1. Mature applications
At present, the following aspects of Web3 are relatively mature:
1. Decentralized Finance (DeFi):
DeFi is one of the most mature parts of the Web3 space. It provides a series of decentralized financial services, such as lending, trading, stablecoins, tokenized assets, etc., executed automatically through smart contracts without the need for traditional financial intermediaries. DeFi applications have received widespread attention and adoption, and have established a large user base around the world.
- Stablecoins mainly include USDT, USDC, BUSD, DAI, TUSD, etc.
- Decentralized lending platforms include Compound, Aave, etc.
- Decentralized exchanges include Uniswap, SushiSwap, 1inch, Kyber Network, Loopring, Bancor, OasisDEX, etc.
- Tokenized assets include various digital currencies (BTC, ETH..), commodity tokens, equity tokens, etc. a>
2. Non-homogeneous transfer (NFT):
NFT has experienced rapid development and maturity in recent years. They provide verification and confirmation of the ownership and uniqueness of digital assets, allowing digital creators to monetize their works and trade them on the market. NFT has become a popular choice for artists, musicians, creators and other digital content creators. Non-fungible tokens mainly include tokens under the two standards ERC-721 and ERC-1155. They are non-divisible and non-fungible, and compared to fungible tokens (such asBTC, ETH), each non-fungible token Tokens are all unique.
3. Blockchain technology and smart contracts:
Blockchain technology and smart contracts, as the infrastructure of Web3, have been widely used and verified. They provide a secure, transparent and tamper-proof data storage and execution environment for decentralized applications. The maturity of blockchain technology provides a solid foundation for the development of Web3. Blockchain technology includespublic chain, alliance chain and private chainetc., and smart contract is a self-executing computer program based on blockchain technology, and has the characteristics of decentralization, trustlessness, autonomy, self-sufficiency, and non-tampering. Smart contracts can be embedded in the blockchain in digital form, supporting applications in a variety of traditional fields including finance, management, medical care, and the Internet of Things.
2. Why is it in the primary stage?
Although the application prospects of Web3 seem to be very broad, many applications are still in their infancy and require further technical development and market verification. There are many reasons why Web3 is still in its infancy:
1. Technology maturity:
Although the underlying technology of Web3 is very advanced, the entire technology stack still needs further development and maturity. For example, the expansion bottleneck problem of blockchain technology still needs to be solved, which limits the availability of Web3 applications in large-scale scenarios.
2. User experience:
Current Web3 applications often require users to have certain technical knowledge, such as understanding the concepts of cryptocurrency and blockchain. This makes it difficult for ordinary users to access and use Web3 applications. To achieve large-scale adoption, Web3 needs to become more user-friendly.
3. Regulatory and legal issues:
The attitude of regulatory agencies around the world towards Web3 and blockchain technology is still being explored, and relevant laws and regulations have yet to be clarified. This uncertainty limits the further development and commercial application of Web3.
4.Market acceptance rate:
Although Web3 has great potential, its awareness and acceptance by ordinary users and enterprises is still limited. This will take time and more market education to improve.
5. Interoperability Challenges:
The current Web3 ecosystem consists of multiple different blockchain networks, each with its own protocols and standards. This makes interoperability between these networks a challenge, limiting the overall development and application of Web3.
6. Scalability issues:
The current scalability of blockchain technology remains an issue, especially when it comes to handling large volumes of transactions and data storage. Solving the scalability issue is critical to the widespread adoption and commercialization of Web3.
7. Energy and environmental issues:
The consensus algorithms currently used by many blockchain networks require a large amount of computing resources, which results in huge energy consumption and a negative impact on the environment. In the further development of Web3, issues of energy efficiency and environmental sustainability need to be addressed.
8. Education and popularization:
The technologies and concepts involved in Web3 are relatively new and may be difficult for most people to understand and master. In the early stages of Web3, education and popularization efforts are crucial to increase public awareness and understanding of Web3.
9. Economic model and incentive mechanism:
Although Web3 applications provide decentralized features, effective economic models and incentive mechanisms are still needed to attract users and developers to participate in the ecosystem. How these mechanisms are designed and implemented will be a key factor in the development of Web3.
10. Community and Governance:
The development of Web3 relies heavily on community support and participation. At present, the Web3 community is still in the process of growing and needs more time to establish a strong developer community, user community and related governance mechanisms. These communities and governance mechanisms will help Web3 make progress in application development, standard setting, dispute resolution, etc.
11. Interoperability with Web2:
Currently, Web3 interoperability with Web2 (the traditional Internet) remains a challenge. To achieve wider adoption, Web3 needs to be better integrated with existing Web2 infrastructure and services. This will require further development of technology and standards to build bridges between the two.
12. Development of cross-chain technology:
With the existence of multiple blockchain networks, cross-chain technology will become a key factor in the development of Web3. Cross-chain technology can allow interaction and communication between different blockchain networks, thereby expanding the functionality and application scope of Web3. Currently, cross-chain technology is still in its infancy, but it is expected to receive more attention and development over time.
13. Innovation of business models and profit models:
Web3's business model and profit model are still in the exploratory stage. Although decentralized applications provide new opportunities, how to achieve sustainable business models and profit models in this ecosystem remains a challenge. This requires the innovative efforts of entrepreneurs, developers and entrepreneurs to promote the sustainable development of the Web3 economy.
14. Technology and infrastructure improvements:
Continuous improvements in technology and infrastructure are key to promoting the further development of Web3. Currently, Web3's technology stack and toolset are still being continuously developed and optimized to improve performance, security, and ease of use. For example, for blockchain networks, there is a need to increase throughput, reduce latency, and enhance privacy protection. At the same time, development tools and developer experience also need to be continuously improved to attract more developers to join the Web3 ecosystem.
15. Integration with traditional industries:
Web3 technology and decentralized thinking can be applied to the innovation and transformation of traditional industries. For example, decentralized finance (DeFi) can provide financial services to people without bank accounts, and NFT can provide artists with more opportunities to create and monetize. The integration of Web3 with traditional industries will bring it a broader application scenario and user base.
16. International cooperation and standardization:
As a global technological innovation, Web3 requires international cooperation and standardization to promote its development. Regulatory agencies, technical teams and enterprises in different countries and regions need to strengthen cooperation and formulate unified specifications and standards to ensure the interoperability and scalability of Web3 technology. This will contribute to the healthy and sustainable development of Web3 technology.
In short, although Web3 is still in its infancy, it has huge potential for development. With the continuous improvement and development of technology, communities, regulations, markets, infrastructure and other aspects, as well as the integration with traditional industries and the strengthening of international cooperation, we believe that Web3 will gradually mature and bring more decentralization to global Internet users. to create a digital world experience that is free, transparent and fair. This will be a technology-driven social change worthy of our expectation and participation.