The Relationship Between Bitcoin, Blockchain, and Web3

Many friends often have difficulty distinguishing the relationships among Bitcoin, blockchain, and Web3. Today, I will use simple and easy-to-understand language to help you thoroughly understand the technological logic, evolution, and real-world applications of these three.

Core Relationship

Blockchain (Technical Foundation)

Blockchain is a decentralized, transparent, and secure distributed ledger technology, where data is linked in the form of blocks in chronological order and is immutable. It is the underlying technology for both Bitcoin and Web3.

Bitcoin (Pioneering Application)

Bitcoin is the first successful application of blockchain, a decentralized digital currency that relies on blockchain to record transactions. Its significance lies in validating the feasibility of blockchain and promoting the widespread adoption of the technology.

Web3 (Internet Upgrade)

Web3 is the next generation of the internet based on blockchain, emphasizing users' sovereignty over data and assets (decentralization). It expands blockchain technology from currency to a wide range of fields including finance, social networking, identity, and gaming.

Analogy for Understanding

Blockchain: Like an immutable ledger that records all transactions and data.

Bitcoin: The first page of the ledger, which records transactions of a decentralized currency.

Web3: The future internet built on this ledger, where users can not only read and write but also "own" data and assets.

Real-World Applications

Blockchain: Supply chain traceability, medical data management, judicial evidence preservation.

Bitcoin: Value storage, cross-border payments, safe-haven asset.

Web3:

DeFi: Uniswap, Aave (lending, trading).

NFT: Digital art (Beeple), game assets (Axie Infinity).

DAO: Decentralized governance (MakerDAO).

Others: On-chain social (Lens Protocol), decentralized storage (Filecoin).

To summarize:

If blockchain is the technology, Bitcoin is the first application, and Web3 is the future of this technology.

Bitcoin was born from blockchain technology, validating the possibility of "decentralized currency." Web3 shows us that the future includes not only currency but also decentralized social networking, content, and identity.

You can also understand it this way: blockchain is encryption technology, Bitcoin is a derivative asset of blockchain, and Web3 is the commercial form of blockchain.

#BTC #Web3