✨The Development Dilemma of Web3.0

The prosperity of any industry is inseparable from the tripartite relationship among producers, laborers, and consumers. However, these parties have not formed a positive relationship in the development of the Web3.0 industry, leading to development dilemmas for Web3.0.

Incomplete Infrastructure: Producers are unable to develop and build applications or products at a low cost, limited by the current blockchain's scalability, throughput, etc. Although solutions have emerged that sacrifice decentralization to address these issues, this goes against the original intent of Bitcoin. Most blockchains today are a single entity that centralizes the processing of all things, such as transaction computations, consensus, etc. The scramble for originally scarce resources leads to lower operational efficiency and higher network fees as more applications are deployed, with users ultimately bearing the brunt of these adverse effects.

Cognitive Barriers and Wealth Traps: Workers and consumers often become victims in the industry. Firstly, the industry has a certain cognitive threshold; secondly, people easily follow the wealth effect hyped in the cryptocurrency domain. Both are exploited by malicious entities (investors, centralized exchanges, etc.). A large number of projects lacking in technological investment, devoid of actual value, and with very short lifecycles, appear on the market. Malicious entities collaborate to lure people into traps they set, leading to significant financial losses. These actions disrupt the positive development relationships.

Lack of Referable User Growth Strategy: The user growth of Web3.0 is in a state of chaos, starting from zero and growing slowly without a mature growth strategy. It lacks the user base accumulation and rich ecosystem experience of Web2.0. In Web2.0, users' data is massively collected, stored, and used, held in centralized servers, with users, as data owners, unable to control their data or benefit from its use, and privacy protection is even more out of the question. Despite this, Web2.0 has a large user base, mature growth strategies, and can conveniently offer various services. Users find it difficult to weigh the importance of centralization versus decentralization, quickly forgetting the importance of data privacy.

The Gap Between Off-Chain and On-Chain Data: Currently, Web3.0 is mainly focused on solving the issues of on-chain actions and assets, but this only accounts for a small part of real-world user behaviors and assets. Although projects like RWA continue to evolve, the ones that can run safely, widely, and efficiently are still very limited. This is primarily due to the lack of a comprehensive system that integrates on-chain and off-chain elements and their related technologies. Relying solely on decentralized applications (DApps) at the application level and local institutions' certification for on-chain processes is insufficient to meet the massive adoption across multiple industries and applications.

Real Identity Verification and Privacy Protection Issues: Due to the anonymous nature of blockchain, numerous wallet addresses cannot be directly linked to individuals, making transactions difficult to trace and leading to the use of cryptocurrencies for illegal activities. Many traditional industry transaction scenarios require verifying users' real identities, which poses a barrier to the expansion of Web3.0 in real-life scenarios.