The Evolution of Web1 to Web3: What the Future Holds for Bitcoin, Ethereum, and DeFi

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

The world of technology and finance is rapidly moving towards Web3, the decentralized web. With the advent of blockchain technology and cryptocurrencies, the internet is becoming more secure, transparent, and open. On April 12th, during the roundtable discussion at the 2023 Hong Kong Web3 Carnival, Dragonfly founder Feng Bo stated that Bitcoin and Ethereum are the best applications of Web3, and DeFi will become the most important financial tool in the future. In this article, we will explore the evolution of Web1 to Web3, the potential of Bitcoin and Ethereum, and the future of DeFi.

The Evolution of Web1 to Web3

The internet has gone through three stages of evolution. Web1, which started in the 1990s, was mostly static and centralized. Websites were built on HTML, and the content was controlled by a few corporations. Web2, which emerged in the early 2000s, introduced interactivity and user-generated content. Social media platforms like Facebook, Twitter, and YouTube became popular, and the internet became more social and mobile. However, Web2 platforms are still centralized and controlled by a few big players.
Web3, also known as the decentralized web, is the next stage of evolution. It is powered by blockchain technology, which ensures security, transparency, and decentralization. In Web3, users have more control over their data and content, and there are no intermediaries or centralized authorities. Smart contracts, which are self-executing agreements, enable decentralized finance (DeFi) applications like lending, borrowing, and trading.

Bitcoin and Ethereum: The Best Applications of Web3

According to Feng Bo, Bitcoin and Ethereum are the best applications of Web3. Bitcoin, which was created in 2009, is the first and most popular cryptocurrency. It is decentralized, meaning there is no single entity controlling it. Bitcoin transactions are secured by a network of computers that verify and process transactions. Bitcoin is also limited in supply, with only 21 million bitcoins ever to be mined, making it a scarce asset.
Ethereum, which was created in 2015, is a blockchain platform that enables smart contracts and decentralized applications (dApps). It has a native cryptocurrency called Ether (ETH), which is used to pay for transaction fees and gas. Ethereum is more flexible than Bitcoin since developers can use its platform to build their own dApps and tokens.
Both Bitcoin and Ethereum have seen tremendous growth and adoption in recent years. Bitcoin’s market cap reached $1 trillion in February 2021, and Ethereum’s market cap reached $500 billion in May 2021. They are both traded on major exchanges and accepted as payment by many merchants.

DeFi: The Future of Finance

While Bitcoin and Ethereum are the best applications of Web3 currently, Feng Bo believes that DeFi will become the most important financial tool in the future. DeFi refers to a new financial system that is decentralized and runs on smart contracts. DeFi applications enable users to lend, borrow, and trade cryptocurrencies and other assets without intermediaries.
According to Feng Bo, DeFi needs to be as convenient to use as a microwave or refrigerator to reach mainstream adoption. Currently, DeFi applications have a steep learning curve and can be complicated to use. However, progress is being made, and many innovative DeFi projects are emerging. For example, Uniswap, a decentralized exchange (DEX), has grown to become one of the largest exchanges in terms of trading volume, surpassing some centralized exchanges.
As DeFi evolves and becomes more user-friendly, it has the potential to disrupt traditional finance and banking. Decentralized lending and borrowing can provide more financial inclusion to the unbanked and underbanked. Decentralized exchanges can offer more liquidity and transparency compared to centralized exchanges. With DeFi, people can have more control over their money and financial decisions.

Conclusion

The world is moving towards Web3, the decentralized web powered by blockchain technology. Bitcoin and Ethereum are the best applications of Web3 currently, and DeFi has the potential to become the most important financial tool in the future. While there is still a long way to go, the progress that has been made is impressive. As DeFi becomes more convenient to use, it has the potential to disrupt traditional finance and banking and provide more financial inclusion to people around the world.

FAQs

1. What is Web3?
Web3 is the decentralized web powered by blockchain technology. It enables more security, transparency, and decentralization compared to Web1 and Web2.
2. What are Bitcoin and Ethereum?
Bitcoin and Ethereum are two of the most popular cryptocurrencies and the best applications of Web3 currently. Bitcoin is decentralized and limited in supply, while Ethereum is a blockchain platform that enables smart contracts and dApps.
3. What is DeFi?
DeFi is decentralized finance, a new financial system that runs on smart contracts and enables users to lend, borrow, and trade cryptocurrencies and other assets without intermediaries.
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