Before we get to the main point, there are two quick questions: Do you remember when dial-up internet access was introduced at the time the internet entered the mass market? How long would it take to download a two-hour movie at internet speed back then?
While dial-up Internet access may seem like a thing of the past, it’s only been 30 years since it was made available. If we were to download a 2-hour movie with average image quality at the internet speed of that time, it would take decades. Today, we generally refer to this period of Internet development as the Web1.0 era. Looking back over the past 30 years, we cannot help but be surprised at the rapid development of the Internet industry and its profound impact on the real world.
Today, most millennials born into the high-speed Internet may not have heard of the old “dial-up internet” and can enjoy the convenience as well as the rich and colorful content of Web 2.0. They are also unwittingly involved in the discovery of Web3.
Now we get to the main topic. Recently, Andreessen Horowitz (a16z), a well-known venture capital firm in the crypto industry, has officially published its principles for Web3 regulation, presenting the following 10 principles to “world leaders” including governments, multinational corporations and globally influential civil society groups. we noticed.
1. Establish a clear vision to promote decentralized digital infrastructure; 2. Adopting multi-stakeholder approaches to government regulation; 3Create risk-adjusted management regimes for different WEb3 activities; 4. Promote composable innovation with the power of open source code and open communities; 5. Expanding access to the economic benefits of the innovation economy; 6. Unlock the potential of DAOs; 7. Deploy web3 for further sustainability goals. 8. Embrace the role of well-regulated stablecoins in financial inclusion and innovation; 9. Collaborate with other countries to harmonize standards and regulatory frameworks; 10. Provide clear, fair tax rules for reporting digital assets and leverage technical solutions for tax compliance
In fact, not only a16z, but also many well-known crypto companies have put forward their own regulatory visions, including MEXC Global, Coinbase, FTX and Binance.
Let’s take MEXC Global as an example, although it’s been established for less than 4 years, it’s available in the United States, Canada, Australia, etc. It has obtained compliance licenses from 5 countries, including MEXC Global has also become a leading global compliance trading platform by organizing in-depth public chain ecosystem projects such as Ethereum, Polkadot, Solana, and conceptual projects such as DeFi, NFT, Web3, Metaverse, GameFi and DAO.
Of the last 10 principles put forward by the comprehensive planning of a16z and MEXC Global, we can’t help but ask: After the DeFi Summer in 2020 and the NFT+ GameFi boom in 2021, why will Web3 be an industry hotspot in 2022 alongside the Metaverse? To answer this question, let’s look for an answer from the evolution of the Internet.
Although there is currently no consensus in the industry on the definition of Web3, generally speaking it is the typical name for the third generation of the Internet. A general understanding is that there will be a more user-friendly, safer, more private next generation Internet to enable the transmission of values. This means that Web3 is not only the latest step in Internet technology, but also the first step towards a virtual world for human civilization.
If you break down the evolution of the Internet into several stages, the first stage is Web1.0, which probably lasted from the day the Internet was born to the first half of the first decade of the 21st century.
During this period, from the perspective of the underlying technology, many adopted the technology innovation mode to promote business development. The change and use of information technology has played a decisive role in the growth and development of websites. However, in terms of user experience, it shows a clear one-way feature. Early Internet companies provided platforms and content for people to read, but there was little interaction. Users could only get one-way information from websites and only a few creators could edit and create content. Generally speaking, this is a typical PGC period. In a more vivid analogy, the Web1.0 model is like moving a library to the web where users are more likely to be consumers in the vendor market and don’t have many or even zero bargaining rights. Moreover, they are at a very primitive stage in terms of both the number of sites and the speed of data transfer. The change and use of information technology has played a decisive role in the growth and development of websites. However, in terms of user experience, it shows a clear one-way feature. Early Internet companies provided platforms and content for people to read, but there was little interaction. Users can only get one-way information from websites and only a few creators can edit and create content. Generally speaking, this is a typical PGC period. In a more vivid analogy, the Web1.0 model is like moving a library to the web where users are more likely to be consumers in the vendor market and don’t have many or even zero bargaining rights. Moreover, they are at a very primitive stage in terms of both the number of sites and data transfer speed.
The second stage is Web2.0. In 2004, the concept of Web2.0 was first introduced during a brainstorming session between O’Reilly and the world’s leading publisher, MediaLive International. Thus, from 2004 until today, the Internet has been in the Web2.0 stage.
After nearly 20 years of development, we can clearly see that the Internet has gone through a fairly extensive conceptual and ideological system update, compared to the Web1.0 era. As the underlying technologies continued to iterate and advance during this period, they moved from a decisive position to a supportive one in advancing Web2.0, replacing it with the idea of respecting “personal values”. This concept is reflected in the rapid advancement of interactive experience in the Web2.0 era. Gradually, the original top-down Internet system dominated by a few resource controllers was transformed into a bottom-up Internet system dominated by the collective wisdom and power of a large number of users.
However, Web 2.0 is just a good starting point to respect the concept of “individual values”. In general terms, Web 2.0 provides every user with equal channels to express their views, connects everyone and increases the flow of information and the amount of information exponentially. But we must also see that the price behind this is largely at the expense of user privacy and the value of consumer information.
In other words, Web2.0 is more like a transitional stage for Internet startups to transfer some of their participation rights to users to gain more commercial benefits. With the development of Web2.0 over the last 20 years, user data has become every company’s most important asset. However, the owner of this part of the assets, which are users, does not have any control. From this perspective, there is still great room for improvement in respect for individuals. Therefore, it has become an opportunity for Web3.0 to deepen the concept of respecting individual values. Leading the future trend of the internet, pushing the internet information age into the internet experience age and ultimately imposing rights and benefits on users will be an important issue for Web3 to solve.
It is against this background that a16z put forward the above ten regulatory recommendations on the future development of Web3. From a comprehensive perspective, it essentially hits the pain points facing the current crypto industry and Web3 development. As A16z mentions in his advice, Web3 is not a single project but an overall set of technological advances, including crypto assets, DeFi (Decentralized Finance), blockchains, smart contracts, tokens and DAOs (Decentralized Autonomous Organizations). Together, these tools enable a new form of human collaboration. They can break many deadlocks in life and help communities make better collective decisions on key issues such as how networks should evolve, what behaviors are allowed and how economic benefits are distributed.
Compared with Web2.0, Web3.0 is not only an upgrade to existing functions, but also expands the development concept of the Internet. When comparing Web2.0 and Web3.0, it is clear that Web3.0 websites will be more comprehensive and easier to use, and more importantly, it will maximize the security and privacy of personal user data.
In other words, according to a survey conducted by a consulting firm commissioned by a16z, approximately 45% of cryptocurrency owners are millennials born between 1980 and 1996. And it is estimated that at least 1 billion new users will pour into Web3. The next 5 years will be the next generation, most born after 1980. Millennials are more optimistic about an investment philosophy that enriches both themselves and the world around them, and they are more inclined to market crypto investment opportunities than staggered, consolidated real estate and stock markets.
From this perspective, the battle between the crypto market and Web3 has become a mental battle for millennials. So, whoever can win these youngsters will have the upper hand. As mentioned above, MEXC Global has been on the global compliance operation route since 2020. MEXC Global is known for its fast-paced and advancing crypto industries, reaching the top 3 in terms of global trade volume within 2 years.
In this regard, Guy Hirsch, Managing Director of eToro USA, shares a similar view and said that “the market is now witnessing a shift from traditional exchanges to a generation that relied on digital currencies.” Once this conversion process begins, anyone can convert stocks based on blockchain technology into tokens in the Web3 world for more convenient, secure and efficient trading. The size of the market will increase hundreds or even thousands of times. A brand new market that could reach trillions of dollars may already be on the way.
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