#Vaulta #eos 1. The Core Concepts and Architecture of Web3 Banking

Web3 banking is a disruptive innovation in the traditional financial system…

1. The Core Concepts and Architecture of Web3 Banking

As a disruptive innovation in the traditional financial system, the core concepts and architecture of Web3 banking revolve around decentralization, user sovereignty, and algorithm-driven processes, integrating technologies such as blockchain and smart contracts to construct a new financial paradigm. The following is a detailed analysis:

1. Core Concepts

(1) Decentralization and User Sovereignty

The core of Web3 banking is to eliminate centralized intermediaries (such as banks and clearing institutions) in traditional finance, achieving complete control over assets and data by users through blockchain technology. Users independently manage digital assets through private keys, and transactions are automatically executed by smart contracts without relying on third-party trust. For example, NovaBank proposes that "a bank is no longer an institution, but a decentralized economy," where users participate directly in governance and profit distribution.

(2) Co-creation and Shared Economic Model

Web3 banking emphasizes community collaboration and value sharing, incentivizing users to participate in ecosystem construction through token economics. For instance, users can earn token rewards when providing liquidity, participating in governance voting, or contributing data, achieving fair distribution of profits. This model breaks the monopolistic profit structure of traditional finance, forming an open and transparent value network.