Web3 is not only a stage for cryptocurrencies and NFTs but also deeply integrates with daily life through SocialFi (decentralized social), GameFi (blockchain games), RWA (real-world assets on-chain), and DAO (decentralized autonomous organizations). This article explains how these four major applications enable users to control data, achieve asset flow and income, and reshape organizational forms, showcasing the infinite possibilities of Web3.
Introduction
Cryptocurrencies and NFTs are just the tip of the iceberg of Web3. Web3 also collides with life in areas such as social, gaming, asset management, and organizational forms, giving rise to four innovative applications: SocialFi, GameFi, RWA, and DAO. Today, let's take a look at how they ignite sparks in life.
1. SocialFi and GameFi: Data autonomy, earning while playing
1. SocialFi: Decentralized social
What is SocialFi? A blockchain-based social platform where users control their own data, content, and earnings, avoiding the monopoly and manipulation of data by traditional platforms.
Core Features:
Data autonomy: Your identity and content belong to you, can be migrated across platforms, and are not "locked" by the platform.
Content monetization: Publishing content can generate digital assets, likes, comments, and collections can bring rewards, and high-quality content can even be sold.
Representative Projects:
Farcaster: User identity and content can be "packed and taken away," without needing to rebuild a fan base.
Lens Protocol: Content becomes an independent digital asset, interaction equals income, and high-quality content can be traded.
Summary: SocialFi transforms users from "workers" on social platforms to "partners," where you control the data, and socializing can also earn money!
2. GameFi: On-chain games, earn while playing
What is GameFi? Blockchain games allow players to earn while playing, where in-game equipment, characters, and items become digital assets that can be freely bought and sold for profit in secondary markets.
Core Features:
Asset ownership: Game items are your NFTs or tokens, which can be traded across games or platforms.
Earning mechanism: Playing well can earn real money, turning game time into "productivity."
Summary: GameFi makes game time more valuable, with every piece of equipment and character being a digital asset, and playing well can lead to big earnings!
Common essence: The core of SocialFi and GameFi is data autonomy and data monetization, where users are no longer exploited by platforms but become value creators and beneficiaries.
2. RWA: Real assets on-chain, free flow of wealth
What is RWA?
RWA (Real World Asset) refers to the digitization of real-world assets such as real estate, bonds, gold, and stocks through blockchain, turning them into tradable tokens or NFTs.
Case Analysis:
Real estate tokenization: A house worth 10 million is divided into 1,000 tokens, each representing 0.1% ownership. Purchasing tokens allows enjoyment of rental or appreciation income.
Government bond tokenization: U.S. government bonds on-chain (e.g., Ondo platform) allow users to easily purchase and trade, with no barriers to cross-border circulation.
Advantages:
Lowering thresholds: Ordinary people can invest in high-threshold assets like real estate and government bonds.
Enhancing liquidity: Physical assets become tokens that can be bought and sold at any time, activating funds.
Global participation: No geographical restrictions, allowing investment in quality global targets.
Lowering financing costs: Asset holders can quickly liquidate, expanding the market.
Summary: RWA enables houses, bonds, and gold to be more easily bought, sold, and managed through blockchain, allowing ordinary people to easily participate in global investments and making wealth more flexible.
3. DAO: Organizations without bosses, reshaping collaboration
What is DAO?
DAO (Decentralized Autonomous Organization) is an organization that operates through blockchain, without bosses, companies, or employees, relying on code rules, community maintenance, and user voting for self-governance.
Bitcoin: The world's largest DAO:
Market value: Since 2009, it has a market value exceeding one trillion dollars, with no company, no boss, and no employees.
Operating Mechanism:
Rules determined by code: Total supply of 21 million coins, never to be increased; mining rewards are halved every four years (currently 3.125 coins, mined out by 2140).
Community maintenance: Global miners and nodes operate the network voluntarily, maintaining stability due to mining rewards.
User voting: Upgrades (e.g., block size adjustments in 2017, Taproot in 2021) require 90% consensus of computing power, preventing unilateral control.
Transaction security: Proof of Work (PoW) ensures blocks are immutable, and altering requires over 51% of the network's computing power.
Advantages of DAO:
Decentralization: No single entity can shut down the network, with global nodes ensuring operation.
Fairness and transparency: Rules and transactions are public, and anyone can verify.
Autonomous participation: No borders, no thresholds, allowing global users to join freely.
Other DAO applications:
Investment DAO: Such as The DAO, community fundraising decisions for investments.
Governance DAO: Such as MakerDAO, managing the stablecoin DAI.
Community/Public Welfare DAO: Managing resources or raising charitable funds.
Summary: DAO replaces traditional companies with transparent rules and community self-governance, allowing anyone to participate and share in the benefits, providing profound inspiration for traditional organizations.
Conclusion
Web3 brings social, gaming, asset management, and organizational forms into a new dimension through SocialFi, GameFi, RWA, and DAO. Users control data, achieve wealth flow, and reshape collaboration methods, making these applications closer to life. If you're new to Web3, feel free to leave your questions in the comments, and I will do my best to answer. Thank you for your time, and I look forward to exploring the infinite possibilities of Web3 together!