2️⃣Background
Last updated
Last updated
Web3 refers to web services that enable participants to engage in various activities without intermediaries controlling the data. Since Web3 is based on blockchain technology, its fundamental structure consists of elements such as DAOs (Decentralized Autonomous Organizations) as participation reward systems, distributed ledgers as databases, and coins/tokens as central components of economic activity. This structure of Web3 itself creates new business models. By utilizing distributed ledger databases and coins/tokens, users can make seamless payments while using services and establish governance among participants. It forms an ecosystem that operates based on smart contracts and protocols.
Unlike the existing centralized internet environment, Web3 aims for a blockchain-based decentralized network. The current internet structure is dominated by major IT companies like Google, Facebook, and Amazon, which monopolize data and content. However, in Web3, data and content are not concentrated in specific companies or platforms; instead, they are stored in a distributed manner on blockchain networks. This ensures openness and neutrality, secures individual data sovereignty, and makes it difficult to manipulate or censor information, thereby strengthening freedom of the press and freedom of expression.
The global Web3 market is projected to exceed $6.63 billion by 2024. By 2033, it is expected to reach a valuation of $177.58 billion, with an anticipated annual growth rate of 44.1% for the Web3 industry share from 2024 to 2033. This rapidly expanding Web3 market includes infrastructures such as cryptocurrencies, non-fungible tokens (NFTs), decentralized finance (De-Fi) applications, decentralized autonomous organizations (DAOs) that integrate digital assets, metaverse and gaming platforms, oracles, token standards, and layer 2 scaling solutions.
The most active representative service of Web3 currently is De-Fi (Decentralized Finance). De-Fi refers to financial services that operate solely through blockchain's smart contracts, without central administrators or intermediaries. It utilizes smart contracts to provide various financial services, such as obtaining loans using coins/tokens as collateral or earning interest through staking. Through these achievements, De-Fi is recognized as a pillar of future finance, enhancing transparency, efficiency, and accessibility based on blockchain and Distributed Ledger Technology (DLT).
