Described as the ‘next internet,’ Web3 is a decentralized internet that relies heavily on cryptography. It operates with token-based governance structures and does not rely on outdated infrastructure. It is designed to restore ownership, security, and privacy to the Internet. Rather than relying on centralized servers, Web3 uses decentralized technologies like blockchain and NFTs to make payments and manage data. This allows users to take their digital identity with them if they leave a platform, and gives them unprecedented control over their digital assets.
Web3 enables decentralized autonomous applications to make decisions about the future of the platform without centralized authority. These apps use smart contracts to automate decisions about resource allocation and voting. They can also use jointly managed crypto wallets. They also have the ability to protect their users’ privacy and protect them from censorship.
Web3 is being funded by early stage venture capital investors. Companies such as Andreesen Horowitz are raising funds to test the potential of Web3 to improve the Internet. They’ve already raised over two billion dollars in investments for experimentation. The Web3 Foundation is also working to create a fair internet.
Web3’s technology stack includes crypto wallets, off-chain storage solutions, and smart contracts in Solidity. It’s also built with redundancy and decentralization. Many of its features are already available for free. But more progress needs to be made before Web3 is adopted by the mass. It’s still too early to know exactly how Web3 will operate.
Web3 uses tokens like ETH to make payments in the browser. These tokens can be purchased with a crypto exchange account. Some tokens are listed on centralized exchanges, but most are traded on decentralized exchanges. They are also used as voting shares on decentralized autonomous organizations. The tokens are also used for liquidation in the Web3 infrastructure. Some of these tokens are hybrids of pure fiat financial transactions, bonds, and equity holdings.
One of the most interesting industries for Web3 is gaming. Blockchain technology is being developed to enable new types of games and entertainment experiences. Currently, there are over nine hundred Unique Active Wallets for gaming. In October 2022, there will be over nine hundred thousand daily Unique Active Wallets for gaming.
Decentralized Autonomous Organizations (DAOs) are a use case for Web3 that allows users to vote on the allocation of resources. DAOs are based on agreed-upon smart contracts. They are automated systems that run on the pool of resources. They use tokens to distribute decision-making authority and ownership.
The decentralized internet promises to be more equitable and accessible. Users can create new kinds of value. The system is built on a globally distributed network of nodes. It relies on new decentralized technologies like cryptography, NFTs, and blockchain. It also promises to provide a new form of trust.
The Web3 tech stack includes a crypto wallet, an ENS profile, off-chain storage solutions, and smart contract in Solidity. It also includes a protocol token, called GRT, that is used to pay node operators. Lastly, it includes a indexing protocol called The Graph. This has been dubbed the Google of blockchains.
