Some time ago, I scattered some opinions on the data on the chain on Twitter. Some friends asked me to talk about it in private messages, so this article can be considered as my own thinking. It has been half a year since the last article. I hope that the update frequency will be higher in the future.
- In Web2.0, your data is valuable, but it does not belong to you, and the value is not assigned to you.
- Data on the chain is a gold mine, the more applications, the more data, the bigger the gold mine
- In Web3.0, your value behavior will eventually be rewarded, and the carrier of value is your data, which also belongs to yourself.
In the world of Web2.0, if you are the number one Zhao Yun in Jing’an District, Shanghai in Glory of Kings, and all skins are collected, you can only start from a blank sheet of From zero, no one knew that you were a master of the king. If you are a well-known up host at station B, you may find that someone has been carrying videos under your name on Youtube.If you have 5,000 yuan on WeChat and want to transfer it to Alipay, and find that this is impossible, you can only withdraw cash to your bank card and recharge it to Alipay. Every time you use a new product on the website on your mobile phone, you have to go through the process of mobile phone number/email/user+password/verification code, and then click again when you use the product that is not very useful for the second time. Retrieve the password.
In the world of Web2.0, every application locks users in every way, improves stickiness and retention, builds a moat between users and data, and extracts the greatest value from it. As a user, although you get the experience of using the product, you actually have nothing. All your data can be wiped out overnight . BlogCN, once the largest Chinese blog community, used to be a school intranet, not to mention how many online games were shut down. Essentially, the user’s behavior and data are working for the company. When you checked the “Service Agreement” and “Privacy Clause” when you registered, you have signed an extremely unequal contract , that is, you The data belongs to the company and can be used and realized at will. If we don’t operate anymore, I’m sorry, the right of interpretation belongs to me, your account is gone, and your data is gone.
Therefore, in Web2.0, your data is valuable, but it does not belong to you, and the value is not assigned to you.
Under the Web3.0 framework based on blockchain technology as the bottom layer, it seems to have taken a step forward.The blockchain is a public database, and all applications read and write data on it. Due to current performance limitations and high interaction costs, applications tend to only put “high-value behavior” interactions on the chain, and these behavioral data is simply a gold mine.
Four years ago, it was the era of ICO and the pie-drawing contest of various public chains. The types of transactions on the chain were very single, and most of them were token transfers. In 4 years, the application layer has ushered in the explosion of several tracks, from DeFi to NFT to GameFi, a hundred flowers blooming, thousands of applications have recorded various forms of data on the chain. The filtering/analysis/processing of these data can produce countless scenarios. From capturing transaction opportunities, to finding accurate user address groups, to forming chain identities and social relationships, everything is an opportunity of more than tens of billions of dollars. .
One is all
In my last article “Talking about NFT and Metaverse as I understand it”, I mentioned the interoperability brought by blockchain many times. From a data point of view, interoperability is a great change that cannot be imagined in Web 2.0.Account can address a native also visit thousands of applications, high-value generated by the behavior of these applications are recorded under one account for each chain interactions on an address, you can know the address (behind the person) Is it an early liquidity mining user of DeFi, is it an NFT collector, is it a DEX transaction user, is it a GameFi player, etc.?
The user portrait of an address can be completely described by these on-chain behaviors. In the Web 2.0 world, every footprint you make on the Internet is in the hands of different companies, and each company only controls all your behaviors. A fragment, the more a giant company is involved in the business, the more fragments it can master, but it cannot piece together the whole picture. On the blockchain, the full picture of an address is hidden in each of your chain interactions. Any person and organization can piece together your portrait without permission. For example, RSS3/Project Galaxy/CyberConnect are organizing and presenting users’ on-chain portraits and behaviors in different ways.
What’s the value
Value behavior is rewarded
In Web2.0, if you make a game and want to attract users of King Glory as seed users, is this possible? Even if you are inside Tencent, you may not get the resources and permissions you want. If you make a social product and want to attract Weibo users in batches, is this possible?
On the chain, it is clear at a glance which address has played which game and how much money has been spent. Which addresses have participated in YFI mining, Curve pre-mining, NFT transactions, you can easily get the address list. You can use a series of filter criteria to find the list of seed users that meet your requirements, airdrop them, give them some benefits, and then attract them to use your product.
The value of a product comes from every interaction on the chain of every user, whether it is NFT transactions or the addition of liquidity. If the value generated by these interactive behaviors is not recognized by the project party, it does not matter, there will be other project parties to value the value brought by these behaviors . A few days ago, OpenDao airdropped $SOS tokens to Opensea users. It is very interesting. My focus is not whether OpenDao can become an NFT exchange surpassing Opensea through this operation (I think this is difficult). It’s that even if your high-value behavior on Opensea does not get the expected return (Opensea is likely to go the IPO route), others can also give it. $SOS is not the first and not the last. There was Rarible before. (For NFT holders, most people get the NFT early through the Opensea transaction), there will be LooksRare and more later.
In the token economic model of each new project, everyone will think about 1. How do I find the first seed users to give them airdrops; 2. How do I return to the users who provide value to my product. So you can do what you should do on the chain, and your “high-value behavior” will bring you “value” sooner or later.
Users who have experienced DeFi Summer in 2020, believe that the airdrops of various projects in the past year have been softened. This is the feedback that your data value brings to you. If you think that you withdraw all the balance in an address, the account will be worthless. This perception is wrong. Your footprint on the chain is the most precious. Please cherish each of your wallet addresses. Don’t take it lightly. Lost.
Traceable identity value without proof
If you are a veteran player of the first generation of Legends, it is difficult for you to prove that you have played or played a magical outfit, because the data is gone after the server is closed. But if Cryptokitties shuts down a few years later, you can still use your Ethereum address to tell everyone that you bought a Christmas cat at the end of 2017. On Linkedin, you can package “made a few pages of PPT” as “leading a $500 million merger and acquisition case”. On the blockchain, you brag that you are a big DeFi player/early player. Is it true? Just look at it.
I received a resume last week-
You don’t need too much text. Look at Opensea, RSS3, Mirror, Cyberconnect and you will know which Dapps and NFTs the brother has used in the past two years, and whether he is a crypto native. Data on the chain is worth a thousand words.Hiring people in this industry, I think Linkedin can stop cooking.
These data can not only truly reflect a person’s history and identity on the chain, but also can natively establish social relationships and group relationships. We now have many groups, which are still built on top of Web2.0 applications like WeChat, Discord, and telegram, such as DeFi fan group, NFT discussion group, and XX project big user group. In fact, many users in the group may have nothing to do with the theme, they may have never played DeFi, and have not bought a token for a certain project, but they play a rhythm in the group.”
If it is a community tool based on wallet address login, it is natural to create groups based on certain screening conditions, such as NFT communities that can only join with Punks or BAYC addresses, such as holding certain DeFi Tokens and the number reaches a certain condition DeFi communities that can only join, such as the DAO community that has participated in the Snapshot voting governance of more than 3 projects and so on. These group entry thresholds can be automatically judged by reading the asset information and behavior history of the address on the chain without proof. If the conditions are no longer met, users who do not meet the threshold will be automatically kicked out. Rights management can also automatically raise and lower rights based on the data on the chain, instead of manually setting by the administrator. For example, if you have 100 tokens for a certain project, you can enter the general group, and if you have more than 100,000 tokens, you can automatically enter the VIP group of large users, and automatically get the rainbow-colored ID logo, and so on. Many projects, such as ShowMe and Metalink, are doing exploration in this direction.
The community established in this way is more transparent and efficient. Everyone is a member who meets the threshold for joining the group. This process is native, real, dynamically updated, and trustless.
Data Driven Alpha
There are billions of dollars of token transactions and hundreds of millions of dollars of NFT transactions on the chain every day, and this information is public. It is not difficult to imagine how much Alpha can be mined. nansen.ai has achieved the extreme on this point, and iterated products with revenues of tens of millions of dollars and a valuation of nearly one billion dollars in just one and a half years. Whale markings on the chain, Smart Money tracking, chip flow and distribution under the Token God mode, deep mining of NFT projects… These information is given to a user with analytical capabilities, which is equivalent to putting an ATM on him before.
Above, I just listed a few scenarios that are happening and rapidly iterating. They are just the tip of the iceberg. The value of the big gold mine of on-chain data has been fully reflected. In the future, we will see the data based on the chain. Credit Score, the wide application of decentralized identity in the Metaverse, and a data product that captures a certain angle to bring value to users like nansen.
In Web3.0, the data on the chain belongs to everyone, and at the same time it is readable by everyone or organization, and everyone can capture the value of these data. The distribution of value is being reshaped. In the foreseeable future, when you use any application in Web3.0, you will not start from scratch, but walk in each application with your address profile and tags. The carrier of value is your data, which also belongs to yourself.
Give yourself AMA
Q: What should I do with multiple addresses?
A: Many people change addresses every time they play DeFi. A feasible solution is to verify the multiple wallet addresses of the bundle through a signature under a DID framework, and then label/analyze/calculate your identity based on these multiple wallet addresses. Spectral is using this method to make on-chain credits.
Q: Now the experience of these Web3.0 applications is not good, I use a woolen thread?
really. The current infrastructure is still not perfect. When we read data on the chain, if we read the data directly through the blockchain every time, and read the files directly through decentralized storage, it must not solve the problem of high concurrency, although there is Ceramics. Such a solution, but still in the early days, the number of users of CyberConnect in the past few days has already killed Ceramics.
If you agree with the data value brought by the blockchain that I wrote in the article, then everything is only a matter of time.
Q: According to what you said, the moat of Web2.0 medium and large companies-users and data, is no longer a moat, so what is the moat of Web3.0 companies? Is there a business problem?
A: This is a question that I have been thinking about over the past few years. It is worth writing a separate article to discuss it. But to make a long story short, if Web3.0 ultimately allows users to obtain a more reasonable value distribution and a better user experience, then all of this is valuable and is the right direction for development. The business model created in Web2.0 is the logic of acquiring users for free or even subsidies to circle users in and then monetize them. In Web3.0, there will be another way to capture value and a commercial moat.
Q: Should I stud the items you mentioned above?
A: This article does not constitute any investment advice. Which of the projects mentioned in the above article can be successful is difficult to judge at this moment. Just like in 2018, Jihoz, the co-founder of Axie, was very excited to tell me that Axie has reached 160 DAU. At that time, I believe that neither of us would dare to imagine that Axie will live by one million daily lives and tens of billions of dollars in 3 years. FDV. At this moment, we can only bet on the right direction, a reliable and long-term team, and continue to explore together on the road in the next few years.
Personally, my organization and I are very optimistic about the entire track derived from data. This is an important investment theme for us in the Web3.0 field, and we have also laid out a number of ecological projects. Welcome friends who start a business on this track to communicate.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/talk-about-web3-reshaping-the-value-of-data/
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