The relationship between Bitcoin, blockchain, and Web 3

Regarding Bitcoin, blockchain, and Web 3, many friends often cannot distinguish between their relationship. Today, I will use easy-to-understand language to help you fully grasp the technical logic and development evolution and practical applications of these three.

Core relationships

Blockchain (Technology Foundation)

Blockchain is a decentralized, transparent, and secure distributed ledger technology. The core idea is that data is linked in chronological order in the form of blocks and cannot be tampered with. It is the underlying technology for Bitcoin and Web3.

Bitcoin (pioneering application)

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

Web3 (Internet upgrade)

Web3 is a new generation of the internet based on blockchain, focusing on user sovereignty over data and assets (decentralization). It expands blockchain technology from currency to a wide range of fields such as finance, social, identity, and gaming.

Scalability

Blockchain: Like an unchangeable ledger, it records all transactions and data.

Bitcoin: The first page in the transaction ledger of decentralized currency.

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

Real-world applications

Blockchain: The ability to trace supply chains, manage medical data, and store legal evidence.

Bitcoin: Store of value, cross-border payments, and secure assets.

Web 3:

DeFi: Uniswap, Aave (lending and trading).

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

DAO: Decentralized governance (MakerDAO).

Others: Social networks on the chain (Lens Protocol), and decentralized storage (Filecoin).

To summarize:

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

Bitcoin was born from blockchain technology, emphasizing the possibility of a 'decentralized currency.' Web3 shows us that the future will include not only currency but also decentralized social networks, content, and identity.

You can also understand it this way: blockchain is a cryptographic technology, Bitcoin is one of the assets derived from blockchain, and web3 is the commercial form of blockchain. #Bitcoin #Web3