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The Development History of the Web#

Web 1.0 - Read-only#

The period of Web 1.0 was mainly from 1980 to 2004. During this period, websites were mainly static, with simple content presentation, primarily text-based, and relatively few images and multimedia content (due to the limitations of network speed at that time). Users mainly viewed the content on web pages and could not directly participate in content creation and sharing.
In the era of Web 1.0, websites were mainly provided by individuals or companies, and users could usually only obtain information by viewing web pages, with limited interaction and feedback with the website.
The most famous companies were Yahoo and AOL.

Web 2.0 - Read-write#

The period of Web 2.0 is mainly from 2004 to the present. Unlike the read-only nature of Web 1.0, Web 2.0 introduced many new concepts, technologies, and interactive methods. It also benefited from the improvement of network speed, transforming the Internet from traditional static web pages into a more open, collaborative, and social platform.
In general, the era of Web 2.0 is an important turning point in the development of the Internet, transforming from traditional static web pages to dynamic, social, and development-oriented platforms, greatly changing the way people communicate, interact, and obtain information on the Internet.
Some well-known websites include Facebook and Twitter.

Web 3.0 - Read-write-own#

In the era of Web 2.0, the data in some websites and apps we use today does not belong to us, but rather to the companies that own them.
Web 3.0 emphasizes decentralization, which means that the Internet is no longer controlled by centralized entities or institutions, but is jointly maintained and managed by nodes in the network. In simpler terms, a decentralized system is a network where everyone cooperates, with each person and organization having a share of rights and responsibilities, and no one person or organization can control everything. All data is owned by the individual, and others cannot delete what you have published, truly achieving "what's mine is mine."

Blockchain#

When it comes to Web 3.0, blockchain is essential. Blockchain is a decentralized and tamper-proof distributed ledger technology.
Simply put, blockchain can be seen as a chain composed of multiple blocks. Each block contains a batch of transaction data, such as transaction information, timestamps, and participants. The blocks are linked together by hash values, with the hash value of the previous block being part of the next block, creating an immutable data chain.
The main characteristics of blockchain include:

1. Decentralization: Blockchain has no centralized institutions or control points. Data is stored on multiple nodes in the network, and each node can participate in verifying and storing transaction data, forming a decentralized network.
2. Immutability: Since each block contains the hash value of the previous block, once data is written into the blockchain, it is difficult to tamper with the information, ensuring the security and integrity of the data.
3. Transparency: Data on the blockchain is publicly accessible and verifiable. Anyone can view and verify transaction information, increasing the transparency and credibility of the data.
4. Security: Blockchain uses cryptography and consensus algorithms to protect the security of data, ensuring the validity of transactions and preventing fraudulent activities.
5. Decentralization: Blockchain can eliminate intermediaries or middlemen, enabling peer-to-peer transactions and cooperation, reducing transaction costs and improving efficiency.

Products/Applications of Blockchain#

Digital Currency#

Digital currency is a type of virtual currency based on digital and encryption technologies. Unlike traditional currencies (such as paper money and coins) that exist physically, digital currencies exist in digital form. The transactions and holdings of digital currencies rely on cryptographic technology, making them more secure and traceable. The most famous ones are Bitcoin and Ethereum.

Bitcoin#

When it comes to digital currency, everyone will think of Bitcoin. Bitcoin has experienced a rapid surge in 2021, mainly due to increased institutional investment interest. Everyone wants to have a place in Web 3.0. For example, Tesla purchased $1.5 billion worth of Bitcoin this year. Since the quantity of Bitcoin is limited to 21 million, and Bitcoin experienced its third halving event in 2020, the growth rate of Bitcoin supply has slowed down, reducing supply pressure and positively affecting the price.

Ethereum#

Ethereum is an open-source decentralized blockchain platform created by Vitalik Buterin and others in 2015. It aims to provide a global computer that supports smart contracts. The goal of Ethereum is to build a more open, transparent, secure, and scalable blockchain platform, allowing developers to build and deploy various decentralized applications (DApps).

• Ethereum is the first blockchain platform to introduce the concept of smart contracts. Smart contracts are self-executing contracts that contain pre-defined conditions and code. Before the existence of smart contracts, only transaction information could be recorded on the blockchain. Through smart contracts, decentralized automated transactions and business logic can be achieved, providing users with more secure, transparent, and trustworthy services.

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• One of the main applications of Ethereum is decentralized applications (DApps). Through Ethereum's smart contracts and open platform, developers can build various decentralized applications covering finance, social media, gaming, supply chain management, and other fields.
• The birth of Ethereum has also promoted the concept of decentralized autonomous organizations (DAOs). DAOs are organizations based on smart contracts, where management tasks are automatically executed through code and protocols, without centralized management structures. All decisions and management are collectively participated by community members.

Supply Chain Management#

• Logistics Tracking and Management: Blockchain can achieve full traceability of goods and materials in the supply chain. Each item can be assigned a unique identifier and its transportation and transaction processes can be recorded and tracked on the blockchain. This allows all participants in the supply chain to view and verify the location and status of goods in real-time, enabling more efficient logistics management.
• Anti-counterfeiting and Traceability: Blockchain can be used for anti-counterfeiting and traceability. By recording the production and circulation information of each product on the blockchain, consumers and companies can trace the origin and authenticity of products. This is particularly important for industries such as food, pharmaceuticals, and luxury goods that require traceability.
• Compliance and Quality Management: Blockchain technology can help ensure compliance and quality standards in the supply chain. By recording supplier certifications and quality inspection information on the blockchain, companies can easily verify the qualifications and quality of suppliers, ensuring product quality and compliance.

Non-Fungible Tokens (NFTs)#

• NFTs are a digital asset standard based on blockchain technology, used to represent and record unique and non-interchangeable digital assets. Unlike cryptocurrencies such as Bitcoin and Ether, which are fungible, meaning one unit of the cryptocurrency is completely interchangeable with another, NFTs represent digital assets that are unique and non-replaceable, with each NFT being one-of-a-kind.
• NFTs utilize smart contracts in blockchain technology to create, issue, and record these unique digital assets. Smart contracts are self-executing contracts that contain detailed information about the digital assets, such as ownership, attributes, and copyrights. This information is encoded in smart contracts and recorded on the blockchain, ensuring the authenticity and immutability of NFTs.

DApps#

DApps, or decentralized applications, are applications used to implement various functions and services. They are built on blockchain technology and do not rely on traditional centralized servers. The design concept of DApps is to achieve decentralized, transparent, secure, and autonomous applications. The popular ones are DeFi and GameFi.

DeFi#

DeFi (Decentralized Finance) is a type of financial service based on blockchain technology, aiming to eliminate intermediaries in traditional finance (such as banks, stock exchanges, payment institutions) and make financial services more open, transparent, and inclusive. DeFi can achieve various financial functions, including lending, payments, insurance, liquidity mining, etc. These services are provided by smart contracts, and the contract code runs on the blockchain, not controlled by any single entity, ensuring decentralization and transparency.

• Elimination of Trust Crisis: Traditional banks, as centralized financial institutions, require public trust, including trust in storing and managing their funds, executing transactions, and payments. However, there have been multiple instances of trust crises in banking history, where some banks have caused public doubt and loss of confidence due to irresponsible behavior, internal corruption, or poor risk management. (Silicon Valley Bank)
• Efficiency: Decentralized exchanges (DEXs) provide high liquidity trading markets where users can trade quickly and efficiently without the intermediation fees and waiting times of traditional exchanges.
• Full Ownership: In DeFi, users have full ownership and control over their assets and transactions with their private keys. This is in stark contrast to traditional finance, where trust in banks and third-party institutions is required, making users more independent and autonomous.

GameFi#

Currently, the in-game coins and money we obtain from the games cannot be brought into real life and can only be traded within the game. The emergence of GameFi breaks this situation. GameFi, a combination of Game and Finance, refers to blockchain games that provide economic incentives to players, allowing them to earn money while playing. Yes, you read that right. This is a game where you can earn money while playing.

• Real Ownership of Game Assets: In traditional games, although players can collect virtual assets in the game, these assets actually belong to the game developers, and players do not have true ownership. In GameFi, game assets usually exist in the form of digital assets on the blockchain, and players have full ownership of their digital assets, allowing them to freely trade, transfer, or use them.
• Cross-Game Asset Circulation: In the GameFi ecosystem, players' digital assets are not limited to a single game. They can use, trade, and transfer assets in different games. This brings greater interconnectivity to the gaming industry, increasing the playability and fun of games.

DAO#

DAO stands for "Decentralized Autonomous Organization." It is an organizational form based on blockchain technology and smart contracts, aiming to achieve decentralized, transparent, and autonomous management and operation.
In traditional organizations and companies, there are usually centralized decision-making bodies such as boards of directors and management teams responsible for managing the operation and resource allocation of the organization. However, the design concept of DAO is to achieve decentralized decision-making and autonomy through blockchain technology and smart contracts.

• Decentralization: DAO has no centralized power structure, and decision-making and management powers are distributed among all participants. Each participant can vote and make decisions on the organization's affairs based on their holdings of tokens or shares.
• Transparency: All decisions and transactions of DAO are recorded on the blockchain and are publicly transparent. This allows everyone to view and verify the operation of DAO, increasing the trustworthiness of the organization.
• Autonomy: The operation of DAO is executed by pre-programmed smart contract rules and protocols, without relying on human intervention. Smart contracts ensure that decision-making and transactions are automated and do not require trust in third parties.
• Voting Rights: In DAO, participants holding tokens or shares have voting rights, and they can vote on the organization's affairs, such as budget allocation, project investments, protocol upgrades, etc.

Summary#

Web3 is the next generation of the Internet, based on blockchain technology, emphasizing decentralization, transparency, and user sovereignty, giving users control over their data and assets. In the Web3 environment, digital wallets are necessary for securely managing and executing transactions. Therefore, it is crucial to safeguard personal passwords and private keys. Users should always remain vigilant and take necessary security measures to ensure the security of their digital wallets and assets.

Reference Links#

Blockchain Examples
Peking University Professor Xiaozhen's "Blockchain Technology and Applications" Open Course