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In today's rapidly developing digital age, we often hear the three terms Blockchain, encryption economy (also known as the crypto world), and Web3. Although they are closely related, each represents a different aspect of the digital revolution. Let's delve into these three concepts through the metaphor of a city.
Imagine a city of the future, where:
Blockchain is like the foundation and framework of this city. It is a decentralized, transparent distributed database technology that provides a solid foundation for the entire digital ecosystem. Just as a city needs a stable foundation and structure to support everything above it, blockchain technology provides similar support for the digital world.
The encryption economy can be likened to the bustling financial district and marketplace of a city. It encompasses various economic activities and application ecosystems built on the Blockchain foundation. There are exchanges similar to traditional financial streets, such as Binance and Coinbase, where people can buy and sell digital assets. There are also decentralized finance (DeFi) platforms equivalent to innovative financial services, allowing users to borrow and invest without traditional banks. In addition, the digital collectibles (NFT) market and Blockchain games (GameFi) add cultural and entertainment elements to this economy.
Web3 is the overall planning blueprint of this future city. It represents an idealized vision of the next generation of the internet, emphasizing decentralization, user sovereignty, and data ownership. Although Web3 currently remains more at the conceptual level, it points the direction for the development of the entire digital ecosystem.
It is worth noting that although the encryption economy is currently the most active area in practicing the Web3 concept, especially in terms of finance and asset ownership, the scope of Web3 goes far beyond that. It encompasses a broader direction for the future development of the internet, including decentralized social networks, distributed storage systems, and more.
Overall, Blockchain provides the technical foundation, the encryption economy builds specific applications and ecosystems on this foundation, while Web3 refers to the grand vision guiding the entire ecosystem's direction. Understanding the relationship between these three helps us better grasp the development context of the digital world and prepare for the future.