Cryptocurrencies have paved the road for Web3 applications, and they seem to have a roaring success since more investors are confident about this new technology. Although the crypto market is affected by more than trust, the whole industry is mainly handled by how people feel about a certain coin or token. This is because investors may feel their assets are at more or less risk of being lost, leading to better or worse investment decisions.
But now that we know more about cryptocurrencies, it’s time to move on to the next thing in vogue, Web3, a fresh innovation in how we share and consume information on the internet. This concept is to be adapted in all businesses since it brings something new to the table, although it’s yet to be developed. But it seems like some of its aspects already dominate the cryptocurrency and blockchain world, so let’s see how this high-tech solution will revolutionize the crypto sphere.
What is Web3?
There are three current ways to describe the internet. First, we have Web 1.0, when computers and internet connections became affordable for most people. They used the first Apple computers and technology only to find information faster and more efficiently. After programming and innovative devices were introduced, we were directed into the world of digitization: Web 2.0. It is what we use these days, and it’s described as an interactive way to surf the web through social media platforms.
The latest version on the internet we know is Web 3.0. Unlike what we are used to describing the internet, this variant is based on terms like decentralization, openness and a better user utility and experience. To be precise, Facebook and Google are centralized platforms, although they’re full of data and information. A decentralized approach involves handling control and decision-making actions by a distributed network rather than a centralized entity that rules individually. It is currently adapted to the cryptocurrency world, and you may recognize its features as NFTs, blockchains and distributed ledgers.
Web3 is far from what you would expect since the world has been dominated by authorities who deliberately took decisions. Consequently, this new technology will allow users to create, share and connect through search and analysis since it’s permissionless. Moreover, it will include Artificial Intelligence and Machine Learning into a more intelligent and responsive online experience, considering it uses 3D graphics.
Web3 is already used in:
- Metaverse, which is a virtual world with no boundaries whatsoever on the digital assets you can buy and sell;
- Blockchain games that allow users to win tokens by playing games in different crypto settings;
- Privacy and digital infrastructure for businesses that need more layers of data safety, such as health;
- Decentralized finance, which is already successful among people since they benefit from peer-to-peer financial transactions under no financial authority;
- Decentralized autonomous organizations where people can form communities and have mutual goals;
Knowing that Web3 depends on digital currencies, you may want to learn how to buy crypto. Although you have plenty of cryptocurrencies to choose from, you should invest in more secure ones, like Bitcoin and Ethereum, since the risk is lower than in blockchains with higher volatility where the price is far from stable. But each crypto is unique and based on how much time you want to invest, you can try other blockchains.
How is it related to cryptocurrencies?
Web3 crypto projects aim to provide better services regarding computation, storage, identification and hosting services on the blockchain. Since individual developers have to find ways for this environment to be as safe and functional as possible, both technologies need to be improved since they share similar principles of decentralization. In other words, Web3 will help the cryptocurrency’s decentralized finance become more commonplace.
Top Web3 web applications
We’ve seen how cryptocurrencies and Web3 are related, and now let’s see how the merge of these two concepts is applied in real life. For example, Sapein is a social network based on the Ethereum blockchain. It is slowly becoming a more reliable version of Google and Facebook, and users can customize it depending on their preferences. On the other hand, there’s Steemit, a Steem blockchain platform that allows users to monetize their content and is a surpassing alternative to Reddit.
Next in order, we have insurance and banking Web3 blockchain applications. Everledger, for example, intends to create a domain where users can digitally store data and access it to increase transparency in global supply chains. It’s a remarkable solution for businesses since they hold a
substantial amount of data which can be at risk in our traditional storage technologies.
Web3 technology also covers media streaming, with platforms like LBRY, where users can access different types of content, like books, music, movies and games, on a blockchain. This decentralized digital library can become a safer way for people to stream content. Moreover, for music lovers, the UjoMusic platform allows creators to upload and distribute their compositions without risking getting copyright strikes. The software is based on the Ethereum blockchain, meaning smart contracts power it.
The benefits of Web3 applications
Web3 has yet to become a hit, but it holds the potential to change the world as we know it and transform it into a better and safer place by providing:
- Fewer intermediaries because Web 2.0 has way too many third parties involved in their process, but with Web3, people’s earnings won’t need to be shared with such authorities;
- Better security and privacy since many businesses are being hacked and losing profit. But since the Web3 is decentralized, it would be impossible for companies and individuals to be hacked without hackers being tracked on the blockchain;
- Higher transparency since transactions on the blockchain can be visible to everyone, which leads to more accountability and trust;
Web3 technology has yet to show us how the internet can become a better place, but it has already changed the cryptocurrency industry. Digitization has many benefits for users and businesses, and we’re excited to see what developers can do to improve such technology. How do you feel about this significant change?