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Web3.0 is a continuation of Web2.0, and the application chain is the implementation tool

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Web3.0 is the continuation of Web2.0, and the economic feature of Web2.0 is platform economy. Web3.0 is not to deplatform, but to make the Internet more open, more fair and more secure.

原文标题：《章鱼网络刘毅：Web3.0 是 Web2.0 的延续，并非要去平台化丨 2021 世界区块链大会》

Source: Kyle, Babbitt

Babbit news, On July 24-25, "World Blockchain Conference 2021 · Hangzhou" opened in Academic Exchange Center of Hangzhou Future Science and Technology City. This conference is hosted by Hangzhou Timestamp Information Technology Co., LTD. (Babbit).

On the 25th afternoon of "Web3.0 forum", Liu Yi, founder of Octopus Network, attended and delivered a keynote speech "developing application chain, realizing Web3.0". Liu Yi said in his speech that Web3.0 is the continuation of Web2.0, and the economic feature of Web2.0 is platform economy. Web3.0 is not to eliminate platform, but to make the Internet more open, fairer and safer.

Web3.0 is not disconnected from the Internet. Web3.0 is still Web applications. For the era of Web3.0 to come, there must be a good batch of Web3.0 applications in every market to replace the existing Web2.0 or traditional intermediary.

The following is a collated part of the speech:

Web3.0 is the continuation of Web2.0, and the economic feature of Web2.0 is platform economy. The term "platform economy" is defined as a type of business that creates economic value by facilitating or matching transactions or interactions between different types of participants, in short, intermediaries.

All the Web2.0 giants, whether it's the old BAT in China, or the new giants like Meituan and Didi, including Tiaotiao, or the five Internet giants in the United States, they are all platforms.

B2C e-commerce is a platform between e-commerce merchants and e-commerce buyers; A ride-hailing platform, an intermediary between drivers and passengers; Food delivery platform is an intermediary between restaurants and food delivery consumers.

Why are platforms so important, an economic phenomenon, or are they eating the world? Because the platform has a magic -- network effects. Network effect refers to the phenomenon that with more and more participants of the platform, the services provided will become better and better. The most typical one is wechat, which is the intermediary between people sending messages and people reading messages.

It is characteristic of the Web2.0 experience that the platform becomes large enough to act like a "black hole", sucking in players from both ends of the market and sticking to the platform, which we cannot leave.

Why Web3.0? Because web platform, although our life better, more efficient, but its disadvantages are also appeared, at the core of malpractice is platform are made by a company to run, the first duty of a company's business is to create profits, create big shareholder returns, as far as possible not to give our customers, the operations function is to serve shareholders' interests.

Platform scale to a certain extent, when the service providing and service users cannot leave it, it will expand its divided into in business transaction, we are known as the "rent-seeking" in economics, rent-seeking is not a good word, has not changed for you in the contribution of economic transactions, but because of your special position, so you can go to seek a bigger piece of profit, this is rent-seeking.

In fact, the Internet giants are already at such a stage.

Now you also see the platform regulatory problems, the government has realized that economic development platform to a critical point, it is to promote the efficiency of the society, including the innovation of science and technology, and its contribution to the gap between rich and poor so-called volume within, and competition will have reached a tipping point, its negative contribution has more than its positive contributions, so want to suppress platform.

We want to change a kind of economic form, not to the platform to take out, because the economy mediation is to go out, because both parties have huge economic intermediary asymmetric information, we will give the mediation form by the company has a platform into a community with encryption protocol, encryption protocol community have is what we call the decentralization, the encryption agreement is not subject to a certain person, Or a handful of people, but owned by the community.

What is community? If you have an encrypted protocol for ride-hailing, the community protagonist is the ride-hailing driver, and there are some supporting roles, developers, early investors, and ride-hailing users, who promote the protocol and become active members of the community. A takeaway community core role is these restaurants, e-commerce encryption protocol protagonist/controller should be these e-commerce sellers.

Replacing company-owned platforms with community-owned encryption protocols will lead to Web3.0 because it will make the Internet more open, fair and secure. Why more open? It doesn't have access anymore. You don't need didi's approval to do ride-hailing, as long as you meet community standards.

More fair means that the agreement itself does not pursue the maximization of its own interests, he will transfer the profit to the service provider, and will reduce the price, so that the service becomes more competitive, which is what we call Web3.0.

More secure, because we are using anonymous ID, address, DID, data on the encrypted blockchain, this is what we are talking about through such a revolution, the Internet into a new stage. For the era of Web3.0 to come, there must be a good batch of Web3.0 applications in every market to replace the existing Web2.0 or traditional intermediary.

We need to have a great Web3.0 application, and first of all it's a great Web application, which is something that a lot of startup teams don't see. If you do not understand the Internet, blockchain technology can do Web3.0 entrepreneurship? No, we can't forget the root, because Web3.0 is still a Web application.

At the same time we want to build a decentralization of rights and power structure, the agreement how income distribution, how to allocate rights, takes on a new decentralized books of the new platform in the form of implementation, and ensure that it has the property of decentralization, and not be controlled by the individuals, this is the block chain to solve the problem, It should have high security, low cost, high performance, easy-to-use wallet, upgradable, with the legitimacy of the upgrade, after a community consensus to upgrade. Let's not just say that scaling up TPS is high, these things are done well to form a decentralized equity architecture to support a community owned encryption protocol.

We talked about the application chain, and the application chain is another way, or a new way, to implement Web3.0 applications. The original Web3.0 applications were all running on a public chain through smart contracts. The problem with that is that it only works in the whole blockchain technology stack, and only the application logic can be modified. These other consensus protocols, execution environments, wallet interactions, and governance are all going along with the big public chain, which has resulted in too much decline in user concept to compete with Web2.0. Six years since ethereum was launched in 1.0 and 2015, no application has been able to win over mainstream Internet users.

DeFi began to break out last summer, and now DeFi is only 10000 per day, which is 5 or 6 orders of magnitude lower than mainstream Internet applications, such as wechat. This is a particularly good thing.

The main reason is that the user experience of smart contract is very poor. A new user needs to install MetaMask, buy ETH and put it in his wallet to use smart contract, and also needs to know what Gas is to participate in using these dapps. Most users are blocked out.

The application chain is a dedicated chain for the application using the framework of the blockchain. This gives you a lot of benefits. One is extremely fast performance, because you have the processing power of a chain all to yourself. In addition, the cost of consensus is very low, users can even use it without spending money.

Customizable, all parameters can be adjusted, you can modify the execution environment, modify the wallet, modify the consensus environment, to optimize for the application.

Recently a good example is the fire of the game, Axie Infinity, it from April launched their own custom etheric fang strategy came after the explosion, because it would reduce the transaction cost five orders of magnitude, fast, and integrates legal tender to pay in the wallet, the whole deal has resulted in an explosion, this is the advantage of application of chain. In addition, the application chain can have on-chain governance, where you can go to the community to reach consensus and upgrade the agreement, otherwise it will quickly evolve to adapt to new requirements, troubleshoot software defects, etc.

There are also drawbacks to the application chain. Although it is very powerful, it requires higher investment and knowledge. Fortunately, tools are available to reduce the cost of developing an application chain to a level comparable to that of a smart contract.

It's easier to develop an app chain, but running an app chain takes a long time and a lot of money. Because a chain has to be not only developed, it has to have the security of a chain, it has to have cross-chain capability, it has to have the infrastructure in addition to the chain, the blockchain browser and so on, and it has to have the community concerned about the application chain, and you have to have the support of early users and early investors. Octopus Network is designed to deploy and run a network of services that start a chain of applications. The Layer 2 network on Protocol, Substrate network, by joining the Octopus network to obtain untrusted cross-chains with NEAR and Ethereum, we have built a complete infrastructure for the application chain to use, and our community is one that actively supports the application chain.

The structure formed after the launch of Octopus is part of the blockchain Internet envisioned by Cosmos six years ago. The application chain of Octopus network can not only connect with NEAR cross-chain, but also cross chain with Ethereum through rainbow bridge. We can interoperate with all Cosmos chains through IBC, and we can interoperate with all Polkadot parallel chains to form a multi-chain network.

Our economic model is the application chain. In addition to development, other infrastructure is provided by us. The Token of the application chain gives QOS function to us, and the Token of octopus network is the only Token used for the security rental of the application chain.

Let's say a chain pays us $500,000 for security, it gets about $10 million in security, and each new chain creates $10 million in demand for the collateral OCTS.

In addition to turning WEB developers and smart contract developers into Substrate developers, of course we're working with Parity.

At the same time, we support these application chain teams through octopus Accelerator. Now we have many ecological projects, and we have received some capital support, including strategic investment in NEAR.