Another inexplicable new term.
I roughly summarize it into the following points.
What is Web 3.0#
Web 3.0 (Web3) is the direction of the next generation of the internet, aiming to create a more decentralized, user-controlled, and data-protective network environment. Unlike the previous Web 1.0 (static web pages) and Web 2.0 (dynamic, interactive web pages and social media), the core concepts and technologies of Web 3.0 include the following aspects:
Decentralization:#
- Blockchain technology: The core of Web 3.0 is blockchain technology, which provides a decentralized ledger that records all transactions and data changes. This means that data is no longer controlled by a single central server but is distributed across multiple nodes.
- Decentralized applications (DApps): These applications run on blockchain networks without centralized controllers. Users of DApps can transact and interact directly without intermediaries.
User Control and Data Protection:#
- User sovereign identity: In Web 3.0, users can fully control their digital identity and data. Through encryption technology, users can decide who can access their data and how it can be used.
- Data ownership: User data is stored on a decentralized network, and users own their data rather than it being centrally managed and controlled by large companies.
Smart Contracts:#
- Automated execution protocols: Smart contracts are automated protocols that run on the blockchain and execute automatically when specific conditions are met. This technology can be used in various scenarios, such as financial transactions, supply chain management, and legal contracts.
Interoperability:#
- Cross-platform and cross-chain technology: Web 3.0 aims to achieve interoperability between different blockchains and distributed networks, allowing data and assets to be seamlessly transferred across different platforms.
Trustlessness and Transparency:#
- Trustless mechanisms: Web 3.0 achieves trustless mechanisms through blockchain technology, meaning participants can conduct secure transactions and interactions without needing to trust each other or rely on third-party intermediaries.
- Transparency: All transactions and data changes are recorded on the blockchain, publicly visible and immutable, enhancing trust and security.
Application Scenarios of Web 3.0#
- Decentralized Finance (DeFi): Providing financial services such as lending, trading, and investing without intermediaries through smart contracts and blockchain technology.
- Digital Identity: Users can create and manage their digital identities, controlling access to and use of personal data.
- Supply Chain Management: Achieving transparency and traceability in the supply chain through blockchain technology, preventing counterfeiting and fraud.
- Content Creation and Distribution: Artists, musicians, and writers can interact and trade directly with audiences, obtaining a fairer distribution of earnings.
So what is blockchain?#
Blockchain technology is a type of Distributed Ledger Technology (DLT) used to record transactions and information in an immutable, decentralized database. The core idea of blockchain technology is to achieve data security, transparency, and trustworthiness through decentralization.
Basic Principles of Blockchain#
- Block:
- A block is a data package that contains transaction records. Each block contains multiple transactions and a hash value (used to uniquely identify the block).
- The block also contains the hash value of the previous block, linking all blocks together to form a blockchain.
- Chain:
- Blocks are interconnected through hash values, forming a chain structure. Each block contains the hash value of the previous block, making the data in the blockchain difficult to tamper with.
- If an attempt is made to change the data in one block, it will cause the hash values of that block and all subsequent blocks to change, requiring recalculation of all these blocks' hash values, which is nearly impossible.
- Decentralization:
- All nodes (computers) in the blockchain network maintain a complete copy of the blockchain, and these copies remain consistent through a consensus mechanism.
- There is no central authority controlling or managing the blockchain; data is maintained collectively by all nodes.
- Consensus Mechanism:
- The blockchain network uses consensus mechanisms to ensure that all nodes agree on the state of the blockchain. Common consensus mechanisms include Proof of Work (PoW) and Proof of Stake (PoS).
- Proof of Work (PoW): Miners verify transactions by solving complex mathematical problems and adding them to the blockchain. Solving these problems requires significant computational power, ensuring the security of the blockchain.
- Proof of Stake (PoS): Validators verify transactions based on the amount of cryptocurrency they hold and other factors, receiving corresponding rewards.
- Cryptography:
- Blockchain uses cryptographic techniques to ensure data security and privacy. Each transaction is signed and verified using public and private keys, ensuring that only legitimate owners can initiate transactions.
Advantages of Blockchain#
- Security:
- Data is distributed across multiple nodes, eliminating single points of failure, making it difficult for attackers to tamper with data. Each block contains the hash value of the previous block, and tampering with one block requires changing the entire chain, which is extremely costly.
- Transparency:
- All transaction records on the blockchain are publicly visible, and anyone can review them. Transaction records are immutable, enhancing the system's transparency and trustworthiness.
- Decentralization:
- There is no central controlling authority; all nodes participate equally in maintaining and managing the network, preventing single-point control and power concentration.
- Immutability:
- Once data is written to the blockchain, it is difficult to alter, ensuring the integrity and authenticity of the data.
Application Scenarios of Blockchain#
- Cryptocurrencies:
- Bitcoin is the first and most famous blockchain application, achieving a peer-to-peer electronic cash system through decentralization.
- Ethereum not only supports cryptocurrency transactions but also enables the execution of smart contracts, expanding the application scope of blockchain.
- Supply Chain Management:
- Blockchain can record the entire process of a product from production to sale, improving transparency and traceability in the supply chain, preventing counterfeit and substandard products.
- Financial Services:
- Blockchain technology can be applied in areas such as cross-border payments, securities trading, and insurance claims, reducing intermediaries, lowering costs, and improving efficiency.
- Digital Identity:
- Blockchain can be used to create and manage digital identities, ensuring user identity privacy and security, preventing identity theft.
- Smart Contracts:
- Smart contracts are automated protocols that run on the blockchain and execute automatically when specific conditions are met, widely used in various automated transactions and business processes.