Web3.0 In-Depth Analysis: The Core Essence and Investment Opportunities of the New Internet Paradigm

What exactly is Web3.0?

The concept of Web3.0 has been appearing frequently lately, with almost every blockchain project claiming to be a Web3.0 application, making it difficult for investors to distinguish genuine from fake, and even becoming a buzzword for scammers. To understand what true Web3.0 is, we need to go back to its original definition by its creators.

In 2006, the father of the internet, Tim Berners-Lee, first articulated the vision of Web3.0: enabling users to control their own data and have full ownership of it. In 2014, Gavin Wood, co-founder of Ethereum, further refined this definition, stating that Web3.0 should be an uncensorable, non-monopolized, low-threshold network protocol capable of reliably protecting user data.

Simply put, Web3.0 refers to the third-generation internet based on blockchain technology, with the fundamental goal of enabling users to have complete ownership and autonomous control over data, assets, and identities.

Core Features of Web3.0

Since Web3.0 is built on blockchain technology, it inherently possesses all the attributes of blockchain:

• Decentralization: No single central authority
• Immutability: Records are permanently stored and unchangeable
• Traceability: Every transaction and data point can be traced
• Transparency: All information is open to network participants
• Permissionless: Anyone can participate without intermediary approval
• Zero-trust Mechanism: Based on cryptography rather than trust relationships

These features stand in stark contrast to the centralized model of Web2.0.

Why is Web3.0 Necessary? How Serious Are the Current Problems?

Imagine you are a content creator, publishing works daily on various social platforms, gaining exposure through likes, comments, and shares, and monetizing via ads and tips. This seemingly win-win cooperation hides numerous issues:

Who owns the rights to your content? Is it yours or the platform’s? How are ad revenues distributed? Will the platform infringe on your privacy data? These problems are common in the Web2.0 era, mainly because:

• Big Tech Monopolies: A few platforms control user data and revenue sharing
• Centralization Risks: Single points of failure can cause service outages or data breaches
• Privacy Violations: User data becomes commodities bought and sold freely
• Imbalance of Power: Creators become “tools,” earning meager rewards

The mission of Web3.0 is to leverage blockchain and smart contract technology to give users back control over their data, assets, and rights, eliminate unnecessary third-party intermediaries, and ensure fair distribution of benefits.

If these issues are not addressed, users may collectively abandon these platforms in search of alternatives, ultimately harming the platform’s long-term viability.

Evolution of the Three Generations of the Internet

This evolution reflects the internet’s spiral progression from unidirectional information dissemination to bidirectional interaction, and now to user sovereignty.

Hierarchical Relationship of the Web3.0 Ecosystem

To understand Web3.0, it’s essential to clarify its relationship with other concepts. Currently, the market is flooded with terms like blockchain, cryptocurrency, NFT, metaverse, DeFi, which are not parallel but interconnected:

Blockchain is the underlying technology foundation; without it, Web3.0 is impossible.

Web3.0 is the overarching vision aimed at returning ownership of data, assets, and identities to users.

Cryptocurrencies, NFTs, Metaverse, DeFi are specific application scenarios and tools under the Web3.0 ideal:

• Cryptocurrencies: Enable peer-to-peer value transfer and incentive mechanisms
• NFTs: Guarantee ownership and uniqueness of digital assets
• DeFi: Decentralized financial services, eliminating intermediaries
• Metaverse: Integration of virtual and real economies

In other words, Web3.0 is the goal and ideal, blockchain is the means and foundation, and products like cryptocurrencies are the economic tools to realize this goal.

Investment Opportunities in the Web3.0 Sector

According to market data, the total market cap of the Web3.0 sector has reached $23 billion, accounting for only 2.18% of the overall crypto assets, ranking 59th, indicating that this field is still in its early stages.

Currently, there are about 200 Web3.0-related projects, with the most representative including:

Infrastructure Projects:

• Polkadot (DOT) – Cross-chain interoperability protocol, solving blockchain communication issues
• Cosmos (ATOM) – Multi-chain ecosystem connector
• Chainlink (LINK) – Oracle network connecting on-chain and off-chain data

Storage and Computing:

• Filecoin (FIL) – Distributed storage network providing decentralized cloud storage
• The Graph (GRT) – Blockchain data indexing and querying protocol

Application Layer:

• Apecoin (APE) – Metaverse application ecosystem token
• Uniswap (UNI) – Decentralized exchange protocol

How to Identify Truly Worthwhile Web3.0 Projects

With so many projects out there, investors need to stay vigilant. Some projects hype Web3.0 concepts without any real products or technology support; such projects should be avoided.

The criteria should be:

1. Does it solve a real problem? – DOT, LINK, and FIL address critical Web3.0 needs like cross-chain interoperability, data oracles, and distributed storage, not just hype

2. Does it have actual products and users? – Check on-chain activity, daily trading volume, developer contributions, and other real indicators

3. Does it have a technological moat? – Infrastructure projects with high technical complexity tend to be hard to replace once network effects are established

4. Is the ecosystem expanding? – The number of partners and integrated applications reflects the project’s actual growth momentum

Projects with these features can provide basic protection in bear markets and have the potential for explosive growth in bull markets.

Future Outlook and Investment Advice for Web3.0

Although the Web3.0 concept was proposed quite early, systematic development has only been two or three years, which is normal for a small-scale phase. This stage is very similar to the early days of AI, which faced capital winter but was ultimately proven to be a revolutionary technology.

The key difference is: Web3.0 addresses real issues such as data privacy, platform monopolies, and unfair profit distribution, rather than pseudo-problems. While current results may fall short of expectations, this does not negate its long-term value.

Historically, every technological revolution goes through cycles of bubble, burst, and rebirth. Web3.0 may currently have a bubble, but after it deflates, truly high-quality projects and applications will gradually emerge.

Advice for investors:

• If you believe in the long-term potential of Web3.0, consider allocating a small amount of funds for strategic positioning
• Focus on projects that solve real problems and have technological barriers
• Avoid chasing high prices; consider dollar-cost averaging to reduce risk
• Learn the basics of blockchain and crypto assets to improve risk identification
• Be cautious of any overly promising promotions and recommendations

Finally, whether it’s Web3.0 or other new technologies, the core investment logic is: Participate cautiously during the bubble phase, and continue to deploy as the technology matures.