The deep meaning of DeSOC is decentralized society, and Finance in DeSoc refers to finance in a decentralized society. It is the infrastructure of a decentralized society and has the property of universality, everyone is a node and a user. DeFi is the basis for future “financial in DeSoc” at this time.

The bad news is that DeFi appears to be deeply involved in a quagmire due to the serial liquidations caused by high leverage, the false prosperity generated by circular lending, the deviation of the governance model “DAO”, the operation of user funds in the dark box, and the abuse of the token mechanism, which is slowly approaching its darkest hour.

Nevertheless, Defi may be viewed as an outpost of “financial in DeSoc,” with a pioneering attitude, exploring the subject of Web 3 finances to help decentralized finance extend its wings.

The present issue for Defi is that “the centralized world has altered Defi, which aims to revolutionize traditional finance.” The underlying layer is not decentralized simultaneously, but “the front-end portal is decentralized, but the back-end is still managed by centralized institutions.” On the surface, it appears to be a competition between DEX and CEX exchange platforms. However, the market maker may be the same centralized organization, thus there is no assurance that user funds will not be stolen regardless of which valve they flow through.

The finance in DeSoc will be completely decentralized. The funds on the chain will be transparent and the governance process will be open. For the first time, we will abandon all centralized gluttony and build a decentralized mainstream financial market that belongs to the future, to Generation Z, and to eternity. DeFi under DeSoc will be the fresh sprout that breaks ground and paves the way for the next wave of crypto innovation.

The whole research report consists of three chapters.

Part 2：The death of DeFi, how institutions can hurt each other under the “Black Swan”

The end of institutional mutual benefit is institutional mutual harm. The “decentralized platform” is controlled by “centralized instituions”, which is the reason why DeFi is currently in a quagmire, with the sword of Damocles hanging over the DeFi frenzy.

When DeFi reaches its peak in 2020–2022, the crypto bull market will come to an end. There have been a series of black swan occurrences in DeFi, and the farce is still sweeping in on a gigantic level. From Compound’s liquidity mining to Luna-crash UST’s in May 2022, the market has been riddled with farce, not to mention a string of pending explosions that are still extending and involve exchanges, market makers, lenders, hedge funds, and almost the entire DeFi base pieces such as 3AC, BlockFi, Celsius, Genesis, Nexo, Babel Finance, Maple Finance, CoinFLEX… It’s as if an invisible hand is guiding the market in the right direction, causing the crypto-believers’ nervous system to go into overdrive.

The Black Swan’s origins remain a mystery. Some argue that DeFi’s structure was already as problematic as it could be, while others argue that enormous leverage is to blame for the crypto currency market’s demise. As long as there are downsides, the institutions will be able to take advantage of them at any time, and another fishy war may be staged with central institutions whaling on the earnings at any given time. Indeed, “DeFi, which intended to transform traditional finance by the centralized globe, has been changed.”

When it comes to DeFi, the underlying layer hasn’t been decentralized. At the same time, the front-end portal is decentralized, but the back-end is still a centralized organization, which makes it more strange. In what appears to be a competition between DEX and CEX exchange platforms, but the market maker may be the same centralized institution, there is no assurance that user funds will not be plundered regardless of which valve they flow through.

Because of DeFi’s intrinsic flaws pervent it from effectively rejecting or controlling risks, centralized institutions were able to take advantage of the opaque high leverage and dry up DeFi. High leverage led to several liquidations, as well as false prosperity caused by cyclical loans. The diversion of governance model “DAO,” user money being operated in secret, and token mechanism misuse all contributed to this. These are all appearances. When the butterfly flaps its wings, a whirlwind forms around it.

DeFi is being engulfed by the “institutional victimization” tornado. De-anchoring USTs on Curve is an example of DeFi’s failures. Because of the illiquidity that will come from the withdrawal of UST money and the 20 percent Annualized Interest Rate of Anchor cannot be sustained, asking Curve to step in would be against the spirit of decentralization.to thirst-quenching the centralization spirit.

There are even runs and stampedes. Many people’s expectations were exceeded when successive reports of mines caused a run and stampede in the market due to regular “black swan” events. To a certain extent, projects and institutions like Curve, Celsius, and Three Arrow Capital (3AC) were involved in this process.

Panic is sparked by high rates of collateralization. Despite having collateralization standards, loan programs like Aave may have customers whose collateralization rates are significantly lower than the needed value. stETH holders can mortgage new ETH on Aave, and exchange ETH to stETH through other DeFi projects, and then borrow again. Users can gain a lot of money in a rising market, but they run the danger of losing everything in a falling one if they employ this cyclical process.

It’s impossible to stop a negative feedback loop once it’s started. Whenever the price falls sharply, Aave’s highly leveraged users may be forced to sell their stETH holdings, which will lead to an even greater drop in the value of the coins, creating a vicious cycle of price declines and further serial liquidation that will eventually send the price of stETH plunging.

Three Arrows capital will inevitably go bankrupt. Luna-UST flash crash led to a cascade of deficits among 3AC’s borrowers, such as Celsius, found that their funds could not be recovered smoothly, resulting in a series of institutional margin shortages, which led to insolvency bankruptcy crises like BlockFi. Fundamentally, the average user had no idea how or when 3AC had obtained money before the incident, and we only learned about Nexo’s denial of lending to 3AC after the fact. It won’t help at this stage.

Instituional mutual harm is the fundamental sin of Defi. It was DeFi that had its problems, and they were staged by centralized institutions, which followed market guidelines and did not have laws that prevented CeFi from splitting with DeFi. So if they did not take advantage of this bear market to solve them once and for all, there would be another crisis.

Institutional mutual harm is a continuation of historical theory. When it comes to CeFi, it’s all about information differentials. If the information can be obtained by each market entity, the market liquidity cannot be established. And DeFi is a decentralized core element that’s as commonplace as air, water, and networks.

It has been reported that Twitter founder and CEO of Block Jack Dorsey has tweeted some anti-crypto and anti-”Web 3" thoughts, which have angered some of their biggest proponents. If you’re thinking about Web 3 as “right-click thinking,” Dorsey gets right to the point. Venture capitalists like Anderson Horowitz will govern these new web systems, not users.

Source : jack twitter

The “governance token” is a weapon of mass destruction for institutions. Since the inception of Bitcoin, the Token concept has been in use. It’s all about developing a set of internal rules for token distribution and flow to ensure the project’s long-term viability and sustainability. Ethereum has made it possible to write precise rules of the game in smart contracts, which means token incentives flow to as many users as possible who offer high value to the business’s core and nodes.

Regardless of the stage of a project’s development, a token economy model, if properly designed, should be able to maintain a stable supply and demand relationship and usage scenario regardless of the stage of the project. That is, led by smart contracts, rewarding tokens to those users or communities that can successfully build the ecosystem, maximizing the “use efficient ways to capture the value of the agreement,” and entering into a positive feedback loop.

Being a “governance token” is not the same as having a Token. Having Tokens on the blockchain is essential, and without Tokens, the blockchain is a joke. However, Tokens should never be referred to as “governance tokens.” We can see that “governance tokens” were primarily established by Uniswap as a desperate response to Sushiswap’s vampire attacks when we look at the history of governance tokens. Its whole idea has never been clarified, and its influence has been with us today and has become a stumbling block to its development.

“Institutional victimization” has been sparked by “governance token.” Take the two giants in the crypto area Uniswap and SushiSwap as an example, SushiSwap needs 5 million or 5.5 percent of the 90 million eligible SUSHI votes to pass the proposal; UNI needs 40 million votes (or 12.5%) to pass the proposal. The unequal distribution of voting power is a result of the project’s initial inequitable structure. An enormous and long-lasting impact was made by the first 40 percent distribution of Uniswap, with 46 percent of the votes still held by the top ten voters (mainly investors or advisers) today. Sushi looks to be more evenly distributed, yet the top 10 wallets control up to 29% of the votes. Naturally, Uniswap’s decision to use USDC airdrops instead of the company’s own Uni after acquiring Genie seemed like a means to correct the wrong, but it also overextended trust and expectations.

Abuse of “governance token” is to blame for institution mutual harm. We conclude that token economics must serve the value opportunity based on project development, rather than market cap management, as a result of this evidence. This should be a rule of thumb for the industry. DeFi’s spring will arrive after institutions stop abusing Tokens as a tool for evil.

Please look forward to the following analysis.

Part 3: Finance in DeSoc, a valuable opportunity for all for the benefit of all

NFT’s empowerment of the crypto ecosystem is far from being exploited. The discussion I had with element founder last year is still relevant today. We’ve compiled it and reissued it in the past two days, hoping it will be enlightening for developers and investors.

mp.weixin.qq.com Xiaoqi Studio The Star Spy

Editor: Song Qinghua, Initiator of Xiaoqi Studio

Guest: Wang Feng, Founder of Element

Don’t mention the Metaverse without NFT. The discussion on this topic continues in multiple strategic mobilization meetings initiated by Wang Feng, the Founder of Element. Based on this, this article will further analyze why NFT is a crucial element (blood) of the Metaverse, and explain the value capture logic of NFT and the mechanism by which everyone can participate in NFT……

During Element’s development and beta test in June and July 2021, we made many exchanges and discussions. After 11 hours of recording sorting and text editing, this article was planned to be released on Mars Finance when Element was launched, which was postponed for some reason. Today, Xiaoqi Studio, dedicated to representing blockchain leaders, is officially launched, and Wang Feng is invited as the first guest to meet with readers.

— — — — — — — — Editor’s Note

The talks about NFT and Metaverse have to be started with CryptoKitties. Since the launch of CryptoKitties, we have embarked on the journey of the Metaverse, but many people have not realized that. Because of Tencent’s influence in the traditional Internet era, especially in the field of online games, everyone is telling that the Complete Reality of the Internet (CRI) depicts a new scenario. This is a misunderstanding that needs to be clarified — this is fundamentally different from the Metaverse we talk about. Many people engaged in online games believe that the Metaverse is a market composed of VR and AR, a product of the visual revolution, and a so-called holographic vision technology with a more open economic model. Is World of Warcraft with VR glasses a Metaverse?

Some people consider it as a very easy-to-use tool for video production or interactive games, which can open the editing environment and API to connect different worlds, similar to Roblox, a company currently worth USD 60 billion which puts Metaverse in their prospectus. However, this is not the Metaverse I understand, either.

Metaverse originated from games, but inevitably, surpassed them. Professor Zhu Jiaming, Chairman of the Academic and Technical Committee of the Chinese Institute of Digital Assets, gave a grand Metaverse scenario in his keynote speech “How to Perceive the Accelerated Metaverse” — the Metaverse has absorbed the achievements of the information revolution, the Internet revolution, the AI revolution, VR, AR, ER, MR, game engine and other VR technology revolutions and shown the possibility of building a holographic digital world parallel to the traditional physical world to human beings; it has triggered the interaction among information science, quantum science, mathematics, and life science and changed the scientific paradigm; it has impelled the breakthroughs in traditional philosophy, sociology, and even the humanities system; it has integrated blockchain technology, NFT and other digital financial achievements and enriched the digital economy transformation mode. In short, the “Metaverse” has provided a new path for human society to realize the final digital transformation and has an all-round connection with the “post-human society”, showing a new era with the same historical significance as the big voyage era, the industrial revolution era and the aerospace era.

NFT is mentioned here, and its value is recognized from the height of digital economy transformation, but this definition seems to be not accurate enough. This is not the logical explanation of NFT’s core role in the Metaverse. Empty talks about the basic structure role of NFT in Metaverse will make people perceive it an unreachable future story. Therefore, we will start with the fact that NFT has created the necessary conditions for the paradigm shift for the realization of creators.

01 Creators’ Realization Paradigm Shift and Mechanism of Possible Participation of Everyone in NFT

The impact of the past changes in the Internet era on users’ creation comes to my mind. In those years, the tools and scenarios were:

#Personal website production, HTML, CSS and JavaScript

#Yahoo and Google

#Blog-

#Twitter and Facebook-

#Youtube and Bilibili

#Tiktok

There are changes in two dimensions: one is the change of file media form; the other is the change of content creation and sharing mode. The changes run through the whole process of Internet information services. However, what has not changed is the business realization mode, that is, the advertising mode. This is the limitation of the traditional Internet mode.

Is it possible that the valuable information on the Internet today will become valuable assets on the blockchain tomorrow? It is truly possible. From the information revolution to the financial revolution, it is the most essential ideological leap from Web2.0 to Web3.0. Blockchain is a technology prepared for the financial revolution, and trading is the basic feature of blockchain industry applications.

Today, the tools and scenarios are:

#Smart Contract, Solidity, ERC721 and ERC1155

#CryptoKitties

#SuperRare and Mintbase

#Opensea and Raribes

#CryptoVexols and Decentraland

Therefore, I believe that NFT has created the necessary conditions for the paradigm shift of realization for creators. I prefer native NFT works. The most representative is CryptoPunk, which is a native NFT project in the crypto community, with a total of 10,000-pixel punk avatars.

CryptoPunk sold less than 1ETH in last December and now can be sold for at least 15ETH. Will anyone agree with me that CryptoPunk is the bitcoin for crypto artworks? Is there any possibility if I say the average value of each CryptoPunk will reach 100ETH in 3 years?

We can do a regression analysis and a calculation. In fact, the two questions I asked above will help us to think clearly about many issues about NFT investment.** Good native NFT assets, like Ethereum and Filecoin, can be crypto asset portfolios.**

I used to believe it was a good concept and story, a good work of designer, and a fan effect. Now I think it is a pilot field of decentralized autonomous organizations (DAO). A DAO improves the operation mode of finance and enhances the efficiency of commercial management with the technical means-based blockchain ecology. The most fundamental function of a DAO is to rely on smart contracts to enable people to directly or indirectly control or use the assets of the organization. Members can participate in decision-making and asset or service management and obtain the rights and interests of members’ profit share through their membership.

There will be a great opportunity to make some new NFT assets with good concepts if we connect artist design with community co-creation. We might as well boldly imagine that if new teams continue to come in to combine DAO and NFT technologies and redefine the relationship between role development and ownership, it can not only untie the conceptual design, creativity, and production of works but also reduce the threshold for online communities to bring new roles into the world. Everyone can participate in NFT. If there are 10,000 people in a community, there are 10,000 NFTs with different serial numbers. In terms of the traffic demand of a trading platform, artists and community members participating in DAO can fully represent the communities supporting them with their roles.

In the short term, this is an investment opportunity for creators’ realization and for DAO community members to participate in NFT issuance and trading. But there is another great significance in this process, i.e., everyone can participate in NFT, which has corrected the saying that everything can be NFT;** In the process of the continuous expansion of the Metaverse, the most essential and core significance of NFT is not to complete the mapping of real assets, but to promote the future residents in the Metaverse to understand the role and value of the original NFT warrants — crypto assets, identity roles, and social relations can be freely converted between various crypto islands or even between various Metaverses through the original NFT.**

The progress of the underlying technology of blockchain, the advancement of Ethereum, the development of some projects that return to the essence of NFT, and the practice for everyone to participate in NFT constitute the foundation of the Creation Metaverse, as the essence of both NFT and Metaverse is generated from the original crypto economy.

Meanwhile, in the process of Metaverse expansion and ecological construction, the value of NFT will be certified, and the trading market of NFT will also grow and prosper, because I can hardly imagine that the whole generalized market of NFT will have real development if the Metaverse cannot show an obvious existence or value that we see.

At present, compared with the early applications like art and real asset mappings like culture and entertainment, the original NFT products in Metaverse ecology still have a large space for development. However, we have seen signs of active elements close to the native crypto NFT market — one of the most important trends in the last quarter was NFT avatar projects, for example, CryptoPunks continued to be popular. This emerging industry generated nearly USD 350 million of secondary sales in the second quarter of 2021, and nearly USD 600 million in the first half of 2021. Compared with the previous pursuit of crypto art and asset mapping in the traditional world, this is a more positive signal, behind which is the opportunity for the integration of Metaverse and NFT ecology.

02 Why Metaverse is Inseparable with NFT

Since the launch of Element, I have been thinking about Metaverse and NFT. During the holiday (Dragon Boat Festival), I read the history of western philosophy in Aranya for 3 consecutive days. My wife thought I was so pedantic and complained to me that “why you didn’t come out to play? Are you so boring with me?”

How could I discuss with her the dead God of Nietzsche and Einstein’s view of the universe? I think these apply to the Metaverse. There must have been the first person who wrote the first Metaverse. I think CryptoKitties is the first Metaverse. First, it defines the ERC721 rule, which is the first-generation rule of NFT; secondly, it wrote a Demo for its protocol, which is CryptoKitties, and also designed gameplay that could reproduce. The real presence of the Metaverse will continue to emerge with the creation of new Metaverse scenarios. You will certainly find that the earliest CryptoKitties will live in all eras of the Metaverse. The person who wrote the codes may be gone — one day he will be taken as the father of the Metaverse. Can I call him God? Will he die? But the Metaverse will still exist and continue to expand.

In fact, the underlying logic of the Metaverse world we are looking into is to explain its structure. Blockchain technology, especially NFT, plays the role of the basic structure, which is the most invincible, because its essence lies in interoperability, circulation, exchange, or cross-industry, including openness, composability, and splicing.

We are building a Metaverse parallel to the real physical world, which is close to our life, including economic relations, life, and creation, as well as political, social, and ethical relations. This is a story comparable to the Pan Gu epoch. The power of change brought about by human evolution towards the Metaverse will be greater than the energy of the aggregation of those key milestones including “the big voyage era + industrial revolution/information technology revolution + joint-stock economic relations + ongoing AI, genetic engineering and aerospace exploration” that have driven the process of human society.

The core element in this process, or blood we call it, is NFT. Without NFT, we can’t talk about Metaverse. Interoperability (composability) has emerged and played its role in the world of Defi; in the field of NFT, this is just the beginning, and all this is coming together with the Metaverse.

03 Further Discussion on Value Logic of the Creation Metaverse and NFT

CryptoPunk may be the earliest NFT product, which was launched before CryptoKitties. Since the ERC721 standard had not been written into the Ethereum developer ecosystem at that time, it could only be completed by software engineers through writing codes. Today, ordinary NFT players need not learn how to write ERC721 contract codes, who can publish them directly with the casting tools and trading agreements provided by the trading market and put them on the market for auction or direct sale.

Compared with traditional games that expect to make people feel the Metaverse through technological progress such as AR/VR, the crypto world makes people enter the Metaverse through the changes in openness, composability, and economic relations. Everyone can participate in NFT, and any creative person can mint their works into NFT and connect with fans in a programmable way; people with vision and common goals can initiate and organize a DAO and practice it at a low cost……

NFT provides a method to mark the ownership of native crypto-assets (i.e., assets existing in the crypto world and originating from the crypto world), and this ownership can exist in the storage scheme of decentralized services. The NFT asset issuance and the development of a trading platform implemented in decentralized storage is the key basic structure construction of Metaverse. NFT and Metaverse are very important native blockchain application scenarios for decentralized storage.

We believe that the value of NFT mainly comes from intrinsic value (casting cost) + use-value (identity certificate and game props) + premium brought by market transactions, of which the core is the use-value, but this part is relatively ignored at this stage, which needs to look into the internal essence and value logic of NFT based on the construction of Metaverse ecology. Before the Metaverse, we discussed the use-value of NFT only based on its value in applications (a game or a single crypto product). However, based on the interoperability of NFT, its identity certificate will make NFT embedded in other applications and obtain corresponding value incentives.

At this stage, we have to admit that the analysis based on market speculation and trading and the narrative analysis with celebrity effect (scarcity) are the main forces vitalizing the current NFT market. Therefore, it can be said that we ignore the use-value (fundamentals) of NFT assets.

Someone may say that the value measurement standard on a blockchain is different from that in the real world. Blockchain regards scarcity as the king, which is the value logic and rules of the crypto world. However, ignoring the conflict between the scarcity in the blockchain brought by use-value and the real value is a major obstacle to the development of Metaverse — if healthy values cannot be developed in the virtual world, a healthy virtual world cannot be developed, either.

If we can look at the interoperability of NFT based on its value in use, the basic function of NFT in the Metaverse endows it with infinite imaginable value-added space. The so-called interoperability can be understood as the interoperability of TOKEN assets / NFT assets on different blockchain projects, the crypto islands of the Metaverse, the co-existed multiple Metaverses, and even can be understood as the integration of the real physical world and the Metaverse.

The fundamental function based on NFT interoperability is vital for the construction and prosperity of the Metaverse ecosystem, which will integrate the power of a person/creator/crypto island, who or which is difficult to reach space exploration and boundary expansion in the Metaverse, to form a joint force to complete the Creation Metaverse.

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Written: ThePrimedia

Researcher: Spike

Editor: ThePrimedia

Initiator: Jerry

Summary: This is a preparation for defending the original dream. If the faith is abandoned this time without firing a shot, the dragon slayer will turn into a dragon in a prudent way.

I believe that not everything that can be counted counts, and not everything that counts can be counted.

— — Albert Einstein

The original intention of decentralization should not be ridiculed by the group. Especially it concerns the soul of the Web3 world, which determines the future of crypto ecological construction.

Instead of calculating the gains and losses after switching to POS, it is better to think about what happened. Why the trend of centralization will be applauded?

Signs of the urgency and importance of the decentralization idea need to be re-emphasized. After Aave and Circle responded to the U.S. Treasury Department’s sanction ban on Tornado Cash, the result was that hundreds of celebrity addresses were “injured” by Aave, and the circulation of USDT surpassed USDC within a week. MakerDAO re-examined the composition of DAI’s collateral… The consequences of stablecoin centralization have already warned everyone that when all this happens in Ethereum, it will completely counteract the first principle of decentralization.

If we don’t stop it, then more than a decade after the advent of Bitcoin, the impossible triangle of the blockchain world will be solved. At the cost of abandoning decentralization, it would be a mediocre financial game no different from Wall Street. Since Bitcoin, Satoshi Nakamoto’s imagination of “opening a window and revealing a beam of light” for the world will also vanish.

Fortunately, there are still people in the crypto market who insist on decentralization: BitCoke and its invested mines have officially announced their support for hard forks and token trading, believing that these adherents are defending the spirit of Satoshi Nakamoto’s blockchain; BitMEX launched ETHPOWZ22 derivatives products; EthereumFair is ready to defend the ideal of PoW with technology, and build a complete financial ecology belonging to ETHPOW… This is also a preparation for defending our original dream. If the faith is abandoned this time without firing a shot, the dragon slayer will turn into a dragon in a prudent way.

Ethereum is facing the most fragmented hard fork ever, and it’s not just a dying struggle for miners to protect their own interests. At the critical juncture of the Ethereum Merge hard fork, ThePrimemedia interviewed and investigated BitCoke, the EthereumFair community, and the forces of the Ethereum ecosystem that strategically support the hard fork, trying to analyze the logic of the Ethereum Merge hard fork for everyone.

Part 1: The Legitimacy of the Resisters

The conversion of Ethereum to PoS mechanism means giving up adherence to Satoshi Nakamoto, which is the “mission” to the adherents of the hard fork. The Ethereum Merge hard fork can be summarized as energy saving & scalability VS security & decentralization. This is essentially a dispute over the route of blockchain development, rather than a bifurcation dispute in which miners coerce everyone for their own interests. The PoS mechanism will directly prompt the network maintainers and miners to go out. On the surface, it seems to reduce the historical burden of the past, but it is not the case. New staking nodes will inevitably lead to the centralization of the network.

At present, the TVL of Ethereum accounts for 60% of the public chain track. The win-win situation of miners, users and Ethereum under the PoW mode has achieved the prosperity of the decentralized crypto ecology today, and left more expectations room for the world. It is not as good as a scholar, just like the consensus of the EthereumFair technical community. The PoW mechanism is the best way to guard the original intention of blockchain decentralization. If we let it go, decentralization will become an unreachable castle in the air.

Ethereum grew up on the shoulders of Bitcoin. Don’t forget the basic elements of Ethereum’s success, PoW and smart contracts together constitute the ecological prosperity of Ethereum:

• PoW is a mining mechanism. Miners compete for accounting rights through hash collisions and sort transactions. PoW is a guarantee for everyone’s fair participation in Ethereum.

• Smart contracts are the basis for complex operations such as DeFi, NFT, and GameFi. For the first time, a public chain ecosystem in which multiple on-chain assets coexist has been realized.

The PoW model created by Satoshi Nakamoto is not a golden rule. The fundamentalist orientation of technology will only tie our hands and feet, but the development from Bitcoin’s mainnet launch to the present is the best comment on PoW, which can be understood as “Nakamotoism” has passed the test of history. In the blockchain world, decentralization, security and scalability are the impossible triangles that have never changed. The merger of Ethereum is just escaping this problem, rather than seeking a fundamental solution. After abandoning PoW, the objectivity of transaction confirmation will disappear, as will the physical connection between Ethereum and the real world.

The logic of adhering to POW is clear: in the Bitcoin PoW mode, the principle of final confirmation by miners is the longest chain principle. Specifically on Ethereum, it is the principle of Heaviest Chain under the control of the Ethash algorithm, but the commonality is that it needs to be confirmed by miners of the unanimous consensus, and the steps are algorithm + mining machine computing power + block confirmation. In the PoS mode, the consensus of staking nodes dominate the confirmation result, and the real random number confirmation can not be realized until the fifth stage of Merge. Before that, Ethereum would be a random walk numbers game.

On the basis of communicating with the POW adherents, let’s analyze the logic of the “Vgods”. In Vitalik Buterin’s view, switching to PoS mode is the only way to upgrade TPS (transactions per second). But behind this, it is the competition for capital (32ETH) + high performance to deal with the pursuit of the new public chain of Aptos/Sui in the Move ecosystem . The first step of the ETH2.0 roadmap is launched from the Ethereum beacon chain, which aims to introduce a safer and more efficient proof-of-stake mechanism for the consensus layer of the Ethereum network, and get rid of the severe consumption of energy after integration with ETH1.0, towards a proof-of-stake-oriented consensus mechanism.

Let’s take a look at the main events in the transformation of POS. On the way to Ethereum, “Ethereum 2.0” mainly has two upgrades: one is the consensus change from POW to POS; the other is the sharding technology for network performance expansion.

• “ETH 1” is now the “execution layer”that handles transactions and execution;

• “ETH 2” will be the “consensus layer” that handles stakeholder proof consensus;

After merging “ETH 1” and “ETH 2” into a single chain, there will no longer be two different Ethereum networks, the term “ETH 2” will be completely abandoned, and only the overall concept of “Ethereum” will remain in the end ( The term is only used to update the naming and does not change the goals or roadmap of Ethereum).

In the opinion of the EthereumFair research team, these two upgrades cannot be effective in the PoS mode. Protecting PoW is not only beneficial to miners, mining pools and mining machine manufacturers, and the PoS mechanism will not be the dividing point that changes everything. The PoS mechanism has always been explored. It is not a completely new algorithm idea. Vitalik say that 32eth is more decentralized than thousands of mining machine. However, compared with giving up PoW to transform POS, a better solution is that Layer 1 can only do what must be done. Such as consensus, bookkeeping rights distribution, and all performance improvements can be placed in Layer 2.

“Sacrificing the security and decentralization of Layer 1 is actually completely unnecessary.” This is the core idea of EthereumFair, which is in line with the official attitude of BitCoke who strategically supports hard forks: security and stability are the cornerstones of the development of public chains. Efficiency is not the only goal pursued by the public chain. Many application scenarios pursue security and stability, especially large funds, such as loans and mortgages. There are many solutions to improve the efficiency of POW, such as Layer 2. POS is not the best solution.

In the logic of the adherents, the transformation of POS has a greater negative impact on division. The core competitiveness of a public chain is not a certain mining model, but its ability to operate steadily and gradually build its own ecology. The fork crisis faced this time will lead to the division of the community and the ecosystem on the chain. This kind of split happened once when The DAO was attacked in 2016, the community who insisted on the immutability of the blockchain insisted on confirming that the block state after the attack became ETC, and insisted on rolling back to the block state before the hacker attack become ETH today.

The later fact is that ETC is operating in a bleak way, and the ETH is prosperous. Is this (ETC) a mistake? This time, the adherents need a belief in the legitimacy of the hard fork. This legitimacy is the best interpretation of the concept of decentralization. The attitude of the EthereumFair team is that the fork is definitely not a one-off, but a long-term construction after recognizing the reality. It can be assumed that the forked ETH-POW chain will encounter many problems, such as:

• Lack of on-chain DeFi/NFT/GameFi ecosystem

• Mainstream stablecoins such as USDT/USDC are not supported

• Lack of enough developers to update clients

• Insufficient number of network status confirmations

• Facing more aggressive attacks by hackers

These difficulties exist objectively, but the rationality of the fork itself should not be questioned. Abandoning PoW will cause the fairest mining mechanism envisioned by Satoshi Nakamoto to become a game of capital. In Ethereum 2.0, the minimum pledge amount of nodes is 32ETH. After switching to the POS mechanism, all nodes in ETH need to vote for each block. Only a block that receives 2/3 of the locked ETH votes of the entire network is considered a valid node. In terms of mechanism design, there is a tendency to expel small and micro retail investors, and it relies more on the support of giant whales. After the PoS mechanism is adopted, in order to ensure network stability and improve the ability to capture token value, increasing the number of pledges is almost the only solution. This would further exclude the degree of decentralization.

Therefore, the “Ethereum 2.0” plan, which seems to be an upgraded version of Ethereum, is actually a brand new project. Most of the conventional forks require computing power to make choices, and the protagonist is the miner system. The focus of this POS fork is not the competition of computing power, but the game of capital. At present, in the PoW state, Bitcoin has a total of 14,516 nodes in the world, of which the number of full nodes is 13,097, accounting for more than 90%, while the total number of Ethereum nodes in the world is 4,896. After converting to PoS, the number of pledges in the entire network will increase significantly, but the degree of decentralization cannot be guaranteed.

In this game about the future, miners are faced with a life-or-death choice: the first choice is to sell the mining machine, use the sold ETH to participate in the POS Staking mechanism, and become one of the vast nodes; the second choice is to directly switch the mining machine to the ETC network, in other words, ETH2.0 will prompt the mining industry worth 19 billion US dollars to find new gold rush fields; the third option is to hard fork ETH-POW, keep the original PoW model, and choose to rebuild the PoW ecology. In a sense, this is the hardest road, but it is the road that is most in line with the spirit of decentralization.

This most difficult path has already received an ecological response. For example, the exchange Bitcoke will not only support hard fork token transactions, but also fully support the ETH head mines that Bitcoke has invested 100 million US dollars for its important shareholders. The strategic layout of Bitcoke’s investment in mines is the vision of DeFi development with the goal of asset tokenization and free pledge, lending, and trading in the global market. At the moment of the Ethereum Merge hard fork, it has become the backing of the adherents.

Following the Satoshi Nakamoto spirit of Bitcoin, Ethereum has been placed in high hopes by the encrypted world, but since its development, it has become farther and farther away from the point. This is the mission and return of the adherents that the concept of decentralization must be reconsidered.

Part 2 :The Battle of the Redemption Routes

After a consensus has been reached on the legality of a hard fork, how to fork has become the core focus of the debate.

• Action first group: focused on exchanges such as BitCoke, strategically support hard forks and build an offensive and defensive alliance including mining machine manufacturers, miners and the market, rebuild the ETHPOW ecological reality, and leave room for discussion on secondary liquidity;

• Ecological construction group: focused on technical communities such as EthereumFair, it is hoped to build a complete set of ETH-POW ecology including stablecoins and DeFi application support as much as possible, and continue the current ecological scene;

• Waiting to pick peach group: ETC hopes to attract ETH computing power to itself as much as possible, and Conflux initiated a community proposal to change its PoW mining algorithm to Ethash which is beneficial for miner switching.

BitCoke launched its official plan. The details of the plan are as follows: BitCoke supports all Ethereum hard fork tokens and related airdrops. BitCoke will launch hard fork token contracts. BitCoke believes that hard fork tokens are seriously undervalued and predicts hard forks tokens may stand at $1,000; Justin Sun also said that his USDD will support the forked ETHPOW chain and solve the problem of stablecoins on the chain entering and exiting the gold channel, but Guo Hongcai’s perspective is completely focused on the miners themselves, and believes that the miners have paid a lot, it is time to stand up to defend their interests…

It is worth mentioning that Bao Erye (Guo Hongcai), who is currently the loudest voice in the market, focuses too much on the interests of miners, and there is no clear development timetable. Whether it can attract enough developers, applications and ordinary users to participate remains to be seen in the future. Simply attracting miners to join is not attractive to users. The common interests of miners and users will make the forked POW chain really come alive.

source：https://ethereumpow.org/

Therefore, there will be more ecological forces in the market to make better choices and development directions in the game. Capital poured in first, and Buterin also encouraged miners to transfer, which can not only maintain the interests of miners, but also minimize the damage to the Ethereum ecosystem. But the potential harm of the influx of ETC mining has caught the attention of the market.

EthereumFair researcher said, “When a large number of miners pour into ETC mining, it is good for ETC in the short term, but the secondary market must have sufficient liquidity to bear pressure. Under the circumstance that the coin price increase is limited, the result will skyrocket the difficult of ETC. It makes ETC more difficult to mine.” The most important problem is that ETC’s capacity is too limited to bear so much computing power. Although the ETH graphics card mining machine is not as power-consuming as the Bitcoin mining machine, and the price of the closed currency is not as high as that of the BTC, but the competition for forced hard mining of ETC is too fierce. Therefore, the influx of a large number of miners will form involution, and the return cycle will become long

What the crypto world needs is ETHPOW, not ETC. According to CoinMarketCap data, ETC is currently priced at around $40, or about 1/50 of ETH. Unless ETC can rise to $2,000, it can fully accommodate ETH’s computing power, while maintaining the current cycle unchanged. A 50-fold surge is an impossible spectacle. From a rational perspective, this is not the way for miners. Neuroscience Ph.D@0xAA believes: “ETC cannot catch the computing power of ETH miners. The most beneficial solution for miners is to perform a hard fork when the Ethereum main network is transferred to POS, and create an ETH-PoW, which is more valuable than the ETC chain. After all, the Ethereum ecosystem is much richer than when ETC was forked.”

Final Part: Future Ecological Buidler

In the history of the development of Ethereum, this is the second global crisis. The last time proved the weakness of ETC, but left a faint fluorescence that adhered to the concept of decentralization. This gleam is not enough to become a prairie fire, but it gives enough legitimacy to the hard fork.

POW is the only blockchain system that has been verified to be completely decentralized and stable so far. All POS public chain systems have experienced security or inaccessibility issues, essentially because the POS system relies on centralized nodes. The fundamental difference between ETH and other public chains is POW, and only POW cannot be achieved by other public chains. ETH to POS is a self-abolished behavior, and will lose its greatest advantage. It became a starting line with other second-tier public chains. Everyone’s mechanism, speed, rate, security, etc. are the same. Why choose the Ethereum POS chain? Does it depend on feelings? This is the basis for the value judgment of the exchange BitCoke and its investment mine strategy to support the hard fork of Ethereum.

From the perspective of value, BitCoke’s point of view is representative. POW is a heavy asset investment, POW is valuable for anchoring and supporting, while POS is a pure financial capital game, and value cannot be truly effectively supported; from a technical point of view, legitimacy is a fair definition of block confirmation objectivity, and from the perspective of consensus, legitimacy is the effective adherence and application of the PoW mechanism. There is no absolute difference between PoS and PoW, but in the face of the pursuit of emerging public chains, Ethereum’s civil war is undoubtedly an ineffective consumption of abuse of its dominance.

source：https://wenmerge.com/

ETHPOW is destined to be more than one, and the tension among users, miners and ecology will dominate the future direction of the fork, and ecological construction will become a long-term wrestling field after a short-term carnival. This is the best era, we can fall into a carnival, and ordinary users will get airdrops from various forked chains; this is the worst era, we will witness the cruel and bloody ecological competition, and finally we will decide the king of POW ecosystem. ETC belongs to the mediocre people who cannot support. It is difficult to undertake the historical mission of the new fork chain. New PoW chains such as EthereumFair will have the opportunity to run into a new world. Of course, which chain will win in the end will take the test of time.

The future must belong to buidlers who focus on ecological construction for a long time. In public chain competition, ecology is the foundation of everything. Users do not bear the responsibility for the survival of the public chain. Better experience and economic returns are always the most original motivation for his users. Only by building a better ETHPOW ecosystem can the forked PoW chain be guaranteed. The foundation is everlasting, not a flash in the pan, falling into nothingness. Below, we will introduce the development concept, technical strength, ecological construction and progress of EthereumFair, a fork chain of Ethereum that continues the PoW mining method, based on the research and interview with the EthereumFair technical development team.

The development of a public chain requires the support of supporting infrastructure. From the perspective of users, a public chain with complete functions and availability is attractive enough. In the words of the EthereumFair technical development team, “It is fair for ETH to fork POW, and it will not be an investment institution that has a great interest in the early days. We hope that these funds and friends who supported EthereumFair in the early days will all come to support the EthereumFair technical community leading the push for the ETH fork. The Ethereum foundation is moving to the POS fork and we will keep the original chain.”

The Ethereum fork chain EthereumFair is dominated by the EthereumFair (ClassZZ) technical community. Its PoW technology of ClassZZ public chain has been successfully operated for 3 years. The current technical research and development team includes math experts, chip experts and developers who have been in the industry for more than six years. Specific to the action, the current EthereumFair development team has implemented a list of functions as follows:

• Complete the research and development of cross-chain support functions for the ETHPOW chain;

• Infrastructure such as testnet, browser, etc.;

• DeFi, stablecoin and other financial facilities have been prepared

It can be seen that for this fork, the EthereumFair community will support the POW mining mode of Ethereum to continue the ecology on the chain to the greatest extent. Ecology is the foundation of public chain competition, and attracting enough miners to participate can build sufficient network security for a high-performance network and avoid repeating the mistakes of ETC.

The EthereumFair team sets the mining difficulty factor from zero, and the minimum requirement is a personal laptop to participate in it, which is also beneficial to ordinary users rather than large miners and mining pools. After solving the security problem on the chain, more participants are needed to build it together. The forked chain should not be an exclusive ETC-style self-entertainment, but an open chain of public chains.

In terms of development, the EthereumFair community is currently focusing on the implementation of the test network, focusing on difficulty control and block reward adjustment, striving to provide the same mining program as Ethereum, which is convenient for all users to download by themselves. At the same time, infrastructure such as block browsers will be provided and testing can be carried out as early as August.

EthereumFair also intends to absorb the fresh blood of foreign mining pools and large miners to supplement the existing public chain. After the public chain is in a stable state, it will conduct in-depth docking with mining machine manufacturers. For example, mining machine manufacturers have begun to negotiate custom mining machines. The latest news is that for the hard fork of Ethereum, the exchange BitCoke and its ETH head mine that invested 100 million US dollars for its important shareholders will also fully support it.

In addition, well-known funds and ecological partners will cooperate with the EthereumFair technical community to promote the ETH fork chain. For example, EthereumFair’s L2 public chain ecological R&D team will also enter the current fork synchronously, and bitkeep, swftc and tokenpocket will provide in-depth support in wallet, presenting the current Ethereum infrastructure and dex as the earliest tools to provide developers and users.

As the first successful fork project of Ethereum, ETF pays tribute to all blockchain networks that support the PoW consensus mechanism. The address of 0x00000000219ab540356cbb839cbe05303d7705fa currently pledges is 13,185,717 ETH, and the Token in st-eth is distributed according to the public key (September 6th previously issued transactions) to BTC token holders (55%), DOGE token holders (15% each); then allocated according to the address (no need to send transactions) to ETC, CZZ token holders (15% each).

This prosperous fork is a traffic feast that every exchange will not miss. At present, the attitude of the following exchanges can be determined. The profitable ecological construction will attract their support in the secondary market and build in-depth transactions that belong to ETHPOW.

The mainstream exchanges of supported or held neutral opinion

BitCoke and its top mine have officially announced their support for the Ethereum hard fork, and have officially announced three plans for the Ethereum hard fork: 1. BitCoke supports all Ethereum hard fork tokens and related airdrops; 2. BitCoke will launch hard fork token contracts; 3. BitCoke: hard fork tokens are seriously undervalued, or stand at $1,000.

OKX has announced that it will actively monitor and support the Ethereum merger. When the network upgrade takes effect, there may be a potential Ethereum hard fork. If there is sufficient demand, the platform will evaluate and list new forked tokens.

F2pool said that ether miners are the unsung heroes of the ether ecosystem. It is no longer important whether miners support the ether fork or not. It will be decided by the miner community and continue to provide mining pool services for ETH PoW.

TRON Poloniex announced on August 4 that it will support the ETH 2.0 upgrade and potential forks, and will launch two potential forked futures tokens and related trading markets on August 8. If this Ethereum fork is successful, some ETHW will be donated to the ETHW (Ethereum PoW fork chain) community and developers to help build the Ethereum ecosystem.

Gate.io released a trading announcement to support ETH pre-fork and open the forked coin “candy” in advance. If the hard fork is successful, ETHS will be automatically converted into upgraded ETH in a 1:1 ratio, and ETHS will withdraw from the trading market.

MEXC will support the upgrade and potential hard fork of Ethereum. After the upgrade is complete, all ETH holders on MEXC will receive the forked assets at a ratio of 1:1.

Deribit Derivatives Exchange issued a policy announcement on the merged hard fork of Ethereum, saying that Deribit settlement of all instruments will be carried out on a chain supported by the ETH Foundation ( POS or ETH2). If the value of the forked tokens is greater than 0.25% of the ETH POS and the new chain is stable and functioning properly, Deribit will provide these forked tokens to users, but if there are new tokens, they are not considered as deposits.

BitMEX will launch ETHPoW futures contract ETHPOWZ22 on August 9, with USDT (ERC-20) as margin and maximum 2× leverage.

Huobi issued a document “About Supporting ETH’s Potential Forks and Handling Plans”, expressing an objective and neutral attitude towards forked assets (including but not limited to ETH) created through hard forks, as long as the forked assets meet the security requirements, they will support users hold assets and provide trading services as soon as possible according to the rules. Huobi will support the distribution of assets (including but not limited to mainnet coins) on the ETH fork chain that meet the following conditions: 1. Inform Huobi in advance before the fork and get a clear reply; 2. By default, it has strict two-way anti-replay attack protection, that is, the transaction on one chain can be invalidated on the other chain; 3. the new chain will not be overwritten or eliminated by the original chain; 4, the transaction has a different format so that all wallets (including light clients) need to be upgraded to support the new chain; 5. the official client software should be released before the hard fork is activated, and the client software should be publicly tested and evaluated.

The follow-up of centralized exchanges will solve the problem of transaction depth, and the native financial assets on the chain will start with decentralized stablecoins, especially after Aave follows the sanctions, DAI will be more decentralized, which is also conducive to the development of stablecoins on the native chain. Specifically, although Usdt and Usdc will not publicly support POW or POS fork chains, because it takes time to accumulate from on-chain stability to early ecological stability, it is a gradual process, and decentralized stablecoins such as DAI may be used in the early stage, and the use of cross-chain stablecoins.

Moreover, in order to further consolidate the ecology on the chain, the focus of this fork is that the ETHPOW chain has added cross-chain function, not an internal chain, but a POW+ external chain, which can support the forked chain to lead to any other chain. This underlying technology can ensure the stable financial activities of the public chain in the early stage and avoid the death spiral caused by excessive speculation. Because the adherents have obtained the legitimacy and spiritual support for this hard fork, the strategic deployment is also. what really determines the success or failure of the fork is whether the ETHPOW ecological construction can be effective. If you lose PoW, you will lose miners; if there is no ecology, there will be no future.

The deep meaning of DeSOC is decentralized society, and Finance in DeSoc refers to finance in a decentralized society. It is the infrastructure of a decentralized society and has the property of universality, everyone is a node and a user. Meanwhile, DeFi is the basis for future "financial in DeSoc" at this time.

The bad news is that DeFi appears to be deeply involved in a quagmire due to the serial liquidations caused by high leverage, the false prosperity generated by circular lending, the deviation of the governance model "DAO", the operation of user funds in the dark box, and the abuse of the token mechanism, which is slowly approaching its darkest hour.

Nevertheless, Defi may be viewed as an outpost of "financial in DeSoc," with a pioneering attitude, exploring the subject of Web 3 finances to help decentralized finance extend its wings.

The present issue for Defi is that "the centralized world has altered Defi, which aims to revolutionize traditional finance." The underlying layer is not decentralized simultaneously, but "the front-end portal is decentralized, but the back-end is still managed by centralized institutions." On the surface, it appears to be a competition between DEX and CEX exchange platforms. However, the market maker may be the same centralized organization, thus there is no assurance that user funds will not be stolen regardless of which valve they flow through.

The finance in DeSoc will be completely decentralized. The funds on the chain will be transparent and the governance process will be open. For the first time, we will abandon all centralized gluttony and build a decentralized mainstream financial market that belongs to the future, to Generation Z, and to eternity. DeFi under DeSoc will be the fresh sprout that breaks ground and paves the way for the next wave of crypto innovation.

The whole research report consists of three chapters.

Part 1: Finance in DeSoc, A peer-to-peer personal mutual market system

There will be an initial push in DeSoc towards financial markets, which will take place in the form of a transition from institutional mutual benefit to personal mutual market.

Institutions cannot be the ones manipulating the technology. Liquidity for DeFi is provided by AMM, also known as "Market Maker Automated Robots," which is a aggregation mechanism based on formula for automatic trading. The different variants of this mechanism are used by today's prominent DEX, such as Uniswap and Curve. However, liquidity for DEXs is still provided by centralized institutions rather than decentralized nodes.

Humans should always be the ones in control of technology. To put it another way, the "personal mutual market" means that individuals become the flesh and bones of the AMM system. This is the correct way to open finance in DeSoc, and then extend it to all parts of DeFi. It is used out of demand, and everyone is a market maker for everyone else. The removal of institutional market makers from the DEX market completes the de-institutionalization process of DeFi.

The "personal mutual market" operates on the principle of "everyone for themselves." So that people can use DeSoc's financial services as easily as they use short videos in DeSoc, we need to aggregate DeFi to a higher-dimensional viewpoint and genuinely rely on the blockchain network to construct financial services.

To achieve "personal mutual market" free of institutional links and regulations, a DAO governance model is necessary. Direct democracy with no intermediaries makes it possible for everyone to take part in the financial system without any hindrances. A vote that can be made independently by the community, a decision that directly represents the DAO members' preferences, or community rules that can be accessed freely. It provides the soil and nutrients for personal mutual markets to thrive, supported by DAO smart contracts and technology tools.

DAO governance removes frictional costs. There is virtually no friction in financial services because DAO governance eliminates the need for bureaucratic red tape and administrators who charge exorbitant premiums or fees. As a result, individuals who use financial services can avoid paying brokerage fees, bridge fees, and other fees, which are the fuel that drives the development of personal mutual markets.

As a result of the DAO's stable token structure, members benefit from predictable revenue and an enjoyable DAO experience. After Ethereum is converted to a POS mechanism, the selling pressure of Ethereum will be sharply reduced, which will promote the deflationary mechanism of Ethereum and improve the stability of value transmission.

DeSoc's financial efficiency can only be improved if latency is kept to a minimum. As a result, the average block-out time will be reduced from 13 seconds to 12 seconds, and forks will no longer be necessary to ascertain the status of a block, but the security header block is used to. An expanding synergy between on-chain finance and traditional finance will be more effective, and DeFi will break the spell in terms of long wait times, unstable transmission, and security mechanism flaws.

For the time being, PoS will keep the number of DeFi customers stable. There are currently 83,662,470 Ether addresses, which is a new record high, and 42,329,272 BTC non-zero addresses, which is a new record high as well. It's like moving from a single pillar to two. Individual DeFi users will be created as a result of the increase in on-chain users, resulting in an on-chain financial marketplace free of agents and licenses.

Effective self-organization is necessary for user groups that are spread out. No management or subsystem is needed for self-organization. Instead, a disordered system can be brought into order and self-coordinated without the involvement of any intermediary or subsystem.

Individuals are freed from institutions as subjects of activity in financial life, whether it is topping up, transferring, lending, or mortgaging... are micro-actions that make up the economic network of individuals that effectively make up the huge ecosystem of financial activities.

Public chains are made up of nodes, and nodes are individuals. The operational efficiency of this self-organization can be significantly improved by the use of modular blockchains. All operations such as transaction processing, network consensus, and data availability are handled by a single system in current monolithic blockchains like BTC, ETH, and Solana, which is resilient but sacrifices operational efficiency. However, modular blockchains decompose the core components of the first-layer blockchain and improve specific sections, which can even increase advantages by a factor of 100 and make it easier for transaction data to be kept on a chain.

More scalable, modular, and decentralized technologies are required for DeFi. In a modular blockchain, the consensus layer and conduction layer can be decoupled. The consensus layer is only responsible for establishing data availability, transactions can be conducted off-chain in a modular blockchain. Because no on-chain transactions are required in this mode of operation, nodes can validate blocks more quickly and save space.

The ease of transactions must be taken into account in addition to efficiency while designing a "personal mutual market." With the rise of cross-chain, Ether's high gas prices are not only solved, but transactions are more efficient, and maintaining numerous assets becomes easier.

In many cases, the multi-chain coexistence option is more convenient. It is possible to eliminate the requirement for intermediary route conversion and accomplish one-click conversion when the major Layer 1 and Layer 2 communicate more smoothly. The ChainHop cross-chain DeFi project, for example, allows users to easily swap BNB from the BNB chain to USDC, removing the need for cumbersome procedures and intermediary processes and just typing in the quantity on the page to complete the conversion.

A major benefit of cross-chaining is the ease with which different types of assets can be combined. To save the effort and risk of losing valuable assets, users no longer need to store their assets on many platforms or wallets, which are time-consuming to administer and can be difficult to remember the storage locations and passwords for. In DeFi, an app of the asset management class has been born, allowing users of any blockchain to access approved DeFi rules with a single button click. Multiple types of assets, such as Lego bricks, can be stored in a user's asset package and transformed as needed.

This technique can be beneficial but should not be used excessively. Due to security concerns, its popularity is always affected, direct engagement with native assets is more innovative. In practice, cross-chains like WBTC and xDai use third-party bridges to match numerous public chain assets with each other to boost efficiency, but at their core, the two are not BTC and DAI, but mapping.

The full-chain model is closer to DeSoc's essence than the shadow model. Because the interaction on it is the fundamental exchange of assets between chains, there is no longer a need for cross-chain bridge transit. Full Chain Dex's product idea is identical to 1inch, except that 1inch aggregates the depth of other DEX, which is essentially "front-end of front-end, the entrance of entrance". DEX's Full Chain DEX concept goes a step further than that. The entire chain can be passed through after development is complete, allowing users to interact with assets on any chain in real-time.

A baby can become a "giant". DEX is an experiment at the moment, but it is projected to become a traffic hub for DeFi in the future, beating off the trillion-dollar transaction Uniswap. Chainge is one of the representives. Its entrance is directly through the moblie app, which integrates with 75 kinds of assests on13 public chains, allowing users to go about purchasing assets they would typically use a standard app in the same way, with no centralization. An actual public chain, rather than a centralized server, underpins its operation.

The DID, which we described in "In DeSoc: Value Discovery and Psychoanalysis of DID（Ⅰ）" as "the flow hub of all digital elements," is needed to help bridge the "front-to-back, top-to-bottom divide" across DeSoc. Rather than having to remember different usernames and passwords, users will be able to access multiple programs "in one line," which will allow them to move from a single ecosystem to a more integrated one. And the financial scene must be the shining one.

Please stay tuned for the subsequent discussion and analysis.

Part 2：The death of DeFi, how institutions can hurt each other under the "Black Swan"

Part 3: Finance in DeSoc, a valuable opportunity for all for the benefit of all

DID: Decentralized Identity❎ DID: Dissociative Identity Disorder✔️

When we Googled DID, the first explanation is Dissociative Identity Disorder (DID) which is a medical term rather than the crypto concept(Decentralized Identity) we knew already. Compared to DeFi, GameFi, NFT, and DAO, DID is a highly neglected area that has not received enough attention from investment institutions and technology developers.

In the context of the Decentralised Society (DeSoc) with a richer and more diverse ecosystem, so we believe that DID is a key component of building DeSoc, but also a crucial portal to Web 3. Previously, we had pinned our hopes on the NFT's unique characteristics to complete the identification in Web 3. In reality, however, some NFT artists and creators are bothered by plagiarism and fraud. For example, Rarible auctioned off the unlicensed artwork of Derek Laufman, the designer of Marvel's Super Hero Adventures. By its nature, it is arguably not Web 3 at all.

Due to DID being the hub of all digital, it is imperative to create a shared, flexible and resilient identity layer. As DIDs are adopted by more users and Dapps, all digital processing permissions are to be in the hands, of the one who is not confined to a single application system, multiple accounts and password records. Only based on DID Web3 empowerment like DeFi, GameFi, NFT and DAO, as well as other promising scenarios, it will blossom into a more exciting narrative.

The full research report is divided into three chapters:

Chapters two: A History of DID Development The following concepts are essential for the narrative, and it doesn't matter if you disagree with, as they do not affect our understanding at all. The focus of this section is on "a look back at what constitutes our use of the Internet" as a way of exploring the future development of DID.

1.Where it all began: the first appearance of the Web Web 1.0: the World Wide Web and the browser. First of all, we have to acknowledge the basic fact that it was the concept of Web 2.0 that gave the World Wide Web its "honorary" name. It was only after the network technology came out of the military laboratories and research institutes that we had the so-called Internet, and at this time, the entrance was the browser and the World Wide Web, which basically constituted the whole concept of the web, and while it was things like RSS and BBS that were the main scenarios behind the use of data. The IDs at this time were mainly email addresses, personal domain names and forum IDs, with very clear components.

2.The historical origins of Internet privacy: the growth of personal data Web 2.0 and UGC, Blogs, iPhone, 5G, XR From Blogs to Tik Tok, the right to personal expression went through a continuous phase of decentralisation, from the beginning of the elite to a universal media, from middle age to adolescence, the Internet became an a priori presence in the Z-era, an unquestionable status, an airy and ubiquitous infrastructure like water, electricity and coal. As we all know, the 2016 US election saw the outbreak of the sale of personal data by Facebook, which was used by Cambridge Analytica to some extent to control the US election. This is possible on the basis of two assumptions: firstly, that people leave a large digital trail of their privacy on the internet; and secondly, that people concentrate on leaving their personal data on certain applications, such as Facebook and Twitter. What needs to be made clear is that the concept of personal data emerged first, followed by the debate about privacy. The gradual migration of IDs to social tools at this time does not mean the demise of the mailbox, but rather a change in people's habits of use and, more appropriately, the emergence of Facebook as an optional login tool in addition to the mailbox, provided that people use Facebook by default for everyone. But the downside of this situation is becoming increasingly apparent today, our data is held within apps like Google, Facebook etc. It may seem like we are talking about our privacy, but in fact we are talking about our relationship with these companies.

3. DID under Web 3: a portal

Web 3.0 is a crossroads of concepts, which from the time the concept was introduced in 2004, through the transformation of the traditional Internet and the gradual establishment of a link to the blockchain. This connection was not made in one step, at least through the (public chain) Bitcoin, Ethereum and EOS era, in an attempt to replace the WWW with a public chain. This has effectively failed so far, and the parallel chains of the Polkadot era that followed were an admission that it was not feasible to have one chain for all.

When we talk about blockchains, the various eras point to different things, from the original Bitcoin to the later DeFi and NFT to today's Web 3.0, which does not mean that the latter replaces the former, but more of a gradual overlapping development between them.

Just as we ordinary people now do not have to understand the TCP/IP protocol, the principles of compilation, or the principles of computer composition in order to use a device to access the Internet, we do not know in the incubation phase of building Web 3.0 technologies what will be the final constituent elements and what will eventually be discarded as floating dust. But humanity will eventually progress and grow towards the digital age in the use of Web 3.0, and then we will now be convinced of the importance of DIDs. There will always be a portal, and it won't be a portal.

In Satoshi Nakamoto's vision, it would be better for people to use one address per transaction, which would provide maximum privacy. But the truth is that no one does this every day except hackers and people who forget their Mnemonic Phrases. We are used to using a single address for a long time rather than a single address every time; more importantly, the blockchain has evolved beyond Satoshi Nakamoto's "blockchain".

But in interactability and decentralisation, there must be a finite number. This is similar to social tools, where a true infrastructure creates strong user stickiness, especially in the decentralised world.

Web 3.0 will embrace much of the plays, absorbing concepts such as blockchain, DeFi, NFT and together forming the next generation of the internet, meanwhile DIDs will become the most direct port for interaction. It is necessary, then, to list the paths by which DIDs are likely to become:

(1)L1: Identifiers and Standards

Standards, Identifiers and Namespaces work together to build the public trust layer, ensuring standardisation, portability and interoperability.

This section also defines how DIDs are registered and used to manage them, providing developers and users with rules and environmental standards for accessing the web identity system.

The most typical here is the DID standard drafted by the W3C, dating back as far as 2019, where the draft document states that "each DID document may represent cryptographic material, an authentication method, or a service endpoint. These documents provide a set of systems that enable the DID controller to demonstrate control over the DID. And, the service endpoint enables trusted interaction with the DID."

Overall, this was a milestone in the history of DID in that we acknowledged for the first time that DID was feasible and attempted to outline its general direction and framework, but in terms of subsequent developments, none of the existing projects have adopted this standard, so we will not go into the details of it.

(2) L2: Infrastructure

Having recognised the importance of DIDs, we have begun to explore how they should be designed, but one thing is certain: they will become an infrastructure, closer to the underlying concept of an API or SDK.

This is because a DID as infrastructure and proxy framework would allow bi-directional or even multilateral interaction between applications, even between DIDs and DIDs, and interconnecting data and information at a protocol level, as well as allowing applications to interact directly with a registry of verifiable data.

The DID in this concept should at least include communication, storage and key management, and if it goes further, it can be "de-passworded" while retaining login and authentication functions.

Here is a look at what such an infrastructure might look like in the context of the traditional Internet.

For example, FIDO, a concept that Apple also officially started supporting at WWDC 2022, we briefly describe the steps for its use:

(1) Using your phone as a roaming authenticator

(2) Sharing Multi-device FIDO credential

In theory, FIDO can also be cut into the future of Web 3.0 networks. This crypto technology with once-authenticated, password-abandoning, multi-device use is ideally suited for the network infrastructure in the future.

(3) L3: Credentials

FIDO is ultimately a product of Web 2.0 and is not necessarily fully adapted to the needs of Web 3.0. We need to manage and update identity credentials, and they need to be interchangeable. This layer aims to address how the DID determines the "proof of control" and "proof of authentication", and how to securely pass data between identity owners.

In fact, there are already attempts at this concept, such as DAS (Decentralized Account Systems), a decentralized account system that does not rely on a specific public chain and supports multi-public chain and multi-protocol interactions.

The idea behind DAS is to swap individual addresses to a system of unique accounts ending in .bit, which are themselves decentralised and can be used directly as account addresses to receive payments, login and of course as access portals to Dapp. This is essentially a secondary innovation based on the DID concept, which is a more underlying protocol than applications such as wallets.

But this begs the question, is this a DID or not, or what is the difference between DID and wallet? You know, wallets are hard to remember, but Dapp login and interaction within the wallet is very smooth. So this could be used as an idea for reference, but it's hardly mainstream.

(4) L4: Wallet and Dapp

This layer is the most familiar. In addition to the MetaMask mentioned above, there are projects such as Goldfinch (Loans without collateral) that use proprietary and unique entity checks, but this will only use them when the DID technology is mature. In other words, it is the idea of waiting until the DID system is mature enough and the number of users is large enough for it to work. In contrast, other applications are already using existing DID technology, such as TrueFi (powered by the first ever on-chain credit scores ), Gitcoin (blockchain-based incentivization layer for open source software) and Ethsign (decentralised electronic protocols).

A more viable idea is CyberConnect, which is similar to the WalletConnect development idea for wallets. "What if I can't beat MetaMask, but there are other wallets at the same time?" Simple, bring them together at the protocol level so that Dapp developers only need to set aside development time for MetaMask and WalletConnect.

CyberConnect is exactly the same idea, "I don't really know what kind of social products people will be using and what they will be doing on the web in the future Web 3.0, but in short, they need a protocol like this."

This would turn into a DID + aggregator, forming a social graph of information for a certain address, which all comes from on-chain data ending up as a more front-loaded aggregator while avoiding competition with specific Dapps. For example, we can use the address to retrieve information about a certain person and at the same time view ourselves.

Is that all there is to it?

Of course not, as we gradually dive deeper and drop into the design logic of specific products, we also need a more macro view of the future of DIDs.

(5) LX: DID for DeSoc

This is something that goes beyond a single layer and has an impact on applications on multiple layers, which may be a direction to look forward to in the future. The current reference is the European General Data Protection Regulation(GDPR) which has an impact on all areas of the ecosystem.

In the Web 3.0 space, it is more intuitive that this could be "soul binding", of which DIDs would be a direct example. ThePrimedia will cover this in the next article, so stay tuned for "Chapter 3: Another attempt to find yourself".

Editor: Jerry Crypto

DID: Decentralized Identity❎

DID: Dissociative Identity Disorder✔️

When we Googled DID, the first explanation is Dissociative Identity Disorder (DID) which is a medical term rather than the crypto concept(Decentralized Identity) we knew already. Compared to DeFi, GameFi, NFT, and DAO, DID is a highly neglected area that has not received enough attention from investment institutions and technology developers.

In the context of the Decentralised Society (DeSoc) with a richer and more diverse ecosystem, so we believe that DID is a key component of building DeSoc, but also a crucial portal to Web 3. Previously, we had pinned our hopes on the NFT’s unique characteristics to complete the identification in Web 3. In reality, however, some NFT artists and creators are bothered by plagiarism and fraud. For example, Rarible auctioned off the unlicensed artwork of Derek Laufman, the designer of Marvel's Super Hero Adventures. By its nature, it is arguably not Web 3 at all.

Due to DID being the hub of all digital, it is imperative to create a shared, flexible and resilient identity layer. As DIDs are adopted by more users and Dapps, all digital processing permissions are to be in the hands, of the one who is not confined to a single application system, multiple accounts and password records. Only based on DID Web3 empowerment like DeFi, GameFi, NFT and DAO, as well as other promising scenarios, it will blossom into a more exciting narrative.

The full research report is divided into three chapters:

Chapter one: The Road to Decentralization

All links are DIDs. It is an infrastructure that allows users to control their own identity and asset, which has become a must for users of Web3.

The Web 3.0 decentralized world can be seen as a black box that required us to interact. In the process, we completed a brief review of the Internet history, where terms such as browser, WWW, HTML were used to build the main web content from the 1990s to the early 2000s, and where cell phones, especially smartphones such as the iPhone, which contributed to the entire mobile Internet.

So, it's time to explore how DID products will enter the Web 3.0 world. In terms of current DID development, many projects are still figuring it out and the DID-based ecology is in its initial stages. ThePrimedia's analysis is not limited to projects that call themselves DIDs but is an extension of the concept of DIDs, which can be used as interactive portals. We hope we can give you more thinking and inspiration.

1. Front-end interface: MetaMask as an example

The reason why wallets are categorized as DIDs is that the wallet has already completed steps such as address verification, signature authorization, and even KYC interacting with the Dapp.

Although the wallet itself does not store your sensitive information, the process of undertaking the above operations is sufficient to constitute the full functionality of DID. It is required us to switch from DeFi to Web 3.0, which is perfectly technically feasible.

Do we have to do this?

In fact, the biggest problem with wallets is censorship, for two main reasons:

Firstly, the wallet is still primarily interacting with DeFi applications, which are under increasing regulatory pressure with each passing day, and a regulated portal may allow us to avoid the next UST-Luna crash, but this is not the dominant direction for Web 3.0;

Secondly, during the Russia-Ukraine conflict, Metamask blocked IP addresses from Russia and Belarus, and if we embraced DID and Web 3.0 because of sicking of Facebook infringing on our factors, it lacks logical justification for us to choose an identical again.

Let's continue to discussion if the regulated-resistant wallet is possible to integrate DID functionality?

Firstly, wallet providers have an inherent incentive to move to DIDs. This is because the battle for traffic continues, typified by Metamask Swap, which has reached 1,246,780 unique addresses, and even Metamask's direct support for fiat currency purchases, which in effect is already stealing from DEX and CEX. If Web 3.0 continues to grow, it makes no sense for wallet apps not to involve.

Secondly, wallets, as the "wrapper" layer for on-chain addresses, have a natural tendency to expand to become the portal for everything. From the experience in Web 2.0, the expansion of the platform economy can be successful due to being inseparable from the richness and integration, and the on-chain address does not belong to the wallet.

Finally, the biggest problem with the DID is that the functionality and boundaries are unclear, and still in early exploration. And DID still be integrated through the wallet, or will there be a new DID product form?

1. Social Media, the extensions of Web 2 thinking:

Humans are creatures with historical thinking. If one mind existed in the past, it is likely to live on in the present and future as well. In other words, the thinking in this way does not seem new at all, but it is widespread in real life, such as the TCP/IP protocol, which was the first Internet infrastructure, but it is difficult to replace it directly as we enter the Web 3.0.

Based on this situation, we look to social media as the DID for Web 3.0 guided by this thinking.

Therefore, two paths can be divided:

(1) Web 3.0 native social media, as represented by Lens Protocol

Lens Protocol enjoys high prestige among the public, even attracting attention at birth without a physical product. This Web 3.0 social application was developed by the AAVE team in February 2022, which is closer to the concept of Business Layer. It is hoped that other social APPS can be built on Lens Protocol, such as the one launched by LensFrens, which can be seen as a decentralized “Twitter” where users can follow users similar to themselves.

Social networking can have a snowball effect if the number of users increases, it would be natural for it to become a mainstream DID tool instantly. The problem is that Social apps have loyalty, for example, Elon Musk has announced his quit from Twitter many times, but come back every time and even a thought of acquiring Twitter instead of Lens Protocol.

In essence, the promotion of DID and Web 3.0 social tools is a philosophical question of whether the chicken or the egg comes first, and users will not choose to abandon Twitter just because you are Web 3.0. From this point of view, Lens Protocol's exploration is a pioneer.

(2) Plug-in social media aggregators that "combine" Web 2.0 and Web 3.0, as represented by Mask network

Mask Network is not a new force, we are mainly absorbing its idea that if directly promoting Web 3.0 native applications, then directly integrating existing social applications and promoting Web 3.0 on top of them could be a reality.

This is a very clever idea, each person "steals" a little bit of networking and content from Twitter, Facebook, and Instagram, and eventually the little bit adds up and draws people into the new Web 3.0 world, and the Mask Network becomes the DID.

But aggregation is inherently problematic, as the users and different social tools are not the same, and aggregation adds ineffective links without actually generating real users willing to contribute content to the new platform.

In contrast, native DID apps have a better success chance, not necessarily a particular DID application, but certainly native.

1. Unipass: passport to crypto and metaverse

ThePrimedia with the most DID login passport in the second section is intentional, it wants to move away from talking about DIDs, from listing applications and the slogan "preaching", and instead focus on the functionality. The idea is that DID is more dependent on Web 3.0 consistently, starting with the wallet, moving on to the more DID of the social tools themselves, and then on to the passport itself.

This section focuses on Unipass as an example, as it is currently a more mature product form and is more representative.

In short, Unipass can be seen as a decentralised version of Microsoft's Authenticator, the product that best fits the definition of a DID and builds its product firmly from a personal identification and login function.

So, Unipass can be viewed from two perspectives:

Firstly, we want to take a question, do individuals need a separate and distinct DID tool from their on-chain address? The on-chain address is actually problematic as an identifier, it may be different for different chains. Typically set Bitcoin and Ethereum as an example, many users are already fed up with accounts and passwords. As we move into Web3 ecosystem, there will inevitably be a need for an identity hub that holds all the digital accounts. From this perspective, it makes sense to have a separate DID as the entry point.

Secondly, is it possible that DID replaced the wallet as the default login tool? The growth of wallets, and Metamask in particular, as the default login tool is the result of fierce market competition, which started from the real and widespread need for everyone to hold their assets securely off the exchange.

But login tools cannot collect crypto assets. There will be a difference between users using a single tool and multi Web 3.0 applications, and the only way to solve this problem is for the login tools to be interoperable or to support some kind of unified, standard interaction protocol. At the moment, we can only say that there is still a long way to go in terms of marketing and developing user habits.

If the product is too simple, it will be too replaceable and difficult to create a real deposit of users; however, if it is too heavy and does additions to the login, such as adding support for assets and social content, then it will directly conflict with the interests of these applications. This is an open topic, and we look forward to seeing more clever developers giving effective practice and exploration.

4.Others: domain names, email addresses

To conclude this section, a brief discussion of the possibility of developing a personal identity based on ENS and email into a DID.

(1 ) What is the main function of ENS?

Or, a domain name for a personal Web 3.0 site, NO

Or, Twitter suffix, YES

This is of course a joke, the main reason being that setting up a website is actually a technical task, even with all the SaaS tools available in the cloud, it is still time consuming, and after deployment, there is ongoing maintenance, including ongoing payment for the ENS domain itself, just as if you struggled to bought a luxury car, only to find that the maintenance costs are still unaffordable.

The technical barrier prevents most people from using the product comfortably, and if it is to be used as a DID, it is more suitable for institutional users to interact with individuals.

(2) What about email?

Email has no problem with the login function, but they are only suitable as a peer-to-peer communication tool. It is a different usage scenarios in itselves, and sending mass emails and then getting reply messages is not suitable for everyday communication, but more for formal actions and marketing tools.

Having talked about so many possible portals, understand why a DID is necessarily needed - or is it necessarily correct to assume that a DID is a portal? Currently, we use social software such as WeChat and e-commerce platforms such as Taobao, which, along with the ecology they form, have brought us into the true Web 2.0 era by virtue of their level of convenience.

But these are the present, not the future, and Web 3.0 is the application scenario for DIDs. To clarify the importance of DIDs, it is necessary to consider the role of DIDs as a portal, as well as the current state of the ecosystem and its future trends.

ThePrimedia jointly launched the "Multidimensional Symbiosis" series AMA LIVE with the FORSIN community. Among them, the "Path to knowledge" and the "Path to connection" ended brilliantly last week, guiding a large number of crypto ecological builders to discuss how Web3 integrates with virtual technology, changes relations of production, and reshapes economic culture. Today's (July 27, 21:00) "Path to exploration" focuses on the new model of the creator economy, and discusses how to give content consumers a better experience in the Web 3 era; "Path to operation" at 21:00 on July 28 focuses on the global operation of Web 3, discussing the differences between Chinese and Global Web 3 markets and the advantages and disadvantages of Chinese projects in the Web 3 field.

On the basis of the AMA theme discussion, ThePrimedia will select the core elements for supplementary interviews, follow-up reports, and form a "Multi-dimensional Symbiosis" series, so stay tuned.

                                                               *————————ThePrimedia Founder Jerry*

PFP is thriving, while NFT requires immediate restructuring!

PFP is the culmination of the NFT frenzy, but it will not be the end of the feast. At the top of the PFP wave is Yuga Labs' "BAYC". Since April 2021, "Bored Ape" has been at the top of its game, directly surpassing the former dominant player "Cryptopunks", and has been directly crowned as the strongest NFT ecosystem and community. The most powerful NFT eco-system and community is the one that has become a god. Under the bear market gloom, NFT can be described as miserable. In the past month, the volume of Ether NFT transactions dropped by up to 55%, and the average selling price dropped by up to 71%. At a glance, NFT is full of devastation.

Although NFT is declining, launching the innovation to save NFT will give our souls a place to live. In this infinite game of life, we need to store and put our private property in the information space with the highest concentration of information technology, and turn it into a digital equipment package with a kernel of spiritual slices, so that we can roam DeSoc without distractions and hold NFT in our hands to all stars.

PFP is part of NFT, but certainly not intrinsic to NFT. NFT paths are at least: PFP, streaming media (audio, video, images), NFTfi, artwork ...... more subdivisions such as virtual digital people developed by VOKA AI, digital space services provided by Desert Space and NFT full-stack solutions created by Wormholes, etc. will come later and become potential players in each segment.

When NFT falls into DeSoc, when multi-dimensional symbiosis becomes the resting soil of the new ecology, virtual technology needs to change the current point-like, fragmented fast-food hype of NFT in order to realize the integration with real people to get rid of the material shackles of mere pan-heads and squeeze on the last train of human beings to the meta-universe. As Guo Yong, the founder of CFL, said, the boundaries between the meta-universe image action database and the live action field will become increasingly blurred, and we will look forward to the Normandy login moment of NFT in the future.

NFT is the sugar coating to wrap wealth, the carrier of spiritual slices, and the habitat of the human soul.

NFT in DeSoc: The Spiritual Carrier of Game Life

To travel the high-speed train to the NFT in DeSoc, you must move from the physical carrier to the spiritual carrier at the transition station.

The material carrier is the theoretical starting point of NFT, while DeSoc is its promised land. Currently, NFT is mostly focused on the topic of profile photos, as exemplified by PFP, which is an extension of Web 2 social thinking. Its primary driving force is still speculation, which appears to be active, but it has failed to identify the true demands of 7 billion people for NFT, and liquidity has become the drumming and passing flowers of a few individuals. In the absence of a market environment, it is impossible for actual users to remain, similar to weird performance art.

In the process of transitioning from the material to the spiritual, what sort of benefit does decentralization need to bestow to me?

• We need DeFi to revolutionize a financial system that is not friendly to ordinary people;

• We need DeSoc to create a future society that belongs to individual nodes;

• We need NFTs to find a quiet and peaceful habitat for wandering souls.

After traversing countless oceans and mountains of material carriers, only NFT can wrap our spirits and take us to the opposite side.

NFT creates a different and integrated protocol between node and edge, which will be a new generation of the World Wide Web encompassing all members of DeSoc. Imagine a decentralized society in which everyone participates within the NFT spiritual shell. The non-homogeneous characteristics are the identifiers of individuals, but the unique soul center is the locator of individual worth.

For instance, when Desert Space entered the three-dimensional world in the flat world to create alternative interactive scenes, it collaborated with the top-ranked design school at an Ivy League university to develop a three-dimensional world emoji that enables users to quickly create their own digital space and acquire their own NFT spiritual shell.

Equipment packages must be equipped for the game life. We must place our private property in cyberspace in the form of NFTs with the largest concentration of information, so that we may traverse DeSoc without interruption and maintain NFTs on several interstellar worlds.

On the path to the meta-universe, we upgrade NFT, DeFi, DeSoc, and SBT... to combat monsters. In the archival game of decentralized existence, DeLife, we assist each other in aiming high and living forever. And all of humanity's actions are creating the huge physical reality in front of us and the epic encrypted story of the future. As the creator and owner of private property, DeSoc must redefine the value of the human being. In a "community" made of 0s and 1s, law and code are required initially. Human is binary.

The private property of individuals is holy and inviolable, and it is constantly updated to reflect the progress of human civilization. A pair of boys and daughters from a farming civilization are private property, as is a car from the industrial period and a collection of NFTs from DeSoc. When we enter a decentralized society, our private property will be quantified in tokens, beginning with BTC, then DEFI, and finally NFT... In the future, further token classifications will develop.

FT and NFT tokens are the two distinct types of tokens. The former is a homogeneous token that represents undifferentiated and universal private property, such as various tangible assets, material wealth, legal currency, and debts, whereas the latter is a non-homogeneous token that represents differentiated and unique private property, such as our will, thinking, and emotions.

The reason non-fungible tokens are not homogeneous is that "human happiness and sadness are not identical." There are hundreds of millions of unique human individuals capable of creating the brilliant and varied world we see before us. Each person has his or her own universe, which includes not only the exterior equipment displayed, but also his or her inner meaning and value.

NFT is the information shell that identifies our distinctive distinctions and the spiritual carrier of our gaming life. Its conception and development mark the end of organized civilization.

The current status quo of a centralized society consists of a very unequal profit distribution in an ordered, bureaucratic society. Any novelty must be warped into a fitting appearance, individual distinctions are eliminated, and it eventually loses its drive to advance. The power is etched into the past era as a worker bee in the hive. Future society must be built on the rehabilitation of decentralized social logic.

A society that is self-organizing, decentralized, and sustained through distributed relations of production, which supports the maximizing of individual-social interests. In the future centralized society, the NFT is responsible for the bearer of the indivisible worth of persons, the DAO is our production workshop, and the DeFi is responsible for the operation of the financial system... and these wholes comprise the essence of DeSoc.

• NFT maximizes its strengths and demonstrates its distinctions;

• DAO governance, encourage innovation and respect characteristics;

• DeSoc seeks common ground while reserving differences and pursuing efficiency.

First and foremost, the rebuilding of the logic of a decentralized society is motivated by the maximizing of personal-social advantages. Under the new framework of game theory, egoism has lost its enchantment. New alterations have arrived on the main stage. Adam Smith, a giant in the field of economics, originally promoted the "invisible hand" principle: "In a market economy, everyone begins with self-interest, but ultimately the entire community reaches altruism." However, Nobel laureate John Nash's "Nash equilibrium" in economics adds a limit: "Starting from self-interest, the result of the game is to injure others and not oneself, neither self nor other." It is evident that the maximization of personal-social goals is predicated on avoiding damaging the interests of others.

To eliminate the game of a few individuals and enhance personal-social advantages, production workshop DAO governance is required. Under this kind of government, undifferentiated democracy will enable the majority of people to participate in NFT jointly. Members work together to construct the entire DAO organization by virtue of their own skill and subjective will, and the DAO organization will encourage individuals by utilizing each member's contribution to form a common interest.

The path from DAO to NFT is full of upgrades and monster battles. When there is no longer a threshold for ordinary members to obtain rights and interests; when ordinary members and development team members can rely on contribution to obtain voice over; when each member can increase their participation by exerting subjective initiative to gain incentives; When cumbersome bureaucracy is abandoned, individuals become organizational nodes... The DAO's smart contracts and underlying technical tools provide the groundwork for broad engagement, which will foster the growth of the NFT's national community.

On the path from DAO to NFT, NFTfi becomes the financial system's management hub. Whether it's custody, leasing, lending, portfolio, asset management, or deposits and taxes, NFTfi creates a central control room for all of these functions.

As the primary producer of NFT liquidity, NFTfi will achieve the smooth financialization of the NFT economy and ultimately establish a financially harmonious NFT society with a high level of user autonomy. Through custody, investment portfolios, asset management, etc., this financial management center enables NFT owners to increase their assets at a sustainable rate of return. By negotiating leases, loans, etc., non-NFT owners can get short-term use rights to NFTs. With the assistance of both parties, NFTs are able to obtain adequate cash, thereby creating productive financial soil.

All nodes engage in the NFT in DeSoc, which maximizes personal-social interests and encompasses the individual soul. The content data of creators can directly correspond to value through trusted encrypted assets, which greatly stimulates the birth of high-quality content; Monopoly and oligopoly effects are greatly weakened, making big data + encrypted assets a very good virtuous circle system.

On the path to DeSoc, NFT and different Token methods, DeFi apps, and DAOs must be highly integrated. The public chain WormholesChain can easily cast circulating NFTs at the chain layer, and the contract layer is also compatible with all NFT functions, allowing any user to quickly create a trading center like Opensea with one click, to cast, circulate, and trade NFTs without gas fees at low prices, and to truly rely on non-homogeneous features to construct DeSoc's building, as opposed to simply staring up at the sky in the narrow well of digital collections.

Individuals utilizing NFTs in DeSoc will find them to be as natural as breathing. NFTs in DeSoc must be nodal NFTs, and DeSoc requires a dedicated area for transporting NFTs. This will be a new universe that combines material and spiritual ties and collects diverse nodes and DAOs.

Physical Enclosures: A Frontier Form of Virtual Technology

If NFT is the spiritual carrier of game life, then the technology at its farthest edge is NFT's material shell.

The essence of NFT is the recognition of the value of homogenous tokens, which is augmented with non-homogenous and limited values. The additional portion represents personal value that cannot be quantified or purchased, and is synonymous with originality and rarity.

• In the real world, physical objects generally represent fungible items, such as a coin, a notebook, or a sugar cube;

• In the context of DeSoc, FT is a fungible token, such as one bitcoin can be replaced by another bitcoin;

• In the world of NFTs, NFTs are unique tokens that can be both a carrier of digital assets and a representative of traditional physical goods (such as concert tickets, clothes or sneakers).

The unique material exterior of NFT represents the leading edge of future virtual technology, and its underlying logic is derived from three progressive smart contracts. From the evolution of ERC-721, ERC-1155, and ERC-4907, we may discern the fundamental elements and characteristics of NFT.

The original ERC-721 contract governs the distinction between NFT and FT. Under the ERC-20 standard, each token requires a single contract, whereas under the ERC-721 standard, each token requires a separate contract. The resulting NFTs can be classified into the following categories:

• Physical property - houses, unique artwork

• Virtual collectables - unique pictures of kittens, collectable cards

• "Negative value" assets - loans, burdens and other responsibilities

On the blockchain, no two blocks are identical. Therefore, the ownership of each NFT must be recorded independently. For instance, the Land Staking (land pledge) initiated by the NFT game Axie Infinity at Ronin block height #15020573 treats each piece of land as a distinct NFT, and each asset must track its ownership independently and atomically, accomplishing the goal of differentiating assets. When the user Terms of Service service converts his own NFT into a 3D virtual stand-in on the VOKA AI platform, the platform verifies the NFT's ownership. Using it requires merely logging in through the wallet and downloading it to the application side, essentially resolving the data ownership and decentralization issues.

Enhanced ERC-1155 The contract is a fusion of NFTs and FTs, enabling the hosting of multiple types of FTs and NFTs in a single contract. Multiple token types can be combined in a single contract to save money by avoiding the requirement to "approve" each token contract individually.

The phased casting of Adidas is the most typical example of using the ERC-1155 standard, as it transports all homogeneous and non-homogeneous Tokens through a single contract, as opposed to complex interactions through several contracts. In the case of Adidas, all NFTs share a Token ID, which is convenient, fast, time-saving, and labor-saving. Furthermore, by guiding users to collect, destroy, and exchange in four activity stages, it is more in line with the intersection of marketing and human nature, providing users with a unique experience similar to NFT clearance games.

An enhanced variant of ERC-4907 The contract provides the first indication of NFT's character. ERC-4907, as an extension of ERC-721, can not only accomplish the separation of asset use rights and ownership, but also revolutionize the "automatic expiration" function of assets. When assets are included with the "expired" designation, it signifies that personal value can be valued in addition to being leased, which expands the options for studying the financial framework of NFTs in the future.

The NFT standard (EIP-4907) revolutionizes the NFT rental business. Renting an NFT allows users to experience and enjoy it for a particular time without totally owning it, which is similar to the behavior pattern of people who hire a luxury car for a short length of time when they host a wedding. The NFT rental market also offers a diverse selection of NFTs, including in-game assets, virtual assets, digital art, financial NFTs, and collectibles. A simple and inexpensive rental business can reduce the entry barrier for consumers into Metaverse or GameFi, while effectively increasing the liquidity and availability of NFTs.

Raise your arms and shout, and numerous individuals will answer. NFT rental market Through the setup of dual roles, the separation of NFT ownership and usage rights is achieved, and the automatic recovery of usage rights when they expire is implemented. It allows for the leasing of virtual land in Decentraland and in-game assets in the popular GameFi project Warena. This will also drastically minimize the integration costs for real NFT leasing, such as gaming, metaverse, etc.

From the evolution path of ERC-721, ERC-1155, and ERC-4907 three-level contracts, we can discern the logical context of NFT development, from one-to-one to one-to-many, and then to raise the derivative function of financial qualities, which is akin to an upward spiral.

When the underlying smart contracts give rise to the unique material shell of non-fungible tokens, the meta-universe provides a space for free-blooming activities. The Web.3 functionality, according to FORSIN, is built on on-chain applications that can communicate with one another via various smart contracts and in the form of NFTs. It may be a meta-universe of many projects or multiple meta-universes. It enables travel between several meta-universes, hence expanding the physical space and spiritual terrain for the development of NFTs.

Under the immense ocean and sky of the meta-universe, virtual technology has evolved into the shape that everyone anticipates. Under the guidance of virtual technology, the meta-universe will surpass 2D screens and immerse people in a magical immersive experience; it will surpass physical assets in the traditional sense, and include digital assets such as virtual land under its command to create a new asset system in the future environment; it will expand The physical boundaries of human existence, write grand narratives across borders, and collaborate with NFTs to jointly create the next evolutionary step; and it will expand The physical boundaries of human existence, write grand narratives across borders, and collaborate

The forefront development of virtual technology begins with the evolution of 3D animation, and its primary rationale is to push the artificial intelligence of Web 2 into the virtual reality of Web 3. CGYear, the pioneer of 3D animation, has been utilized extensively in automatic voice recognition, speech comprehension, speech imitation, digital people, neural radiation fields, etc. The production of its virtual reality scene can not only drive expression animation through voice, but can also drive body animation through emotions, successfully constructing the prototype of Metaverse virtual technology.

Lowering the barrier to entry is always a prerequisite for the development of new technologies. The rapid development of NFT under DeSoc necessitates the widespread adoption of virtual technologies. VOKA AI is a virtual digital person R & D firm based on the science of artificial intelligence. It can link to emoji via current apps, and these actions can only be triggered when users speak or listen to music. Although the cost of the first data set stack is extremely high, once it is built, the cost of creating virtual animations can be reduced rapidly, and the barrier to user participation in the meta-universe can be significantly lowered.

When the frontier forms of virtual technology change with each passing day, and when NFT becomes the carrier of sugarcoating and spiritual slices wrapped in wealth, we can anticipate that the path of NFT will expand from PFP to other fields. According to FORSIN architect Septsaber, "future virtual technology will have a significant impact on NFT + Web 3; centralization is dead, and the future is bright."

Path Choice: From Wrapping Our Souls to Wrapping Human Society

Blockchains are not consortium chains, and digital collections are not NFTs. PFP is a component of the future, but it is not the future itself. PFP, streaming (audio & video, pictures), NFTfi, artwork, and further routes lead to NFTs.

The exterior covering of the soul is NFT. Imagine a decentralized society in which the Tower of Babel, in the absence of reciprocal communication, leads to social fragmentation and war. Our soulmate will constitute an NFT couple. Current NFT development is still driven by speculation, and it is difficult to keep real consumers in an active market environment. More gameplay exploration is required.

The initial stage for NFT empower participants will be collaborative production, and Write to Produces will be further from Pond's than Play to Earn, giving NFTs a more stable economic base. On July 11, the NFT co-created the novel Bored & Dangerous based on BAYC, allowing users to vote on the course of the plot. The 3,000 members of the Writer's Room can vote on each character's backstory and the novel's overarching plot. As a decentralized writing community, Writer's Room grants community members the right to unlock the storyline by holding their NFTs, including voting rights on the title, genre, plot, ending, cover art, illustrations, etc. Continually, multidimensional concepts will arise, completing the transformation and upgrading of the current edition.

If collaborative production is the initial step in NFT participant empowerment, then virtual technology is the initial step in enabling decentralized products and services for NFTs. From the NFT supporting tools provided by the dedicated public chain of Wormholes to the virtual video tools of VOKA AI to assist users through artificial intelligence, to the creative tools that China Film uses every year to enable creators to capture animation data without wearable devices, and then to the NFT supporting tools provided by the dedicated public chain of Wormholes. Desert Space's state-of-the-art expression and emotion control technology provides robust technical support for the full blossoming of NFT, providing boundless imaginative space to the meta universe's magical scene.

Changes in production relationships will also spur innovation in the financial system. The more "useful" usage of NFT is illustrated by NFTfi's financial products. Whether it is custody, leasing, lending, portfolio management, asset management, deposits, or taxes, they all contribute to the construction of the NFT financial building and sustain the NFTfi financial landscape.

Portfolios are the lifeblood of the financial industry and the foundation of the NFT investment community. Floor, a tool for monitoring NFT portfolios, utilizes the bond mechanism developed by DAO to accumulate NFT liquidity and earn income. It functions by centralizing NFT assets in an asset bundle, producing a fungible ERC20 token that can be sold on exchanges. These tokens are backed by NFTs in bundles of redeemable assets. The liquidity of NFT is low, but its growth is enormous, and convenient instruments will provide market diamond players with greater profits.

Around the investment portfolio will be derived from the NFT field of aggregated income, arbitrage is always the true source of liquidity in the industry, decentralized NFT liquidity also requires the participation of market makers, as evidenced by the tragedy of DeFi, and decentralized NFT market makers are optimally on-chain.

Investment portfolio is accompanied by the artifacts of money management. Yearn, a DeFi income aggregator, has launched the NFT project treasury management tool NFTreasury. Using the NFTreasury tool, it is possible to determine the percentage of project funds needed in the short term (i.e., within the next six months) and convert the short-term funds required by the project into Ethereum and USDC. Money management serves as the portfolio's custodian, while income aggregation increases with liquidity, which provides a reservoir for market volatility.

After NFT market capacity reaches a sufficient level, compliance issues will also emerge. Historically, art investments have been associated with tax evasion. Due to the openness of NFT, this issue will have a place to hide.

The crypto tax services provider ZenLedger has introduced similar services. When importing a user's bitcoin transaction history, ZenLedger calculates the cost basis, fair market value, profit and loss, and tax liabilities for each cryptocurrency transaction. Users can monitor any previous cryptocurrency tax income, including mining, shares, loans, gifts, and even exchange incentives like airdrops. NFT's endeavor to become part of the tax system will also be more robust at the regulatory level, allowing clients to engage in NFT finance without worry and reducing the friction associated with noncompliance.

Physical items are also a field with NFT genes, as NFT possesses the dual characteristics of unique and digital assets, making it the most effective identifier of physical objects.

The original inspiration for the NFT was punk, and the jacket was the ideal attire for an NFT physical challenge. Each Azuki NFT holder will receive a special NFT that can be redeemed for a limited edition Azuki Twin Tigers jacket. The Azuki Twin Tigers jacket is modeled after the "Sukajan" jacket, a classic piece of clothing from the 1940s that fuses American and Japanese street culture, has a suggested retail price of $2,000, and is infused with NFT taste. When the NFT reverses the cultural meaning of an object, the NFT will attract additional users, and the path to DeSoc will likewise sow the seeds.

When the physical exchange expresses more of a spiritual symbol and cultural belief, and when it develops a loyal fan community, then the NFT in the ticketing industry is an attempt to incorporate it in certain usage scenarios.

TicketMint effortlessly connects the ticketing and blockchain NFT industries. TicketMint, an NFT ticketing system, has developed a smart ticketing platform. By utilizing "Omniscape XR," a location-based virtual online platform, TicketMint enables brands and businesses to integrate geolocation features into their content and virtual goods, which users may exchange for actual items and offers. TicketMint can also enable major users and fans to receive instant Bitcoin micro payments, discounts, and other means. The subdivision channels in the NFT business are connected in series, which makes the existence of NFT more natural and relatable to everyday life.

In a centralized society, NFT tickets on DeSoc specialize in the industry pain issues of the Web 2 age, such as scalpers, fraud, information asymmetry, etc. By leveraging a stable, secure, scalable, and sustainable public blockchain and injecting tokenization, micro payments, smart contracts, and meta-concepts into NFTs, it empowers artists, venues, and management, significantly reducing refunds and fraud, and enhancing the experience for traditional users.

Under DeSoc, NFTs are not only utilized for economic activity, but also contribute to societal development. A civilization that is more accommodating to average citizens will likewise be more accommodating to the natural world.

With the approval of NFTs, not only can industry participants use carbon offsets, but people can also buy and trade carbon credits using this NFT. TRST01, a supplier of blockchain solutions, introduces the Polygon-based carbon neutrality NFT token Bhu, a high-quality carbon credit that can be traded in the real world. Each NFT is equivalent to one thousand kilograms of carbon sequestration or carbon credits. By assuming the form of NFTs, Bhu also provides liquidity for carbon assets, facilitating their transferability and securing the entire process with blockchain technology.

In addition to farmers, villagers, auditors, validators, and technological partners, the revenue created by NFTs will be given to the entire ecosystem. Those that purchase Bhu NFTs may potentially profit from future price increases. The size of the existing carbon offset market is projected to increase from $40-$5 billion to $400-$650 billion by 2030, from its current level. The world is heading toward carbon neutrality at an accelerated rate, and the gap between supply and demand will dramatically expand by 2025. Additionally, NFT has expansive expansion prospects in the sector of carbon emissions. And forests make deserts greener, proving the immense potential of individual engagement, and NFT will green human society.

In the DeSoc jungle, these inventive NFT constructions seem to reveal a future NFT tribal map. The actual DeSoc should be a Lego-compatible society, and our social positions will be incredibly rich, genuine, and touchable, as well as extremely textured.

The material carrier is not the finale of NFT's carnival. Only the spiritual carrier can reach the NFT's soul's opposite side. At the changeover station from the material carrier to the spiritual carrier, we are prepared to depart and await the high-speed train to the NFT in DeSoc.

Blockchains are not consortium chains, and digital collections are not NFTs. PFP is a component of the future, but it is not the future itself. Today is the defining moment in human history, and we're traveling to DeSoc, a place where souls coexist.

Copyright | ThePrimedia

Editor's note:

There is an old Chinese saying, "The fish is what I want while the bear's paw is also what I want. You can't have it both ways, Mencius said.

In the world of Web 3.0, decentralized technology is what the public wants while practical applications are also what the public wants. You can't have it both ways.

This article will attempt to analyze the gap between Web3 and the ecological construction in real life, and on this basis will explore the path to breakthrough. The whole article will be divided into two chapters:

1. Paradox: analyzing the "Web3 Paradox", finding its mechanism and the path to breakthrough.

2. Broken: analyzing the "Web3 Paradox", finding its mechanism and the path to breakthrough.

Part 1: Paradox

In the midst of the Web 3.0 concept wave, a series of creative DAPPs have taken root and sprouted up, nourished by the idea of decentralization.

NFT DEX Uniswap Compound、Maker、Aave USDC、DAI Filecoin Lab DAO Toucan Golden Radicle Helium ……

However, after a few years of development, the picture we see is of CloudFlare crashing, the Oracle stopping working and exchanges failing to match ...... most projects dead.

Why can't decentralized underlying architecture support application scenarios that meet the public? Why can't blockchain concepts give birth to top applications like Twitter and Facebook? Why does the crypto world concerned with user privacy fail to deliver a smooth user experience? Why can't Web 3.0 applications form a flywheel effect and roll forward?

Despite all these questions, the reality is that hardly anyone stops to think: what is the gap between the ideal decentralized design and the real-world ecological applications?

Web3 is a great and risky top-down design for social change, bringing us a grand vision of industry iteration, era change and even social evolution. As an outline of thought and action for the construction of the crypto world, Web 3.0's decentralized social concept is revolutionary, as social change in the past has often been designed from the top down and brought about constant iterations and conflicts; under the decentralized social concept, Web 3.0's social practice is presented in a bottom-up way, similar to "self-organizing" systems of ant or beehive.

In reality, however, Web 3.0 lacks the implementers and facilitators to put it into practice. While any major technology associated with social change cannot be separated from the empowerment of markets, wealth and profit, the history of the crypto world are completely penetrated by the desire for wealth, from project developers, studios and investment institutions down to speculators, holders and all other major players in the crypto ecology.

The bottom-up construction of the Web 3.0 ecosystem to support the industry iteration, the changing times and social evolution, and the game of interests in the crypto world, has brought all this into a "paradox".

VC: the invisible driver behind Web3

Building in the name of Token's hand

In the end, the existing Internet industry structure is still a linear relationship of "scale for growth and traffic for valuation"; however, Web 3.0 does not have a central carrier and cannot use the previous valuation to evaluate the input-output ratio. All business models and product designs of Web 3.0 need to be reconstructed by a non-linear relationship to break the threshold and reach a sizeable number of users. This is a model that can be likened to the human brain interlinked by various neurosynapses, ultimately producing complex thinking.

This decentralized remodeling means that the divide between individuals and businesses, and that the business value of every individual, every micro and small business, or even any social group, it can be mined (Token), transmitted (Web 3 Social), and the relationships between them can be migrated (Social Graph) and stored (IPFS).

However, there are obvious problems with Web 3.0 at this stage:

1.Lack of real needs.

Web 3.0 relies heavily on copying the ideas of Web 2.0, frequently introducing decentralized versions of centralized services, and lacking in tapping into the real needs of users. For example, we don't want a decentralized version of Twitter, we just want a social protocol that preserves social relationships, more NFTs, anti-censorship, and protects our privacy.

2.Profit-making as the first motivation for users.

Users do not use the product for the value of real scenarios, but for profit, which is why X2E and its copycat projects are proliferating. However, this model can only attract gold diggers in the start-up phase and does not leave a real user base.

If you are determined to go long on Web 3.0, you cannot see the returns without a long-term investment, or at least you need a business model to take shape before you can reap the fruits. The only time Web 3.0 will really breakthrough is when universal applications are born. But we have to accept the reality that DeFi has about 4 million users, NFT has about 500K active users in OpenSea and Web 3.0 social protocols have less than 10k users.

Why is the actual user size of Web 3 so small? The VC-facilitated Token mechanism is the reason behind it.

The logic of VCs in Web 2 was to keep investing, seeking a monopoly position in a single industry, occupying the entire market space, and continuing to make excessive profits.

The logic of VCs in Web 3 is to seek early and cheap Tokens, use the secondary market as a profit point, and use the token's listing on an exchange as a node to quickly drain the token value.

Web 3's Token mechanism becomes a reservoir for institutions and VCs, and is free from any liability. There is a buggy mechanism here that allows traditional institutions to use token attacks for arbitrage.

Why does the Token mechanism not lead to actual user scale? Someone argues that behaviors are not spontaneous under the market mechanism, but are precisely interfered with and created by human beings.

Users may indeed care about privacy and data security when using search engines, but the most important thing is to satisfy the need for a search, which is the fundamental reason why the Web 3.0 building path cannot be equated with DeFi and NFT. The value of a product's use should take precedence over the price mechanism.

For example, when using EthSign to sign a commercial contract, the most important thing is that the contract is tamper-proof, which is the core advantage of the Web 3.0 product over other tools, and the user does not need to understand what is on-chain and smart contracts means at all, but can know that it allows the contract to be archived forever.

It is well known that the market acts on the basis of maximizing individual interests, but the current market is maximizing interests through the token. Let's use a picture to see the evolutionary process under Token.

The institutions negotiate a share and the project owner is lured by the rate of return, both parties conspire to maintain the price of the token and gain more users to support the value of token in the bull market, but in a bear market, the project will face loss of both token price and users due to the lack of core users.

After the Token has been utilized, some projects will sell off together or have no choice but to keep it running. For example, Uniswap, after acquiring the NFT aggregation trading platform Genie, went so far as to use USDC as an airdrop token instead of Uni token, which can be declared the death of the governance token.

In Satoshi Nakamoto's vision, the Token is a manifestation of proof of work. But under the command of VCs, the project is for the price of the Token, and the strategy of institutions and projects against the Token is a quick exit channel rather than maintaining operational development.

Empty shells: from infrastructure to application scenarios

The empty shell structure from infrastructure to application scenarios has hollowed out the backbone of Web 3's development.

When talking about Web 3.0, we mention the social graph, the creator economy, SaaS and collaboration tools, as if Web 3.0 would quickly take over the online world as infrastructure. But in reality, nothing was there, as soon as CloudFlare crashed, the Oracle stopped working and the exchanges could not be matched......

We discovered that there were even more underlying Internet protocols under Web 3. Underneath the grand vision of Web 3.0, we can find the gap between currently the ideal and the practice, namely Web 3.0 is just an empty shell.

Without a phenomenal application, the flywheel effect of Web 3.0 cannot succeed. For example, the BBS Network, which is currently a social protocol focusing on the SocialFi or social concept, will have 50% of its tokens distributed to active users. So how do you increase activity? By creating "high quality" information, of course, and with this logic, more traffic is channelled in, and active users who are followers and subscribers reap more benefits. This mechanism comes from DeFi's transaction mining, which artificially creates enough bubbles to leave nothing but a mess in the end.

At the moment, we only have Web 3.0 as a poor imitation of Web 2.0, but we need to achieve qualities such as privacy protection, data portability and social migration, which requires the involvement of blockchain, DeFi and NFT. This is the application that has real usage needs.

Why is there a lack of real demand for the Web 3.0 applications? The reason is simple: the product doesn't good. This is due to the extreme scarcity of quality developers. Web 3.0 ecosystem is ostensibly scarce in terms of users, but with tens of thousands of current Web 3.0 users, there are fewer exploratory applications and still a need for more technical, basic development tools.

The languages used by mainstream developers flocking to cash-flowing tracks like exchanges are basically Java, Go, Javascript, etc., and only in the parts involving on-chain interaction do they use Rust, solidity, etc. If they don't recognize the greatness of Web 3.0, then the blueprint goes unconstructed and never comes true.

As the bear market hits, Coinbase and Bybit will even make layoffs, and these developers will be lost again, further worsening the Web 3.0 development force. In the world of blockchain, the power of quality developers to drive new tools and technologies is huge, but the current dynamics are pushing them out of the Web 3.0 infrastructure development space. The Web 3.0 ecosystem is arguably all set, but lacking in talent.

The future: who is "glass-breaker"?

We briefly outline the relationship between Web 2.0/3.0 - and hope we can get a glimpse of the future of Web 3.0.

The underlying hardware is currently consistent: still desktop and mobile. Meta's VR devices are not directly linked to blockchain technology or games, and GameFi is still primarily web-based and client-based, but does not have extensive access to devices such as VR, a key point that has been deliberately overlooked. The VR devices are still paving a wider path of use.

The underlying protocols are diverging. The underlying network has not completely abandoned HTTP, browser, TCP/IP and other protocols, but the UX/UI is changing, and regardless of its beauty, the main orientation is "cyberpunk". In other words, the public chains as communication protocols and IPFS as databases have not completely replaced the existing communication protocols and centralised databases.

The current Web 3.0 is predominantly conceptual, that is, the Internet then evolves to Web 3.0+, and if this is the story that is bound to happen, it is fair to assume that the Web 3.0 concept as marketing itself is an extension of the real world.

The product is still in the process of iterative development: the lifecycle of Web 3.0 is no longer fixed and will enter an era full of mobility. Essentially, tickets can be used once and never used again, and marketing services can be used up as long as it lies in a consensus between the buyer and seller, and can be called Token-as-a-Service.

It just needs a process to get there. There are three main groups of people talking about Web 3.0 right now:

The first category: traditional Internet majors

Now they are jumping on the bandwagon, mainly because the traditional traffic model has come to an end and there are already people among the big Internet players who are ready to sail into a new course, but they will be like Facebook's Libra, or the so-called Consortium chain, if they don't change their thinking.

The second category: crypto native

These people either started out on public chains, such as Flow advertised itself as a Web 3 public chain, or they started out in DeFi/NFT/Metaverse project organizations, or they jumped out from traditional Internet majors and organizations to participate in the construction of Web 3. They are by far the most dominant group of people, and like the AAVE team that developed Lens Protocol, we all need to learn to embrace change.

The third category: Variants of pyramid schemes

The essence of pyramid schemes is the product model, which is not profitable in nature, and it is all based on the financing operation model of pulling in new members. These people are not genuinely interested in developing the product, but are often the most vocal and want to get as many people involved as possible, and the average person who is scammed will have the stereotype that "Web 3.0 is a scam".

Only the second group can become the mainstay, and in the future, more different types of people will enter this field and use their clever brains to create truly valuable product services and usage scenarios.

Web 3 is adapting super fast, for example, Nansen has partnered with Google Cloud to provide real-time market data. It's like joining if you can't beat it, and Web 2.0 and Web 3.0 are not isolated from each other, but more like twins. So Web 3.0 leaves time for Web 2.0 to adapt and evolve as well.

The fit that the two sides can reach is that the data will help market makers, hedge fund managers and asset managers to enhance their algorithms to predict market movements, generate reports, indicators and more. As new trends take shape, more mainstream groups will get involved, which is a good start.

Next, we will continue to talk about what the future of Web 3 products will actually look like and whether Web 3.0 products can reshape the next generation. Ultimately, the path to breaking through the Web 3.0 paradox begins with developers delivering user-ready products to the crypto ecosystem. Stay tuned for the next article.

Editor's note:

There is an old Chinese saying, "The fish is what I want while the bear's paw is also what I want. You can't have it both ways, Mencius said.

In the world of Web 3.0, decentralized technology is what the public wants while practical applications are also what the public wants. You can't have it both ways.

This article will attempt to analyze the gap between Web3 and the ecological construction in real life, and on this basis will explore the path to breakthrough.

Part 2: Broken

In his book "The Law of Imitation", French sociologist Tarde pointed out that "in the process of human change, there are rarely completely new inventions, but more adaptations and imitations". To achieve the breakthrough in Web 3, we need to rationalize the current parallel, but actually conflicting logical paradoxes (please refer to the previous article for details), and find its breakthrough point and explore feasible paths.

Faced with the step-by-step encroachment of VC, the survival space also has a starburst. We will use our faith and technology to expand the frontier and gather all developers to conquer the city until we finish killing the profiteers; facing the wilderness of the scene, we have never felt barren, social graph, creator economy and SaaS are already waiting for us to eliminate all the false gods that hinder progress and put all the new gods into the Buddha's niche for people to worship. Facing the technological divide, the completion of development kits will allow more technical tools to meet users directly, and decentralization will deconstruct the role of platforms at the technical level ......

Newton once said: If I see a little further than others, it is because I am standing on the shoulders of giants. This time, we will build the Nine Stages together from the bottom.

Underlayer tech: reinventing faith and technology first

In the process of building Web 3, a rethinking of its underlying logic is adapted to the new situation in response to the dilemma of its intrinsic mechanics.

1. Faith Reinventing

Without faith, there is no decentralized everything. Uniswap did it with AMM to reconstruct aggregation, Bitcoin did it with PoW to objectively represent consensus, but Web 3 has SBT, PoS mechanisms, and the expectation of all users that consensus has emerged and that it is better to start acting than to sit back and talk to move towards a more diverse DeSoC society.

Everything can be captured by Web 3 and generate value accordingly, everything! These values can be flowed, naturally carry value, and everything has value.

This is the foundation of faith on which the opportunities that Web 3 brings us to revolutionize the application space. A faith that has been tumbled by the hype and bubbles in the past, the cryptocurrency world is once again gaining trust in development and practice.

For example, Brave, the most widely used privacy browser, has launched Goggles in an attempt to provide more relevant search results without touching more of the user's privacy. Combined with its own token, BAT's ad usage service, this is already a very mature attempt commercially. If it goes further and entirely builds the back end of the blockchain, with information stored on IPFS, it could have the magic to reconfigure the interactive interface of the internet.

1. Technology first: innovation gradually spreads

Image source: Wikipedia

In the processing of innovation pace, the transition of Web 3 from Innovator to Early Adopter can be seen. Although the value is still small in terms of absolute market share, desktop, enterprise, and basic facilities are gradually being built. It belongs to the process of gradual technology spreading.

Crypnote tool, for example, is already a highly finished product. While previous note-taking products such as Impression Notes and Onenote had to face data migration problems, the Web 3 backend is structured directly on the blockchain storage network, which is a redesign based on Web 3 technology.

What kind of Web 3 applications will technological innovation bring us, even if it is possible. This is the point of our exploration of the paradox. Let's talk about what Web 3 products will actually look like.

Social: from SocialFi to graphical evolution

As an important cornerstone product of Web 3.0, social products need no further explanation of their strategic importance. History has given Web 3.0 a social synonym that is not the oft-repeated SocialFi, but the "social graph".

Why the popular SocialFi can't do the job? SocialFi, commonly known as "social money exchange", is the use of Token inside Web 3.0 to stimulate the use of their product. Take BBS Network as an example, 50% of its tokens will be distributed to active users, how can activity be increased through token hype? Of course, it is to create "high-quality" information, so that more active followers and subscribers can be attracted. No matter how stringent the review mechanism is, as long as the mechanism of trading activity for Tokens exists, there is room for "data manipulation".

When the 'feature > hype' tipping point is reached, the real need to retain users have met their requirements, the product cycle lengthens and is eventually replaced by a newer mechanism, it is a 'whale fall' effect and then everything grows. But the current socialFi model is not designed to curb spam, and existing governance mechanisms fail. For example, Twitter is used to gain new knowledge, but such SocialFi applications are used for profit.

The profit motive is a problem that cannot be avoided. "The social money exchange" is not the main social category of Web 3, but in the long run, new native social applications will emerge, "social graph" is the forerunner that dances with the times. Social graph is the "social relationships", which means that there is no central node, relying on the blockchain network for direct coupling and transmission among individuals.

When the social networking sites in Web 2 are upgraded to the "social graph" in Web 3, what has changed?

Let's look at the graphic methods of traditional social networks: The first point is that in existing social networks there is a reverse flow of information and data. The information flow between users is bidirectional, it means "I follow you, you follow me back." We can see each other's information content, but the data behind this content is not synchronized with the information flow, but is stored on centralized platforms such as Twitter and Weibo. The second point is that the information among individuals does not flow in a consistent direction, but is skewed towards KOLs and institutional accounts, creating various "centralized" nodes. The third point is that data is collected by the platform and then made into API interfaces with different permissions, which are subsequently sold. Therefore, it is the data stream, not the information stream, it can be monetized. For example, opening a membership is essentially the platform selling user-created content. If the profits from the sale can cover operational overheads, it is equivalent to the invisible and legal "exploitation" of individuals by the platform, which is the real business model of platform traffic. Look again at the way information flows in the Web 3 social graph: information and data flows are in the same direction and the relationships can be Tokenised, there is no center and difference.

For the trend toward content centralization, the cross-chainability and interactivity of the social graph will allow this problem to be solved naturally. Decentralized social applications should be componentized, whereas an edge node and a central node can exist simultaneously in different groups.

So, there are already products in the transition phase from Web 2 to Web 3 that are practicing from this perspective, such as Tiktok, which has launched Tiktok Moments through a partnership with ImmutableX to create NFTs from popular videos, with the revenue from sales mainly going to content producers and NFT makers. Furthermore, if anyone can make their social content into NFTs or even issue tokens, Web 3 Social will definitely move forward.

To sum up: why SocailFi will not be the future, while the social graph concept has more possibilities for success?

spam from the Token cannot be eliminated. there is still a trend of content centralization of head KOLs, agencies, and commercial companies, and ordinary people naturally prefer stars and celebrities with their own halo. And the social graph promises to solve both of these problems.

The Social Graph also needs an upgraded privacy system to protect it, that is the "on-chain credit system".

Social networking doesn’t necessarily require real identities. If it's an ordinary exchange of information and you just want to have fun, you don't need to care about the person's role in reality. As Guilin says, "you can call them whatever you want", but when it comes to address-based financial transactions, identity verification is a must, requiring information verification to be as important an infrastructure as ChainLink.

The current path to annotation functionality is to continuously record activity at an address, and when enough of its historical data has accumulated, we can profile its users with publicly available information, which works for giant whales and exchanges and institutional wallets. But what if the future spreads to Web 3 wallets that are used by young and old alike?

"Knowing who you are dealing with" is a very real need. If the Web 3 algorithm is optimized, it is possible to use the credit system to make highly accurate judgements without knowing who the person is. For example, the contact verification tool Go+ Security users can verify more than 360,000 Tokens on the Ethereum chain, including more than 180,000 risky addresses and more than 20,000 phishing sites.

Creation: from NFT hype to content monetisation

The basic evolution of the creator's economy is as follows. Web 1.0 era, creation was a natural act based on the desire to share, largely without a profit model, it was a beautiful utopia. Web 2.0 era, centralized monopoly platforms controlled the values and flow of information, and creators basically only got a small share of the profits. Web 3.0, there was no centralised traffic distribution platform, so creators could take the lion's share of the profits. For creators, "Internet without a center is a good Internet!" In terms of basic text creation, the problem with Web 2.0 was that the monopoly of the platform was so prominent that we lost sight of the fact that the ability to create was the fundamental problem, whereas in Web 3 world 'creation itself' is beginning to emerge. What really limits distribution is the ability to produce content consistently, not the so-called channel restrictions. Genuine quality content cannot be confined to one channel, and in a fully competitive marketplace, it can run to rival teams if it is suppressed.

The value of Web 3 is that for the first time, the right to create is truly back in the hands of the individual, for the purpose of creation itself, and with the value of perpetual retention, a Web 3 creator economy is indeed something to look forward to. Imagine a fair, creator-friendly economy where more work is done for more money, and Web 3 will be their main stage, with a fairer environment for quality creators to realize their value. It is important to note that Web 3 is not all-powerful while there is true equality for all in terms of barriers to entry for distribution, there will still be individual differences in content production and distribution capabilities, and it will remain a historical norm for the few to distribute to the many. Take V2EX's Planet, content creation and sharing blog-like tool based entirely on IPFS as a storage backend, but also with guinea pigs as the default subscription in its default interface.

The main problem with the development of NFT, for example, is the existence of a king of OpenSea and the high concentration of content in the PFP area.

From OpenSea DAO to LOOKSRARE, to the "rise" of the Magic Eden market on Solona, what do we see? After the repeated attempts, the heat death after the frenzy, the rich categories, and the user habits cultivated by the first-mover advantage, making this long assassination may continue for a while, until the appearance of the savior.

From the perspective of the creator economy, we see a high degree of centralization of NFT platforms and creators. This is because what users really want is quality content and do not "care" so much about the degree of decentralization. Looking further at the NFT trading categories, we see even less decentralization, as the head trading category is PFP, and while other categories briefly top the sales charts every day, Yuga labs is the Deep State, with the vast majority of NFT market share, including BAYC, MAYC, Meebtis, Otherside, and even ApeCoin based on the ERC-20.

But there is hope, like the new developments in RRS3 Crossbell, is an ownership platform where the information generated by social activity, it will be the initial form of user data ownership on Crossbell, as a content monetization platform with the primary goal of returning data sovereignty over individually created content to the creator. Where it is a game-changer is the ability to empower users to reclaim ownership of their data through a built-in capital design. At the same time, Crossbell has been designed with an emphasis on information interoperability, which means that third-party applications can build on this in a friendly way.

Wider use scenarios for NFT can exist in GameFi, Meta Universe, and DeSoc. Only by making NFT more popular and moving into more application scenarios will it be possible for the dividends of the creator economy to fall on more people. Polygon, for example, is making a bold attempt to encourage the masses toward monetizing NFT content by releasing its new NFT Minter, which allows the creation of NFTs using custom programs at no Gas cost.

The monetization of content is a feature of NFT to be further developed in the Web 3 era. Monetization of content can be understood as the Tokenisation of personal values, and when humans start to enter the Web 3 world more frequently and extensively, creativity, in whatever form, will be fully guaranteed as a basic "human right". SaaS: From To B to To C

In the existing web world, SaaS seems to be a corporate product, a natural To B, such as Jetbrains' development tools, Dassault's industrial design software and EDA for chip design. But in the Web 3 world, SaaS will offer a possibility to anyone. In addition to the social graph and the creator economy, SaaS tools will also hold up the grand blueprint of Web 3.

The move from To B to To C is not just a change in who uses it, but a re-scaling of production relationships. In Web 3, SaaS will become a pervasive infrastructure that anyone can build on their own, providing integrated applications or API interfaces for all types of users.

The reason for this is that whether it's social or the creator economy, the product design is basically based on the relationship between "people and people", and To C applications will become the main breakthrough direction for SaaS. If we want the infrastructure to continue to go into more services, it will have to go to the L1 scale, even hardware devices, like ASIC miners do.

One solution currently available is a secondary service based on an existing product, most typically IPFS, with a free trial and unlimited capacity, which is basically the equivalent of free-riding if you can build a commercial service on top of it.

For example, Skiff's decentralized email and cloud document office suite service can be used for personal daily writing, and communication as well as an alternative to Google workshop's office suite. If the other party uses a Skiff account, all records of their email communication and cloud document collaboration are kept on IPFS without going through any centralized servers.

The emergence of such applications shows, on the one hand, that the current IPFS, after many years of development, is primed to offer commercial services; but on the other hand, we must also see that such products still have heavy traces of imitation and still need long-term development to explore new product models.

In the case of analytics tools for the blockchain market, there has always been a market for professional analytics tools due to the transparency of information on the chain and the frequency of transactions, but there is also a threshold. While individuals can analyse on-chain information directly, it is clear that this difficulty requires a developer's skill level and is not friendly to the average person. Is there a breakthrough possibility?

Tools such as Dune and Nansen, which have raised $80 million and are valued at $1 billion, are easier to 'infrastructure' because they don't need to include transactional functionality, and even the functional modules can be user-defined, just open SQL interfaces. In essence, it is a pipeline device, the project open API interface, and documentation. Users continue to query the accumulation of data when the user habit is well cultivated, and the formation of the traffic will have a commercial value.

The barrier of this tool lies in user habits and data accumulation, not in the development difficulty, and Chainlink is a different design logic, it is an infrastructure that everyone agrees on, because the prophecy machine data needs to be accurate with high precision and cannot be easily replaced just because the interface looks better or there are a few more function modules. This is the iteration of the SaaS scenario from To B to To C, and the business opportunities it presents.

Web 3.0 is still in its infancy, and we need Web 3 to truly transition to an era where users and services support the profit model so that it will last for a long time. At the end of this article, let me review the breakthrough path of Web 3.0 again. Under the guidance of re-engineering beliefs and projects, whether it is a social product towards mapping, a creator economy of monetizing content, or a SaaS software to upgrade from To B to To C. ...... is a "lone and brave man".

Perhaps there are still problems with Web 3.0, and practitioners are still lost in the dark, but this analysis is not a denial of Web 3.0, our intention is to do everything possible to avoid a frenzied fishing expedition, to prevent a bear market that would plunge many into extreme denial and doubt if the Internet bubble of the early part of this century were to hit.

Web 3.0 may be a long way off, it may require many iterations, and the "lonely and brave" who enter the game may fracture into sand, and the project will go up in smoke, but it is like a shimmering light to the world of the future, which will eventually illuminate the stars of the future world at a moment in time. "To those who cry and roar in the night, who says that only those who stand in the light are heroes" ......