A new Internet model is gaining momentum, and traditional finance is witnessing disruptive innovations. Everything could be redefined in this era, an era known as Web3, or the era following the Internet. In fact, the concept of Web3 was first proposed as early as 2014, but it didn’t go viral until the wave of blockchain, cryptocurrencies, and the metaverse in recent years. As a result, institutions, governments, and VC have flocked to this industry, giving birth to numerous applications. So what exactly is Web3? How does Web3 redefine the new finance?
How Web3 Redefines the New Finance
Web3 has many characteristics, including decentralization, artificial intelligence, Semantic Web, middleman-free and permissionless, and ubiquity. As a new generation of the Internet supported by distributed ledger technology and based on blockchain, Web3 represents a collection of fundamental technologies for building the metaverse, with major innovations in openness, privacy, joint development, and decentralization enabled by technologies such as blockchain and smart contracts.
Today, Web3 has seen various financial services such as decentralized lending and decentralized insurance. Take the lending business as an example. Under the Web3 framework, decentralized lending has evolved into new lending models such as over-collateralization, liquidity pool, and flash loan.
The decentralized lending we see today is mainly for crypto assets, and there has been a complete business model based on Web3.
Compared with traditional lending, decentralized lending has significant characteristics, mainly including:
First, decentralized lending helps to protect personal privacy. The centralized lending process focuses on relevant individuals or enterprises. Before giving loans, banks need to evaluate whether individuals or enterprises can repay the loans. By contrast, decentralized lending does not require anyone to identify himself. Yet the borrower must provide collateral, which will directly go to the lender if the borrower fails to repay the loan.
Second, decentralized lending can reduce business costs and improve efficiency. With smart contracts, decentralized lending effectively reduces manual errors and repeated operations, thus saving business costs. In addition, smart contracts can reduce the time-consuming paperwork required in traditional bank loans, which improves business efficiency.
Third, decentralized lending has access to funds from around the world, which makes it easier for borrowers to get loans with lower interest rates.
Web3 focuses more on user privacy and security as well as innovative technologies than Web2, as evidenced by the utilization of artificial intelligence to support the interaction with the machine and advanced analytics. Another advantage of Web3 lies in the decentralized network that returns data ownership to users.
Overall, Web3 has significantly outperformed Web2 in terms of technology, application and data state. Breaking the traditional limitations of Web2, Web3 has redefined the new finance.
Breaking the shackles of traditional finance, CoinEx makes crypto trading easier
As with Web3, CoinEx, a global crypto asset trading platform, is also working on new finance. Exchanges constitute part of the infrastructure of the crypto industry, and, as the easiest gateway for the general public to the Web3 industry, CoinEx plays a vital role in the crypto space.
As an indispensable part of the Web3 era, CoinEx has always adhered to its commitment. In 2022, CoinEx redefined its slogan to “making crypto trading easier”. With easy-to-use products, asset-light investment models, and considerate customer service, the exchange helps the general public embark on the crypto adventure effortlessly. Aiming to break the shackles of traditional finance and lower the threshold to crypto trading, CoinEx makes it easy for anyone around the world to engage in the Web3 era. On this newbie-friendly exchange, investors worldwide will enjoy a smooth, easy crypto journey.