Web3 is shaking the way we interact with the online world and it’s picking up momentum for one huge reason: freedom. It means users have control over their digital data like financial operations and other assets.
In a present environment clouded by privacy concerns, a series of data points scattered across the vast internet expanse, Web3 appears as a lifesaver. This decentralized system flips the script on this perception putting powers back in the hands of users. It’s a move that could redefine how we navigate and own our online place.
Read on to see how this technology could turn our perception of internet usage upside down.
Web3 – what’s that?
Web3 might sound like a peculiar cryptic term if you are a novice in the world of blockchain. But at its core, it’s just an upgraded version of the current internet infrastructure. In contrast to Web 2.0 where companies aggregate and exploit user data, Web3 operates through a decentralized network. It’s a digital realm constructed out of blockchain technology offering a network where users own their data and assets directly without relying on intermediaries.
Simple for now. There are a couple of names you will come across really often though.
If you are switching to Web3, you need to get used to a new term – Tokens. They take the form of digital assets existing on decentralized networks, having a plethora of functions, and can be used to enable transactions, ownership representation, access granting to service, or performing governance-related actions in dApps.
Most tokens bear specific functions within decentralized applications, for example, in granting access to some features, services, or resources. They also power lending platforms, decentralized exchanges, liquidity pools, and other financial services that let users take out loans, lend assets, trade with them, and earn interest without the involvement of external entities.
The new “face” of the internet
When you dive into a new realm, it is difficult to go away from a traditional web experience.
You will inevitably stumble upon decentralized applications being carried on blockchain networks. These applications provide tons of different services that include finance, gaming, and social networking.
Since Web3 is all about transparency, users get direct control of their data through private keys. Those are IDs within the decentralized network, availing access and ownership to users. However, poor management may lead to unauthorized access.
Typically Web3 apps require wallets operating on cryptocurrency, or browser extensions that support blockchain interactions. Such wallets have features for managing digital assets and dApp interactions.
Web3 also focuses on making different blockchains work with each other. Through this connectivity, the assets move between the platforms, building innovation and collaboration.
As Web3 grows, its interface becomes more user-friendly and draws wider audiences. The usability and the security of Web3 are the two main aspects that will play a big role for people and make them abandon Web 2.0 for a newer alternative.
Areas of application
OK, we have a powerful tool in our hands, but where can we apply it?
Anywhere. Starting with the entertainment industry, and finishing with mass production.
Entertainment is on the brink of a big change with Web3. These platforms have direct connections between artists or creators and their audiences, thus bypassing intermediaries. NFTs facilitate digital creators in converting their work into a token form, so the consumers now have verifiable ownership of unique digital content such as art, music, videos, and even exclusive experiences.
So too are social platforms, leveraging decentralized systems to guarantee secured interactions and instead implement tokenized reward systems for active engagement, and high-quality content generation. Such incentives aim at building robust, engaged communities.
Among other things, shopping could take a giant leap forward. Web3 is poised to revolutionize e-commerce by creating transparent, decentralized marketplaces. Smart contracts allow for secure transactions and blockchain’s specialty. NFTs can offer proof of ownership on high-value or one-of-a-kind items, increasing buyers’ faith in their investment.
Web3 is working towards more transparency of efficiency in factories and supply chains. The decentralized ledger systems have brought about increased transparency and traceability throughout the supply chain. Through smart contracts, the agreements are automated, thus making it easier for the different stakeholders to interact while removing enough errors that will leave the manufacturing and logistics sector more efficient with no inefficiencies at all.
Finally, education is an area that might get a good boost as well. Web3 battles against the fraud of credentials to make sure certificates and degrees are legit. Token economies reward lifelong learning, people can monetize their expertise and educational content.
That is indeed a remarkable list. However, this is just a drop in the ocean of what Web3 does. The more mature the technology becomes, the faster those applications are expected to redefine how we interact within different sectors. For this reason, we have to be forward-looking to embrace the change.
Web3 is an upgrade of the internet which we all know very well. It’s only users taking more control over their stuff directly instead of companies controlling their data. Everything is running on decentralized networks where tokens (digital assets) help us do transactions and avail services without anyone standing in between.
You can find many cool apps in Web3 from finance, gaming, and social stuff. But keep in mind that it’s all about being careful with your private keys to keep the data safe. You would need special wallets to manage your assets and play around with these apps. It can link different blockchains that can make moving your stuff around easy.
Once you enter the Web3 world, you will forget about the inconveniences of the traditional systems. The potential is huge, so catch the wave and be on top of the trend.