Web3 is a decentralized payment system that allows users to control their digital identity. This system uses an Ethereum address and an ENS profile that can be used across different platforms and is completely anonymous and censorship resistant. Unlike Web2, which relies on banks to process payments, Web3 uses tokens such as ETH to make payments directly through the browser. This means there is no need to rely on a third party to ensure your money is secure.
Web3 tokens are in their early development stages and could see significant value appreciation in the near future. The industry has seen huge growth in the last two years, as the market for cryptocurrencies is on the rise. In the first three months of 2018, almost EUR10 billion in venture capital funding was invested in Web3 projects.
Web3 is not yet mature, so much of the infrastructure is still lacking. Developing a high-quality, reliable infrastructure is a long-term project. Many Web3 companies are scrambling to fill infrastructure gaps, but it will take time to establish a robust ecosystem. As a result, the Web3 ecosystem is still very young and many of the ideas that are driving its growth are only now becoming reality.
Web3 advocates envision a world with decentralized social networks and “play-to-earn” video games where gamers earn crypto tokens. This will allow users to purchase and sell digital culture without relying on middlemen. In this way, web3 could transform the internet and change everything we know about it.
Web3’s decentralized nature gives users unprecedented ownership of their digital assets. Unlike web2 games, web3 games allow users to post their creations directly onto personal devices or decentralized platforms, without relying on centralized organizations. This means that musicians can post their music on a decentralized platform and be rewarded for it.
A Web3 project that is based on the Ethereum blockchain is called Chainlink. The project is working to create a decentralized version of APIs. Using the Graph protocol, developers can access public blockchain data. Web3 users can use the LINK protocol token to pay for node operators. As a result, they can access public blockchain data as well as a decentralized oracle network.
Another emerging concept is the Metaverse, an emerging digital reality that bridges the real and virtual world. This is similar to the concept of Facebook but is different in many ways. Users can invest in digital land plots and use the money to construct real-world projects. In some cases, these digital land plots have already sold for millions of dollars.
Crypto tokens are a crucial part of many web3 applications, but they operate in a legal gray area in the U.S. The chief of the Securities and Exchange Commission, Gary Gensler, has said that many of these tokens are unregistered securities and that platforms offering them should be regulated like companies that issue securities.