What is Web3?

While definitions vary, it is generally seen as the "next generation Internet" with a few key characteristics:

• Open + decentralized:The Web3 platform is built on open protocols that require no third-party trust.

• ownership:Participants own their data and content, and even take ownership of the platform.

exchange

01

exchange

One indicator of user interest in Web3 is to look at exchanges.

While buying cryptocurrencies may be purely for investment purposes, interacting with Web3 requires a wallet with cryptocurrencies, and the on-ramp to get initial cryptocurrencies is usually an exchange.

• CoinbaseHas 68 million certified users. Among them, 8.8 million active users have a transaction volume of up to 150 billion US dollars per quarter. In addition, Ethereum, which is regarded as the cryptocurrency to start Web3, has increased its transaction volume by 20 times in just 15 months, far surpassing Bitcoin.

• BinanceThe trading volume of Coinbase is about 4-5 times that of Coinbase, and the daily trading volume reaches 30-40 billion US dollars!

• Robinhoodwallet

02

wallet

Wallets are at the heart of Web3 and a good indicator of Web3 interest and activity. Data show that interest is growing rapidly.

• Metamaskwallet

• Coinbasewallet(Coinbase Wallet) ranks in the top ten in the financial category of the Apple App Store.

  
  

• Phantomfirst level title

03

NFT

When it comes to "ownership" in Web3, it can take two forms:

1. Alternative tokens. As the name implies, one token can substitute for another (for example, $1 is the same as another $1).

2. Non-fungible tokens (NFT), which are unique.

NFT has a wide range of use cases in collectibles, games, digital art, reputation systems, etc., and it is an important part of highlighting Web3 ownership.

• OpenSeaThere are more than 600,000 users on the platform, and the monthly transaction volume has reached 3 billion US dollars, an increase of more than 500 times compared with the same period last year. In contrast, its trading volume is three times that of Etsy, a public company with a market capitalization of $30 billion.

• CoinbaseAnnouncing the launch of the NFT trading market, there are already 3.8 million users on the waiting list!

• SolanaArtThe daily transaction volume is about $3 million, which means that even a Solana-based NFT has a transaction volume of $1 billion.

• FTXA Solana-based NFT trading market has also just been launched.

Chain game

04

Chain game

Gaming (particularly play-to-earn games) is another use case that has already started, and it becomes the prelude to Web3. In-game items are either fungible tokens or NFTs, which are another entry point into Web3.

• Axie, a game that earns money by playing games, has 2.2 million monthly active players. Last month, Axie’s transaction volume exceeded 500 million. In places like the Philippines, workers quit their day jobs and started playing Axie for a living (sometimes making twice as much).

• SoRare, an NFT-based fantasy football game, is valued at more than $4 billion and has more than 500,000 users. It has basically never launched marketing. It has a user retention rate of around 70% and a DAU/MAU ratio of 60%, both incredibly high and comparable to many Web2 social networking sites.

• Decentralandfirst level title

05

DAO

DAO stands for Decentralized Autonomous Organization and is a way for people to collaborate around a common goal or vision.

DAO supports on-chain governance, decentralized decision-making and ownership. Even though DAO is not the first choice for human collaboration, it is the most meaningful form in the Web3 world.

• Assets under management:application:

• application:infrastructure:

• infrastructure:capital

06

capital

Innovation requires capital. There is no shortage of funding right now in the world of cryptocurrencies and Web3.

• Cryptocurrency VC:According to Bloomberg, in the first half of 2021 alone, more than $17 billion in venture capital and growth capital has been invested in cryptocurrencies, more than double the amount in all of 2020. Many top VCs are now investing in cryptocurrencies, some have not invested before, and some who have invested are still continuing to expand the size of their funds. A16Z's latest cryptocurrency fund has a size of $2.2 billion, Paradigm's fund size is $1.5 billion, NFX has an encryption game investment plan, and Coinbase Ventures has an average of one transaction every two days in the third quarter of 2021.

• Digital trusts and index funds:There is currently over $50 billion of capital invested in cryptocurrencies through digital asset trusts and index funds such as Grayscale ($50 billion), Pantera ($3.8 billion) and Bitwise ($1.1 billion).

• Institutional involvement:More than 9,000 institutions are entering the crypto space through Coinbase. These institutions hold about $90 billion in assets on Coinbase alone, with roughly $300 billion in trading volume every quarter!

• Hedge Fund:company

07

company

Another branch of participating in Web3 activities is Web2, and some traditional enterprises are also exploring various ways of participation. Examples can be seen in commerce, payments, gaming, fashion and entertainment.

• Brand and NFT airdrops:In addition to various sports leagues licensing NFT collectibles to SoRare and Dapper Labs, a number of brands including Nike, Gucci, Burberry, Dolce & Gabbana, and Warner Music Group have been dabbling in NFTs, sometimes linking NFTs with their own entities. Products are bundled together.

• social contact:Twitter has already introduced features such as encrypted tips and is exploring NFTs as profile pictures.

• Payment and Commerce:game:

• game:epilogue

epilogue

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(Original: Tanay Jaipuria | Compilation: Grain)