Lack of awareness, but the courage to innovate, read too little, think too much, and be too daring, this is a subjective reason for the collapse of many DeFi and Web3 projects
Web3 is a new field of cross-integration between economic and social disciplines such as economics, finance, law, and mechanism design, and digital information technology such as IT, mathematics, and cryptography. It is so new that not only does not have authoritative scholars, but even a basic knowledge system It’s not sorted out, and people don’t even know what to learn.
Most practitioners do not have the relevant basic knowledge and basic concepts. While thinking wildly, they are rambling with their bare hands. This has led to the popularity of many superficial and absurd concepts, and created many projects that are illusory at the root . As a result, a good-looking future digital technology smells similar to that of the master of Shenquan.
On the other hand, most scholars who have learned to be rich and five-car are condescending, preconceived, and imitate some theories and models from the traditional world . Few people are willing to go into the game and personally cultivate this barbaric and dynamic new continent. Therefore, they lack the basic ability to explain reality. , let alone forecasting and leading trends. It can be said that Web3 is now a completely theoretical wilderness.
In this case, if I jumped out and proposed a “knowledge system” or “learning path” for Web3 and digital assets, it would definitely be beyond my capabilities and have ulterior motives. Readers can scold me as a liar who sells Dali Pills. Of.
However, based on my seven years of blockchain and Web3 learning experience and what I have seen and heard, I have read hundreds of books, researched and tracked dozens of projects, and personally started a business overseas. If you are completely white and have a little experience, you can summarize a few points, such as:
It is completely futile to analyze why a certain digital asset or a certain NFT is popular all day long, trying to summarize its “fundamentals” and grasp the wealth code, and it is usually counterproductive, and it is a learning to sell first;
All kinds of trading secrets, technical analysis, and historical models are basically dead. For the meaning, please refer to the previous one. Even if there is an effective technical analysis model, it will not be released for you to see, and what you can see is definitely invalid;
Some investment ideas and investment philosophies seem to be helpful, but I can’t say how helpful they are. I read them thoughtfully, but I don’t know how to use them;
Big data analysis and data visualization are of course essential tools in all walks of life, and Web3 is no exception. However, advanced technologies such as artificial intelligence and machine learning have extremely limited significance for predicting the Web3 market, but they often give you false confidence. lead you to make wrong decisions;
The way of thinking in economics is useful, helping us understand and view Web3 from the basic principles of market economy, and judge the overall development trend, but the macro and micro models that professional economists spend the most time teaching and researching are mostly useless. usefulness;
The Austrian school of liberal economic thought, currency and business cycle theory and useful for understanding the value proposition of Web3 and market cycles in the industry, but also contains a lot of difficult and complex and irrelevant speculation;
New institutional economics is valuable, and many theories in it are very helpful for us to understand important topics of Web3 such as network collaboration, autonomous organization, and contractual relationship;
In finance, asset portfolio theory is very inspiring in thinking, but difficult to apply in practice; for DeFi readers, knowledge of basic financial instruments and derivatives is very useful, but those valuation models, pricing theory and random Various formulations of differential equations, at least at this stage, are of little use . However, being able to casually say “Alpha benefits”, “Beta benefits”, “systematic risk”, “idiosyncratic risk”, CAPM and APT models is really good for social interaction, both at home and abroad. As for more advanced terms, it is useless and harmful to say too much;
If you start a Web3 business by yourself, it is necessary to know a little about corporate finance and financial statements . Although most Web3 startups do not have a strict financial statement system, this knowledge and skill is indeed valuable, and it is likely to be used in the future;
Information economics developed in the Internet era, such as natural monopoly caused by network effects, combined with the study of basic economics knowledge is very helpful for understanding the industry pattern and formulating development strategies;
Game theory, in theory, should be one of the most useful knowledge in the industry, but in fact, the existing conclusions and tools of game theory are far from solving the real problems of Web3, and it can be said that they are far from each other . Probably the main value of learning game theory is also to be more confident when using terms like “Prisoner’s Dilemma” and “Nash Equilibrium” in social situations.
The above are mainly my own subjective feelings, and I am not very sure. Readers should refer to them. If they object, I have no intention of arguing.
Below is the point. There are four disciplines, and I can guarantee that they are really helpful for learning and understanding digital assets and Web3. After I learned it myself, I have definitely benefited. After recommending it to friends and colleagues, I also received good feedback. Basically, no one said it was a waste of time, so I can List with great confidence the following:
First, the basic knowledge and skills of smart contract development and deployment . To truly understand the blockchain, it is necessary to understand the basics of smart contract development, deployment, trigger execution, etc. Conversely, if you really understand smart contracts, you also have the basics of blockchain. Therefore, many people want to learn blockchain and read a lot of theoretical books, but they may still feel that they are separated by a layer. In this case, if you have a little programming foundation, it is better to learn smart contract technology directly, be careful with a sword, poke through it, and avoid going around in circles.
Second, systems thinking . That is to say, based on the viewpoint of system theory, through the analysis of feedback loop and stock flow, we can qualitatively understand the movement rules of the system, deepen understanding and enhance insight. This is a very general way of knowing, and naturally works for Web3 as well. However, systems thinking has historically been part of systems dynamics, which is too much for Web3 to mathematically model and accurately simulate the evolution of complex systems. For such a complex social and economic system as Web3, it is not very practical and misleading. Therefore, it is enough to know only about systems thinking, without having to go deep into system dynamics.
Third, the history of monetary and financial development, and the political economy issues surrounding money . This part focuses on the economic development of various countries and the evolution of the global political and economic structure from the perspective of currency. In the past ten years, it has become a prominent scholar in the global Chinese circle. The relevant books and materials can be described as plentiful, and many books are written in a popular and vivid way. Of course, there are some grandstanding, fanciful, almost fanciful romances, but there are also many works of sincerity, which need to be carefully identified and cross-validated. Reading history makes people wise. Web3 itself is also a product of the development of the currency and financial system to a new stage, combined with digital technology, and will be written into history in the future. Therefore, understanding how currency and finance have come all the way is important for understanding Web3. Very beneficial. This kind of benefit is not necessarily that you can directly use it as a tool, but subtly broaden your horizons and deepen your thinking, especially it can give you many reference models and stories to help you in the face of choices and decisions that need to be made. time wiser.
Fourth, central banking, financial markets and financial institutions . This is probably the single most useful discipline for understanding and applying Web3, DeFi, and token economics, usually part of monetary economics, such as Mishkin’s “The Economics of Money, Banking, and Financial Markets” , just by reading the title of the book, you know that it is a university question, which contains a lot of content. Broadly speaking, it is to look at the economic operation of the real world from the perspective of the flow of “money”. However, the content is far and near for learning Web3. For example , the theory related to commercial banks has nothing to do with Web3, because the way commercial banks create liquidity through credit may not be seen in the foreseeable future. Web3 world . Monetary theory, especially the models of the demand for money in macroeconomics, seem to be very valuable at first glance, but in fact they only have cognitive reference significance and are completely useless in practice. Find an introductory book on economics Just look at the relevant chapters.
The really particularly useful parts are the central bank monetary policy and tools, as well as financial markets and financial institutions . This part mainly discusses how central banks, commercial banks and other non-bank financial institutions cooperate with each other based on market mechanisms to create money from the heart of the banking system, and then pump it to various sectors of the economy through various financial instruments in the market. And adjust and optimize to achieve a series of policy goals. This knowledge has a very direct reference value for the understanding of the operating mechanism of the Web3 industry, the judgment of the cycle, and the design of the Web3 token economic mechanism, so I recommend investing more time in this direction . I have given this advice to several friends and colleagues. Those of them who can sink their hearts and study hard for a period of time will soon have an upgraded understanding of the entire Web3 and digital assets.
My main advice is this. However, on the other hand, it should be reminded that all the above mentioned things are all traditional knowledge, none of them are knowledge created for Web3, and none of them can “walk” you to become a Web3 master. How to put these old wines into the new bottle of Web3 is your own problem. On the other hand, however, this is where the opportunity lies.
In addition, if you want to study a specific application branch of Web3, such as games, e-commerce, and transactions, there must be many more professional things to master. But in my opinion, what people who learn Web3 today generally lack is the correct understanding of economy, currency, and finance, and nothing else , so I focus on covering the relevant content in the above recommendation. Lack of awareness, but the courage to innovate, read too little, think too much, and be too daring, this is a subjective reason for the collapse of many DeFi and Web3 projects . I hope this article can help interested readers explore the path a little bit, take less detours and be more measured when learning Web3.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-basic-knowledge-to-learn-to-engage-in-web3/
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