Part of this report comes from:
McKinsey McKinsey Web3 beyond the hype
Release time: October 2022
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In the past few years, NFT and cryptocurrency markets have received widespread attention. Compared with Web3, the concept of the meta universe has emerged in the public eye more attractively. As the heat subsided and the bubble began to burst, the trading volume and overall scale of the above markets declined to varying degrees.
At the same time, the concept of the meta universe began to be criticized by users. The so-called meta universe world, such as Meta's Horizon World, could not meet users' expectations for authenticity and immersion. However, it is not difficult to find that the user's slot points rarely involve Web3, which is highly coincident with the metauniverse (even in some cases, it does not distinguish us), and what is the concept of NFT and cryptocurrency? Is it a new round of bubble, or does it contain the development trend of the new era?
1： Definition and composition of Web3—— Blockchain , smart contracts, digital assets
First, what is Web3? Simple understanding:
Web1 - Read only Internet (Yellow Pages in PC Era, providing information in one direction)
Web2 - read-write Internet (creating the PUGC era, where users can obtain/output information)
Web3 - Decentralized Internet (Decentralized while reading and writing to ensure users' absolute ownership of digital assets)
In terms of content, it mainly consists of the following three levels:
Blockchain is the core technology foundation of Web3.
Through decentralized, digital and distributed public ledgers, each individual will have complete access to data query on the chain. In this context, even if someone wants to tamper with block information (such as transaction, exchange, permission transfer, etc.), when other block information is inconsistent with it, the tampered block data will not be accepted by other blocks, Tampering will also be meaningless.
(But it is not excluded that you can change 51% of the block data, but this operation is almost impossible on the public connection.)
Smart contract is the basic program in the era of Web3.
It can provide users on the blockchain with automated, stable and tamper proof services. Ethereum is the most famous case, which allows developers to develop contracts through Solidity language. Based on the complexity, the contracts will be profitable by charging gas fees.
The contract is open and tamper proof, but it also contains risks (for example, there are loopholes in the contract that cannot be repaired). For example, a vending machine that is set to automatically ship will automatically stop only after all the gains are spit out.
Digital assets constitute the Web3 world.
This is relatively easy to understand. Web2, pictures and videos constitute the Internet world that we are familiar with. In the Web3 world, such products are given an irreplaceable and unique address, which makes it easier to achieve effective right confirmation and delivery. For such products, we name them NFT (non homogenous token). See the following for details.
2： The function of Web3 - based on the present Financial industry
take as an example
As shown in the figure above.
Essentially, it still relies on the open ledger concept provided by the blockchain. In the financial system, it can provide users with a fully open and automatically executed blockchain financialization service, which effectively improves the service efficiency on the one hand, while significantly improving the reliability (here it means that the default risk of traditional service institutions will disappear directly).
At the same time, the contract will be organized and managed by the DAO (in short, a new human cooperation mode based on the formation of warrants, with mutual restriction/collaborative incentive as its main feature, and research after embedding a hole), which avoids the situation of traditional financial services being managed by companies/individuals, and effectively protects the interests of depositors and lenders.
The same concept can also be applied to other fields, such as virtual asset trading, IP power transfer, exchange rate swaps, etc.
3： Digital assets - cryptocurrency, NFT, token assets
First, to form a single irreplaceable Token ID, digital assets need to be linked first.
The infrastructure services provided by the blockchain only include the above five levels. Among them, wallet and identity are the basis for users to conduct any operation in the Web3 world (can prove that you are the only way, and people are completely anonymous), and the addresses of all digital assets will be kept in the wallet. The wallet password can only be retrieved through the 10 keywords (meaningless 10 words) provided by the official when you register. If you lose it, no so-called "official" can retrieve it for you.
The digital assets that can be confirmed on Web3 can be roughly divided into the above three categories.
In essence, cryptocurrency is a reward for the payer in each block chain. It was originally PoW (workload identification), but now, such as Yi Tai, has moved towards PoS (certificate of warrant), effectively saving power and other resources.
NFT is dominated by PFP, that is, we are familiar with all kinds of avatars (whose market share is more than 70%). In addition, Gamefi products such as Axie Infinity also include gamification NFT products (buried pit, shared next time).
Tokenized asset is a concept put forward by many research institutions, which essentially coincides with NFT (such as putting a picture on the chain). However, at present, more description is given to the physical asset on the chain, that is, more extensive digital process of physical assets.
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