【New Standards For Judging the Quality of Web 3.0 Projects】Original trust

New Standards For Judging the Quality of Web 3.0 Projects

1. Original trust           

Introduction

Web 3.0 is also called Web3. There is a difference between the two concepts in the eyes of professionals, and this article does not make a distinction. As for the difference between Web3 and web2 projects, simply put, Web3 has more data ownership than Web2. Most Web3 projects are open-source and lack patent protection, making them easy to imitate. It is very common for dozens of imitation projects to appear at once. For example, after the Bitcoin BRC20 protocol came out, thousands of issuance projects suddenly emerged using this open-source protocol. These projects are a dazzling mix of good and evil.

Web3's coin issuance projects generally issue coins and circulate them in the early stages. The circulation of coins is equivalent to listing. As professional investors, it isn't easy to judge the value of earlier projects. So, how should ordinary retail investors evaluate this? Is there a relatively simple way?

The competitive environments of Web3 and Web2 are similar but also different. In this competitive environment, new judgment criteria are also needed in addition to the commonly used project judgment criteria of Web2.

Web3 emphasizes trustlessness, which does not mean that trust is not required but that it places higher requirements on trust, such as machine-level trust. In a world where the devil and hope coexist, obtaining trust is obviously a vital issue, leading to a new trust judgment mechanism that web2 does not have. This article describes the unique trust mechanism of Web3 from four perspectives: initiative trust, community trust, influence trust, and white paper trust.

1. Original trust

Original trust

When others imitate the code, after all, their understanding of the code is not as good as that of the original team. Latecomers do not understand the program bombs, so they are prone to losses from attacks.

Market conclusion: The code of the first project is more reliable than the code of the imitation, which means the first project is more credible.

Who do people choose among similar projects? Don't hesitate to choose reliable ones. We can see from the rankings of the Coinmarketcap website that most of the top dozens of cryptocurrency projects are original. Among them, stablecoins are not technological and product innovations but financial innovations and market innovations; Bitcoin imitations Litecoin LTC and Bitcoin Cash BCH have similar technologies to Bitcoin, but the gap between their market value and Bitcoin is getting wider and wider. Paying more attention to originality is a significant feature of web3, which means that non-initial projects are not easy to grow. It is a first-of-its-kind effect in Web3.

The Internet is dominated by one enterprise in one of its subdivisions. This has not changed in the web3 project. Because of the currency issuance, the probability of success of the first project is high. Web3 projects are much less likely to fail due to a broken financial chain. Web3 has its own specific scope and does not entirely cover Web2, but projects in many niche areas will compete with Web2, especially in the financial field.

Two perspectives on originality

The original innovation points may be large or small, and each period's innovation points differ. These are two angles from which to view originality.

What is big innovation? Satoshi Nakamoto's Bitcoin is a great innovation. Starting in the mid-1980s, cryptocurrency pioneers began to discuss the following question: How to use the Internet and encryption technology to create an alternative currency that solves the problem of over-issuance of fiat currencies? This is a major innovation that affects humanity, and it took more than 20 years until the emergence of Satoshi Nakamoto's Bitcoin. That is to say, the problems solved by big innovation must be "big." This is a common issue in innovation, such as the Internet or artificial intelligence.

The second characteristic of Cryptocurrency is that it covers a wide range of fields, including technological innovation and financial innovation, such as stablecoins and distributed financial DeFi.It is said to be financial innovation, but innovators must also understand technology, so the project team must have cross-border capabilities. As I pointed out in the article "Using Airdrops to Accumulate User Energy" (chainless.hk), "Cryptocurrency is a wide-ranging field, including politics, law, economics, finance, stocks, currencies, products, markets, and technology. "This is a comprehensive ability. Why does it take so long for Bitcoin to be born? Nick Szabo, one of the founders of Bitcoin, believes that although technology is not trivial, why Bitcoin is designed this way is a big deal. From the beginning of cryptographic elites in 1981, these issues were figured out until Nick Szabo proposed Bit Gold in 2005. In 2008, Satoshi Nakamoto made the final improvements and released Bitcoin. It requires comprehensive capabilities. There has never been a project to rival Bitcoin since Bitcoin because there has never been a cross-border talent or project team to rival Satoshi Nakamoto.

Just look at the makeup of the project team to see how far they can go. With the development of Cryptocurrency today, there is no possibility of success for a single technical team to start a business.

The innovation points of each period are different. After Bitcoin emerged, most innovations from 2010 to 2014 revolved around improving the algorithm. By 2015, all algorithms appeared. Is Solana, a 2017 project, an exception? It is not an algorithmic innovation but an improvement in hardware performance and improvement of the stake algorithm (POS), thereby creating the highest transaction speed of Cryptocurrency.

Recently, a friend recommended the Kaspa project to me, saying that it uses Satoshi Nakamoto's proof-of-work (POW) algorithm to achieve speeds exceeding POS. This algorithm has been around since 2013, and its technology is also participated by big names. Its selling point is that it is more decentralized than POS and is censorship-resistant. It may scare those who don't understand, but if you know a little about technology, you will see that it violates the impossible triangle principle of POW. If it were to succeed, wouldn't it mean for all of the five projects， experts in the platform project that uses the POS algorithm among the top 10 in the currency circle would become fools? Every liar has a halo around their head. Otherwise, how can he deceive people? It's past time to sell underlying algorithmic technology technological innovation projects. Would it be successful to create a similar Bitcoin now? Don't even listen to this kind of project.

Where is the next innovation point?

The emergence of Web3 marks that Cryptocurrency application innovation has entered the main battlefield. As an application project, three stablecoins have entered the top 12 in the coin circle. As "Ethereum killers," they have not succeeded in surpassing Ethereum. In other words, public chain competition is over. The public chain is also called the first layer. The future public chain competition will start on the five leading POS platforms: Ethereum, Solana, ADA, etc. The overall situation has been decided. The next step is competition for second-tier projects. Solving the big pain points first will have great value, and solving the minor pain points first will have small value.

Teams that solve big pain points must have cross-border capabilities. Pure technological innovation is, at most, just minor repairs. The future will depend on product and market innovation; the required capabilities and technological innovation differ. Justin Sun does not know any technology, and his nickname is Sun Cut. Many people are not optimistic about him, but Tron has ranked tenth. The technical trend of its TRX coin exceeds that of Bitcoin because it knows how to make the market. As an entrepreneur, surpassing him is empty talk if your marketability and product capabilities are not as good as Sun's. What are the innovation points of the market and products? It is a severe question faced by every entrepreneur.

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