Why does decentralized technology matter in the Web3.0 era?

Oct 11, 2021 Blockchain

 

Behind Web3.0 is the rise of decentralized computing infrastructure.

Recently, Twitter, the leading social media platform in the U.S., announced that it will now allow users to tip their favorite creators on the social network using bitcoin. This move aims to encourage users to actively post original content and earn more payments from their followers.

This is probably the first mobile internet platform in the world to truly embrace the bitcoin payment system as blockchain technology. And Twitter's openness to bitcoin can be seen as a transition phase between Web2.0 and Web3.0.

Behind the application layer, decentralized computing, represented by distributed storage and computing, is gradually replacing the traditional IT infrastructure represented by centralized storage and data centers, and this is where the real "innovation" of Web3.0 lies.

 

Targeting the trillion-dollar market

With the rapid growth of the Internet and then the mobile Internet since the turn of the 20th century, the consumer Internet has, in a way, moved ahead of the "business Internet". Typically, consumers have become far more digital than the businesses that provide their services and needs.

At the end of the 1990s, the informatization of enterprises was represented by "IOE", and the typical performance was that all companies purchased their servers and built their computing centers, which was time-consuming and ineffective.

In 2006, Amazon first put forward the concept of "cloud computing", which eventually contributed to the success of Amazon Cloud, the world's leading company. Dr. Wang Jian, who understood Amazon's ambition, spent ten years in Alibaba and finally turned Alibaba Cloud into the "No. 1 Cloud" in the Asia Pacific.

In the second decade of the 20th century, the "five global clouds" represented by Amazon, Alibaba, Microsoft, and Google have greatly simplified the process of going to the cloud and increased the speed of digitalization by building large data and cloud computing centers in various places. Companies no longer need to build their servers and data centers, just use the services of the cloud computing giants, which means cloud computing ecology is gradually improved.

The new digital infrastructure, represented by cloud computing, replaces traditional server rooms and turns scattered and uncontrollable IT hardware into centralized data centers, which is inevitable from a technical point of view of progress.

However, cloud computing, which the giants are scrambling to layout, essentially strips away the use and ownership of IT infrastructure, directly contributing to productivity gains.

With the popularity of mobile Internet and smart IoT devices, computing is inevitably moving toward the direction that "everything can be calculated". From this perspective, the centralized IT infrastructure represented by cloud computing is bound to be replaced by a new distributed and decentralized computing model.

Compared with centralized data centers, distributed, decentralized infrastructure firstly, does not require the construction of mega data centers, so it does not require super high costs that only giants can come up with; secondly, the construction of decentralized computing networks can further reduce capital investment by providing storage space in exchange for pass rewards.

Jia Yan, a senior analyst from Frost & Sullivan and deputy director of the Head Leopard Research Institute, believes that the decentralized model, with nodes scattered all over the network and the cost of individual nodes reduced, can realize truly low-cost elastic storage. As for the operation model, decentralized cloud computing is more cost-effective and flexible, breaking the high prices caused by the head monopoly of centralized vendors.

"The market for decentralized applications benefits from the development of 5G, IoT, artificial intelligence, and other technologies. There is huge potential in the future. It is estimated that the global decentralized application market will exceed $1 trillion in 2025." She pointed out.

At present, based on their technical accumulation in the era of centralized cloud computing, the world's four major cloud vendors are also actively laying out the market of decentralization. Meanwhile, new cloud computing technology service providers, represented by Anmai Cloud and others, will reconstruct the infrastructure of the Web2.0 era and bring the Internet into the new Web3.0 era.

 

Web3.0 and the next decade

At the beginning of this year, Roblox, an American game company, launched its IPO, making the concept of "Metaverse" the hottest trend of this year. Compared with traditional games, the most attractive point of Roblox is that it allows players to create their worlds and items and sell them on the platform, truly realizing the concept that "more pay for more work".

At the same time, NFT collectibles are also popular this year, showing people what blockchain technology represents means for the arrival of Web3.0.

For more than two decades since Yahoo pioneered the search and portal model in the last century, almost all the giants in the Web2.0 era have adopted the "user data for advertising" model. In another word, Web2.0’s business model relies on user participation to create fresh content and profile data to be sold to third parties for marketing purposes. Indeed, the internet has become a massive app store, dominated by centralized apps from Google, Facebook, and Amazon, where everyone is trying to build an audience, collect data and monetize that data through targeted advertising.

So, in a sense, Facebook and Google are the most powerful advertising companies in the world, and the free services provided to users are just the basic operations used to earn advertising fees.

Web 3.0 emphasizes that users can be responsible for their data and use their data to cash in, rather than "pledging" their data through a centralized medium in exchange for Internet services.

In fact, behind the philosophical thinking of Web3.0, the technical thinking of distributed computing represented by blockchain is the basis - not only the decentralization in form, but also the decentralization in technology.

Zhao Lei, the product director of Anmai Cloud MatrixStorage, shared the advantages of this technology during the release of the decentralized storage service platform - MatrixStorage.

He mentioned that the storage cost can be saved up to 70% through decentralized pass incentive mechanism; meanwhile, it has the function of full-link detection, from data generation, data collection, data transmission, and data storage, including data uploading, the whole chain can be tracked by unique ID.

Not only in the fields of games and social media but distributed technology has also been used in more scenarios such as medical and judicial.

And the current traditional paper-based evidence, such as evidence in lawsuits, is slowly transitioning to electronic evidence.

Electronic evidence will not be stored like the traditional paper but can be forwarded and submitted with the Internet, in this case, a large number of data changes, which also brings the problem of data security. So a distributed storage model based on IPFS enables sliced storage and the ability to secure private keys with peer-to-peer transmission through unique IDs only. Such technology can well solidify some public evidence, such as some copyright-type evidence, and preserve it for a long time.

If Web3.0 represented by "Metaverse" has already sounded the trumpet of advancement, then the new infrastructure represented by distributed and decentralized computing will also gain a broader development space in the future.