2. The market situations and the evolutions of the financial products in web3
1) the different products based on a different architecture
The ultimate form of products should satisfy the users' needs no matter the technology; the user may be customers, institutions, third-party research agency... So not only having a basic understanding of the basic technical knowledge but also the products based on the technology is a plus. Many services or products are emerging, which include the infrastructure services based on the blockchain and products involved the defi, nft, sofi, though we can be sure that many of these products can only survive for a short time. Now the dominated it services mostly have built on cloud services, so we can compare the blockchain and cloud services
sources:decentralized-finance-on-blockchain-and-smart-contract-based-financial-markets
sources:前哨, 科技训练营
cloud services VS blockchain
google-bigquery
As the above shows, blockchain and cloud services are different systems architectures, such as the various people who maintain the services, and the former's background is more diverse. Perhaps different chains have different situations, but the community has a great effect on the blockchains. Of course, there are some companies and investment institutions behind the blockchain. The services and the form of services based on the blockchain and cloud services are different in many aspects, and there are some relations between them, for example, some blockchain nodes running in the cloud services, get blockchain data from google services.
2) the financial products under web2 and web3
As we know, the financial markets have played a significant role in the economic system and are highly complex. The past financial depressions have still made people feel impressed. The defi summer in 2020 taught people many new concepts. I'm not saying that web3 only refers to finances, but in my understanding, the defi is fundamental to web3; many other aspects, including NFT and sofi, have also built on it. We can make an analogy that takes web3 as our current economic system; the critical role of the financial market and financial institutions is prominent; thus, we can think of more meaning of defi in web3 and all the ecosystem. This analogy may only work in some aspects, but the comparison will inspire us with more meaningful ideas.
Traditional financial exchange markets, such as securities exchange, mostly use trading on the floor, order books format. On the contrary, web3 primarily uses the AMM format exchange, which uniswap is the representative. One highlighted the different points is that in the former, in which the buyers and sellers achieve the deal through the orders books, sometimes third-party market makers should supply liquidity. The latter is based on the smart contract, which any user can interact with and make a deal with if the smart contract has enough liquidity. This different fundamental architecture leads to various features, and these features and possibilities based on the new features can easily be found in some research reports or official websites.
But it does not mean that the traditional financial market and web3 financial are isolated, such as dydx reference the order books format, which brings some mechanisms from the traditional financial market. It's easily found and forecasted that many web3 financial products will be emerging, bringing some concepts or ideas from the traditional financial market. And vice versa.
Another different point is about the regulation policy. Such as the investment entrance requirements involving how much the personal net worth, available assets, and Investor risk tolerance according to different investment targets. But this is a relatively empty area in web3.
The most famous data services providers in web3 include messari, who supply not only research reports but also some fundamental data or data analysis, nansen is well known for the tracking of the smart money; dune, which anyone can write or use other guys' dashboard that the SQL can write. Meanwhile, in the traditional financial market, we can see many financial data providers such as American's Bloomberg Inc and China's Wind. So the web3 data services provider is also an unignore role.
The below involved the comparison between the traditional financial and the defi, which can find in Berkey's online defi course.
3) which points between web2 and web3 should give more attention
We can find financial products such as the exchange-uniswap, credit service provider- compound, aave, and derivatives trading- synthetix in web3; all the financial product types can find in the traditional financial. But the defi is still in the very very early stage; the complicated level, user conveniences will have great potential to develop with the development.
Another point is what the possibilities can emergy based on the unique features or abilities of the defi, such as flash loan, what about the government regulation policy, what's the mini requirements according to different investment targets in various countries, how to consider the regulations in web3 or defi? Will some traditional financial organizations apply the defi to improve their service or products' competitiveness?
All the above will bring tremendous change to the world, in my feeling.
3. The difference and some potential between different geographical areas、different languages 、different communities
1. The impact on communities has been growing
I have written that the community maintains the block services in the previous chapters. The community can refer to the developers with some relationships with the Ethereum foundation. We also call these developers builders who design the architecture and main the running services. Besides these participants, there are many other guys, such as more designers focused on their specific business logic, some users, and some activists.
The debate about the community's form and the evolutions always is very hot—for example, vitalik's blog, which involved these topics.
Not only does web3 have many communities, and many other industries have their communities. What's fascinating and imaginative is the communities in web3 built in the blockchain architecture. For example, the change of the investment model, which the capital received from the investment companies and now have another option: the money from the communities; the deeper relationships between the products and early users in the community; the new programmable collaborative ways which are cross-geological,cross-language. All the above and more are emerging.
With the internet investment boom since 2000, many giant internet companies mostly received capital from angel investment or investment companies. Are there more possibilities for the future winner to develop in these communities?
2. What's the difference between China and America in web3, in my understanding
I have kept an eye on the Ethereum development since finding that most top-level protocols have been built in Ethereum. And along with observing more protocols and potential protocols, the apparent fact is that most potential protocols are in the English world and mainly in America. What's more, It makes me feel like entering a new world while I read the messari annual research report, listens to many bankless episodes, find some technical articles, and other great content. As time flies, my English and computer level have unconsciously made a good step. I feel I'm the rabbit in the rabbit hole. Enjoy the imagination and great thought the good content have brought me. Feel the excitement and motivation when seeing the pure passions in the community. All these are very fun. But It is undeniable that understanding and grasping the technology mechanism and more details take work.
On the other hand, observing the Chinese world, we find an interesting phenomenon: English articles or reports once published, translated Chinese articles published either after hours or the next day. The number of original Chinese high-value articles about web3 is less than the number in the English world. All of the above explains the great value of absorbing great English content. Another point is that cross-geological features in web3 and the primary trends most have developed in the English world, so becoming a core builder is challenging if one's English ability can't achieve the required level.
An interesting phenomenon is that if one topic becomes very hot in the English world, it will become hot in the Chinese world after about three months. The three months or the flowing dates is my feeling, not the precise data. Let's take the 2020 Defi summer as an example, the defi speculate, or investment has become hot since the start of 2021 in China. When the NFT topics became hot in the start months of 2021, we can see great media reports about NFT in China in the middle of 2021; the difference is there are many strict policies after such topics become hot in China. In the second half of 2021, one question I was always thinking is the value of becoming a web3 developer; there was little content about the topic at that time. But in 2022, perhaps from the Apir or May, there is more content about becoming a web3 developer; as we know, because of the limited audience when talking technology, the topics are less hot than speculated topics.
More points include the debate atmosphere, debate topics range, and the difference when debating; the more details I'm not planning to write in there. But feel that the English communities significantly affect the Chinese communities to some extent, and sometimes they observe the Chinese communities. All the debates in these communities, which have high reliability? Which has the high guide value and even can take guide advice? It's interesting and worth comparing the differences.
Even beyond web3, the information differences between the English and Chinese worlds will also supply some serendipity values. For the personal, the comparations, the more info sources and the debates under the multi-languages, even joining the discussions will have more inspiration and value.
3. What are the possibilities under the differences
When considering the following factors:
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The fundamental financial features of the Defi
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the programmable collaborative possibilities based on the distributed architecture
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the opportunities that the study and communications will bring under the cross-languages and cross-geological.
Based on the above factors, many things are emerging:
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A primary student in northwest China becomes very interested in web3's topics.
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One student is coding in the university dormitories in Argentina.
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Some people in Hongkong, London, or Silicon Valley are planning to build a project.
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A serial entrepreneur is looking for the next business.
...
In short, many things are not easily seen but are planning and building. With these technologies eating the world, for some people, these are the bubble investment like playing a roller coaster; for others, these chaotic ladders.
Closed Thoughts
The article covered topics involving technology, product forms, communities, and some comparations. Of course, everyone has their focus and understanding, and the range of topics can expand longer, such as the zk(zero knowledge)'s abilities in web3. The article's topics are personal views, and more topics are not involved. But the topics in these articles have a long time value and are worth following; more value under these topics will appear as time flies. Even though the topics in the article were simply an introduction, there are more contents and details behind the related topic, and they are changing very fast. You can find more references on the official website, research report, or the Investor education some investment institutions supply. I hope all the above has been a good help to you.