The EU has proposed Web4, what impact will it have on the world of encryption?
On July 11th, local time, the European Commission (EC) approved a new strategy on Web 4 and virtual worlds, aiming to drive the next technological transformation and ensure an open, secure, trusted, fair, and inclusive digital environment for EU citizens, businesses, and public administrations.
Link: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3718
The concept of Web 3 has not yet been digested by the world, and the European policy field has introduced a new narrative for Web 4. Is it the traditional world finally taking a step ahead to open the next mainstream narrative for the encrypted world, or is it Europe with low awareness of encryption trying to overtake on the outside lane? In this article, the veDAO Research Institute will interpret the Web 4 proposed by the European Union.
Manifesto and Web 4
What is Web 4?
The manifesto released on July 11th states that Web 4 echoes and covers the terms of Web 3, and will become part of a new Internet vision that integrates virtual experiences, the Internet of Things, and blockchain. The European Commission has clarified the strategies and actions it will take to enable the EU to participate more in the Web 4 technology world.
In the EU manifesto, the definition of Web 3 is: "The main characteristics of the third-generation Internet Web 3 are openness, decentralization, and complete user sovereignty." Building upon the EU's recognition of the current Web 3 concept, Web 4 will allow for the integration of digital with physical objects and environments, and will enhance the interaction between humans and machines. In short, we can understand Web 4 as the evolution of the Web 3 concept, where the Internet of Things, blockchain, virtual reality, and augmented reality come together.
The EU emphasizes that the pillars of Web 4.0 and the Virtual World Initiative mainly include four pillars. The first three align with the pillar goals of the EU's Digital Europe 2030 initiative: talent skills, business environment, and public services. The fourth pillar includes the goals of infrastructure construction such as computing power and cloud, as well as the openness and global governance of Web 4.0 and the Virtual World.
Although the European Commission includes blockchain as one of the constituting technologies of Web 4, the terminology used in the manifesto is trusted blockchain, rather than the native encrypted world supported by the encrypted world.
The "trustless" blockchain. At the same time, the European Commission has not provided any details yet, such as how to integrate all technologies and develop a specific plan to promote Web 4 narrative. Plans related to Web 4 In this announcement of the Web 4 strategy, many new initiatives were disclosed. Firstly, the announcement proposed an inherent plan of Horizon Europe called "Virtual World Partnerships," which is expected to launch in 2025. The goal of this plan is to develop an "industrial and technological roadmap for virtual worlds" by helping developers, creators, and internet companies widely understand this new trend. It also requires experimenting with new solutions together with all EU member states. Secondly, a project called "CitiVerse" is envisioned, described as a virtual universe for managing and planning city work and activities in an alternative way, but the target audience is not specified. Lastly, the Commission presents another idea involving the "European Virtual Human Twins," virtual replicas of human bodies that can help doctors research disease outbreaks and treatments. Regarding the introduction of new Web 4 technological frontiers, Thierry Breton, the EU Internal Market Commissioner, stated, "Today, Europe officially becomes the world leader in Web 4 and virtual worlds. Europe possesses the necessary conditions to lead the next technological transformation: innovative startups, abundant creative content and industrial applications, a strong role as global standard setters, and an innovation-friendly and predictable legal framework." Challenges for Web 4 in the EU In the "2030+ EU Economic Outlook" published by the EU in March, digitalization is emphasized as one of its key drivers, and Web 4 represents a significant technological transformation that will bring a seamless, intelligent, and immersive world. After obtaining approval for MiCA (Markets in Cryptocurrency Assets) in April, opening doors to cryptocurrencies and blockchain, the European Commission now hopes to further compete with US technological innovation. Through news including the Web 4 narrative, it is evident that the regulatory framework in Europe is on track to become one of the most lenient frameworks in the crypto field globally, and Europe is willing to stand out in the context of new technologies. However, discussing Web 4 seems premature for the entire EU. According to a survey conducted by Consensys (the parent company of MetaMask) in June, only 8% of the entire EU...Some people think they are familiar with the concept of Web 3. On the other hand, terms such as blockchain, cryptocurrency, and DeFi are still unfamiliar to inexperienced individuals and are not yet understood by the majority. Understanding Web 3 or Web 4 still poses a significant barrier to entry for many people who are not familiar with the basics of virtual currencies. Many European centers such as Berlin, London, and Lisbon are becoming hubs for crypto and blockchain, but other regions on the continent don't even know the meaning of the word "crypto."Which sectors of the crypto market are expected to benefit?
After gaining a general understanding of the grand strategy proposed by the European Union regarding Web 4, let's focus on the aspects that could be favorable for the crypto market. The EU announcement about Web 4 mentions that blockchain technology can be used to manage assets in the virtual world, such as virtual currencies or virtual real estate, and allow secure and transparent transactions within the virtual world. There are also many sections mentioning "virtual world," "digital cities," and other content, which are among the main future directions in the announcement. Therefore, this could be good news for the metaverse-related track.
The terms "Blockchain" and "Crypto" are mentioned 30 and 7 times respectively in the EU's initiative, while "NFT" is mentioned 40 times. Overall, NFTs are a key area highlighted in this EU initiative. The document points out that NFTs are being widely used in various applications. It acknowledges that "NFTs promote innovation in content creation and provide opportunities for artists (and creators). NFT platforms directly connect artists (and creators) with potential buyers and provide direct connections at lower costs," which is an already widely accepted consensus.
Furthermore, the initiative also proposes ways to combine NFTs with traditional business: "In fact, NFTs have already been integrated into new business models. NFTs can also be used for sales and event ticketing in specific use cases such as sports, fashion, gaming, music, etc." Currently, the application of NFTs in combination with traditional business is not yet well-developed, and this signal from the EU may promote the development of this track.
Lastly, the importance of blockchain for Web 4.0 is mentioned in terms of security and privacy protection, cross-border payments, and international trade, but not discussed in detail. This may potentially bring growth opportunities for the hot zk technology in the crypto market and the not-yet-popular payment applications.
Conclusion: The EU's outlook this time has thrownAfter the concept of Web 4 was introduced, it seems that there is a desire to accelerate in the field of blockchain, surpassing the continuous expansion in the infrastructure field in Asia and the Americas, and therefore plan to create locally and become a standard setter. However, the popularity of Web 3 in Europe is still insufficient, and it is still necessary to observe the direction of Web 4, which is currently only a concept. Although the association between Web 4 and Web 3 is not close, the encryption track involved in EU Web 4-related construction may usher in a boom during the EU's active period. Original EU Initiative Document: https://ec.europa.eu/transparency/documents-register/detail?ref=SWD(2023)250&lang=en Follow Us veDAO is a decentralized investment and financing platform led by DAO, dedicated to discovering the most valuable information in the industry and enthusiastic about exploring the underlying logic and cutting-edge tracks of the digital encryption field, so that every role within the organization can fulfill its responsibilities and gain returns. Website: http://www.vedao.com/ 🔴Investment carries risks, projects are for reference only, please assume the risks on your own🔴
