DeGate x Bihu: The Web 3.0 Era Explained
The Web 3.0 Era Explained. Six of the Most Important Directions to Watch for Today
DeGate x Bihu series: DeGate is proud to bring you DeGate X Bihu, a series of premium content from top content creators. Bihu.com is a premier crypto community with over 1 million users, creating deep analysis of the blockchain industry. In this fortnightly series, we bring you the very best articles from Bihu. Bihu was launched in 2018 by the same team behind DeGate.
This article is translated from the Chinese and published with the permission of the author 白话区块链. It was first published on 11 August 2021. The views expressed herein are those of the author and do not represent the views of DeGate. The views expressed are not to be taken as financial advice. We thank 白话区块链 for their kind sharing. We appreciate all the support from Bihu.com.
If you had to describe Web 3.0 in one sentence, how would you describe it?
- Make Internet Great Again?
- Bringing ownership of data back to everyone?
- Free flow of information and value?
I agree with all of these. There are a lot of articles about how the Internet is divided and defined between 1.0, 2.0, and 3.0. But if you’re hearing about web3.0 for the first time, a super simple concept can be summarized:
Web 1.0: Yahoo, Sina, and Sohu, etc., content-based, less interaction;
Web 2.0: Facebook, WeChat, and Tiktok, etc., relationship-based, more interaction;
Web 3.0: Blockchain, IoT, and AI, etc., data-based, de-trusted, and disintermediated value interconnection.
In general, the vast majority of blockchain directions are close to Web 3.0. Since blockchain is the infrastructure of Web 3.0, decentralized, censorship-resistant and trust-free, are all features that can be fitted in.
However, some are more with the Web 3.0 vision and will occupy a more important place in the future 3.0 era. This article attempts to categorize and brief them.
Money: BTC, USDX, Algorithmic Stable Coins, ETH
BTC: the strongest currency of the future web3.0 era. But I think the odds are that by the time the web3.0 era is fully formed, Bitcoin will be denominated in Satoshi. One well-known platform is supporting Satoshi pricing this month, and I believe we will see more and more platforms start this model shortly.
USDX: The most convenient “money” is still the USDX series. With the two current giants USDT and USDC leading the way.
Algorithm Stable Coins: The holy grail of blockchain, from AMPL to ESD, to BAS, to Frax, Fei, Bank, OHM …… has evolved so many generations out. I wonder if there would be a stable and successful promotion from air to currency at the end of Web3.0.
ETH: With the launch of 1559 this month, ETH has taken its second step towards Ultra Sound Money. What was the first step? DeFi and NFT, of course! There’s 2.0, POS…
To the ETH party, ETH is the ultimate currency but BTC. And the total market cap of ETH will overtake BTC sooner or later. Of course, to the BTC party, this is a “fool’s errand”. …… The next bull market will probably tell us who is right and who is wrong.
Underlying Public Chains: ETH, DOT, Cosmos, Dfinity
ETH: All the “ETH killers” are now ETH friends. How can you get away with it if you’re not compatible with EVM these days?
Ethereum is most likely to become the entrance to the future Web3.0. The biggest uncertainties about ETH are the following three：
1. Can it overtake BTC in this or the next bull market?
2. Will ETH be the dominant or multi-chain universe in the future?
3. Will Web3.0 universal single sign-on based on Ethereum work?
DOT: The concept of Web3.0 in the blockchain world was proposed by Dr. Gavin a few years ago, and ETH was also developed by him and Vitalik Buterin. So Polkadot certainly has a place in Web3.0.
Compared to ETH, Polkadot has better on-chain governance, cross-chain design, Substrate chain creation, etc. It is recommended to try out Polkadot’s web wallet and browser plug-in to switch back and forth between different chains, which is a completely different experience from Metamask.
Cosmos: A similar concept to Polkadot, but in a completely different style. Polkadot is an ETH2.0 shared security system, while Cosmos is a completely open IBC communication protocol.
Dfinity: The launch of Dfinity can be said to have welded the last gate to the public chain circuit. While ETH2.0 is working as hard as possible to decentralize the Raspberry Pi, Dfinity has stunned the circle with its data center and proprietary hardware design. That was a smooth speed and silky experience …, which gave us hope for the resurrection of DApp.
Dfinity is a completely different design from the current mainstream blockchain idea, so it will probably not compete with other projects. Many bigwigs in the circle are optimistic about the future of Web3.0, with ETH as the big back-end and Dfinity as the big front-end. Both of them work with each other.
Similarly, it is suggested to experience “WeChat”, “Weibo” and “Tiktok” Apps on Dfinity to get a clear idea of what a big Web3.0 front end might look like.
Storage: Filecoin, Storj, AR, Crust
If there are two legs to Web 3.0, and the public chain mentioned above is the one responsible for computing, then the other leg is storage. If you want to return ownership of user data to the user, you need a decentralized storage place first, right?
Filecoin: It is already 2021, so please stop confusing the IPFS protocol with Filecoin. Of course, you can think of Filecoin as the official IPFS application and the rest as OEM.
Filecoin is undoubtedly one of the most important projects in Web3 storage and is often compared to another project, Storj, which is more commercial and Filecoin is more general. Storj didn’t support IPFS at first. But like many of the “Ethereum killers” who were not EVM compatible at the beginning and found themselves unable to beat EVM, Storj now supports IPFS as well.
But what many people don’t know is that Filecoin is about giving rewards for encapsulating data, and what is encapsulated now is junk data, the idea being to make the network bigger first.
Storj is only rewarded if you store real and valid data and it is called. It has led to the fact that it is basically impossible to make a profit in China, and is also unusually slow abroad, which are two completely different ideas in terms of expanding the market and rewarding.
AR: The domestic (China) code name is “Avi”, a very poetic name that focuses on perpetual storage. The technical implementation of AR is completely different from Filecoin, and the storage method is also different. As it is “pay once, store forever”, which sounds a bit crazy at first glance. But if you research it carefully, it is quite possible. So some people also see AR as the Library of Alexandria on the chain.
Crust: The star storage project based on Polka, you can think of it as Filecoin that on top of Polka. It also supports IPFS, but the technical implementation is completely different from Filecoin, which requires a lot of computing costs and hardware costs. Crust is much less hardware intensive, with PCS and servers running on it.
Networks: NKN, HNT
The Web 3.0 network itself can also give you ‘decentralization’, which is not a replacement for the Internet, but a useful complement to it. It had been a nobody before but suddenly became a hit after it was launched on Coinbase in the first half of the year.
NKN builds on the existing Internet and aims to ‘incentivize internet users to share internet connections and make use of unused bandwidth’. NKN is also much easier to earn money, something that could be done with a computer or raspberry PI.
HNT uses low-power transmission equipment and antennas to create a Network completely independent of the Internet and is jokingly called “People’s Network” (People’s Network), earning from radio waves.
The company has been in the limelight because of Google’s investment. However, recently, there was a problem. Because some mining pools in China used “high-tech”, they were reported, and the authorities directly reduced the production of mining machines in China, which greatly lengthened the current cycle.
Middleware: Link, GRT, Mask
A major difference between Web 3.0 and 2.0 is that it is difficult to create a monopoly because of its interoperable nature. Middleware may be an exception, such as Link, a platform with which we are all familiar.
All blockchain projects, especially those related to DeFi, have to work with Link, which to interacts with the real world. A prophecy machine is the most essential middleware you can have.
Link brings the off-chain data to the chain, while Graph does the reverse, bringing the on-chain data back to the off-chain data for the API layer of the on-chain data query and decentralized network, so it is also called “reverse predictor”.
Mask acts as a bridge from Web 2.0 to Web 3.0, helping users seamlessly transition from Web 2.0 to Web 3.0 in terms of usage habits by allowing them to seamlessly send encrypted messages, cryptocurrencies, and even decentralized applications on the platforms of traditional social giants such as Twitter.
Privacy and identity: Horizen, DID
Privacy here is not about anonymous Token, but about the overall privacy of on-chain or Web 3.0 behavior. This is a track that still has to be taken seriously, as the concept of Web3 has only been out for a short time and there are not enough users of DeFi and other applications to care much about privacy.
But, some professional DeFi investors, especially the bigwigs and wealthy individual investors, are very concerned about privacy, and the current blockchain, which is completely transparent and ‘shirtless’ on the chain, makes them squirm. A chain dedicated to privacy, Horizen is probably one of the first and a grey-scale favorite, as well as being the one with the most nodes.
However, due to its system, it is completely free from ETH and EVM framework, resulting in a very low sense of existence at present. I think that in the future, it may be more dependent on the advantages of the grayscale and the main commercial privacy side chain.
And decentralized identity (DID) can be said to be one of the most important aspects of Web3.0. Not only is Web3.0 good for the meta-universe, but we will need an ID to represent ourselves and relate to ourselves under the chain.
At present, everyone’s identity on the chain is simply ETH address, which is undoubtedly too simple. However, this track is even earlier than privacy, and there is not even a project that can be called the leading one. At present, only the old CVC and the new generation Litentry can be thought of.
In other words, unless all chains are unified in the future, the premise of a multi-chain universe co-existing, to make a unified on-chain identity system is a “nearly impossible task”, and the “identity” is something we have to pay attention to as we go.