What exactly is Web3.0? Why is it regarded as the future of the internet, and what changes can it bring?

The term “Web3.0” has been prevalent in major investment circles in recent years, with many projects using it as a marketing label, leading to a mixed market environment. Investors often find it difficult to distinguish genuine from fake, and some become victims of scams. This article will delve into the essence, operational mechanisms, practical applications, and truly noteworthy project directions of Web3.0.

Real-world Issues: Why is Web3.0 Needed?

Imagine you are a content creator publishing content on social platforms like Instagram, X, Facebook, etc., where likes, comments, and shares bring you exposure and income. It seems like a win-win situation, but underlying problems exist:

Who truly owns your content? The platform holds the decision-making power over ad revenue sharing. How is personal information protected? Centralized servers are always at risk of leaks. If the platform is attacked or experiences service interruptions, your income is immediately affected.

These are not fictional scenarios but common dilemmas in the Web2.0 era—user data monopolization, privacy concerns, opaque revenue distribution. Web3.0 was born to address these issues.

Core Definitions and Features of Web3.0

Different experts have various understandings of Web3.0. In 2006, Tim Berners-Lee, the inventor of the World Wide Web, proposed a vision emphasizing that users should control their own data. In 2014, Gavin Wood, co-founder of Ethereum, redefined Web3.0 as a censorship-resistant, non-monopolized, low-threshold internet protocol.

Essentially, Web3.0 is a new generation of the internet based on blockchain technology, with the core goal of granting users ownership of their data and enabling self-governance.

Because it is built on blockchain technology, Web3.0 naturally possesses all of its features:

• Decentralization: No reliance on a single intermediary
• Immutability: Transaction records are permanently stored
• Traceability: All operations are trackable
• Transparency: Data is visible to all participants
• Permissionless: Anyone can participate
• Trustless: Security is guaranteed through cryptography rather than interpersonal trust

Evolution of Web1.0, Web2.0, and Web3.0

The core difference among the three generations of the internet lies in the evolution of user rights:

Key transition: Web2.0 made users content providers, but data remained monopolized by platforms; Web3.0 aims to fully restore ownership rights.

Ecosystem Relationships of Web3.0 and Related Concepts

What is the relationship between blockchain, cryptocurrencies, NFTs, metaverse, DeFi, and other concepts emerging in the market and Web3.0?

From a tech stack perspective:

• Blockchain is the underlying infrastructure
• Web3.0 is the application-level vision
• Cryptocurrencies are the economic incentive layer
• NFTs are proof of asset ownership
• DeFi is financial application
• Metaverse is immersive application scenario

In short, Web3.0 aims to restore ownership and governance rights, relying on blockchain technology and utilizing tools like cryptocurrencies and NFTs for its economic layer.

Investment Directions in the Web3.0 Sector

According to market data, the total market cap of the Web3.0 sector is about $23 billion, ranking lower among all sectors, but there are over 200 related projects.

Key directions worth noting include:

Infrastructure Layer: Addressing urgent needs such as cross-chain communication, data storage, and network protocols. Representative projects include Polkadot (DOT) focusing on heterogeneous chain interoperability, Chainlink (LINK) solving oracle issues, and FileCoin (FIL) providing decentralized storage.

Application Layer: Focusing on vertical fields like NFTs, DeFi, and social networking. For example, ApeCoin (APE) supports NFT community ecosystems.

Key Screening Criteria:

• Does it solve real needs (not just hype)?
• Does it have tangible, operational products?
• Team’s technical strength and execution capability
• Community activity and ecosystem completeness

These projects have solid moats, are resilient in bear markets, and have high potential for explosive growth in bull markets.

Trading and Participation Methods

To trade Web3.0-related tokens, you can choose based on your needs:

• Large-cap tokens (DOT, LINK, FIL): Supported on mainstream exchanges, offering stable liquidity
• Small-cap tokens: Require professional decentralized trading platforms
• Contract trading: Use regulated, diversified trading platforms

Regardless of the method, the focus should be on ensuring platform security, liquidity, and quality of service.

The Realistic Outlook for Web3.0

Although the concept of Web3.0 has been around for a long time, systematic development has only been recent, with a relatively small scale. Some believe the sector is in a bubble, similar to early AI hype cycles.

However, it is important to note that Web3.0 is not addressing false needs. Data privacy breaches, platform monopolies, and opaque profit sharing are real pain points. Despite current results not meeting expectations, its long-term value cannot be denied.

For investors optimistic about this sector, it is advisable to allocate a certain proportion of funds for deployment, maintain rational judgment, and focus on projects with actual products and technological support.