Web2 Business History Revelation

The 50-year history of the Internet is a journey of “making search easier and easier to use”.

Whenever you click on a web browser to perform a search operation, you always find the information you are looking for, but you know what’s going on behind the scenes? You might think that operating a browser (Firefox, Chrome) through a networked device (mobile phone, computer) sends an information request to the server, and then the server calls the information back to my device, but so…

In fact, the story behind it is much more than that. And commercializing it all started with the invention of the World Wide Web by Tim Berners-Lee.

the beginning of internet commerce,

World Wide Web

When you lightly click on the browser and a signal is sent from the device, what else has happened?

According to the working principle of the network, when a user sends a request, it needs at least the Internet, Internet interface, TCP/IP information transfer protocol, DNS domain name service system, HTTP hypertext transfer protocol, code and resources.

This process is like the online shopping process on an e-commerce website. You need to find a certain type of specific product on the e-commerce website through a networked device, then enter the variety and quantity, enter the address to pay cash, and then the merchant will deliver the goods, and the courier will follow you. ‘s home address to have these items shipped to you.

It seems to be a smooth operation, but the process is long and arduous.

If starting from the ARPANET, which was born in 1969, early web developers spent more than 20 years laying the groundwork for technology until the Pandora’s Box of the Internet was really opened – the invention of the “World Wide Web”.

British scientist Tim Berners-Lee, a professor at the University of Southampton and MIT, invented the World Wide Web in 1989 and wrote the first web browser while working at CERN in Switzerland in 1990. On December 25, 1990, Tim Berners-Lee and Robert Cario successfully realized the first communication between HTTP proxy and server through the Internet.

This combination of punches not only laid a technical foundation for the large-scale commercial application of the Internet, but also laid a business foundation for the explosion of the Internet from 1990 to 2000, so that the biggest business of Internet business in the following 30 years is still “search”. From Google to Amazon, from Baidu to Ali, and so on.

The well-known Web1 phase was born here. The birth and commercialization of the World Wide Web (WWW) gave birth to applications such as browsers, portals, and e-commerce; the Web2 of the Internet we are experiencing is also rooted here, from blogs, social media to The rise of 4G networks and mobile devices…

Looking back on the development of the blockchain industry for more than ten years, Bitcoin, born in 2009, is the first real crypto asset, becoming the real Crypto gold in the cyberspace, and also opening up new frontiers for the development of blockchain technology. Ethereum in 2013 made smart contract-based decentralized applications blossom everywhere, and crypto assets became programmable and became the basis for the explosion of the industry.

If the invention of the World Wide Web by Tim Berners-Lee and the first web browser written a year later were the beginning of the wave of Internet commerce, then Ethereum in 2013 was the real beginning of the explosion of the decentralized world .

In fact, the public chain represented by Ethereum, the underlying architecture of the blockchain (data layer, network layer, consensus layer, incentive layer, contract layer, application layer) and applications, in a sense, correspond to the World Wide Web and the supporting Internet The underlying protocols (Internet interface, TCP/IP information transfer protocol, DNS domain name service system, HTTP hypertext transfer protocol, code and resource composition files), including Dfinity, Solana, Avalanche, Cosmos, Polkadot , Terra , Polygon , Near, Fantom, Flow , Harmony public chain, all of them.

At least we have seen that the Ethereum ecological application ENS and Terra ecological application TNS benchmark the DNS of the Internet, while Dfinity directly copies all aspects of the Internet at the ecological level.

The blockchain world is also exploring from the financial and cultural fields. From the DeFi explosion in 2020 to the NFT outing in 2021, these decentralized explorations and innovations have brought new vitality to the crypto world.

The beginning of blockchain business,

DeFi and NFTs

If the beginning of Internet commercialization is the invention of the “World Wide Web” and the birth of the browser, then the beginning of blockchain commercialization is DeFi and NFT.

In May 2020, the DeFi lending leader Compound used innovative lending, namely mining, to increase the amount of funds deposited by 10 times within a month, and the high valuation of COMP, which kicked off the DeFi carnival. Since then, new concepts of DeFi have emerged one after another, such as lending platforms, decentralized exchanges, decentralized autonomous organizations, stable coins, and oracles, and excellent DeFi projects have used Token liquidity mining to achieve user cold start. The total market value of the top 100 DeFi projects by market value has risen from several billion US dollars to a maximum of 120 billion US dollars in the second half of 2021.

On March 11, 2021, Crypto artist Mike Winkelmann, known as Beeple, sold his NFT Crypto artwork “Everydays: The First 5000 Days” for $69 million at Christie’s, after Zion Lateef Williamson, Takashi Murakami, Snoop Dogg, Eminem, Twitter CEO, Edward Joseph Snowden, Paris Hilton, Yao Ming and other celebrities and artists have released NFTs through various NFT platforms, bringing NFTs to the public eye.

According to Google Trends, the global search volume of the keywords “NFT” and “Non-Fungible Token” will increase sharply in 2021, and the attention of the NFT ecosystem will continue to rise, and it will be completely out of the circle.

DeFi and NFT, the former is the financialization path of the blockchain world, and the latter is the cultural development path of the blockchain world. If the commercialization of the blockchain started with DeFi and NFT, then the Pandora’s box of the two will be opened. The former is Compound’s loan and mining, and the latter is the sky-high auction event of the Beeple art exhibition.

In addition, just like any field will always get a huge amount of financing before the outbreak, for example, in 1999, when the Internet exploded, there were 457 initial public offerings, more than 1 per day. Similarly, with the outbreak of DeFi and NFT, there are also There are financing events taking place in both areas.

According to the 2021 Global Blockchain Investment and Financing Report data, in 2021, a total of 1,812 financing events will occur in the global blockchain industry, of which 1,433 disclosed the specific total financing amount, totaling $48.674 billion, and the average single financing amount reached 33.9665 million US dollars, 35% of all financing events occurred in the field of DeFi and NFT, more than one-third of the total financing events.

In which direction will the crypto blockchain industry move in the future? With the continuous increase in the scale of data in the blockchain world and the increase in content based on decentralized architecture, the search field may be the next outlet.

Looking back at the major turning point in the business history of the Web2 world, its practical significance lies in allowing us, who are in the process of Cryptoization, to clearly see the stage of the entire industry. Maybe this positioning is vague, but at least the direction is correct.

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