This is not merely a technological upgrade, but a history of the transfer of "power and assets."

Recently, the term "Web4" has gained significant traction, particularlyOpenClawfollowing the emergence of multi-agent (AI Agent) frameworks, which have led to AI and crypto assets being discussed together more frequently. Over the past two weeks, I have engaged in discussions and shared insights with friends at various online and offline events. To those interested in Web4, I would say: set aside the obscure code and technical jargon, and let us return to the essence of Web4.

From Web1 to Web4, this has neverbeen a mere technological iteration.It is a history of the evolution of power concerningwho owns data, how wealth is distributed, and who controls the means of production.Only by understanding the shift in power can you comprehend where future capital and opportunities will flow.

 

Web1: The Read-Only Era and the Unidirectional Broadcast of Power

The early internet resembled a massive library transferred onto screens. Sina, Sohu, and Yahoo were the kings of that era.

The characteristics of this era—

Form of power:One-dimensionalPlatforms hold the microphone. They write, and we read. They decide what makes the headlines today, and we are confined to discussing only those topics.

Ownership of assets: Irrelevant to you. At this stage, users do not possess digital assets.

We are merely traffic, a pair of eyes behind screens.

In short, compared to the pre-internet era, Web1 broke down physical distances and enabled zero-cost dissemination of information. However, it had a fatal flaw:Ordinary people could not participate in value creation, let alone share in the resulting benefits. Thus, the times moved forward.

 

Web2: Panoptic Surveillance and the Invisible Deprivation of Assets

This is the era in which we primarily live today. WeChat, Douyin, Didi.We not only consume content, but also create it.We post on Moments, hail rides, and order food deliveries.

On the surface, power appears decentralized in this era, with everyone having an account. In reality, however, this constitutes the largest-scale invisible deprivation of assets in human history.

Characteristics of this era—

• The Form of Power: Panoptic Autocracy. Borrowing from philosopher Foucault's concept, super platforms are akin to a "panopticon." Algorithms in the central tower monitor you, recording every click. The platform serves as both rule-maker and adjudicator. A single agreement can permanently extinguish your social presence.
• Ownership of AssetsLabor and rewards are fundamentally misaligned. You contribute all your data to train algorithms, yet the trillion-dollar market value generated by this data belongs to the platform’s shareholders, not to you. With respect to your account, followers, and in-game items, you hold only a “right of use,” not “ownership.”

This model inevitably leads to monopoly and inevitably invites backlash. Antitrust penalties are becoming more frequent, and user dissatisfaction is accumulating. The business world requires a "forceful deconstruction"—returning to each individual what rightfully belongs to them.

 

Web3: Your Possessions Are Truly Yours

In my view, Web3 is by no means a speculative crypto asset game. It is a digital power movement—where ordinary individuals reclaim from internet giants what rightfully belongs to them. Its core weapon is cryptography. It does not trust the tech giants' claim that "we do no evil"; it trusts only the mathematical certainty that "you cannot do evil."

What This Era Looks Like—

• Power: No Single Entity Has the Final Say

There is no longer a need to rely on banks or large corporations. Trust is delegated to distributed nodes and open-source code. Corporate structures are evolving, with the emergence of DAOs—organizations without bosses, where decisions are made through collective voting.

• Assets: What Is Yours Is Yours, and No One Can Take It Away

For the first time in human history, you can truly "own" a digital asset without requiring endorsement from any institution. As long as you control your private key (a string of characters known only to you), no platform can freeze your wallet. Rules are no longer determined by the platform but are immutable, hard-coded into the system.

However, reality is not so ideal.

In the disputes we have handled, we have repeatedly witnessed the severe clashes between the notion of "code is law" and actual legal frameworks—such as hacking and theft of crypto assets, cross-border money laundering, and smart contract vulnerabilities. Web3 remains largely unregulated, with pitfalls abound.

Nevertheless, it must be acknowledged that Web3 has indeed established a financial settlement system that traditional rules cannot accommodate. It has prepared everything except for one crucial element: a tireless "workforce" to put it into practical use.

 

Web4: The Rise of the Machine Economy and Silicon-Based Labor (40%)

Now, the singularity has arrived. The sword in the stone of Web3 has finally found its master—AI.

The European Union has provided a grand definition of Web4, describing it as the deep integration of AI, the Internet of Things (IoT), blockchain, and XR (Extended Reality). However, stripping away the complexities, the core commercial logic boils down to one principle:

Web4 = AI Agents (AI capable of performing tasks) + Crypto (currency usable by machines)

Large language models are merely tools for conversation, but AI Agents are different—they can perform tasks, execute transactions, and generate revenue autonomously.

1. Why Must AI Use Crypto for Settlement?

Imagine the following scenario:Your AI assistant identifies an investment opportunity and needs to purchase a dataset from another company’s AI. The question arises: how can these two programs conduct a transaction?

Banks will not open accounts for lines of code. Alipay does not support thousands of transactions per second between two AIs, each involving fractions of a cent. Only crypto assets can facilitate such operations.

Crypto, which is essentially "money designed for machines." In Web4, AI will have its own wallets, enabling it to work, spend, and enter into contracts autonomously. While you sleep, your AI may have already worked overnight and earned money on your behalf.

2. Power: Humans Are No Longer the Ultimate Decision-Makers

In Web4, power has for the first time "spilled over" from human hands. AI is no longer merely a tool but an independent "economic actor."

You can employ a team of AIs that will automatically allocate tasks among themselves, negotiate prices with one another, and even negotiate collaborations independently. You only need to issue instructions, and they will handle the rest. Humans are transitioning from being "those who do the work" to "those who issue instructions."

3. Complications: Who Bears Liability When AI Causes Harm?

This is a genuine issue we are currently facing.

If an AI controlling assets worth tens of millions suddenly "malfunctions," manipulates the market, or enters into a contract that ruins you financially—who bears responsibility?

Should we hold the programmers who wrote the code liable? Sue the large language model company? Or you, as its "owner"?

Traditional corporate law and contract law are ill-equipped to address these scenarios. Before the machine economy explodes, we must first fill the gaps in the legal framework.

4. The Future: Heaven or Abyss?

The endpoint of Web4 could lead in two entirelyopposite directions——

• Ideal Scenario: Productivity is fully liberated. AI takes on all arduous and labor-intensive tasks, while crypto assets eliminate intermediaries to capture value spreads. Humans are finally freed from livelihood concerns and can focus on creativity and decision-making, no longer serving as cogs in an assembly line.
• Harsh Reality: Widening class divides. If top-tier AI models and computing power are monopolized by a few giants, they can command billions of "silicon-based slaves" at zero cost and capture all profits. At that point, ordinary people will not even possess "exploitable value," becoming completely marginalized outcasts within the system.

Whether this leads to paradise or an abyss depends on the choices we make today.

 

Epilogue: Survival Principles in the Web4 Era

In the face of this restructuring of power and assets, what should we do? The answer is simple, summarized in three points:

• Work: Be an allocator, not an executor. Specific intellectual labor will rapidly depreciate in value. Learn to delegate specific "tasks" to AI, with users responsible only for setting direction, overseeing ethical considerations, and bearing risks—understanding the rules is more important than understanding the technology. You do not need to know how to code, but you must understand the logic of the system. The boundaries you set for AI define the boundaries of your business empire.
• Investment: Exercise caution and pierce through the fog. Avoid projects that forcibly combine AI and crypto assets merely to issue worthless tokens. Those initiatives that genuinely serve AI or are AI-native and align with future development trends are more likely to represent the future.
• Risk Management: Let innovation dance on the razor's edge of compliance. The more cutting-edge the business, the greater the need for top-tier compliance design. Do not wait until AI turns your assets into evidence admissible in court before recognizing the importance of compliance.

 

Conclusion

The wheels of history are crushing old consensuses. Power is shifting toward algorithms, and assets are moving on-chain. Standing at the threshold of Web4, fear is meaningless, and blind following is disastrous. Understand the underlying logic and seek the legitimacy of innovation at the edges of the rules. We look forward to walking side by side with reliable partners in the world of the future.

 

About the Authors

Zhao Xuan, Partner at Mankun Law Firm. Mr. Zhao graduated from the Law School of Tsinghua University and has represented clients in hundreds of complex commercial litigation and arbitration cases before courts at all levels, including the Supreme People's Court, and major commercial arbitration institutions in Beijing, Shanghai, and other regions. Mr. Zhao has handled numerous legal matters involving internet companies, AI startups, and Web3 industry companies, including but not limited to corporate structuring, investment and financing, dispute resolution, and emerging legal issues.

 

Mao Jiehao, Partner at Mankun Law Firm. Specializing in research and legal services for the Web3.0 industry. Practice areas include civil and commercial legal issues and risks related to blockchain and crypto assets, investment in crypto assets and associated legal risks, Web3.0 enterprise compliance services, business models and risk management, civil and commercial litigation and arbitration, corporate compliance issues, and data compliance and governance.

 

About Mankun

Founded in 2015, Mankun Law Firm is a boutique law firm in China focused on the new Web3.0 economy and deeply engaged in the blockchain industry. The Mankun team possesses unique and diverse industry backgrounds, with members hailing from renowned legal service providers, state judicial organs, internet technology companies, crypto asset institutions, and blockchain industry think tanks.

Leveraging a profound understanding of the new economy, continuous attention to and research on policies and regulations, and extensive practical experience, the Mankun team excels in providing comprehensive legal services from the perspectives of business models and legal practice. These services include business structure design, project investment and financing, transaction planning, operational compliance, resolution of complex civil and commercial disputes, prevention and control of criminal risks, and criminal defense for enterprises in the new economy sectors such as Web3.0, blockchain, AI, NFTs, digital collectibles, crypto funds, crypto payments, DeFi, real-world assets (RWA), and GameFi.

Headquartered in Shanghai, Mankun Law Firm has branch offices in Hong Kong (China), Silicon Valley (USA), Shenzhen, Hangzhou, Zhengzhou, Chengdu, and other locations. To meet the global compliance development needs of Web3.0 industry clients, Mankun has established local offices in major global crypto-financial cities and selected professional local blockchain service partners, providing clients with professional legal and compliance services that combine global breadth with Chinese depth.