A rocky journey into the crypto space
Hello everyone, I’m Yan Ge, once just an ordinary office worker. Five years ago, I was a newcomer to the crypto space, often referred to as a 'leek' (a term for inexperienced investors). At that time, everyone was talking about Bitcoin, Ethereum, and various coins I had never heard of, like Dogecoin and Shiba Inu. Every day, I saw people in my social circle flaunting their profits, turning hundreds into thousands and thousands into millions. I thought to myself, 'Wow, isn’t this the key to financial freedom!' With a bit of a gambler's mentality, I impulsively stepped into the so-called 'crypto space.'
But reality didn’t give me any sweet deals. After buying Bitcoin, its price dropped; when I tried a new emerging coin, it didn’t rise. As a result, within three months, the money I invested had already halved in value. It was only then that I realized the world of crypto was much more complex than I had imagined. I needed to understand what was driving the prices of these coins and what blockchain, Web3, ecosystems, and the primary market were. What connections exist between them, and why do so many people believe it can change the future?
Thus, I began a new journey—an exploration of the underlying logic of the blockchain world. Today, I’m here to share my learning and exploratory experiences with you, explaining these seemingly distant concepts in the simplest terms.
1. What are the Crypto Space, Blockchain, and Web3?
1. Things in the Crypto Space
Firstly, the crypto space is essentially a world of various cryptocurrencies. Just like we have stock markets for trading stocks, the crypto space is an independent financial system with various coins like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and so on. The prices of these coins fluctuate daily, sometimes soaring to exhilarating heights and other times plummeting to heartbreaking lows.
But what exactly is behind these coins? In reality, they are not generated out of thin air; they are based on a technology called blockchain.
2. Blockchain — The Cornerstone of the Crypto Space
When I first started learning about blockchain, I was quite confused. Someone told me, 'Blockchain is a decentralized distributed ledger.' What? Just hearing that made my head spin.
Later, I finally understood a fairly simple metaphor: blockchain is like a ledger that everyone can see. Each block is like a page in the ledger, documenting transaction information. Every so often, a new page (i.e., a new block) is added to the ledger, tightly linking it to the previous pages—this is where the name 'blockchain' comes from. Moreover, everyone holds a copy of the ledger, and no one can arbitrarily alter it. This mechanism ensures the transparency and security of information.
On this ledger, everyone can record various transactions and data, and coins like Bitcoin and Ethereum are essentially the earliest 'entries' on the blockchain ledger. So, the technology underlying the crypto space is actually blockchain.
3. Web3 — The Future of the Internet?
So what is Web3? You may have heard of terms like Web1 and Web2. In simple terms, Web1 is a read-only internet where people can only view webpage content; Web2 allows interaction, where you can like, comment, and post selfies on social media.
With Web3, it becomes an internet owned by the users. Each of us can have our own data and participate in platform governance, unlike now where all data is controlled by a few giant companies. It gives you more control over the internet, even allowing you to earn by participating.
The foundation of Web3 is blockchain, as its decentralized nature ensures that users' data cannot be monopolized by any centralized platform.
2. The Relationship between Ecosystems, Primary Markets, and Blockchain
1. Ecosystem — A thriving system
After grasping the basic concepts of blockchain, I began to notice an interesting phenomenon: many projects started building their own ecosystems. What is an ecosystem? In simple terms, it’s a blockchain system upon which many projects and applications exist, sharing the same underlying blockchain resources and technologies.
For example, the Ethereum ecosystem has thousands of applications, including various DeFi (decentralized finance) and NFT (non-fungible token) platforms. They all 'reside' on the Ethereum network, utilizing Ethereum’s smart contract capabilities to operate. It's like a forest, where Ethereum is the land, and the various applications in the ecosystem are like the trees, animals, and plants within that forest.
Different blockchains will also have their own ecosystems, such as Polkadot, Solana, Avalanche, and so on, each with their own projects and developer communities. The existence of ecosystems transforms blockchain from merely being a bookkeeping system into a platform that can support various applications.
2. Primary Market — Opportunities for Early Participation
Then there's the primary market. This term may sound complex at first, but it is somewhat analogous to an IPO in the stock market. The primary market is where blockchain projects are just starting and have not yet launched on exchanges; investors can invest through private placements, seed rounds, etc.
I found that many promising blockchain projects often have very low prices in the primary market. This is the secret behind those so-called 'early angel investors' making big profits. For instance, some DeFi projects or emerging blockchain ecosystems raise funds during the primary market phase to develop their projects. Investors who enter early may see the token prices soar significantly once the project is launched on exchanges (similar to a company going public).
But this also means high risks, as primary market projects are not fully realized, and the failure rate is quite high. For ordinary people like me, investing in the primary market feels more like a gamble, requiring sufficient knowledge and risk awareness.
3. Interactions of Blockchain and the Future — How They Will Change Society?
1. How do blockchain, Web3, and ecosystems interact with each other?
You might ask how these concepts combine and how they relate to each other. Let me explain it in the simplest terms.
Blockchain is the foundation of the entire Web3 world, providing a decentralized trust mechanism that ensures the security and transparency of all data through consensus algorithms.
An ecosystem consists of various projects and applications developed on blockchain, including DeFi, NFT markets, games, etc.
Web3 is a broader concept that describes a vision of a decentralized internet, where all applications are based on blockchain, and users regain control over their data.
The crypto space encompasses a series of markets and activities centered around cryptocurrencies, its value also based on blockchain technology.
The primary market refers to the early fundraising phase of these blockchain projects, where investors can position themselves before the project is launched.
These concepts are like different components of a machine; blockchain is the engine, Web3 is the internet vision it drives, the ecosystem is the complex system within the machine, the primary market is the initial investment needed to build the machine, and the crypto space is the energy fluctuations produced once the machine is running.
2. Pros and Cons
Benefits: The biggest benefits of blockchain and Web3 are decentralization and the reshaping of trust. They empower users with control over their data, making transactions transparent and eliminating the need for intermediaries. Additionally, they bring financial inclusivity; for example, DeFi enables many people who cannot access traditional financial systems to borrow and invest.
Drawbacks: However, it also has downsides, such as extreme volatility; prices in the crypto space can be heavily influenced by market sentiment, leading many to become overnight millionaires only to lose everything just as quickly. Moreover, the decentralized management approach may lead to governance challenges, with some projects lacking effective oversight and efficiency during execution.
4. Future Development Trends and Opportunities for Ordinary People
1. Future Trends
Through my learning over this period, I believe blockchain and Web3 will become an important part of the future internet. We can see more industries beginning to adopt blockchain technology, such as finance, art, gaming, supply chain, and even many countries considering launching their own digital currencies.
In the future, as technology continues to mature, the use of blockchain will become increasingly widespread, and a decentralized internet will gradually become the norm. The world of Web3 will no longer be monopolized by a few large companies; everyone can control their identity and data online.
2. Opportunities and Impact for Ordinary People
So, as ordinary people, what value can we gain from this?
First and foremost, education and learning are crucial. Blockchain and Web3 are emerging fields, and if you can understand their underlying logic, you can discover many new opportunities. For instance, you can participate in the governance of decentralized projects, obtain governance tokens, or become a miner to provide computational power to the blockchain network.
Secondly, participate rationally in the crypto space and the primary market. For ordinary investors, the most important thing is to control risks and not blindly chase highs. You can start by learning some foundational projects such as Ethereum and Polkadot, selecting a few that you understand and are optimistic about for small-scale investments.
Yan Ge's learning journey and future expectations
My experience learning about blockchain and Web3 has truly given me a different understanding of this world. I’m no longer the naive person dreaming of getting rich overnight; I’ve realized that blockchain is a long-term transformation that will reshape our financial system, internet structure, and even our way of life.
If you are also interested in blockchain and Web3, my advice is: learn first, then participate. This is not just an investment adventure; it’s a journey to understand the future. May we all find our place in this decentralized new world and seize our opportunities.
