Introduction

On April 12th, during the roundtable discussion on the evolution of Web1 to Web3 at the 2023 Hong Kong Web3 Carnival, Dragonfly founder Feng Bo stated that it is still in the early stages of Web3 development, and the best applications are Bitcoin and Ethereum. Once DeFi is as convenient to use as a microwave and refrigerator, it will become the most important financial tool for future human civilization, and we are experiencing tremendous progress in human civilization.

Dragonfly founder Feng Bo: DeFi will become the most important financial tool for future human civilization

On April 12th, 2023, during the roundtable discussion on the evolution of Web1 to Web3 at the Hong Kong Web3 Carnival, Dragonfly founder Feng Bo made an interesting observation. He stated that Web3 is still in its early stages of development and the best applications currently available are Bitcoin and Ethereum. Once DeFi becomes as convenient to use as household appliances like microwaves and refrigerators, it will become the most important financial tool for future human civilization. Feng Bo believes that we are experiencing tremendous progress in human civilization. In this article, we will explore what Web3 is, the key players in its development, the current state of Web3, and the future of this exciting new technology.
# What is Web3?
Web3 is the next generation of the internet and is sometimes referred to as the “decentralized internet.” Web3 will feature decentralized applications that run on blockchain technology, which is a secure and transparent database that stores information across a network of computers. Web3 applications will be distributed across the internet and will not be hosted on centralized servers like Web1 (the static web) and Web2 (the dynamic web).
# Key Players in Web3
Some of the key players in the development of Web3 include blockchain developers, tech companies, entrepreneurs, investors, regulators, and governments.
Blockchain developers work on creating decentralized applications that will run on the Web3 infrastructure. Tech companies like Ethereum, Polkadot, and Cardano are building the infrastructure for Web3 and creating the protocols that will enable decentralized applications to run on it. Entrepreneurs are building startups that will be powered by Web3.
Investors are investing in Web3 infrastructure, startups, and cryptocurrencies. Regulators are trying to figure out how to regulate decentralized technologies, which do not have any centralized authority. Meanwhile, governments are exploring the potential benefits of blockchain technology, such as reducing fraud, improving transparency, and increasing efficiency.
# The Current State of Web3
Web3 is still in its early stages of development, but progress has been made in recent years. Ethereum, the second-largest cryptocurrency by market capitalization, has paved the way for decentralized applications and smart contracts to run on the blockchain. Ethereum has enabled the creation of decentralized finance (DeFi) applications, which are designed to provide financial services without the need for intermediaries like banks. Other blockchains, like Solana, Binance Smart Chain, and Polygon, have also made significant progress in creating the infrastructure for Web3.
However, there are still some challenges that need to be addressed before Web3 can become widely adopted. One of the biggest challenges is scalability. Ethereum, for example, currently has a limited capacity for processing transactions, which can result in slow transaction times and high fees. Interoperability is another challenge, as different blockchains may not be able to communicate with each other seamlessly.
# The Future of Web3
Despite the challenges, the future of Web3 looks bright. DeFi, which is one of the most promising areas of Web3, has already shown impressive growth in recent years. According to DeFi Pulse, the total value locked in the DeFi ecosystem has grown from $1 billion in June 2020 to over $120 billion in April 2023.
In the future, Web3 applications will become easier to use, and end-users will not need to know about the underlying blockchain technology. This will enable mass adoption of Web3 applications. In addition, Web3 will enable decentralized identity, which will allow individuals to take control over their personal data and privacy.
# Conclusion
Web3 is an exciting new technology that has the potential to be a game-changer for the internet and the modern world. Despite being in its early stages of development, there has been significant progress in creating the infrastructure and applications for Web3. DeFi has been the most successful area of Web3 so far, and it will become even more important in the future. As Web3 continues to evolve, we can expect new opportunities, challenges, and innovations that will shape the future of human civilization.
# FAQs
1. What is the difference between Web1, Web2, and Web3?
Ans: Web1 was the static web that consisted of simple HTML pages, while Web2 was the dynamic web that featured interactive websites and social media. Web3, on the other hand, is the decentralized internet that will run on blockchain technology.
2. What are some of the challenges facing Web3?
Ans: Web3 is still facing challenges related to scalability, interoperability, and user-friendliness.
3. What is DeFi?
Ans: DeFi is short for decentralized finance, which is a subset of Web3 that provides financial services using decentralized applications and smart contracts.