What is Web3? A comprehensive interpretation of the next generation of the internet and Gate's ecological practices.

If you follow the Crypto Assets market on December 22, 2025, you will see BTC price at 89,594.6 USD, ETH price at 3,037.28 USD. Behind these real-time fluctuating numbers lies a transformation that is far grander and more fundamental than just “price”—the arrival of the Web3 era.

It is not just a simple technological upgrade, but a complete transformation of finance. The world-leading crypto assets exchange Gate is revealing the core essence of Web3 by building a complete on-chain financial ecosystem: a fundamental leap from value storage to value creation, and from information interconnectivity to asset interconnectivity.

01 The Core Meaning of Web3: From Ownership to Governance

Web3 is often referred to as the “value internet,” with its core being the decentralization of ownership and governance rights. Unlike the Web2 era where users create data but platforms control ownership and profits, Web3 ensures through blockchain technology that users truly own their digital assets and data.

This ownership is manifested through non-fungible tokens and various types of digital certificates. More importantly, holding these assets often means obtaining the corresponding ecological governance rights.

Users can participate in key decisions through voting, from protocol upgrades to the use of the treasury, realizing “My data, I decide; my assets, I govern.”

02 Technical Foundations: Blockchain, Smart Contracts, and Decentralized Architecture

To understand Web3, one must understand the three technological pillars that support it.

First is blockchain, which, as an immutable distributed ledger, ensures the transparency and trustworthiness of all transactions. Secondly, there is smart contract, which is an automatically executed program deployed on the blockchain that eliminates the need for intermediaries and realizes the concept of “code is law” in transactions.

Finally, the decentralized architecture is not controlled by a single entity but is maintained collectively by globally distributed nodes, fundamentally enhancing the system's resistance to censorship and resilience.

03 Gate's Web3 Ecological Practice: The Trinity Strategic Blueprint

Theory needs practice for validation. Gate's Web3 strategy is not just talk; it transforms ideas into experiences that users can truly perceive through a clear architecture of “public chain + Perp DEX + launch platform”.

• Gate Layer: High-Performance Ecological Cornerstone

This is a high-performance Layer 2 network independently developed by Gate, serving as the technical foundation of the entire ecosystem. It is built on the OP Stack and is fully compatible with the Ethereum Virtual Machine (EVM). Its performance metrics are impressive: it can process over 5,700 transactions per second, with a block time of only 1 second, and the transaction fee can be as low as 0.00003 USD. Its strong cross-chain capabilities allow it to interoperate with mainstream public chains such as Ethereum and BSC.

• Gate Perp DEX: Core of Decentralized Derivatives Trading

This is a decentralized perpetual contract trading platform deployed on Gate Layer. It combines the efficiency of centralized exchanges with the transparency of blockchain, adopting an order book model and offering leverage trading of up to 125 times. Its innovative hybrid liquidity model integrates the order book of Gate centralized exchange and external liquidity, with a base liquidity reaching 100 million USD. All trades and funds are recorded on-chain in real-time, ensuring ultimate transparency and security.

• Gate Fun: On-Chain Innovation and Launch Platform

This is a one-stop on-chain token issuance and innovation platform based on Gate Layer, characterized by gamification and community interaction. Project subscriptions and allocations are executed through smart contracts, making the process transparent and traceable. Users participate by completing on-chain tasks and other gamified methods, with the thresholds significantly lowered due to the low fees of Layer2.

04 Ecological Collaboration and Value Circulation: The Economic Model of GT Token

The three major sectors of Gate do not exist in isolation, but instead create a seamless experience for users and project parties through strong synergy. A project can be launched on Gate Fun, and its tokens can then be seamlessly integrated into Gate Perp DEX for trading.

GT Token is the “fuel” and value core that drives this vast ecosystem.

It is not only the sole medium for paying Gate Layer network Gas fees but also used for governance voting and staking to earn rewards. More importantly, GT continuously enhances its scarcity through a “regular burn + on-chain burning” dual deflationary mechanism, and as of now, the total amount burned has accounted for 60.18% of the initial issuance.

05 Market Insight: Latest Developments in Web3 Assets

Entering the Web3 world is inseparable from the follow of core assets. Below are the market situations of some key assets in late December 2025, with data updated to December 22.

Bitcoin as digital gold and a benchmark for the market capitalization of the entire field is the focus of price dynamics. According to Gate market data, on December 22, BTC/USDT is currently priced at 89,594.6 USD, with a 24-hour increase of 1.09%.

Ethereum is the cradle of smart contracts and decentralized applications (DApp), and it is a key indicator of the activity level of the Web3 ecosystem. On the same day, according to Gate market data, ETH/USDT is currently reported at 3,037.28 USD, with a 24-hour increase of 1.42%.

Litecoin and other mainstream assets also demonstrate different dynamics. For example, Litecoin recently launched the first trustless zero-knowledge full-chain Layer 2 LitVM, aimed at introducing smart contracts while maintaining the security of proof of work. According to Gate's market data, the trading price of LTC on December 22 was approximately 78.03 USD.

06 Challenges and Future: The Evolution of Web3

Despite the broad prospects, the development of Web3 still faces a series of challenges. Scalability, user experience, regulatory compliance, and security risks are the main bottlenecks that need to be overcome at this stage.

Pioneers like Gate have already provided some answers: addressing gas fees and speed issues through Layer2, improving user experience through gamification and simplified product design, and responding to compliance and security concerns with fully on-chain transparent operations.

Looking ahead, the evolution of Web3 will delve deeper. Gate's plans reveal some directions: the Gate Layer is set to launch a cross-chain asset center (Bridge Hub) and invest over $100 million in an ecological fund; Gate Perp DEX plans to introduce options trading and other more complex financial products in the second quarter of 2026.

This marks the transition of Web3 from basic value transfer to a complex, efficient, and innovative global on-chain financial ecosystem.

As the future of finance gradually unfolds on the chain, Gate's Web3 ecosystem has evolved from a trading platform into a complete world covering technical facilities, derivatives trading, and asset issuance.

Here, over 23 million on-chain addresses are active on Gate Layer, and behind the choice of more than 40 million registered users worldwide is a clear fact: Web3 is no longer a distant concept.

It is redefining the way assets, communities, and the creation and circulation of value are handled through high-performance blockchain, transparent smart contracts, and a user-centric economic model.