Introduction
Web3 technology is redefining our understanding of finance. Decentralized Finance (DeFi) is no longer just an experimental playground for cryptocurrency enthusiasts—it's becoming an essential component of global financial infrastructure.
Core Web3 Technologies
Decentralized Applications (dApps)
Web3 builds rich functionality on blockchain foundations:
- Smart Contracts: Self-executing agreements
- Token Standards: ERC-20, ERC-721 (NFT), ERC-1155
- Decentralized Identity: Users own their data
Layer 2 Solutions
As Layer 1 blockchains like Ethereum carry more and more dApps, Layer 2 solutions have become crucial:
- Optimistic Rollups: Optimism, Arbitrum
- ZK Rollups: zkSync, StarkNet
- Sidechains: Polygon
DeFi Development in 2025
Trading Volume Breakthroughs
According to Gate's 2025 Annual Report:
- Web3 products recorded cumulative trading volume exceeding $25 billion
- Over 6.5 million on-chain transactions throughout the year
- Gate Perp DEX exceeded $24 billion in trading volume within three months
Major Product Categories
| Product Type | Representative Projects |
|---|---|
| Decentralized Exchanges | Uniswap, Gate Perp DEX |
| Lending Protocols | Aave, Compound |
| Stablecoins | USDC, DAI |
| Liquidity Mining | Curve, Convex |
Impact on Traditional Banking
Enterprise Perspective
For businesses, DeFi opens new possibilities:
- Lower Transaction Costs: Removing intermediaries
- 24/7 Operations: No need to wait for bank hours
- Global Services: No border restrictions
- Transparency: All transactions verifiable on-chain
Challenges and Risks
- Regulatory Uncertainty: Policy differences across countries
- Smart Contract Risks: Code vulnerabilities can lead to losses
- User Experience: Still complex for average users
- Volatility: Crypto asset prices fluctuate dramatically
Looking Ahead
Development trends for Web3 and DeFi:
- Accelerated Institutional Adoption: More traditional financial institutions entering
- Improved Regulatory Frameworks: Clear compliance pathways
- Better User Experience: Simpler wallets and interfaces
- Cross-chain Interoperability: Seamless interaction between different blockchains
References:
- 101 Blockchains. "List of Top Web3 Projects to Watch in 2026." January 2026.
- BeInCrypto. "Gate Releases 2025 Annual Report: All in Web3 & Global Growth." January 2026.
- Medium/Coinmonks. "The Future of Decentralized Finance: Web3 Innovations Shaping Global Banking." January 2026.