Web3 in Idealism
The term “Web3” was coined by Gavin Wood, co-founder of Ethereum, in 2014. He’s widely credited with articulating the most classical and influential definition of Web3.
Gavin Wood’s Classical Web3 Definition:
1. Core Philosophical Principles
- Decentralization of internet infrastructure
- Removing trust from intermediaries
- Giving users genuine ownership and control of their digital assets and data
- Creating a more open, transparent internet ecosystem
2. Technical Architecture
- Blockchain as the foundational technology
- Cryptographic verification instead of centralized authentication
- Peer-to-peer networks replacing centralized servers
- Cryptocurrencies and tokens as native payment/value transfer mechanisms
To summarize, Web3 is a blockchain-powered network characterized by transparent, immutable, and verifiable rules, offering open accessibility with low entry barriers. It enables programmable, self-executing smart contracts with low transaction costs and high composability. This computational freedom network captures and processes information, primarily mobilizing human resources to achieve predefined objectives, while forming a consensus-driven belief system that represents a form of cultural transmission.
Web3 in Reality
This is a diagram I’ve created summarizing the current layout of Web3 projects, which consists of three main components:
- Technical infrastructure（Tech Infra）
- Financial markets（DeFi）
- Derivative application layer products（X-Fi）.
The current market ecosystem and logic involve investors establishing strong positions in the financial markets before investing in foundational technical infrastructure to reduce transaction costs and enhance security. The XFi series in the application layer attracts new participants and leverages information asymmetry and data analysis capabilities to gain an edge in the financial markets.
Although the current market fundamentals are still heavily influenced by Ponzi-like financial structures, lacking solid foundational value and integration with scenarios beyond Web3, there are still some projects with the potential to transform the industry and align with the original intentions of Web3 idealists.
I created the following diagram to summarize the current layout of Web3 projects, emphasizing areas with promising development potential, such as ZK, Decentralized Identity (DID), Real-World Assets (RWA), and Stablecoins.
