🖊️1. Web3 Overview and Challenges

Web3, also known as the third generation of the internet, represents a decentralized network architecture based on blockchain technology aimed at achieving higher transparency, security, and user autonomy. The Web3 market is rapidly evolving, attracting significant investments and technological innovations. However, despite the enormous potential of Web3, its adoption and user growth rate remain slow.

Reasons for slow user growth:

• High technical barriers: The core technologies of Web3—blockchain, smart contracts, and decentralized applications (DApps)—are too complex for ordinary users. Learning and mastering these technologies require time and expertise, leading most users to hesitate.

• Poor user experience: Currently, the user interfaces and user experience (UI/UX) design of most Web3 applications are not user-friendly, with complex and unintuitive operations. This makes it difficult for non-technical users to smoothly use these applications.

• Security and trust issues: While blockchain technology itself is highly secure, security incidents involving cryptocurrencies and smart contracts are frequent, leading to low user trust in Web3 applications. The lack of comprehensive security measures makes users concerned about the security of their assets and data during use.

• Regulatory and policy uncertainty: Regulatory policies worldwide are not yet unified, with different countries having varying attitudes towards blockchain and cryptocurrencies. This uncertainty hinders the widespread adoption and promotion of Web3.

• High costs and low efficiency: The development and operation costs of Web3 applications are high, especially when conducting transactions on public chains like Ethereum, resulting in high fees and slow transaction speeds, severely affecting user experience and application practicality.

Major pain points faced by the Web3 market:

• Adoption barriers: Due to technical complexity, poor user experience, and security issues, Web3 faces significant barriers to adoption among the general public. Ordinary users find it challenging to understand and trust decentralized applications, limiting market expansion.

• Ecosystem fragmentation: The Web3 ecosystem comprises numerous different blockchain platforms and protocols, lacking unified standards and interoperability, leading to resource fragmentation. Developers and users need to switch frequently between different platforms, increasing learning and usage costs.

• Liquidity and value conversion issues: Asset and value conversion in the Web3 world is still not convenient enough. Users face high transaction fees and complex operations when converting assets between different platforms, hindering the free flow of value.

• Lack of user education: There is a lack of effective channels and tools in the current market to educate users about Web3. Limited user understanding of Web3 leads to low acceptance of new technologies and applications.

• Unstable economic models: Many Web3 projects rely on token economic models, which are not yet mature and are susceptible to market fluctuations, leading to uncertainty in project sustainability and user profits.

For ordinary individuals, entering Web3.0 typically involves the following three ways:

A. Deep understanding of blockchain technology: Blockchain is the core technology of Web3.0, requiring an understanding of its principles and applications. Learning-related skills: Blockchain developers need knowledge of blockchain architecture, cryptography, data structures, and smart contracts, as well as web development and languages that support blockchain (web3). Ordinary individuals may lack the strong learning ability and knowledge structure required for this.

B. Purchasing digital currencies: Individuals can quickly buy and sell digital currencies through OTC or digital currency platforms to gain profits from Web3.0 currencies. However, individuals face investment risks that they may not be able to bear in exchange for a slim chance of huge profits, consuming their energy for growth in cyclical profit acquisition.

C. Participating in related crypto events: Such as developer competitions, challenging smart contracts, etc., to earn digital currency rewards and participate in cross-border asset exchange activities. Through these activities, individuals can further understand the principles of digital currencies and smart contracts in Web3.0, enhancing their understanding of Web3.0. However, the higher cognitive threshold and time consumption can be mentally draining.

By deeply understanding these market backgrounds and pain points, the WebKey project aims to provide a more secure, simple, and user-friendly Web3 gateway through its innovative technology and services, addressing existing market challenges and promoting the widespread adoption and application of Web3 technology.