Web3 needs to be restructured around "participation" in terms of technology, architecture, design and talent, so as to realize the decentralization of the Internet.
expert's point
Web3 is hailed as a technological paradigm driven by the creator economy, and it is the next evolution of the future Internet. When we make an evolutionary comparison of the technologies underlying everything from information consumption to content creation, Web2 has facilitated unparalleled economic growth, brought new ways of working, consumer information, and the advancement of human civilization, representing an important milestone in human evolution era. Given the massive success of Web2, why is there a need for Web3?
As we rethink the Internet, which relies primarily on a small number of centralized entities that own the devices, channels that feed social media, mobile applications, and provide the connection points between these service providers and seekers, it is important for these Control of the channel not only provides monopoly control over the custody of this infrastructure, but also provides a "too big to fail" economic bottleneck. Thus, rethinking the internet as primarily about conveying information, and thus values and truth, is a fundamental shift that empowers creators and participants, not just managers of infrastructure.
The drivers that fuel this disruptive thinking are the overvaluation and control of Web2 companies, the censorship enforcement of existing information channel controls, and the rapid dissemination of information—these are a permanent force in the dissemination of knowledge, but information The speed and authenticity of the world, along with bias, mistrust and misdirection, are deliberately exploited to make signal from noise difficult to distinguish and the dissemination of information weaponized. These drivers signal not only the dawn of a new era, but also the next era in which humanity rethinks, redesigns and renews, shaping our evolution.
Web3 rules
How, then, do we envision the formation of this new paradigm? Just as Web3 aims to theorize that the Internet has taken another step towards self-sufficiency - enabling the development of a whole new set of technologies and protocols that will be the basis for a creator-controlled economy, unlocking the delivery of information and value with identifiable Channels, built-in trust enabled by the protocol. Blockchain and decentralization are often touted as fundamental concepts necessary to develop such a platform. However, before we blindly promote this kind of decentralization, I think we should take a step back and re-evaluate the success (and failure) of Web2, and more importantly, the transition to the new paradigm of Web3, because I suspect that we are facing The challenges are not just technical.
In order for a Web3-dominated creator economy to empower creators and participants, we first need to understand the need for a participatory economy. In a participatory economy, the focus is largely driven by autonomy, efficiency, sustainability, and creating a decentralized economic system. This economic system has strong incentives and protections involving social ownership, self-management of work, and accountability for results.
The participatory economy stems from the ideas and experiments of previous centuries, the idea that people should be able to cooperate with others (on the same network plane) and manage their own life fairly, and implement an economy of rewards, rewarding participation, punishing Inappropriate behavior and behavior that this network deems unfair. In other words, for Web3 to work and deliver on its promise, we need to be engaged.
At the most basic level, participation, just like in the real world, can be achieved through the commitment of resources, such as systems, protocols, skills, intellectual capital and expertise, etc., and the value created should be between the various participants. Equitable distribution is carried out according to the basic principles of supply and demand to solve the problem of fairness. The economic value created then needs to be liquidated, recorded, disseminated and exchanged with other fungible and non-fungible assets to maintain balance in any economic network - all without any central accounting system or authority - to resolve autonomy and fair structure issues arising from the agreement.
Web3 looks like a stateful tokenized network system in the current context. In these tokenized networks, not only attract capital, talent and technology, give them nation-state status (with economic structure and currency within the network), but also be a market and laboratory for co-creation among various projects. We are already starting to see manifestations of these in various decentralized finance (DeFi) and non-fungible token (NFT) projects, and in a very real sense, they are creating meta Data synergy.
To provide a true peer-to-peer, multi-token network (metaverse in the true sense of the word) where projects and individuals can co-create and bring the energy of their participation, this is basically the foundation needed to realize the promise of Web3 facility. While we have seen unprecedented growth in the token-driven economy and exponential growth in investment and valuation of these projects, I believe that many of these projects neither embody Web3 principles of engagement nor economic output following Web3 principles. The essential ingredient that is missing here is participation.
The two fundamental technological concepts that allow us to distinguish between data (for verification and truth) and value transfer (for participation in the economy) are the Semantic Web and decentralization, which will shape the future and facilitate the transition from the existing fast-growing Web2 to New ownership drives the transition to Web3.
The Semantic Web extends the concept of documents/information on the web to valuable data, making information more meaningful (and valuable) when it is semantically linked to the data, and then transforming the data into something of value - leading to Web3 Monetization and Accountability Elements in Principles.
Decentralization, on the other hand, facilitates the development of peer-to-peer networks, such as blockchains, and enables us to transfer tokenized value—whether system-created (cryptocurrency) or induced (tokens representing value) — and address the autonomy and protocol-induced fairness of Web3 principles. At the most basic level, when we build various interdependent ecosystems based on Web3 principles, it is fair to assume that their economies are interconnected. We will use decentralized processing, interconnection, and storage as the fundamental building blocks to build a strong foundation for Web3, which is similar to Web2's cloud infrastructure, but with different economic structures and points of control.
As the project develops and evolves, these tokenized values will include collective value at the infrastructure, service, and talent levels. Such interdependent ecosystems, as embodied in natural systems, will thrive; successful ecosystems and economies will attract talent, capital, and resources, and safeguard the common good.
For example, a metaverse project, including NFT and liquid encrypted assets to achieve substitutability, its success also includes decentralized storage of artifacts, operational data models and analysis, decentralized processing, etc., to improve all components of Web3 The service ecosystem of the ecosystem.
Now, many of these services are centralized, so they face challenges inherent in the current economic system. This means that they are starting to deliver on the promise of Web3, but lack its principles. This is evident as the volatility of cryptocurrencies and the increasing liquidity provided by traditional finance in the form of stablecoins or the opening of banks facilitates the free flow of traditional finance, allowing it not only to grow but to maintain its existing Challenges to the financial system. We should therefore discuss this link between volatility and stability in crypto markets, the implications of this link for volatility, and what it means for yield and return parallel financial systems.
For example, the high rate of return in the cryptocurrency market will attract liquidity, and the functioning "risk-tracking-risk-off" equation will attract capital and issue stablecoins, but it also inherits the global macro mechanism, which means that the traditional Any changes in financial capital markets, interest rates, money supply, inflation, etc. will start to affect the cryptocurrency market, and these factors play an important role in calculating asset valuations, but the cryptocurrency market is in principle meant to be independent and disruptive of. What if our goal was to become self-sufficient with true crypto-liquidity and fungible assets, and for the economic system to function and self-correct? I think this equation is worth looking into because it's interesting, but also ironic.