Compared to other regions, the Hong Kong government's support for WEB3 has been particularly conspicuous, attracting a large number of WEB3 practitioners to gather here and the foundation of numerous projects in this area. Therefore, news related to WEB3 in Hong Kong has always been uninterrupted.
Last weekend, I attended a WEB3 event, where I learned about many insiders' views on WEB3 and the progress of entrepreneurial projects. The event gave me the most significant impression that WEB3's forward pace seems to have slowed significantly compared to a few years ago.
It's Still Hard to Define WEB3
Even inside the WEB3 circle, it is still challenging to articulate WEB3 to outsiders. They mostly use relatively vague slogans such as "freedom" and "decentralization" to express the characteristics of WEB3. I admit that these expressions were very appealing to outsiders initially, but this appeal is gradually decreasing over time.
In fact, capital investment in WEB3 is also gradually being reduced. As the opportunities narrow, practitioners need to think clearly about the relationship between WEB3 and society. People yearn to see the “real things".
Should WEB3 Be Considered as a New Industry?
Nowadays, we are accustomed to viewing WEB3 as a new industry. Interestingly, we have never heard of WEB1 or WEB2 industries. Over the past 20 years, we generally call these companies as technology companies, such as Google, Facebook, etc. So, what are the differences between WEB3 companies and technology companies? Is it special enough to form a new industry?
In my opinion, If we want to regard WEB3 as a new independent industry, these companies need to be strong enough to form a new business ecosystem. Therefore, WEB3 companies should focus on two directions:
- Construction of WEB3 infrastructure
- Transition of existing industries to the WEB3 ecosystem
WEB3 Infrastructure Needs Improvement
Looking back at the formation of the internet, all technological breakthroughs are continually improving our experience on the internet. Improvements from 3G to 5G allow us to enter the internet faster. The upgrade from the HTTP 1.0 protocol to HTTP 3.0 has significantly boosted the performance of internet software. This progress has spurred the development of many new features, transiting from mere text-based communication to the proliferation of video content and even live-streaming. These advancements underpin the foundations of the internet. Only when all the underlying infrastructures are impeccably established, manifesting in the form of a globally accepted "Internet World," will the industry's ecosystem truly flourish.
WEB3 is still lacking a strong, universally credible infrastructure. Looking back at past technological revolutions, many breakthrough technologies like Unix systems and C language were born in labs, so the future is bright for WEB3, which is highly recognized in universities and heavily supported by the government worldwide.
All About WEB3 is the Ownership of Virtual World
In contrast, not all organizations can invest in laboratory-level infrastructure. Currently, WEB3 practitioners are more involved in exploring commercial solutions for WEB3. Particularly in areas like gaming and finance, proprietary terms like GameFi, DeFi are already emerging.
Even though WEB3’s business plans are quite extensive nowadays, the industry still lacks a universally recognized flagship product. Many companies, when promoting or investing, place too much emphasis on elements of the metaverse like VR, AR. However, I think WEB3's business considerations should focus on the aspect of "ownership in the virtual world"， as this represents the most considerable chance for WEB3 to form a new social model.
At the event, I met a Data Analyst from DA-AGE whose project aims to dissect a billboard in the physical world into many pieces, then sell them separately. The owners of those parts of the billboard can enjoy the future income generated by the billboard on a pro-rata basis. This concept presents a completely new organizational model. In the past, the cost of owning a billboard was high, which was a barrier for many. However, with WEB3 technology, we can lower this cost, allowing more people to own assets they couldn't afford before. Similarly, decisions regarding assets would require collective determination, forming a new social organizational model.
There are many projects like this. We should think more about whether there exists a scenario in today's internet world where, after being granted ownership, a massive potential market could be uncovered.