to create multiple identities on different centralized platforms, but can create a decentralized universal digital identity system that can be used on various platforms.

Table 1 Analysis of characteristics from Web1.0 to Web3.0

Part 02   Analysis of Key Technologies of Web3.0  

The overall architecture of Web3.0 technology applications can be divided into infrastructure layer, component layer and application layer. These three layers are mainly built based on blockchain .

➪ Users at the infrastructure layer need to complete KYC, and use multi-signatures to supervise the underlying access and data storage, mainly including blockchain, distributed storage, computing power network, etc. The blockchain platform is responsible for providing multi-party consensus, difficult to tamper with, and traceable data governance capabilities, which can be composed of different types of blockchains: the alliance chain is composed of small-scale trusted subject nodes, usually with a clear operating entity, manageable and controllable, but the user range and network scale are small; the public chain is composed of large-scale anonymous user nodes, facing global users, with no threshold for chain access, but difficult to supervise, and prone to illegal financial applications such as illegal financing.

➪ The component layer class includes components such as token issuance and circulation, digital asset management, digital identity, digital wallet, distributed finance, etc. based on the blockchain platform. It provides customizable modular solutions for digital asset transactions, application ecosystem construction, data security protection, and application interoperability, and is the core part of the overall architecture.

➪ The application layer is built on distributed infrastructure and composable components. In order to meet the new needs of the next generation of the Internet, the application ecosystem is constantly enriched. On the one hand, it includes the reconstruction of applications migrated from Web2.0, such as data circulation, cross-border payment, supply chain management, intellectual property management and other application scenarios; on the other hand, it is the digital native application form born with the new concept of Web3.0, such as finance, social, collaboration, games and other applications, which are new expression modes reflected in the context of the return of digital property rights.

Part 03   Main Features of Web3.0  

With the help of distributed technology (blockchain), Web 3.0 has created a decentralized world led by the user community and reconstructed the value paradigm of Internet traffic. It not only covers the Web 2.0 Internet, but also has the characteristics of openness, privacy and co-construction.

• Decentralization: Users have decentralized identities that are truly controlled by the users, and their behavior is not restricted by third parties. Users store their identity authentication information on a blockchain address that is completely controlled by them.
• Openness: The entry threshold for users in a certain Internet application "field" is low and fully free, and user behavior is not restricted by third parties; the applications based on different infrastructures within Web 3.0 can be interconnected by "cross-chain" protocols, and Internet applications can break the original boundaries within and between ecosystems, and the applications are highly combinable and complex; with the combination of synthetic assets, NFTs, etc., the traditional world's court services can be integrated into Web 3.0 without permission and delivery.
• Privacy: Data ownership belongs to the user, and value transfer does not require third-party authorization. User data privacy is protected through application decentralization, distributed storage, user private key management, anonymous protocols, etc.
• Co-construction: The ecological construction of Web3.0 is inseparable from collaboration. Users work together in an orderly manner due to common goals and through decentralized organizations to formulate and implement relevant organizational rules, thereby achieving community co-construction and self-governance.

Part 04   Web3.0 Application Scenarios  

Although Web3.0 is still in its early stages of development, its application scenarios have already covered various fields such as entertainment, learning, development, games, media, social networking, infrastructure, investment and financial transactions. Whether at home or abroad, entrepreneurial and investment projects in these fields are very active.

1️⃣ Decentralized Autonomous Organization (DAO)

DAOs are online member-owned communities governed by the consensus of their members rather than by centralized leadership.

2️⃣Decentralized Finance (DeFi)

Decentralized finance or “DeFi” refers to decentralized applications in the financial sector (savings, loans, and foreign exchange), such as Bitcoin and Ethereum 2.0.

3️⃣ Stablecoins and Central Bank Digital Currencies (CBDCs)

Stablecoins are privately issued cryptocurrencies that maintain a stable value over a period of time relative to the US dollar or euro. Central bank digital currencies are digital currencies issued by governments, symbolizing national sovereignty and obligations.

4️⃣Creator Economy

The Creator Economy is an emerging community of creators, such as artists, musicians, game developers, etc., who connect directly with supporters (fans) and collaborate without intermediaries, enabling creators to obtain independent sources of income.

5️⃣Chain Games (Gamefi)

Blockchain-based games apply blockchain technology to games. All operations during the game are completed on the chain. Through the rules and constraints of smart contracts, personal game assets are made transparent, private, and secure. Players can not only enjoy the fun of the game, but also sell NFTs such as equipment and props on the trading market to earn income.

6️⃣Electronic chat

This new generation of blockchain-based messenger provides high productivity and security. It uses peer-to-peer (P2P) technology, IPFS, and MTProto encryption algorithms to provide decentralized and secure services. Users can not only use this messenger to communicate securely, but also send cryptocurrencies.

7️⃣ Stoy

A cloud-based service that uses blockchain to securely store users' files. Storj's main advantage over Dropbox, Google Drive, and other services is its immunity to outages and privacy breaches.

8️⃣ Sapien

Sapien is a decentralized social news platform that aims to fight fake news through decentralization, democratization, interoperability, and tokenization. This Web 3.0 example shows that social media can provide a more trustworthy, ad-free service by using advanced technology. Using Web 3.0 applications, Sapien shows that it is possible to eliminate censorship, protect privacy, and defend free speech.

9️⃣ Brave Browser

This browser with integrated IPFS is characterized by decentralization, efficiency, security, and lower costs. Brave users can forget about censorship and connection issues and enjoy a more private and powerful experience. Brave also boasts faster speeds, which is achieved by blocking ads on websites. This feature allows users to send money to their favorite websites.

🔟 Ethlance

This remote work platform uses Ethereum blockchain technology. It allows users to use Ether as a cryptocurrency for recruitment and work. Unlike other services, Ethlance has no service fees and does not restrict membership.

Part 05   Conclusion

The goal of Web 3.0 is to establish a unified identity authentication system, data rights confirmation and authorization, and achieve decentralized operation, privacy protection, and anti-censorship. It is a new digital economic development model that is expected to have a profound impact on the next generation of the Internet. There is broad room for imagination in its technological value and commercial value.