Deepening Understanding of Web3.0: Opportunities and Challenges in the New Internet Era

What exactly is Web3.0?

In recent years, “Web3.0” has become a frequently mentioned term in the investment circle, but few truly understand its meaning. Many projects are branded as Web3.0, making it difficult for investors to distinguish genuine from fake, and some even fall victim to scams. To stay clear-headed amidst this wave, the first step is to understand what Web3.0 is.

The father of the internet, Tim Berners-Lee, proposed the concept of Web3.0 as early as 2006, with the core idea of giving users true control over their data. By 2014, Ethereum co-founder Gavin Wood further refined this definition, believing that Web3.0 should be an uncensorable, decentralized, low-threshold network environment capable of effectively protecting user data security.

Essentially, Web3.0 is the third generation of the internet, built on blockchain technology as its foundational layer. Its goal is to realize user data ownership, self-governance, and asset control. As a new internet paradigm driven by blockchain, Web3.0 inherits all the advantages of distributed technology: decentralization, immutability, transparency, permissionless access, and trustlessness.

The evolution of Web1.0, Web2.0, and Web3.0

The development path of the internet is clearly visible. The Web1.0 era (1990-2004) was characterized by read-only content; Web2.0 (2004 to present) enabled creation and sharing but data ownership remained with platforms; Web3.0 (2014 to present) empowers users to truly own their data, identities, and assets.

There are significant differences across these three generations of the internet across multiple dimensions. In terms of user participation, Web1.0 is read-only, Web2.0 is read-write, and Web3.0 further extends to read-write-own. Regarding online identity, Web1.0 had no user identification, Web2.0 relies on centralized username-password systems, while Web3.0 achieves decentralized identity. The evolution of economic models is also evident: Web1.0 lacked clear business models, Web2.0 mainly depended on advertising revenue, and Web3.0 introduces new economic incentives like cryptocurrencies. From a technical perspective, Web1.0 used static HTML, Web2.0 adopted dynamic HTML, and Web3.0 integrates cutting-edge technologies such as blockchain, smart contracts, and artificial intelligence.

What problems does Web3.0 solve?

Imagine this scenario: you are a content creator, publishing original content on social media to attract fans and interact, earning income through ads and live streams. It seems like a win-win cooperation, but in reality, many issues are hidden—who owns the content? Does all ad revenue go to the platform or is it shared with creators? Will personal information held by the platform be leaked or misused?

These are not fictional concerns but real issues prevalent in the Web2.0 era. Centralized monopolies of tech giants, data security risks, and lack of privacy protections trouble hundreds of millions of internet users.

The mission of Web3.0 is to redefine data and asset ownership through blockchain, smart contracts, and other technologies. Its goal is to eliminate unnecessary intermediaries and restore users’ rights—data control, property ownership, and privacy protection—to the users. In the long run, this return of power benefits all participants: users gain rightful control, platforms foster stronger engagement through transparent incentive mechanisms, and such an ecosystem can achieve sustainable development.

The relationship between Web3.0, blockchain, and other concepts

Currently, there are many related concepts to Web3.0, including cryptocurrencies, NFTs, the metaverse, DeFi, and more. Understanding their logical relationships is crucial.

Blockchain is the foundation—it provides the decentralized, immutable technical base; without blockchain, Web3.0 would not be possible.

Cryptocurrencies and NFTs are tools—they are vital components of the Web3.0 economy. Cryptocurrencies facilitate value transfer, NFTs confirm digital asset ownership, and both are indispensable financial infrastructures within the Web3.0 ecosystem.

The metaverse and DeFi are applications—they represent specific implementations of Web3.0 in different fields. The metaverse is an immersive virtual space powered by Web3.0, while DeFi is a decentralized financial ecosystem.

In short, Web3.0 relies on blockchain technology and depends on financial products like cryptocurrencies and NFTs for its economic layer.

Where are the investment opportunities in the Web3.0 track?

According to market data, the total market cap of the Web3.0 sector is approximately $23 billion, accounting for 2.18% of the global crypto asset market cap. Currently, there are about 200 related projects, including well-known ones like Polkadot (DOT), Chainlink (LINK), ApeCoin (APE), Filecoin (FIL), and others.

While many projects exist, they are mixed in quality. The truly noteworthy ones are those with real-world applications and solutions to genuine needs. For example, DOT’s innovations in underlying infrastructure, LINK’s leading position in oracles, and FIL’s breakthroughs in distributed storage—all have built their own competitive barriers. They have defensive capabilities in bear markets and explosive potential in bull markets.

In contrast, projects that are purely conceptual with no technological breakthroughs carry higher risks. Investors should exercise caution in discerning them.

Practical paths for Web3.0 investment

For investors interested in participating in Web3.0, there are several approaches:

Direct spot trading: High-market-cap Web3.0 tokens like DOT, LINK, etc., are listed on mainstream exchanges with ample liquidity, suitable for ordinary investors. Smaller projects may require trading on specialized decentralized exchanges like Uniswap or PancakeSwap.

Contract trading: Some platforms offer derivatives or contract trading products for Web3.0 tokens. Leverage can amplify gains but also increases risks; suitable only for experienced traders.

Wallet holding: For projects with long-term confidence, holding related tokens in self-custody wallets is also an option.

The long-term outlook for Web3.0

Although the concept of Web3.0 was proposed early, systematic industry development has just begun, and the current scale remains limited. It is foreseeable that this track may go through a bubble phase, similar to early artificial intelligence—initial hype, then capital withdrawal, followed by calm development. But history has shown that no one denies the long-term value of AI.

The same applies to Web3.0. Its goal is not to address false needs but to solve real existing problems—data monopolies, privacy leaks, lack of asset control, etc. Although current technological achievements have not yet met market expectations, this should not negate its future value and development trajectory.

Therefore, investors optimistic about the Web3.0 track can allocate some idle funds for medium- to long-term positioning, avoiding chasing overnight riches or ignoring the potential of this emerging field. Rational participation, risk management, and a long-term perspective are key to remaining invincible in Web3.0 investments.