Some Observations from My Web3 Crash Course

0. How I First Met Web3

Lately I’ve been thinking about slipping into the Web3 world — half out of curiosity, half out of survival instinct. Remote work + emerging opportunities aren’t exactly abundant, and pretending Web3/blockchain doesn’t matter is getting harder.

What was your first impression of Web3 / blockchain — “tech revolution,” “scam,” or “future trend”?

I only recently started looking into it seriously, though I’d been hearing the buzzwords since around 2009–2016.

To be honest, I think it’s both a revolution and a scam — which, oddly enough, isn’t a contradiction.

The headlines of overnight millionaires and $100,000 price spikes made outsiders feel like idiots for not joining. If it’s a scam, why are so many highly educated, tech-savvy people buying in? The promised vision is seductive: full control over your assets, free from government printing presses — ordinary people benefiting directly from a systemic shift.

But if it’s such a great game, why can’t I see the actual “goods” being traded? Value doesn’t appear out of thin air. An artist spends time and energy creating a painting — sell it for any price, and it’s fair enough. (Though, as the saying goes, “the real art is convincing someone to buy it.”) Blockchain, though? You’re telling me people install a program, waste electricity, keep their PCs running 24/7, and somehow get rich? Even pyramid schemes make more sense — at least they bother with recruitment fees.

How has your understanding changed since then?

Quite a bit.

When blockchain first emerged, it was half “earth-shattering breakthrough,” half “chaotic circus.” News about it always felt like watching a crowd lose their minds over a tool — not a product. After all, anyone could mint their own coin. Extreme freedom usually breeds extreme chaos.

But chaos eventually forms order. The technology and the philosophy behind blockchain are fine — the real question is: why should bad actors own the soil while creators stand aside?

Now the ecosystem is maturing. More builders are connecting blockchain to the real world — laying infrastructure, establishing standards — much like the early Web2 days. A thriving digital economy, even a centralized one, needs people solving technical and regulatory messes.

Back then, all I saw were random tokens. Now I’m seeing tokens with ecosystems, with real applications. Once people start exchanging actual goods, services, or creative work for tokens, the system becomes legitimate.

1. The Core Logic of Blockchain

What fundamental problem does blockchain solve?

In plain English: it makes cheating expensive. It replaces centralized authority with a distributed one — “I keep the books for you, you keep them for me.”

In formal terms: it establishes verifiable trust among parties without a central authority. Instead of institutional enforcement, blockchain makes the rules executable by code — behavior is self-governed within the system.

Of course, new tech brings new headaches. But most of these problems already existed — blockchain just exposes them in a different way.

How is Web3 structurally different from Web2?

From a user’s perspective, not much changes — you’re still using websites and apps. The shift is more about rules than interfaces.

In Web2, you log in through “trusted” intermediaries — email, phone numbers, ID verification. You prove who you are through someone else’s authority. In Web3, all you need is a wallet address. As long as you don’t forget your private key, no one can take it from you.

Even free users in Web2 are part of the machine — generating ad revenue, boosting engagement. Try to move your followers off-platform, and the algorithm slaps you down.

“You don’t want to sell on our platform and you want to keep your audience? Adorable. Punishment time.”

In Web3, monetization isn’t necessarily easier, but it’s fairer. Rules are written in open contracts. Content can live on-chain. Fans can move freely across platforms. That means creators can earn directly from their communities, not just from platforms. And yes — no more “account banned for mysterious reasons.”

What does “decentralization” mean technically and socially?

Technically, it’s more secure — data redundancy costs less than real-world bureaucracy, and the tradeoff is worth it. (Unless someone compromises a majority of nodes — then you’re toast.)

Socially, it pushes personal sovereignty to the forefront. It also raises the bar: in Web2 no one reads “Terms of Service,” but in Web3 you must understand your smart contract or you’ll only have yourself to blame.

In this sense, hackers with decent communication skills make surprisingly good Web3 educators.

When I used to mock people for watching “how-to” videos, I didn’t expect I’d become one of them — but here we are.

For creators, the shift is even more radical. In traditional web publishing, even top authors end up as gig workers feeding platform engagement. Platforms like Qidian or Tomato keep the rights, take the profits, and even train AI on your words for free. In that light, “Web3 fairness” isn’t utopia — it’s just a saner baseline.

Will it make the world fair? Of course not. But at least you can choose your rules — and vote with your wallet.

How do you see “trust” being redefined — code vs. institution?

Honestly, it’s refreshing. In the old world, you had to dig up paperwork and witnesses to prove anything. If the blockchain record is the proof, the facts speak for themselves.

Ironically, China would be perfect for blockchain adoption — national ID systems, little obsession with privacy, everything already online. A real-name blockchain wallet could make every transaction traceable. But that’s exactly why it’ll never happen — rules are about control, not consensus.

2. CEX / DEX / DeFi — Mechanisms and Differences

What’s the legitimate role of a CEX (Centralized Exchange)?

Basically, it’s a financial institution — just with crypto instead of fiat. CEXs are the main gateway for most people, much larger than DEXs. Think of them as the “banks of crypto,” earning transaction fees for every trade.

CEX traders are often veterans from traditional finance — the 24/7 volatility just makes it more… caffeinated.

What’s wrong with CEXs?

Too centralized. Once you deposit your funds, you’re trusting the exchange’s internal wallet system — and that’s always risky. Hacks, fraud, or sudden collapses aren’t rare.

And if you value privacy? Tough luck — most major exchanges require identity verification. You’re using crypto, but your identity isn’t encrypted.

What’s the core value of a DEX (Decentralized Exchange)?

1. You trade directly from your wallet — no deposits.
2. You can become a liquidity provider (LP), set your own rules, and let others trade under them.
3. You earn a share of transaction fees for providing liquidity.
4. It empowers small organizers — influencers, brands, or niche communities — to run their own micro-economies.

Take a fan token example:

Ken, a pop star, issues a token called KenCoin.

• Hold 2,000 coins for a week to unlock exclusive NFTs.
• Hold 20,000 for six months for 20% off VIP concert tickets.
• Token holders vote on Ken’s next project; outsiders can only hold up to 49%.
• Only 2 million tokens total for 20 million fans. Scarcity achieved.

Fans buy, sell, and trade directly. Ken gets 0.3% per transaction for hosting the pool. The token’s price rises and falls with Ken’s reputation — and yes, scandals included.

It’s speculation, sure — but at least it’s transparent speculation.

CEX vs DEX — in user experience, trust, and risk

• UX: CEX feels like a polished finance app (v3.0); DEX feels like a chaotic, half-broken prototype (v0.1). But it’s alive.
• Trust: In CEX, the platform is your dad. In DEX, you are your own dad — or someone else’s. (Having a dad isn’t always bad.)
• Risk: CEX inherits traditional finance risks (theft, bankruptcy). DEX faces DeFi-native ones (rug pulls, smart-contract bugs).

How to judge if a DEX token is truly non-replaceable:

1. Is it tied to protocol governance?
2. Does it share revenue?
3. Does it incentivize or secure the network?
4. Is it hard-linked to an on-chain contract?

How to avoid rug pulls:

• Stick to audited, mature protocols.
• Check liquidity pool history for suspicious withdrawals.
• Avoid new or anonymous tokens.
• Use DEX aggregators and monitoring tools.

Where does DeFi fit in — and how “decentralized” is it really?

In DEXs, DeFi is the operating system — composable, permissionless, transparent. In CEXs, DeFi is a plugin — just a feature to attract users.

DeFi’s degree of decentralization is high — but so is its barrier to entry. It really does feel like infrastructure work: massive, slow, and foundational.

Is DeFi innovation more technical or financial?

Mostly technical. DEX builds the ecosystem; DeFi builds the plumbing underneath. At the end of the day, both make their living off transaction fees — the oldest business model in finance.

3. Ideals vs. Reality

Is “decentralization” a realistic ideal?

Yes.

1. I’ve moved to decentralized social networks after getting banned too many times — where I can export my data and own my voice.
2. I haven’t used cash in years. As long as it works, people don’t care what they pay with.
3. Big shifts always piggyback on old systems. Web3 will grow by feeding off Web2, not replacing it overnight.

What contradictions exist between Web3 idealism and speculative behavior?

1. Early access = early advantage. Governance tokens often turn into speculative chips — power concentrated before “the community” even arrives.
2. DAO voting sometimes devolves into plutocracy — whoever holds more tokens calls the shots.
3. Many “airdrops” feel like 2010s referral scams. Lots of noise, little purpose.
4. Mining, once hailed as democratized participation, quickly became a tech-elitist playground.
5. The tragedy of idealism: the tools for equality often get used for profit first.

Where’s the line between token-based incentive and pure bubble?

When incentives create real value — not just short-term speculation.

Is Web3 still in its “early internet” stage?

Absolutely. The culture is still elite, technical, and niche — much like the web before it went mainstream.

What’s the real appeal for you — technology or power redistribution?

Power redistribution, definitely. Tech makes it possible, but the real promise is autonomy — taking back what Web2 quietly took away.

Of course, Web3 won’t rebuild the physical world — supermarkets still take fiat. But it’s rewriting the digital one. If it helps me reclaim even a small part of what used to be mine online, that’s already a revolution.

Written on November 10, 2025 — a snapshot of my crash course in Web3, and the messy, fascinating world behind it.