Imagine a world where you own your data, and you do not need to trust big corporations to keep your information safe. Moreover, it’s a place where no one dictates what you can and cannot access online. Welcome to Web 3 — the technology that has empowered everyday internet users like you and me.
However, did you know that things haven’t always been like this? There was first Web 1, which was about reading information. Then, Web 2 was introduced, which allowed interacting with and sharing information. Web 3 is the latest kid on the block, and it is about owning and controlling.
Follow closely as I present you with a detailed overview of Web 3. In no time, you will understand what this technology means for us in real life. Let’s get started!
KEY TAKEAWAYS:
- Web 3 is a version of the internet that uses blockchain technology to give you control of your information.
- The major principles of Web 3 are decentralization, trustlessness, and ownership
- Key features of Web 3 include DApps, smart contracts, digital ownership, and token-based economies.
- You can get started in Web 3 by educating yourself, setting up a crypto wallet, and exploring decentralized apps to see how crypto trading works.
What Exactly Is Web 3?
At its core, Web 3 is about decentralization instead of relying on middlemen and big companies like Google, Amazon, and Facebook. Web 3 uses blockchain technology to run its show. Think of it like this: in Web 2, you can share photos on Instagram, but Instagram owns them.
With Web 3, you own photos when you share them. Also, no one can take them down or sell them without your consent. Summarily, the principles of Web 3 are decentralization, trustlessness, and ownership.
Why All These Web 3 Hype?
Well, Web 3 is built on blockchain networks like Ethereum and Solana. They are more like digital ledgers that record transactions securely and transparently. Web 3 is not just a tech upgrade; it is a complete paradigm shift for the following reasons:
- It helps you own your data, assets, and identity.
- It makes you immune to censorship from the government and other centralized authorities.
- It opens inclusive earning opportunities for people worldwide.
Key Features of Web 3
Here is a quick rundown of the key features of Web 3 applications:
- Decentralized applications (DApps): DApps are like your regular apps like Instagram and Spotify. However, they have no service fees, no central authority and are automatically controlled by smart contracts.
- Smart contracts: These are digital agreements that self-execute once certain conditions are met. Smart contracts are immutable, meaning they can’t be tampered with once they are deployed.
- Digital ownership: Thanks to the creation of NFTs, with Web 3, you truly own your digital assets. These include art, music, or in-game items.
- Token-based economies: Web 3 has introduced cryptocurrencies as a means of accessing goods and services. Some of these crypto coins and tokens are also used to incentivize people to participate in decentralised networks.
- Enhanced privacy: With zero-knowledge proofs and encrypted wallets, you can interact with others without necessarily giving away personal details.
Real-World Applications of Web 3
Web 3 is not a concept of the future; it is here now and has even found relevance in our day-to-day activities. Let’s check out some of its use cases below.
- Decentralized finance (DeFi): DeFi platforms like Aave, Compound, and Uniswap allow users to borrow, lend, and trade crypto without banks.
- Play-to-earn gaming: Axie Infinity rewards players with cryptocurrencies for their in-game achievements.
- NFTs: Musicians and artists can release music, art, and fashion as NFTs. This gives them full ownership of their work as it eliminates middlemen such as record labels.
- Decentralized social media: Apps like Lens Protocol allow you to control your data while using social networks.
- Supply chain management: Web 3 is used to bring transparency to supply chains. For example, you can check the origin of food and verify the authenticity of a luxury good using blockchain technology.
Read Also – Demystifying Cryptocurrency: A Beginner’s Guide to Bitcoin
Challenges of Web 3
Web 3 is a truly transformative version of the web. Nonetheless, just like any other technology (coupled with the fact that it is relatively new), it has its challenges. Here is a quick overview of Web 3’s shortcomings:
- Complexity: Many Web 3 platforms have steep learning curves that beginners might find daunting.
- Scalability issues: Blockchain networks like Etheruen often struggle with congestion, which can lead to high transaction fees.
- Energy consumption: Although newer blockchains use energy-efficient consensus mechanisms like proof-of-stake, older networks like Bitcoin consume significant energy because it uses proof-of-work.
- Security risks: Web 3 offers better privacy because it is decentralized. However, there is the risk of hacking and losing access to your wallet forever if you forget your private key.
- Regulatory uncertainty: Most governments worldwide are still figuring out how to integrate Web 3 into their affairs. On the flip side, others have not yet welcomed the concept with open hands.
How You Can Get Involved In Web3
You do not necessarily have to be tech-savvy to be a part of the Web 3 ecosystem. Check out these simple things you can do to get involved in this groundbreaking technology:
- Check websites like Koyn Blog and Binance Academy to learn the basics of cryptocurrency.
- Set up a crypto wallet such as MetaMask to start interacting with Web 3 platforms.
- Start exploring decentralized apps for crypto trading.
- If you want to invest, research trustworthy projects you can put your money in.
Finally
Web3 is worth paying attention to because it is the foundation of the new internet age. While it is still evolving, it promises to shape how we interact with technology forever. The question isn’t whether Web 3 will change the world; it is how soon it will. So, dive in today to be a part of the future that is already here.
Reference
- forbes.com – What Is Web3 All About? An Easy Explanation With Examples
- techtarget.com – What is Web 3.0 (Web3)? Definition, guide and history
- investopedia.com – Web 3.0 Explained, Plus the History of Web 1.0 and 2.0
