Understanding the Next Generation Internet: How Web3.0 Is Reshaping Data Ownership

As the concept of Web3.0 is widely propagated within the crypto community, many projects are leveraging the “Web3.0” banner for fundraising and promotion, making it difficult for investors to distinguish genuine from fake. Many low-quality projects are mixed in, even becoming tools for scams. This article aims to clarify the core features of Web3.0 to help everyone understand the logic behind this new wave.

What exactly is Web3.0? What are its core features?

There are different opinions in academia and the industry regarding the definition of Web3.0, but the perspectives of several pioneers are worth noting.

In 2006, Tim Berners-Lee, the father of the internet, first articulated the vision of Web3.0 — enabling users to control their own data and truly own data rights. Later, in 2014, Gavin Wood, co-founder of Ethereum, further deepened this idea, believing that Web3.0 should build a censorship-resistant, anti-monopoly, low-entry network ecosystem to ensure reliable protection of user data.

In other words, Web3.0 is the third evolution of the internet, supported by blockchain technology, aiming to redistribute data ownership and achieve user self-governance.

Since blockchain is the technological foundation of Web3.0, it naturally inherits all its attributes — decentralized operation, tamper-proof data, full traceability of transactions, transparency, permissionless participation, and trustless interaction.

Pain points of Web2.0 and solutions offered by Web3.0

Imagine a content creator posting articles on social platforms like Instagram, X, Facebook, etc., gaining attention through fan interactions, likes, and shares, then monetizing through ad revenue and business collaborations. On the surface, it seems like a win-win situation, but hidden risks exist.

Who owns the content — the creator or the platform? Who receives the ad revenue? Will the platform abuse or leak user privacy? These issues were common in the Web2.0 era, stemming from excessive centralization of platform power, users being powerless when systems fail or are attacked, and frequent large-scale data breaches.

The mission of Web3.0 is to use innovative technologies like blockchain and smart contracts to ensure data security, protect user assets, and maintain privacy and control rights. Simply put, it aims to eliminate unnecessary middlemen and fully restore the rights that should belong to users.

What happens if we continue to ignore user ownership rights? Although individual users are weak against large institutions, angry user groups will migrate, causing platforms to lose vitality — a loss for both sides. This is a sustainable development issue, not just a moral one.

Evolution of the third-generation internet: from one-way browsing to ownership return

The development trajectory of the internet can be divided into three stages, each with distinct differences in user interaction, data control, and underlying technology:

This evolution chart clearly shows the fundamental differences among the three eras — Web1.0 was the age of unidirectional information flow, Web2.0 enabled two-way interaction but data control was monopolized by platforms, and Web3.0 truly returns power to users.

The ecosystem relationship between Web3.0 and related concepts

Currently, concepts like blockchain, cryptocurrency, NFT, metaverse, and DeFi are emerging and intertwined. From a technical architecture perspective, blockchain is the foundational infrastructure, while Web3.0 and the other concepts are application layers built on blockchain.

Web3.0 aims to give users complete ownership and control over data, assets, and identities. Cryptocurrency, NFT, and DeFi are the economic tools to realize this goal — cryptocurrencies facilitate value transfer, NFTs ensure the uniqueness and ownership of digital assets, and DeFi enables decentralized financial services.

In short, blockchain is the technological foundation, cryptocurrencies and NFTs are economic incentives, and Web3.0 is the ultimate vision of their combined operation. Without blockchain, Web3.0 cannot be practically realized.

Opportunities and risks in the Web3.0 investment track

According to market data, the total market cap of the Web3.0 sector is about $23 billion, accounting for approximately 2.18% of the overall crypto market, ranking 59th among all sectors. Currently, over 200 related projects are gathered in this field, with notable ones including Polkadot (DOT), Chainlink (LINK), Filecoin (FIL), ApeCoin (APE), etc.

Although there are many projects related to Web3.0, the quality varies greatly. Investors should not blindly follow the hype but focus on projects with real progress and genuine needs. For example, DOT focuses on cross-chain interoperability, LINK on oracle infrastructure, and FIL on distributed storage solutions — these projects address fundamental needs of the Web3.0 ecosystem and have built relatively solid moats. They tend to remain relatively stable during bear markets and have explosive potential during bull markets.

In contrast, projects that purely hype concepts without practical applications are extremely risky and often serve as tools for capital to harvest retail investors. Investors should learn to distinguish.

The future outlook of Web3.0 and recommendations

Although the concept of Web3.0 has been around for some time, systematic development has only begun in recent two years. Currently, the scale of this field is still small, and it may even face bubble risks — similar to the early days of AI development, after a capital frenzy, followed by a cold period. However, no one denies the ultimate value of AI, and the same applies today.

Web3.0 is not about solving false needs but addressing real existing dilemmas in life — abuse of centralized power, privacy leaks, and user data being sold as commodities. Although current achievements and expectations are still somewhat distant, this does not negate its long-term value and development trend.

If you are optimistic about the Web3.0 track, it is recommended to allocate a small portion of your investment portfolio for exploration and testing. This is both an exploration of new technological directions and an early bet on the future form of the internet.