Yuanwang Capital Tian Hongfei: Market and 10 Changes in Investing in the Web3 Era

If entrepreneurs and marketers continue to treat Web3.0 based on negative thinking and ideas, they will respond to the maximum. Coming from the new age must sacrifice the people of the old!

With the advent of a new paradigm, traditional business logic and the path to success are no longer used. The new paradigm will always be named in the eyes of those who experience the success of the old paradigm, but lack the power to stop the paradigm shift.The power of change and the power to resist it are incapable, and to support the development of new ideas, older people often pay the price of being eliminated..

The development of information technologies, which began in the 1970s, continued for 40 years and underwent three changes.

Web1.0 started with the names of Netscape and spread to several large companies such as Netsacpe, AOL and Yahoo. Each service deals with social media and posts that no one on the internet knows you are a dog.

Web2.0 started with Google Maps and Facebook, developed companies like Facebook, Google, LinkedIn and more. These companies provide interactive chat services to users. At its heart is social media. These days, it would be strange for someone to sign on Facebook under their real name.

Web3.0 begins with the invention of the Bitcoin blockchain by Satoshi Nakamoto and represents a new paradigm in which users are data-centric.

The development of the website reflects the improvement of the entire industry, from data to people centric, and has always been successful from people to data, information to people, information and contacts, and people with information.

Since 2017, I have been writing an article: "After the gold blockchain, there is the concern for innovation" telling us that the internet industry has entered the market and no new construction. Then the United States and China began to trade the Internet, began to explore; “Blockchain change depends on people of 1% faith,” says that in each blockchain development cycle, we will see some people rely on the bubble for a pension. As if real estate speculators were resting to make money, they were wiped out by time. Some people who question the success of the business have pulled out of the business. But each circle will see more and more new people joining, some of them more capable and confident, and it is the passion of these people that drives the growth of all industries.

The gist of the bubble is that the human condition often overestimates the present and underestimates the future.Therefore, the future of the construction industry is always shaped by a few people who can keep their inner faith and delay the interest.

As the ICO bubble bursts in 2018, the blockchain industry enters the bear market. But in the end, the blockchain is a bubble, not a scam. Faith will never be reborn and the meaning of the bubble will revert to nirvana. By 2020, when the team is very strong with the ability and confidence to create the bubble together and repeat two years of development, the development of the entire blockchain will come to a new end.

Web3.0, in my opinion, is a big change as it changes everything about the market and its impact far beyond mobile internet. After all, everything that happened to the mobile internet was vividly described in Nigro Ponti's “Digital Survival” in 1996. However, no one can paint the full picture of Web3.0. No one can predict that the 2020 hotspot will become DeFi, just like no one can predict that Ethereum will have time to overtake Bitcoin in 2015.

If entrepreneurs and marketers continue to treat Web3.0 in the light of negative thoughts and concepts, they will have to respond to the old adage that “a new era must come from the people of the past”.

In the future, companies will be transformed by projects, actions by tokens, shareholders by justice ... The biggest enemy of modern investors this and investors is their opinion.

If you don't want to be left behind by the latest changes, your only option is to stand up and redefine your own principles. Below, we discuss the changes we are experiencing in the Web3.0 era from a market capitalization and investing perspective.

Photo by Tom Chrostek via Unsplash

1. In terms of the environment as a whole, the Internet industry has promoted the share of total industry growth over the past 40 years, and the paradigm of media-driven growth will be transformed by the growth of the community.

The Internet penetration rate is still 60% since its introduction in 2015, and Internet access has increased to 78%. All online businesses entered the Red Sea competition. Every business must be competitive for its customers and its competitors. Car prices will increase further. Advertising-driven user growth strategies will be transformed by user growth in community and function.

2. From Bitcoin to Ethereum, from token-based start-ups to decentralized financial services DeFi and NFT, from malicious growth to traditional legal entities, blockchain development is poised to expand.

Since 2010, Bitcoin's production cycle has halved every four years, bulls and bears have traded, and media fanaticism and indifference has caused group trading, wiping out old entrepreneur groups. Each circle is a different story. The point is, Bitcoin's value grows at least ten times in every cycle, and Bitcoin accounts for over 40% of all crypto transactions. In the world of Bitcoin single chain ...

The description of the 2020 cycle is DeFi, which is now transforming the financial world. DeFi technology will be retained, but DeFi descriptions will not carry over to the next cycle. The modern financial system has developed slowly since its inception, so there is little difference in its authority. Since tech companies include a large portion of capital investments, Hyundai Bank has yet to lend to tech companies. Over six months of hard work.

I don't think DeFi descriptions can really change the financial world. In the global meta-space, new financial systems will create new digital tools and changes will occur in the integration of cloud computing to include digital assets. The design of holistic meta-solutions solves blockchain problems in a physical world where blockchain cannot be solved and creates application scenarios for the DeFi application.

3. From a business model perspective, the model in which consumers sell personal information in exchange for free products has shifted from “who pays for use”.

Unlike cloud computing models, the business model of the Web3 era is based on the number of runs and visits. The Blockchain network is a huge computer, and all the smart contracts it brings are open source which extends the service APIs, and traders are encouraged to call them for free.

The large size of open source contracts and insight not only supports innovation, but also reduces the organization's initial start to market. Hundreds of early groups will be replaced by smaller groups. Instead of always wanting companies to buy servers or rent cloud servers, customers don't have to pay for the servers. The smart contract value count arose out of the user's appeal, and since the user pays the price count, the user must have their own information and privacy.

As a result, it replaces the current business model with free advertising.

4. Technically, software development has moved from high performance to low cost in advance to ensure high security and reliability first.

In 40 years of improving the Internet, speed has always been the key word, and enabling thousands of users to access the Internet quickly is a key model.

After the advent of Web3.0 and Metaverse, the internet took advantage of many valuable digital tools, so security and reliability became more and more important.

Cryptography and computer science have become important courses for future software engineers.

5. Regarding software installation, open source has become very important.

Because the software of the future will drive user value, open source has become a viable option rather than an option for software development. In addition, smart contracts should be open, as the development of new products based on the integration of smart contracts will become a development model.

From an industry perspective, Internet companies today rely on advertising revenue to drive consumers to their products. In the age of Web3.0, users pay using smart contracts, so many third-party contract calls generate revenue as well, thus hiding behind third parties. will not lose money and generate new income. Therefore, Web3.0 companies should open the source and encourage others to use it for free.

6. From a design perspective, it goes from client-server architecture to blockchain edge client.

Servers that have long been used in IDCs will be replaced with decentralized nodes made by blockchains, and serverless code will be sent to the nearest edge on the user side, providing users with private security and speed.

The cloud platform monopolized by AWS, Microsoft, Google Cloud and Alibaba Cloud will collapse and be replaced again by the central data center. Reliable Intel compute processors will be used on a small scale.

7. By developing product design, over the next ten years, user experience will provide a way to use software.

Blockchain development is still in its infancy, and despite the slow and lousy nature of the 1996 Yahoo website, it is still popular with users because Yahoo offers a new way to communicate information. As Bill Gates explains to the owner what the Internet is, why are radios and systems so much better than the Internet? The marketplace for blockchain products is expected to provide new value for users to manage their digital assets. Just as it takes time for users to understand that the Internet is better than radio and systems, it will take time for most users to understand the benefits of digital tools.

8. From a product marketing perspective, community marketing has become an option.

In the short term, user experience with blockchain software is not as common as modern internet devices, so users need time to express themselves. Since users must use business devices to manage their digital assets, users must have an understanding of the safety of using the device, and since blockchain users are now engaged with minorities in the community, they must be recognized and secured by the community. .

In the era of Web3.0, the business community and functionality will make products more advanced, because users are not long-term consumers, they are also part of the design and development of the profitable business.

9. From a financial and investment capital perspective, consumers and investors are mixed, and existing investors need to help more than financially.

Similar to ETHereum's ETH token, users can use ETH to pay for transportation, and in the era of ETH 2.0, they can use ETH to participate in public administration. Users not only need tokens to use the articles, but also receive token audit payments as well as distribution articles.

From an investment perspective, future venture capitalists should not only provide financing, but also provide start-up, partnership and project management services. The advertising and marketing of tokens no longer have clear borders, and miners, whether POW or POS, will be involved in the management of the chain. Therefore, future investment firms require full participation from the grassroots through the technology to the solution. to the right.

10. From a business management perspective, the integrity of the enterprise will be changed by DAO.

As mentioned in the Paradigm Shift Business Model, 40 years of Internet development has reduced the cost of metering, lowered the cost of network integration, reduced market start-up, and increased share of the hands of the new group. To do.

Hardware development evolved from personal data centers in the 1990s to weather sites in the 2000s, from large-scale advertisements to free and open source software and the Internet via APIs. , and for blockchain-based smart contracts. Lego 2020 Wallet. Entrepreneur start-up capital and large organization start-up are expected to be lower.

Small and international teams were able to reach the shoulders of the giants in a short time, allowing them to create and distribute their own dapps for free based on existing smart contracts on the blockchain. The cost of running the program is borne by the user, which is entirely derived from the current model of the user selling personal information in exchange for the right to use the service.

On the other hand, since the program is fully open, after creating a project, it is easy to refer to the community for maintenance and improvement. In addition to the token distribution model mentioned above, all of these factors add to the ability to govern the DAO organization. .

Entrepreneurs need to learn to find, communicate, manage and support groups of members they haven't met, and they need to learn how to manage their users from scratch while respecting the owners of the trading company. Much of the design and support for the design industry goes beyond software engineering.

The strategic decision on trading to China for traders or releasing QQ and TikTok for US traders can no longer be made. Indeed, all rights and users are open source, printing is something anyone can do and there is no blockchain product. Borders face international challenges.

Therefore, VCs need to change the way they've invested in their group's business, and they need to change the way they settle down and give way to DAO leadership. for