The Evolution of Web3: From Decentralization Ideals to a Capital-Dominated Reality

The digital world is divided into two main areas: Web2 and Web3. Web3, as an emerging field, was initially established by pioneers seeking Decentralization, freedom, and autonomy. In its early stages, it was an undeveloped wilderness, devoid of rulers, only builders.

As time goes by, the connection between Web2 and Web3 gradually establishes itself. Initially, only a few investors from Web2 were attracted by the potential of this new world. They cautiously observed, analyzed the terrain, understood the rules, and identified the most valuable areas.

The first wave of large-scale development began with Bitcoin—the most valuable asset in Web3. It is a scarce resource, with clear ownership, and power is held by those who understand its fundamental principles.

Once the first batch of developers solidified their positions, they began to expand into other areas. They realized that Web3 is far more than just Bitcoin. Soon, they started to establish bases on numerous new platforms such as Ethereum, Solana, and Polkadot.

As more opportunities are discovered, competition for new territories intensifies. Initially, block space was very scarce. Early blockchain operations were severely restricted, and each transaction needed to occupy limited space. This scarcity conferred immense value to block space. However, as competition intensified, innovation followed.

More efficient ways to create block space are continuously emerging. Technologies such as second-layer solutions, Rollups, and alternative chains have brought a wealth of new space to Web3. Resources that were once scarce have become relatively abundant.

Builders no longer fight for limited space; instead, they create a wealth of new space to meet the growing demand. However, the proliferation of blockchain space has brought about unintended consequences.

Once precious resources have become cheap. The cost of storing transactions—once a key economic driver—has now significantly decreased. People expected that cheap block space would attract millions of Web2 users to migrate, but the reality is different.

Web2 users are cautious about entering Web3. They have heard stories of some adventurers entering Web3 in search of wealth, only to ultimately suffer losses. While some Web2 users do attempt to migrate, drawn by stories of quick riches, they soon find the complexities of Web3 to be daunting.

Web3 has already been shaped by early developers and powerful capital forces. Although the rules are not explicitly stated, those who control this field are well aware of them. As more Web2 users migrate, they unwittingly fall into a predicament.

New platforms are emerging one after another, each with different rules, and scams disguised as opportunities are everywhere. Big players control the flow of information, manipulate the market, inflate values, and pull support away from unsuspecting new users.

Web3 is gradually becoming a playground for those who know how to profit from newcomers. Even though block space is cheaper than ever, the rate of adoption remains slow. The dream of a massive migration from Web2 to Web3 is fading.

The new platforms promise a seamless user experience, but they always fall short of the familiarity and convenience offered by Web2. The additional promise of quick profits is not enough to attract users—Web2 users have witnessed too many peers suffering losses.

They witnessed the entire ecosystem within Web3 rise and fall overnight, seeing wealth gained and lost in an instant. Ordinary users hesitated, unable to see through this chaos. However, amidst the turmoil, a thriving trading market quietly took shape.

Web3's digital assets—tokens—have become the lifeblood of its economy. Everything can be traded. Each platform has its own assets, unique value propositions, and commitments to the future. Trading venues operate 24/7, driven by speculation, manipulation, and greed.

Some projects thrive temporarily and then decline as attention shifts. New assets are created daily, sold to the highest bidder, and then flipped for short-term profits. This cycle seems endless.

While ordinary users struggle, the true beneficiaries of Web3 are flourishing. Exchanges have become gatekeepers, controlling the flow of assets between Web2 and Web3. They profit from every user entry and exit. Market makers—the hidden forces managing liquidity—ensure they extract commissions from every transaction. Developers continue to build, not necessarily for innovation, but to create more tradable assets. Marketers weave stories, construct narratives, and sell dreams to the next wave of hopeful users.

The dark side of Web3 is that it is no longer truly decentralized. The early ideals of a free and open digital frontier have been replaced by the harsh realities of capital. The rules of the game have been rewritten.

The forces that dominated Web2 have also infiltrated Web3. They have not only settled here but also reshaped this ecosystem to meet their own needs. As a result, Web3 continues to expand, becoming a frontier of endless digital assets, speculation, and fleeting opportunities.

The dream of true Decentralization still exists, but for most people, it is just an unattainable ideal. New users continue to flood in, hoping to get rich overnight, but in the end, most leave with less than they had when they arrived.

At the same time, those who master the rules of the system continue to profit, build, and control, ensuring that Web3 remains dominated by them. This once hopeful digital new world has now become another battleground for the forces of capitalism.