The Evolution of Web3: From Ideals to Reality

In the digital world, we have witnessed two distinctly different domains: Web2 and Web3. Web3, as an emerging digital ecosystem, was initially created by pioneers pursuing decentralization, freedom, and autonomy. In its early stages, this digital realm resembled an undeveloped virgin land, with no rulers, only innovators and builders.

As time goes on, the boundaries between Web2 and Web3 are gradually blurring. At first, only a few investors from Web2 noticed this new world, drawn in by its potential. These investors carefully observed and analyzed the characteristics of this new domain, understood its operating rules, and identified the most valuable resources.

Bitcoin, as the most valuable asset in the Web3 ecosystem, has become the focus of the first wave of large-scale development. It is a scarce digital resource with clear ownership, and its true value is grasped by those who deeply understand its fundamental principles.

As early participants solidified their positions and secured their wealth, they began to set their sights on broader horizons. They realized that the potential of Web3 extends far beyond Bitcoin. Soon, they started to explore new territories, such as Ethereum, Solana, Polkadot, and many other blockchain projects.

As more blockchain projects emerge, the competition for new resources has become increasingly fierce. Initially, block space was very scarce, and early blockchains operated under strict constraints, with each transaction needing to occupy valuable space. This scarcity conferred immense value to block space. However, as competition intensified, innovation followed.

More efficient ways of creating block space are constantly emerging. Layer 2 solutions, Rollup technology, and emerging blockchains—each innovation brings a wealth of new resources to the Web3 ecosystem. Once scarce goods have become relatively abundant.

Developers no longer compete for limited space; instead, they are creating almost limitless new resources to meet the growing demand. However, the surge in block space has brought about unexpected consequences. Once precious resources have become no longer scarce. The cost of storing transactions—once a critical economic factor—has now significantly decreased.

People expect that cheap block space will attract a large number of Web2 users to migrate, but the reality is not as satisfactory. Web2 users are cautious about entering the Web3 world. They have heard stories of some adventurers who were tempted by the promises of wealth in Web3 but ultimately suffered losses. Nevertheless, some Web2 users are still drawn to the stories of quick riches and decide to try entering this new world.

These newcomers participate in the Web3 ecosystem by purchasing various tokens, each promising future value. They trade, speculate, and create businesses, believing they are in the early stages of the next major revolution.

However, they do not realize that the rules of Web3 have long been set by the earliest participants and powerful investors. Although these rules are not explicitly written down, those who control this ecosystem know them well. As more Web2 users join, they unwittingly find themselves trapped in a complex environment. The complexity of Web3 poses a huge challenge for many.

New blockchain projects are emerging one after another, each with different rules, while there are also many scams disguised as opportunities. Big players control the flow of information, manipulate the market, inflate asset values, and sometimes withdraw support from unsuspecting new users.

Web3 is gradually evolving into a playground for those who know how to profit from the uninformed. Even though the cost of blockchain space is cheaper than ever, the adoption rate remains slow. The dream of a mass migration from Web2 to Web3 seems to be fading.

New blockchain projects promise to deliver a seamless user experience, yet they consistently fail to match the familiarity and convenience offered by Web2. The additional promise of quick profits is not enough to attract the masses—Web2 users have witnessed too many peers suffer losses.

They witnessed the entire ecosystem of Web3 rise and fall overnight, seeing fortunes gained and lost in an instant. Ordinary users hesitated, struggling to see through this chaos. However, amidst this turmoil, a thriving trading market emerged.

Web3's digital assets—tokens—have become the core of its economy. Everything is tradable. Each project has its own assets, unique value propositions, and commitments to future appreciation. The trading market operates 24/7, driven by speculation, manipulation, and greed.

Some projects temporarily thrive and then decline as attention shifts. New tokens are created every day, sold to the highest bidder, and then quickly flipped for profit. This cycle seems endless.

While ordinary participants struggle to survive, the true beneficiaries of Web3 are thriving. Exchanges have become gatekeepers, controlling the flow of assets between Web2 and Web3. They profit from every inflow and outflow of funds. Market makers—the hidden forces managing liquidity—ensure that every transaction is not overlooked, extracting commissions from it. Developers continue to build, not necessarily for innovation, but to create more tradable assets. Marketers weave stories, construct narratives, and sell dreams to the next wave of hopeful new users.

The dark side of Web3 is that it is no longer truly decentralized. The early ideals of a free and open digital frontier have been replaced by the brutal reality of capital. The rules of the game have changed.

The forces that dominated Web2 have also infiltrated Web3. They are not only participating in it but also reshaping this ecosystem to meet their own needs. As a result, Web3 continues to expand, becoming a frontier of endless digital assets, speculation, and rapidly changing opportunities.

The dream of true decentralization still exists, but for most people, it is merely an unattainable ideal. Participants come hoping to gain wealth, but in the end, most leave with less than they arrived with.

Meanwhile, those who understand the rules of the system continue to profit, build, and control, ensuring that this ecosystem remains dominated by them. The future direction of Web3 will depend on whether its participants can return to their original intentions and achieve the ideals of true decentralization and inclusive finance.