Web3 trends and considerations

Early stage investing must think about the future, and the most common phrase we hear is that the future is coming, but what is the future? What does the future hold? It is really difficult to judge the prediction.But thinking about the future is something that you have to remind yourself to do often, think about how the next year will be, how it will be in 5 years, 10 years from now. What kind of changes this society, economy, technological development, business applications, environment, and even one’s own life may have. Thinking about the future is something that investors and entrepreneurs must always think about. The hot topics in recent years are nothing more than Web3, DAO, Metaverse and other topics that have come to the future. Let’s look at a pre-judgment released by Gartner in July 2022 for the life cycle of a segment of the blockchain ecosystem, in which the Metaverse will take more than 10 years from early adopters to the industry maturity period, while DAO and Web3 will take 5-10 years. From the perspective of early investment, now is the time for investors to start laying out their interventions and entrepreneurs to start thinking.

Web3 trends and considerations

Since the development of the Internet, centralized platforms and centralized institutions have solved many problems, improved efficiency, and promoted the development of the entire ecosystem, especially the so-called network effect is played by the centralized platform. But Web2 solves the problem and also creates new problems, the leakage of user identity, the opacity of data, involuntariness, invasion of privacy and even data theft that endangers the security of property. The asymmetric advantages of centralized platforms, industry monopolies, etc., all make users no longer free and unable to trust centralized platforms. Innovative distributed databases, smart contracts, private computing, autonomous data identity, distributed storage, etc., are to solve these problems and make the Internet more advanced. So we moved on to Web 3.In addition to Web3, the DAO and the Metaverse will build a prototype of a new future, and the more innovative infrastructure triggered by these three, the deconstruction of traditional business models and re-formation of new economic organization systems, and new business paradigms and models will make the entire human civilization more advanced. So we say Web3 is the infrastructure of the future, DAO is the future form of economic organization and the metacosm is the future form of life.

Many of the projects on the market today claim to be Web3 projects, but most of them only touch on concepts or involve simple technical infrastructure These are all parts of Web3, but Web3 is more than that. To use an analogy, it is like a blind man touching an elephant. Each of them has encountered a little, but they have not been able to get a glimpse of the whole picture, in fact, this whole picture is not formed, but has been evolving and innovating and changing. However, there are three basic elements that are driving the evolution of Web3. The first is artificial intelligence and smart contract technology, when it comes to artificial intelligence, perhaps readers will have doubts about this is not an old technology, yes, the development of artificial intelligence has been more than thirty years so far but has been in a dedicated scene, such as video recognition, but a certain degree of artificial intelligence is the basic cornerstone of Web3, such as Europe and the United States often say Sematic Internet (Sematic Web), spatial Internet (Spatial Web), these are based on a certain degree of artificial intelligence to take shape. In fact, in all Web3 application scenarios, all data needs to be processed by strong or weak intelligent algorithms, and the stronger the artificial intelligence, the better the Web3 application experience. The second is distributed computing, which can also be said to be edge computing, and the coverage of this edge computing is more general. Because the data source of Web3 is distributed, private computing must also be completed locally, and the computing and storage functions undertaken by each distributed node must be perfected, so that the data of a Web3 system can be effectively processed, so edge computing is an important foundation. The third is the distributed data network, the network mentioned here focuses on the structure of the data itself, which must be based on a blockchain-like protocol, based on a certain consensus mechanism, the source of the data, verification, verification are based on the structure of the distributed database is automatically implemented by the code. These three are the basic elements of Web3. Imagine a car with automatic driving 3 years later, with the right artificial intelligence so it can be completely autopiloted, the car itself is a sufficient edge computing node, and can perfectly process the data counted out by other nodes, and will process the processed data, or the native numbers generated by themselves are also sent out perfectly, then the owner of the car looks at the windshield that can be transformed like AR imaging, immersed in his own Metaverse.

Web3 trends and considerations

The basic logic of Web3 is actually very simple and intuitive, that is, user autonomy, which is equivalent to decentralization. So many people say that Web3 is decentralized, in fact, the core lies in user autonomy, but how to truly realize user autonomy from the technical level, it requires a lot of innovative infrastructure, once the infrastructure is complete, the native Web3 application can flourish. Therefore, what Web3 has to solve is how to achieve complete user autonomy, and on this basis, derive new business models, and even new business formats. In addition to the logic and the basics, we also have an analogy to the traditional approach of Web3. That is the operating system, the underlying of Web3 comes from distributed ledger technology, distributed database technology, which is like the document system (Filing) and I / O (output into the system) in the operating system, but also the Layer 1 in the blockchain, the structure of processing data. Distributed storage is the document system (Filing) in the operating system, the distributed computer is more directly responsible for the CPU in the operating system, and distributed data transmission (distributed communication) is like I/O. CPU, Filing System, I/O (output in) are all basic elements of the operating system, analogous to the bottom layer of Web3, but in the future do we have a chance to see a unified protocol to build Web3? I think it is unnecessary, Web3 should be the various functional modules protocol, layered and combinable, just like Lego, as long as you have enough components, you can complete a finished product/product.

Web3 trends and considerations

In addition to the underlying infrastructure mentioned above, Web3 has two other keys that have been difficult to touch in the past, one is decentralized digital identity, and the other is private computing. These two middleware are closely related. Digital identity is not a new topic, in the Web3 field, DID (decentralized identity) is a necessary foundation, just like a person without an ID card, nowhere to go, nothing, no personal organization can identify you, recognize you. So ID is the most critical foundation, without ID, there is no asset. In the native Web3 network, the ID is generally determined by the wallet address, but obviously the wallet address is not a unique ID, the decentralized identity originally allows multiple IDs, which can be disassembled and reassembled, but the reputation of each ID (influence) and credit (trust) must be verified by the data of the interaction involved in this ID, and finally belong to this ID. Therefore, even if it is multiple IDs, the arrangement and combination and integration of IDs can also create different application scenarios and business models. In addition to the native Web3 ID, the traditional Web2 ID must also be upgraded and iterated, plus a layer of privacy protection and privacy computing protection. Privacy computing as early as 1985 by S Goldwasser proposed zero-knowledge proof technology, in 1987 Oden Goldreich et al. in Tsinghua University based on the two-party security computing of Professor Yao Zhizhi developed multi-party security computing, in addition to homomorphic encryption and federal learning and other algorithms, further talk about the application of privacy computing in the data protection scenario, in addition to the privacy protection of Web3 native scenarios, in the field of Web medical, financial, government affairs, Supply chains and so on have also begun to land commercial cases.

Then after the basic technical architecture of Web3 is clear, the future trend is to build the application of these underlying technologies, and the data on all applications is the data provided by the distributed data network, which in turn forms what we know today as NFT, DeFi, Metaverse, creator economy, decentralized media, decentralized socialization, decentralized credit evaluation, etc. DApps (decentralized applications). In the Web3 ecosystem, there is also a very key is the new organizational form, now it seems that the DAO is a very Web3 architecture to develop a new organizational form, the core logic of the DAO is to transform the so-called Share Holder concept into Stake Holder, it can also be said that everyone is me, I am everyone, and its functions and attributes can be changed through the provisions and deployment of smart contracts with the goals to be completed by the organization. The smart contracts are like stacking Lego bricks, added up one by one by the members of the DAO according to the rules. Of course, each member’s rights and responsibilities are based on different dimensions such as contribution, credit evaluation, participation, and so on to establish their own soul binding.

Finally, Web3 shapes the future, the core logic is decentralization, which is reflected in the actual scene is user autonomy, but to open up the idea a little more brain, perhaps Web3 is pursuing the field that we don’t know. Traditionally, what you know is the so-called knowledge, and what you know you don’t know, you can use Web2’s Baidu, Google to query. You don’t know what you know, it doesn’t matter, Amazon in Web2, Facebook can rely on artificial intelligence to help you know. Then there’s what you don’t know you don’t know, maybe the Web3 opportunity is here. We look forward to working with you to create the future.

Web3 trends and considerations

About DraperDragon

Founded by Larry Li, Andy Tang, Bobby Chao, and Tim Draper in 2006, Draper Dragon is a cross-border venture fund that connects Silicon Valley and Asia. We have offices in Silicon Valley, Toronto, Shanghai, Hong Kong, Singapore, and Bangalore. We currently have RMB, USD, and digital assets funds. We look for early-stage companies that would disrupt and transform their industry landscape. Our fund and our partners have seeded and invested in many technology unicorns such as Microport Medical (HKSE: 0853.HK), Ledger, Yeepay, Coinbase (Nasdaq: COIN), Otter, 1047 Games, VeChain ($VET), Jing Jin Electric (SHA: 688280), IOTEX ($IOTX), QTUM ($QTUM), Oasis ($ROSE) among others.

Draper Dragon is an active investor in the digital assets, IT, and healthcare space, and a core member of Draper Venture Network. We draw upon the substantial resources and capabilities developed over two decades of venture capital investing, and startup company building.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/web3-trends-and-considerations/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-09-30 10:14
Next 2022-09-30 10:25

Related articles