As an important technological experiment, blockchain does have a significant impact. It represents a decentralized movement that has engaged many researchers, engineers, builders, and users, creating some of the most interesting technologies we have seen today.
The transparent nature of the blockchain gives users control over data and transactions, protects their anonymity, and also provides clarity on transaction settlement status and service operations. Users can choose to participate in the blockchain network and receive corresponding rewards. For developers, they can reuse existing code and accelerate the pace of innovation. As more technologies are incorporated into the blockchain, the seamless collaboration between different technologies will further increase, increasing the value of decentralized applications.
As an industry, blockchain emphasizes radical transparency. Open source of the project's code has become an industry standard, and the immutability of on-chain contracts means that even if the main organization behind the network disbands, the network's services can still be used. In contrast, when a centralized entity stops serving, many developers and users lose their rights to use it. For example, earlier this year, Google announced that it was shutting down its popular cloud gaming service Stadia, and the decentralization and immutability of blockchain can protect users and developers from this risk.
In the traditional Web2 era, users "paid" for services by providing personal information and online behavior, which was then captured and sold to third parties. In the Web3 era, a person's address is his only identity, users can remain anonymous, and applications require only very little information to conduct transactions. Blockchain users will also never see a transaction being reversed, and transaction settlement is instantaneous.
However, because of this, Web3 services often charge users directly through protocol-level transaction fees, which are awarded directly to independent network operators to cover operating costs. To offset inflation from transaction fees, more efficient layer-1 blockchains have prioritized architectures that support cheaper transactions. Users can also choose to participate in network operations to earn rewards to offset fees. For example, on the Ethereum network, users can build a growing ecosystem of services, run a node, or secure the network through shared staking. This reward mechanism aligns the interests of users and network operators and is also a form of user empowerment.
Another clear advantage of using a decentralized network is the ability to understand how these services work. Industry standards for open source code ensure that services do not accidentally retain users’ private data or hide charges. From a builder's perspective, open source code and libraries contribute to equality. Building openly not only produces better results, but it also allows for faster innovation. Builders can stand on the shoulders of those who came before them and create better and faster.
In the future, open innovation and blockchain interoperability are the direction of development. Decentralized applications running on top of a blockchain enjoy the same properties as its base layer. The number of on-chain use cases has exploded in recent years, spanning everything from games and music to data storage and document writing. The builders of Web3 make existing and new use cases more prevalent in our daily lives by continuously improving user experience and interface design.
Although blockchain technology has great potential, it still faces some challenges. For example, issues such as scalability, privacy protection, and governance need to be addressed. However, with the advancement of technology and the promotion of innovation, these problems are gradually being solved. Ethereum, for example, is grappling with the synchronization problem of hundreds of thousands of nodes spread out in different locations and running on different setups.
In the future, we can expect blockchain to be widely used in various fields, including supply chain management, Internet of Things, medical health and social welfare. Blockchain will bring more innovation and possibilities to the way humans collaborate. The transparency and resiliency of the network provide a foundation of trust that may be used by millions of people every day. Further scalability improvements and enhancements to blockchain Improvements in virtual machine capabilities will help decentralized applications reach billions of people.
Summarize
In short, through the characteristics of decentralization, trustworthiness and transparency, blockchain not only promotes technological development and innovation, but also changes the existing economic, political and social structures. Despite the challenges, blockchain still has broad prospects, as technology continues to advance and applications expand. We have reason to believe that blockchain will bring more innovation and development to human society.