With the help of distributed technology (blockchain), Web3.0 will subvert the Web2.0 Internet from the perspectives of openness, privacy and co-construction, create a decentralized world dominated by the user community, and reconstruct Internet traffic value paradigm.
In the era of Web 2.0, with Internet giants as the core, multiple ecosystems have been formed. Core Internet companies have monopoly on data, value and network effects, and there are strong barriers between ecosystems.The most important resource in the Internet world is the traffic entrance (user attention and capital flow). All of this will undergo profound changes in the Web3.0 era: the Web3.0 world will be fully open, and users’ behavior in it will not be restricted by ecological isolation. It can even be considered that users can freely (based on basic logic) swim in Web3 World; user data privacy will be fully protected by means of encryption algorithms and distributed storage; in the Web3 world, content and applications will be created and dominated by users, fully realizing the value of users’ co-construction, co-governance and sharing of the platform.
The main features of Web 3.0 are openness, privacy and co-construction.
Openness is reflected in:
1) The access of users in a certain Internet application “field” is fully free and the threshold is low;
2) User behavior is not restricted by third parties, Internet applications break the original so-called intra-ecological and inter-ecological boundaries, and there is a high degree of combination and compound between applications; synthetic assets, NFTs and other combinations can even be used without permission. , Under the premise of no delivery, the traditional world wealth will be integrated into Web3.0.
3) In addition, the interconnection between applications based on different infrastructures within Web3.0 can be solved by “cross-chain” protocols.
Privacy is reflected in: data ownership is owned by users, and value transfer does not require third-party authorization.
Co-construction is reflected in: the content creation of users in Web2.0 Internet applications is limited in many aspects (restricted by platform auditing, cross-platform restrictions), and even more restrictive in terms of community governance, so it also restricts users from creating value capture in terms of economic sharing. Web3.0 will break these limitations, and the token incentive mechanism of the blockchain will effectively feed back the value of the content economy to creators. Another aspect of co-construction and sharing is co-governance, that is, DAO.
New traffic paradigm. Web 3.0 will not simply compete for user attention and capital flow entry. Due to the complex nature of the protocol and the openness of user login, the number of protocol calls is often more important. At the same time, the rise of Sandbox, Roblox, and Minecraft has allowed the market to see the upgrade from 2D to 3D. In addition to a more three-dimensional display effect, there will be more social space.
About landing form. Web3.0 is full of imagination, and its final landing form cannot be clearly judged now. But there are already signs of a trend. During the evolution to Web 3.0, there are many hybrid products of Web 2.0 and Web 3.0. Typical representatives are Opensea and Metamask wallets.
Browser or APP ? Existing Web 3.0 applications are mainly accessed through web browsers on PCs and mobile phones. Unlike the Web 2.0 era where manufacturers like to develop independent mobile apps and PC clients, Web 3.0 may break this phenomenon. It may be more convenient for apps and clients to collect user behavior data, and it is also convenient for core manufacturers to manage ecological applications. This will change in the era of Web 3.0 that focuses on privacy and development.
In addition, this paper also makes some discussions and assumptions about the supervision in the era of Web 3.0 . 1) Stablecoins – bear the brunt of the traditional regulatory framework; 2) Privacy – the underlying KYC, and the application layer to achieve controllable and moderate anonymity; 3) DAO governance – the discussion stage, traditional supervision intervenes.
Risk warning : The implementation of the blockchain business model is less than expected; the uncertainty of regulatory policies.
1. Core point of view
Under the craze of the Metaverse, Web 3.0 is being mentioned more and more by the industry. What is Web 3.0?What are the characteristics of Web3.0? Why do we need Web3.0? As the first article of the Web3.0 series of reports of Guosheng Blockchain Research Institute, we will try to explore and analyze the above-mentioned questions without standard answers.
We believe that, in a macro sense, Web 3.0 will be the underlying network architecture of the currently hotly debated Metaverse. With the help of distributed technology (blockchain), Web 3.0 will move from three aspects: openness, privacy and co-construction. From the perspective of subverting the Web2.0 Internet, creating a decentralized world dominated by the user community, and reconstructing the Internet traffic value paradigm.
Although it is far away, in the ideal Web3.0 paradigm, the advantages of ecology, data, and traffic value enjoyed by Internet giants in the Web2.0 era will fade away, and will be replaced by a new Internet world of openness, privacy and co-construction. The application of Web 3.0 will break the boundaries of the ecosystem of Web 2.0, and the composite and combination of applications will not be restricted. Users will gallop in the Web 3.0 world with an open attitude, under the circumstance that privacy is fully protected Give full play to creativity and promote the development of more innovative applications and content creation in the Web3.0 world, while the traffic value will be returned to users and communities.
2. Where did Web3.0 come from and where will it go?
The current Web2.0 Internet seems to be “devouring” all fields, and people can’t help but talk about the disappearance of Web2.0 dividends. The blockchain, which started in 2008, began to impact the entire digital world in a decentralized way from the initial point-to-point payment. Especially in recent years, the emergence of innovations such as smart contracts, DeFi, and NFTs has led to the emergence of new digital networks. Paradigm possible. The digital world behind electronic screens and various terminal devices will be driven by Web3.0, and the dominance will be transferred from Internet giants to users.
Although the outline of Web3.0 is still vague, and the Web2.0 giants do not seem to feel its pressure, innovation from the community will soon change all this.
2.1. Web1.0 to Web3.0: what the Internet has experienced
Looking back at the evolution of the Internet from Web 1.0 to Web 2.0, we can see the changes surrounding traffic competition and traffic monetization. From Web1.0 to Web2.0, traffic goes from insufficient supply (the Internet just appeared) to competition for traffic entry in the market (Internet popularization), and then traffic is realized. In the middle, it has also experienced the evolution from PC Internet to mobile Internet. Web1.0 and Web2.0 can be said to be the era when traffic is king. Although innovation from the infrastructure to the application level continues, the logic that traffic is king remains unchanged. Behind the traffic, the ecological companies that control user traffic will enjoy the most market dividends. Correspondingly, user behavior data and user experience are all carried out under the constraints of ecological companies, user creation and construction activities are subject to certain restrictions, and data benefits cannot be obtained. Similar cases are very common, such as cross-platform restrictions on payment instruments, cross-platform hyperlink blocking, and so on. The flow is not limited to the user’s attention, but also the flow of funds, which is equivalent to the erosion of traditional finance by Web 2.0.
In the era of Web1.0 and Web2.0, users’ behavior is limited, user data privacy is not fully protected, and users’ creation and construction efforts on the Internet are weak, even if it is similar to Douyin. On the short video platform, the creation of users is also supervised by the platform, and the form and content of creation cannot be separated from the guidance and restrictions of the platform itself; the platform guides the content experience of most users through a small number of traffic Vs.
It can be said that in the Web 2.0 era, with Internet giants as the core, ecosystems are formed. Within the ecosystem, core Internet companies “rule” the ecosystem and monopolize the data, value and network effects of the ecosystem.
All of this will undergo profound changes in the Web3.0 era: the Web3.0 world will be fully open, and users’ behavior in it will not be restricted by ecological isolation. It can even be considered that users can freely (based on basic logic) swim in Web3 World; user data privacy will be protected by means of encryption algorithms and distributed storage; in the Web3 world, content and applications will be created and dominated by users, fully realizing user co-construction and co-governance (DAO, decentralized governance), and users will Share the value of the platform (protocol).
In addition to a completely different Internet model and user experience, Web3 will bring a new traffic entry paradigm.There will be some interesting changes in the traffic entry mode that occupies the user’s attention in the Web2 era.
Driven by distributed technology represented by blockchain, from the decentralized point-to-point ledger experiment to the decentralized smart contract platform, countless new applications (Dapps) have been born, and DeFi has gradually formed a “financial” in the digital world. services”, and NFTs accelerate the on-chain of assets. We see that beyond the traditional world (online and offline), users are getting closer and closer to a digital world that blends together. At this point, people are calling for a brand new online world – the Metaverse, which can credibly carry personal social identities and assets, and the community will have stronger dominance.
The above is a brief history of the evolution of Web 3.0.
This report will analyze the characteristics of Web3’s openness, privacy, and co-construction through some specific cases, and analyze the connotation of new traffic portals and value paradigms.
2.2. The Web3.0 ecosystem has taken shape
The Web 3.0 technology stack can be divided into three layers: the protocol layer, the application layer and the network base layer. All of this is mainly built on the blockchain (of course the protocol layer can also have auxiliary parts off-chain). From an application point of view, Web 3.0 covers DAOs (and tools), privacy, applications, storage and data, games, creators’ economic platforms, and social networking, and almost covers most areas of Web 2.0.
With the vigorous development of the cryptocurrency industry, a large number of Web 3.0 applications have emerged in the past two years. Of course, most of these applications may eventually be transitional products. Even some applications have flaws in economic models and user pain points, and do not reflect more real needs than Web 2.0.
In any case, the Web3.0 ecology has taken shape, and in the continuous application exploration, the Web3.0 will be unveiled step by step.
3. Labels for Web3: Open, Private and Co-Building Worlds
3.1. Open: Web3.0 breaks ecological boundaries
The openness of Web3.0 is reflected in:
- The user’s access in a certain Internet application “field” is fully free and the threshold is low; for example, users often use a blockchain account address to log in to the application on the chain, without registration permission, and the operation is convenient;
- User behavior is not restricted by third-party entities, Internet applications break the original so-called intra-ecological and inter-ecological boundaries and barriers, and under the principle of complex code operation logic, applications are highly combined and complex; the most direct The case is the so-called DeFi Lego, any application can call or aggregate the underlying basic protocol (such as DEX), and the synthetic asset platform maps real-world assets to the chain (no delivery relationship), which is equivalent to breaking the so-called online and offline and The boundary between virtual and reality.
- In addition, applications based on different infrastructures within Web3.0 can be interconnected by “cross-chain” protocols; therefore, users’ behaviors in multiple applications in the Web3.0 world can produce similar social relationship graphs, further enhancing the value of data. Tap into potential.
Taking the analogy of a game application, users can easily enter a game world without being restricted by third parties; users can freely implant their favorite characters/images into the game, and even make characters act across platforms/domains, while In the Web 2.0 era, in games such as King of Glory, you can’t decide the choice of the character, and you can’t even bring your favorite Monkey King into World of Warcraft – it’s not difficult to connect the platform in this regard, just because the control is not in the hands of the user. Of course, you can also trade equipment such as character skins (with the help of NFTs), and even build complex derivatives markets for game equipment based on other DeFi protocols. In short, the survival mode of Web3.0 is completed across application platforms, across virtual and reality.
This section will take ENS, MASK Network and Polkdot as examples to illustrate the meaning of openness.
3.1.1. ENS (Ethereum Name Service): Decentralized Authentication and Domain Name System
DNS (Domain Name System) is an important part of traditional Web2.0. When the user surfs the Internet, the server parses the user’s URL request into an IP address and returns it to the user.
For example, the IP address corresponding to the domain name www.https://www.bilibili.com/ may be http://220.127.116.11. This more readable domain name system reduces the difficulty for users to access URLs and makes an important contribution to the construction of Web 2.0. DNS solves the problem of Web2.0 access. However, with the continuous increase of URLs and the centralized characteristics of Web2.0, users often need to register a large number of website accounts to access different websites. In response to this problem, although many applications support the use of more mainstream third-party social APPs (such as WeChat, etc.) to log in directly, in general, the problem that such major websites are directly scattered and fragmented, resulting in users needing to register a large number of accounts still exists . In general, users need to register before they can use the domain name and account system managed by the centralized organization to access the application. How can users access various Internet applications without permission and with lower thresholds?
Different from the centralized characteristics of Web2.0, the login behavior of users in the Web3.0 world relies on decentralized identity, DID (Decentralized IDentity). The most commonly used type of DID is that users only use one on-chain account (blockchain public key address, a 42-bit string starting with 0x) to access various Web3.0 DApps, that is, single sign-on. Although it provides a more free and lower threshold access experience for Web3.0 users, it is obviously difficult to memorize and read the public key that is too long. The emergence of ENS (Ethereum Name Service), a domain name system built on Ethereum, is dedicated to solving this problem, connecting the user’s wallet address with a custom domain name, such as changing the wallet address like 0xaa111aaa1aa11aaa11a111a111aa1a1a11a11111 to GuoSheng .eth is a more readable domain name. When logging in to various DApps later, the domain name GuoSheng.eth can be used to log in, and users can conduct transfers and other actions through this domain name.
To sum up, the more open Web3.0 supports users to use only one account (wallet address) to complete various operations such as accessing DApps and interacting with other users. The emergence of ENS solves the readability problem of user interaction in Web3.0, and creates more convenient conditions for single sign-on.
ENS built on Ethereum can support the resolution of multi-chain addresses . Users can use the same bits in the ENS domain credits, and ether Square litecoin different addresses of different chain other analytical, but also includes content-addressable ENS functions (other than Web2.0 IP addressing), Internet applications to resolve website platform.
It is conceivable that in the future Web 3.0 era, users roaming in the Metaverse (which can span multiple applications) do not need to register and log in through a short domain name account.
3.1.2. MASK Network: an open door to Web 3.0
Mask Network is a set of plug-ins that connect traditional Web2.0 applications and Web3.0 applications, providing users of the former with access to Web3.0. The technical framework Dapplet (Decentralized Applet) developed by it supports embedding small programs on target websites (such as Facebook, Twitter and other traditional Web2.0 websites), so as to realize the decentralization of small programs in the centralized Web2.0 . It has since partnered with Arweave to support decentralized file uploading and storage on Facebook and Twitter.
Currently, users only need to install the Mask plug-in in the browser to check the token price on Twitter or Facebook, perform swap, participate in ITO (Initial Twitter Offering) and participate in community voting (with the help of Web3.0 applications such as snapshot). It also supports users to aggregate on-chain assets (including NFT collections and donation records) to Twitter.
The openness brought by Mask is obvious, that is, any user in Web2.0 can directly access Web3.0 and conduct related activities through Mask without any centralized APP or platform. Mask presents the open Web 3.0 world to every Web 2.0 user through a zero-threshold approach. That is to say, MASK connects Twitter with the blockchain platform, and users can freely travel between multiple platform applications. This is almost difficult to do in the Web2.0 ecosystem.
3.1.3. Polkdot: Bridge to the Divide within Web 3.0
Investors often ask: Is the future one Metaverse or multiple Metaverses? Can they communicate with each other?
Interoperability is divided into multiple levels, application layer, protocol layer, etc. An important issue is whether digital assets such as NFT are stored in alliance chains (Ant Chain, Zhixin Chain, Changan Chain, etc.) or public chains (Ethereum, Bitcoin, etc. ), cross-chain interoperability is the most basic, and the blockchain itself is a time-stamped ledger, how to achieve interoperability?
It is impossible to directly transmit messages and perform operations between different public chains. The gap between many application protocols in Web3.0 (which may be based on different underlying public chains) is often interconnected through cross-chain methods. Of course, bridging between Web3.0 protocols generally does not require authorization (registration) by third-party subjects, which still follows the openness principle of Web3.0. Cross-chain can be a cross-chain asset bridge (similar to a multi-chain asset exchange bank), or a multi-chain protocol such as Polkadot and Cosmos.
Polkadot is a scalable and heterogeneous multi-chain system that can transmit any data (not limited to tokens) to all blockchains to realize the mutual circulation of assets and data between chains. Polkadot is a project initiated by the Web3 Foundation, designed and developed by the Parity team led by former Ethereum CTO Gavin Wood. The infrastructure of the Polkadot network includes Relay Chain, Parachain and Bridge. Polkadot is a true multi-chain application environment that enables cross-chain registration and cross-chain computing and other similar operations become possible.
If Bitcoin is a calculator (electronic cash system), and Ethereum is a computer in the blockchain world, then Polkadot is a router or switch, between computing devices (whether it is a Windows system or an Apple system, or even a mobile device) It can transmit data and realize the interconnection of thousands of chains. From this perspective, the problem solved by Polkadot is not only the performance bottleneck of the public chain itself (faster transaction processing speed), but also to solve scalability from a richer perspective – enabling interoperability between originally incompatible chains , to provide a hub or route for the future world where multiple chains coexist. The Polkadot system is composed of a bunch of independently running blockchains, and Polkadot provides relay routing for these blockchains (called parachains).
As a relay chain, Polkadot provides the infrastructure for transmitting messages between parachains. It is worth noting that the transmitted messages are not limited to tokens (Tokens ), but arbitrary data; the types of parachains can be different (heterogeneous ). This is very important. The current blockchain is a distributed ledger. The main job of miners is to maintain accounts. The core data in the block is the account token balance. Other text data can be written as notes, but it is difficult to Freely pass messages between blocks; and, the two blockchains that are bridged can be of different types (even private chains). Based on Polkadot, this data can be transferred between public, open, permissionless blockchains as well as private, permissioned blockchains. Polkadot is a true multi-chain application environment where things like cross-chain registries and cross-chain computations can take place. For example, a private academic record chain on a school’s permissioned chain could send proofs to a degree verification smart contract on a public chain. For another example, Polkadot provides interoperability and cross-chain communication, unlike previous networks that operated primarily as independent environments. This opens the door to innovative new services, while also allowing users to transfer information between chains. For example, the chain of an exchange offering to trade tokenized stocks (to tokenize stocks) can communicate with a chain (oracle chain) that provides data on stock exchange frames, e.g. for tokenized stock trading Feed the price.
3.2. Privacy: Data Ownership and Transfer of Value
Data privacy has become the focus of global supervision. The current solution is to strengthen legal protection and make users aware that theft of user data is illegal; the second is to introduce privacy computing, through homomorphic encryption, multi-party secure computing, and trusted execution. Environment and other technologies to ensure that data is invisible in plaintext during use. In the era of Web 3.0, users will tend to protect the privacy of personal data in a more thorough way, which will lead to the transfer of data ownership and value. With the decentralization of applications, when the data on the chain can be checked, user behavior, generated data and even application protocols also need to be protected by privacy. Privacy protection is multi-faceted, including basic blockchain platform privacy protection, storage data privacy (distributed storage), user private key management, anonymity protocols, etc.
This section takes Horizen and NuCypher as examples to discuss the privacy features of Web 3.0. The former can provide users (including enterprise users) with a basic blockchain platform that can be developed without uploading local privacy data. Blockchain-related services, but fully protect the private data of enterprises; the latter provides a distributed private key sharing/hosting platform for Web3.0 users, which is different from the way that centralized institutions host user accounts in the Web2.0 era (letting Partial privacy), the management of Web 3.0 can also be decentralized to the network.
3.2.1. Horizen: a development platform under the premise of protecting privacy
Horizen, formerly known as Zencash, is committed to building a privacy protection and basic blockchain platform, providing a development platform for users or enterprises without uploading local private data. Horizen consists of a main chain and a side chain. The Horizen main chain mainly provides a simple and secure value transmission and storage layer for user interaction, supports the ecological operation of the entire Horizen through the native governance token ZEN, and provides the necessary infrastructure for the side chain. The implementation of specific functions and network infrastructure are developed by the side chain, so that more complex performance optimization can be carried out for specific use cases, and its scalability and security can be enhanced. The Horizen sidechain, also known as Zendoo, is highly scalable and designed. The side chain has an independent consensus mechanism and encryption algorithm, and truly achieves decentralization. Developers can quickly complete blockchain development through a set of standard general-purpose components opened by Horizen, the ZEN Sidechain Development Kit (SDK), thereby saving blockchain construction time. Using the zero-knowledge proof tool attached to the side chain can complete the development of enterprise needs without uploading local private data.
At the same time, the ZEN token and data can be interconnected and transmitted between the main chain and the side chain through its original cross-chain transfer protocol CCTP (The CrossChain Transfer Protocol), which provides a basic guarantee for solving the scalability problem.
Horizen uses Zk-snark (zero-knowledge proof) and security solutions such as 51% attack prevention to build a Web3.0 blockchain platform with extremely high privacy protection and security, providing privacy protection for users and developers.
3.2.2. NuCypher: Distributed Key Management System for Web 3.0
Different from the key custody of Web2.0 applications (generally hosted by Internet companies or third parties), blockchain private key management is a difficult problem for many primary users, and multi-party shared private key management (decentralized way ) is a more realistic requirement. How can users securely manage and share private keys with the help of Internet protocols? That is to say, multi-party shared private key management can entrust the private key to a decentralized network protocol (instead of handing it over to Internet companies like Web2.0), and securely share it among designated users, allowing users to solve the problem of entering Web3. The most basic needs before 0.
NuCypher is able to share private keys among any number of users on the Internet while proxying decryption authority using its core technology, proxy re-encryption. Its native token NU is mainly used to reward network node participants for key management and authority proxy/recovery operations.
The user key of the traditional centralized key management system (KMS) is stored by a centralized third party. Under the premise of the safety of the third-party storage organization, the user key can be fully and safely protected. When both users need to transmit data, the data sender needs to call the data receiver’s public key from a third-party organization to encrypt the data, and then the data receiver decrypts the data with its own private key. However, the disadvantage is that the data sender can only use the public key of the data receiver for encryption, and the data receiver can permanently retain access to the data after the data is transmitted.
The proxy re-encryption KMS adopted by NuCypher uses third-party nodes to distribute and store users’ key information. When the user transmits data, the data sender uses its own private key and the data receiver public key to generate a re-encryption key, then the key is divided into [n] segments, and each segment is distributed to the nodes on NuCypher to save. After that, the data recipient has only the right to access the information within the time period set by the data sender, and the data sender can also revoke the data recipient’s access right at any time.
In this way, NuCypher ensures the initiative of encryption authorization of data senders, and the distributed key storage scheme ensures the security of user key storage, and provides a security guarantee for the key management of Web3.0 data transmission.
3.3. DAO: A networked world of co-construction, co-governance and shared value
The content creation of users in Web2.0 Internet applications is limited in many aspects (restricted by platform auditing, cross-platform restrictions), and even more restricted in terms of community governance, so it also limits the user’s economic sharing of creators. value capture. The openness principle of Web 3.0 will break these limitations, and at the same time, the incentive mechanism of the blockchain will effectively feed back the value of the content economy to the creators.
3.3.1. Mirror: a fully user-led content creation platform
Mirror is similar to blog content creation platforms such as Medium and Substack. The problem it solves is that in traditional self-media, content creators can output ideas, but the gains are limited, and facing the problem of IP theft, can they solidify ideas into assets and support transactions? Mirror’s current main functions include:
Entries is the main content creation module of Mirror. Creators can edit documents here. Editing supports the format of plain text + Markdown (similar to hashtags). At the same time, Mirror also supports the direct migration of articles from other platforms such as Medium or Substack to Mirror. . For each output of the creator, Mirror supports direct minting into NFT. After NFTs are minted on-chain, creators can sell their works as NFTs. In this way, the revenue problem of content creators is solved. Creators can also permanently store works on the distributed storage platform Arweave to ensure the permanent storage of works.
The crowdfunding module supports creators to crowdfund any form of content, and can distribute corresponding supporter tokens (minted by the crowdfunding initiator) to supporters based on the funding amount of each supporter, and the top three crowdfunding can also Get unique NFT rewards. This token can be understood as the shares held by the supporters. If the works are minted as NFTs and then sold to obtain corresponding income, the corresponding income distribution can be made based on this. The NFT is the symbol of the members of the project community, which naturally establishes a DAO.
3) Revenue Splits (Splits):
The revenue splitting module supports creators to distribute work proceeds or auction proceeds to multiple other entities, so as to share the proceeds of joint works with collaborators. The split needs to be between at least two account addresses, and the sum of the split percentages between entities must be 100%. In this way, after the creator presets the income distribution ratio and rules in advance, each income will be automatically completed by the smart contract, avoiding the opacity of centralized income distribution.
4) NFT casting (Editions):
The Editions module is Mirror’s NFT casting module. Users can use this module to cast NFT works on Mirror, including prices, media files (currently supports four types of files: .jpg, .png, .gif, and .mp4), and total supply And the four creator-defined parameters of the first address of the fund. After minting, the NFT address will be generated, and the corresponding editionID will be added at the same time. This address can be directly embedded in other articles of Mirror, and the NFT will be displayed below the link.
Through the auction section, creators can auction their own NFT works. Creators need to set the reserve price and duration of the auction, and each bid should be no less than 10% of the last price. The auction can also create a corresponding URL address and embed it in the Entries module. The income after the auction can be directly transferred to the wallet address set by the creator, or can be transferred to the crowdfunding or income splitting module.
6) Voting (Token Race):
The voting function serves the DAO formed after crowdfunding, and its form is similar to Snapshot. Crowdfunding participants naturally form a DAO. Through the voting function, they can participate in the DAO’s decision-making and implement various community resolutions. On this basis, a closed-loop capability of the creator community is formed.
As one of the most important content creation platforms for Web3.0, Mirror allows any Web3.0 user to create their own works and carry out various activities around it. More importantly, the creators themselves completely own their own creative works and can fully dominate their works without being affected by the Mirror platform. Through modules such as Crowdfunds, Splits, and Token Race, creators can create content communities that belong to each community member, and work with members to build a community that belongs to everyone.
As a cutting-edge and idealistic exploration of Web3.0, the solution implemented by Mirror still has reference significance.
3.3.2. Gitcoin: a shared and co-governance platform for code and resources
In the traditional online world, what if you have a novel idea that needs to be implemented? Setting up a company to take VCs? Get an innovation department at a big company? Go to a crowdfunding platform? Try your luck at a garage coffee? These all seem inefficient, can there be a platform that bridges the gap between novel ideas, investors and code implementers?
Gitcoin is a decentralized collaboration platform built on Ethereum, which provides a development collaboration platform for developers and a donation platform (cryptocurrency donation) for investors. It can be simply understood as a crowdfunding and sharing platform for project code and funds. Its core functions are:
This section is mainly for the majority of Web 3.0 developers. Developers can seek external help for specified problems by publishing a bounty (Bounty), and other developers can get bounty rewards for solving the problem.Based on this, project developers can better build community projects, and developers who solve problems can get corresponding rewards.
There are many Hackathon projects integrated in this section, and developers can join hackathon competitions sponsored by various project parties here to develop corresponding products according to their themes.
3) Donations (Grants):
In the donation section, users can donate to some start-up and public goods projects. After the donation, some projects may give airdrop returns to the donating users. The core innovation of Gitcoin donation is Quadratic Funding.In the case of quadratic financing, the funds received by the project are the “square of the sum of the square roots” of the funds donated by the community members, namely
After that, the foundation will match donations in proportion to the community quadratic financing amount of each project. For example, there are two projects Grant1 and Grant2 in a round of fundraising. Grant1 received donations from 10 people in the equivalent of $1 in cryptocurrency, totaling $10. Grant2 received a $10 donation from 1 person, and the total is also $10. At this time, if the matching donation amount of the foundation is 1100 US dollars, according to the quadratic financing formula, the number of quadratic financing tickets that Grant1 can obtain is:
The number of quadratic financing tickets that Grant2 can obtain is
. Therefore, according to the number of votes for the quadratic financing of the two projects, the foundation matching donation that Grant1 can obtain is:
, and the foundation matching donation that Grant2 can get is
In this way, the projects with the most votes are often matched by the foundation, not the projects with the most votes.On the one hand, more users are encouraged to participate in donation voting, so as to vote for the projects with the most public services. On the other hand, it greatly increases the cost of defrauding the foundation for matching donations and reduces the risk of matching donations.
This section can support users to understand the Web3.0 world and various ecosystems in a game way. Users can choose topics they are interested in in the question bank to start learning, and then test the learning results in the form of question-and-answer attacks (each answer is correct One question, the robot generated by the system will reduce one drop of blood), and the corresponding reward can be obtained after defeating the robot, so its essence is a kind of Learn2Earn.
5) Honors (Kudos):
Kudos is a new way for users to express appreciation and build relationships with each other. If user A wants to express his gratitude to user B through Gitcoin, he can buy a medal of honor in the Kudos market and give it to user A.(The medal itself can be seen as some form of NFT)
6) Learning (Kernal):
Kernal is a peer-to-peer learning community that provides an excellent platform for users who want to deeply understand Web 3.0 through eight-week courses built by community members, including the history of Ethereum development, the global financial system, and the token economy. Learning and other aspects of knowledge.
Gitcoin provides the most friendly incubation platform and learning platform for various Web3.0 start-up projects and users who want to learn more about Web3.0. For the project, from the beginning of the hackathon to the development of donations, the Web3.0 project full of publicity develops with the support of every user, and finally returns to the Web3.0 users. For users, learn about Web3.0 here, support Web3.0, and build Web3.0 together through donations to projects. Here, everyone can contribute their own strength to the construction of Web 3.0, and realize real co-construction, sharing and co-governance.
3.4. Metaverse: Web3 promotes the fusion of “real world” and “virtual world”
In the era of Web3.0, the Metaverse will be an extremely imaginative and creative network form. In the Web2 era, people are accustomed to using “virtual world” and “real world” as the boundaries between online and offline worlds.The Metaverse built on the basis of Web3 will be a deep integration of the so-called “real world” and “virtual world”.
The Internet in the Web2 era has obvious ecological boundaries (this is the result of the operation mode of centralized companies), an Internet giant controls the core access to the ecology, and there are relatively few cross-ecological applications – for example, online payment tools cross-border Ecological restrictions, blocking of hyperlinks between important Internet application portals. The so-called Internet applications are actually restricted to activities in different ecological local areas. In the Metaverse world of the Web3 era, the “chasms” and boundaries of the Web2 era will be broken.
In addition to the cross-chain application mentioned in the above chapter, which solves the integration between different main chain ecosystems, the Metaverse world and the so-called “real world” will continue to integrate. For example, a subject in a Metaverse, in addition to engaging in economic activities in the DeFi market, can also hold real-world asset rights. That is to say, there is no isolation between the “virtual world” account and the “real world” account system for the assets in the Metaverse, and the Metaverse will be a fusion of the “real world” and the “virtual world”. It is generally believed that although the world of the Metaverse is jointly built by users, different applications can be freely integrated through various means, but the virtual world of the Metaverse cannot be connected with the asset accounts of the real world, because the real world exists between ecosystems Therefore, the “external Metaverse” cannot penetrate into the ecology of the current Web2 era. DeFi-based synthetic asset applications (such as mirror (the mirror in this section has the same name as the project in Section 3.3, which is a different project) or synthetix), we will see how to map the assets of the Web2 world to the Web3 world in the mode of dimensionality reduction.
Launched on December 4, 2020, Mirror Protocol (based on the Terra public chain) is a synthetic asset (Mirrored Assets, MmAssets) minting platform that tracks the price of stocks, futures, exchange-traded funds, and other traditional financial assets—even Tokens that map cryptocurrencies (Bitcoin, Ethereum, etc.) to the platform minted tokens, and MIR (Mirror Token) is the platform’s governance token. Users can synthesize mAssets by over-collateralizing UST (TerraUSD, a stable currency anchored to the U.S. dollar) or existing mAssets. Different mAssets will correspond to the prices of different stocks, futures, funds and other assets. When redeeming, the user needs to destroy the mAssets generated during minting through the Mirror platform, and the smart contract will charge a portion of the handling fee and return the UST or mAssets that the user mortgaged during minting.
Simply put, Mirror is to synthesize the assets of the traditional financial market (or encrypted market) into the form of Token, and map it to the cryptocurrency world. For example, Tesla’s stock token – mTSLA can be minted on the Mirror platform, or ETH tokens can be mapped to the Mirror platform – mETH tokens can be minted. In fact, obtaining mAssets by users is not equivalent to purchasing the corresponding financial assets, so there is no income such as stock dividends – but because the price is related to financial assets, and there are collaterals to support the value of synthetic assets, it can be understood as synthetic assets. Assets can obtain partial income rights of corresponding financial assets, and can also be compared to futures (non-deliverable) of financial assets.
At present, 26 synthetic assets have been launched on the platform, including stocks such as Tesla and Apple, and mainstream cryptocurrency assets such as BTC and ETH. Taking Tesla stock tokens as an example, the 24-hour liquidity has reached 14.8 million US dollars, and the trading volume is in At the million dollar level, the total liquidity of the Mirror platform has exceeded 1 billion US dollars.
How do individual stock prices on the Mirror platform anchor the real spot market? This requires the use of an oracle mechanism to link the prices of the two markets through a program algorithm. For details, please refer to our report “DeFi New Finance (2): Over-collateralization and Asset Mapping”.
Synthetic asset applications like Mirror or synthetix are equivalent to mapping assets to the Web3 world without any perception in the Web2 world. In this sense, a Web3-based Metaverse can incorporate “real world” assets. This is also an example of the “open” nature of Web3.
4. Evolution to a new paradigm of Web3.0 traffic value
What kind of paradigm will be the important traffic (entry) value of the Internet in the Web3.0 era?
Web2.0 competes for user attention and capital flow, so as to realize the realization of flow value. In the Web3.0 era, the value of traffic entry is still important, but it is by no means limited to this.
For example, Uniswap, one of the biggest contributors to the promotion of “DeFi Summer”, from the perspective of users, also likes the same traffic portal as Web2.0 – users use its DEX protocol to complete the transaction exchange function, and the handling fee paid by users is used as The traffic realization of the protocol (platform) (part of which is fed back to the LP), from this perspective, Uniswap is not fundamentally different from other applications of Web2.0.But as a basic DEX protocol, Uniswap can be called by other protocols to generate composite features (the so-called DeFi Lego). The most typical applications such as revenue pools, transaction aggregators, etc., users complete DeFi “mining” income and transaction exchange functions on these applications. Behind them are often DEX protocols such as Uniswap, which are hidden from users. Behind the scenes, and there may be multiple protocol calls in the middle.But for the realization of Uniswap basic protocol traffic, the effect is the same.
Due to the openness of the Web3.0 world, these calls do not have issues such as licensing and ecological boundaries, and are completely open. Therefore , the traffic value paradigm of Web3.0 will show the characteristics of openness. In addition, the Web 3.0 traffic value is also strongly correlated with the number of protocol calls.
Currently we see a number of social (micro-channel, microblogging), entertainment (the Steam ), financial (East Fortune) and other platforms are Web1.0 to Web2.0 evolution of the beneficiaries, the future of the Web3.0 is how the evolution of the form of?
Web3.0 is full of imagination, and its final landing form cannot be clearly judged now. But there are already signs of a trend. During the evolution to Web 3.0, there are many products in the form of a mixture of Web 2.0 and Web 3.0.Typical representatives in this regard are the NFT trading platform Opensea and the Metamask wallet. Opensea’s revenue relies on NFT transaction fees, which is similar to the traditional e-commerce or centralized exchange model.Metamask wallet is in the form of embedded PC browser plug-ins such as Chrome and mobile apps. As an important user portal, Metamask integrates the swap aggregation function. Users can directly call the DEX protocol through it to complete the token exchange, and an additional fee will be paid to the Metamask platform. . Both are typical Web 2.0 products. But users operating on these two platforms is a typical product or function of the Web 3.0 world.
In the second half of 2021, with the popularity of the NFT trading market, Opensea entered a period of surge in transaction volume and transaction volume. The monthly transaction volume in August exceeded 3.4 billion US dollars.As the most widely used browser wallet plug-in, Metamask’s traffic entry value is reflected, and users based on their use of swap transactions and platform fees have also increased significantly. On September 30, 2021, the transaction volume was nearly 400 million US dollars, and the platform fee income was 3.5 million US dollars.
This is perhaps the most interesting phenomenon so far. The user’s belief and yearning for Web 3.0 has turned into the traffic and income of Web 2.0 merchants. Strictly speaking, Opensea and Metamask are typical Web 2.0 products with extremely simple and traditional traffic monetization models. NFT transactions and DeFi mining, these seem to be the basic components of the Web 3.0 world, but ultimately create traffic value for Web 2.0 products. Perhaps for this reason, Elon Musk tweeted: “Has anyone seen Web 3.0? I haven’t”.
Of course, this is only a transitional form, and maybe this form will exist for a long time, but we believe that new Web 3.0 applications, new product logic and new traffic paradigms are happening.
From 2D to 3D ?
Recently, with the release of Baidu Xirong and NetEase Fuxi, and Samsung building a virtual store on Decentraland , the market is gradually paying attention to the 3D digital world. The evolution from 2D to 3D is expected to be the most accessible change for ordinary users. Taking the virtual headquarters of Guosheng Blockchain Research Institute in Decentraland as an example, the virtual building itself is equivalent to the homepage of the team, which can display research products and team situations, and of course can also interact with virtual people. When a roadshow is required, PPT can be demonstrated in the roadshow hall on the second floor or streaming media can be accessed, and the audience can manage the whitelist by issuing badges NFT. We judge that based on the gradually complete IT infrastructure, more social traffic will be upgraded to 3D in 2022.
In traditional Web 2.0, users who browse the homepage at the same time do not interact with each other, but when they enter the 3D world, their social desire will be stronger, and individual resolution can be improved through NFT, skin, etc. We believe that immersion in the Metaverse comes more from social, sharing, and economic activity than it is limited to AR/VR. Evolution from 2D to 3D to Web3.0? of course not. This is just an interface upgrade that users see, and the deeper level is how to motivate players to create, share and interact. In short, if Roblox and TikTok had no economic incentives, would there still be so many users creating content for games and short videos? In essence, the construction of immersion comes from the superposition of internal sharing, self-satisfaction brought by creation and fierce external economy.
Browser or APP ?
In the era of Web 2.0, various APPs have become the main front of applications, giving birth to businesses such as purchases and flashing machines, and a large amount of users’ time and data are bundled in the head APP. Existing Web 3.0 applications are mainly accessed through web browsers on the PC side. The mobile terminal is accessed by a web browser, and the wallet app can also be used as an entrance, but the specific applications are still accessed through the web. Unlike the Web 2.0 era where manufacturers like to develop independent mobile apps and PC clients, Web 3.0 may break this phenomenon. It may be more convenient for apps and clients to collect user behavior data, and it is also convenient for core manufacturers to manage ecological applications (appstore review and management similar to appstore). This will change in the era of Web 3.0 that focuses on privacy and development.Perhaps Web 3.0, as its name suggests, will serve as the foundation for all applications.
5. Regulatory thinking in the era of Web 3.0
The regulatory challenges brought by Web 3.0 are undoubtedly huge. In the context of openness, privacy and co-construction, it does not mean that Web 3.0 applications do not require supervision. But there is no doubt that due to the huge innovation of the Web3.0 application business model, the supervision method is bound to undergo major changes to adapt to the development of new things.
Therefore, we believe that in the era of Web 3.0, supervision will show the following development trends:
1 ) For the channel/ business that communicates the two worlds of Web3.0 and Web2.0 , it will bear the brunt and seek a suitable supervision model to adapt to the development of Web3.0 :
For example, as an important channel for traditional world wealth to enter the Web3.0 world, stablecoins will be the first to generate regulatory behavior . We pointed out in the middle of the “DeFi New Finance (2): Over-collateralization and Asset Mapping” report that in the long run, the integration of stablecoins with the real economic world is a major trend, and stablecoins are an important bridge to communicate the wealth of the two worlds.
The biggest problem with stablecoins is that they conflict with current monetary policy. Obviously, the stablecoin acts as a “fiat currency” in the cryptocurrency market, which to some extent violates the current monetary policies of various countries (and also violates other financial regulatory policies, such as securities, futures, etc., and even tax policies may be violated). ), which is also a common problem faced by cryptocurrency assets. In November 2020, the “China Financial Stability Report (2020)” mentioned stablecoins for the first time (Financial Stability Analysis Group of the People’s Bank of China, 2020), and in July 2021, the “White Paper on the Development of China’s Digital RMB” pointed out that some commercial institutions The planned launch of a global stable currency will bring many risks and challenges to the international monetary system, payment and settlement system, monetary policy, cross-border capital flow management, etc., and the stable currency will be included in the list of virtual currency supervision.
But for the global market, stablecoins may grow rapidly with the cryptocurrency market. Therefore, for a period of time in the future, the conflict between stablecoins and regulation will become the background for the development of the industry. The final result may be that innovation and regulation meet each other to promote the evolution and iteration of regulation. In Europe and the United States and other places, the cryptocurrency market and the traditional financial market will be further integrated. Central banks will incorporate stablecoins into the monetary regulatory system. The future currency Policies may include policies for stablecoins. The premise of all this is to clarify the regulatory positioning of stablecoins—prohibiting their use, accepting them as currencies, or treating them as new financial products are all potential options, depending on the different market conditions of each country.
2) In terms of privacy and anonymity, there may be KYC at the bottom layer and moderate anonymity at the application layer:
For the privacy and anonymity functions brought by distributed networks, on the one hand, there is a need for privacy and anonymity. On the other hand, not privacy and anonymity means that supervision will be completely ignored. In the real world, supervision must exist, and Web3.0 will also explore the integration of China and supervision. A plausible approach is to implement supervision at the bottom layer of the blockchain network, which means that there will be regulatory constraints such as KYC on the underlying accounts, while achieving moderate anonymity at the intermediate protocol layer and application layer. Of course, the means of supervision are also flexible, and information such as user KYC can be stored in the multi-signature network participated by the supervision.
3 ) In the process of DAO governance, supervision will inevitably be introduced as a governance party:
DAO is an important governance mechanism for the operation of the Web3.0 world, but the ideal DAO solution does not seem to be able to solve all problems. Often after the occurrence of problems such as arbitration and recovery of stolen assets, government agencies and regulatory agencies in the real society often have very realistic effect. For example, in the case of frequent hacking incidents in DeFi systems, and other unforeseen events resulting in losses, it is not enough to rely solely on DAOs. At this time, it is often solved by means of the real society, government and laws.For example, when a DeFi project is at risk, relying solely on the decentralized governance of the community may not urge the development team to protect or recover users’ encrypted assets. On the contrary, when a crisis occurs, what can really deter attackers is the centralized institutions and legal deterrence in the real society. For example, when part of the hacker’s personal information is exposed and part of the assets is frozen by the centralized organization, the hacker is willing to negotiate with the development team and promise to return the stolen assets. For example, in the theft of the Poly Network project in August 2021, the safest part of the stolen funds was the $33 million equivalent of assets announced to be frozen by the stablecoin issuing company Tether. As a centralized company, Tether has a frozen chain Permission to list USDT assets.
From this, we can imagine that the governance of DAOs will inevitably involve the participation of real social regulators, and the regulators as the governance party of DAOs seem to be a very ideal solution.
The implementation of the blockchain business model is less than expected: Web3.0 is based on technologies such as blockchain and cryptography. The related technologies and projects are in the early stages of development, and there is a risk that the business model will not be implemented as expected.
Uncertainty of regulatory policies: The actual operation of Web 3.0 involves a number of financial, network and other regulatory policies. Currently, the regulatory policies of various countries are still in the research and exploration stage, and there is no mature regulatory model, so the industry faces regulatory policies. risk of uncertainty.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/web3-0-era-openness-privacy-co-construction/
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