Current Status and Future Opportunities of the Web3 Industry: Expert Depth Analysis of Investment and Entrepreneurship Strategies

Recently, the Web3 industry has made some progress, with the number of independent addresses for Ethereum domain services exceeding 500,000, indicating that the user base is continuously expanding. Since 2017, the Web3 infrastructure has gradually improved, showing a development trend from the initial rudimentary stage to a relatively mature state today. However, the prosperity of the industry ecosystem is still closely linked to market cycles, and the value of on-chain data has yet to be fully tapped. New application scenarios and user interaction mechanisms are still to be developed, and the Web3 industry as a whole is still on the eve of an explosion.

Recently, several industry insiders have conducted in-depth discussions on investment and entrepreneurial opportunities in Web3. Here is a sharing of views from one of the experienced practitioners:

This practitioner has over 7 years of entrepreneurial and investment experience in the internet and blockchain fields, focusing on investments in areas such as blockchain infrastructure, middleware, and application layers. He has founded a globally leading decentralized application data analysis platform and has participated in the investment of several early NFT and DeFi projects.

Core viewpoint:

1. Composability and a unified database are the greatest values of blockchain technology.

2. Web3 redefines the value of data, and how to effectively utilize these data resources is a promising innovative direction.

3. The value creation at the application layer should come from entirely new mechanisms and interaction methods, rather than simply transforming traditional Web2 products.

4. The explosion of Web3 is still in its early stages, and entrepreneurial teams should focus on finding real product needs and target users, rather than blindly following market trends.

From the perspective of entrepreneurs, the development of the Web3 industry has undergone significant changes. Back in 2017, the entire industry was still in its infancy, with incomplete infrastructure. After several years of development, the industry's infrastructure has gradually improved, transitioning from the initial "difficult journey" to the current "steady progress." The middle layer and protocol layer have achieved breakthroughs from nothing to something, and the application layer has also ushered in an initial explosion against the backdrop of increasingly complete infrastructure.

The core value brought by blockchain technology mainly manifests in two aspects: composability and a unified database. Composability allows for seamless integration and interoperability of code and digital assets, facilitating rapid development in the industry. A unified database breaks down data barriers between different applications, providing users with a more convenient experience.

Based on these characteristics, data and application layers have become two important investment themes. In terms of data, the openness and verifiability of on-chain data provide new possibilities for data analysis and mining. On the application layer, there may be a large-scale explosion in the coming years, but the key lies in finding truly innovative mechanisms and gameplay, rather than simply replicating the Web2 model.

For entrepreneurs, suggestions for coping with the current market environment include:

1. Reserve enough funds to cope with a possible long-term bear market.

2. Focus on finding real product needs and target users, and do not blindly follow market trends.

3. Before starting a business, thoroughly understand the industry and become a true believer and builder.

4. Let go of historical burdens, fully understand the characteristics and limitations of Web3, and then decide what you can do.

In terms of investment, the characteristics of Web3 projects pose challenges to traditional due diligence methods. Investors need to adapt to remote team models while also considering what additional value they can provide to the project. Currently, the market values creative products and innovative mechanisms more than just relying on team backgrounds.

For entrepreneurs new to Web3, the biggest challenge may be the gap between the actual situation and the external facade. Many projects may face issues of user scarcity or lack of user engagement. Therefore, it is recommended that entrepreneurs spend some time deeply understanding the industry and its limitations before officially starting.

In addition to financial support, investment institutions can also provide entrepreneurs with assistance in business and resources. This includes participating in product strategy formulation, assisting in token economic model design, facilitating collaboration between projects, and talent recruitment, among others. The most crucial aspect is to help the project develop in the right direction, enabling it to reach a higher level.