While web3 is not yet a mature product, it is already proving itself in other industries. A popular example is blockchain, which has the potential to revolutionize the financial industry. In fact, one VC, Andreessen Horowitz, has bought a large stake in UNI, a cryptocurrency used to store and send digital currency. Critics of Web3 have pointed out that VCs own the Web3 technology and hold too much power in the space. Nevertheless, there have been some notable success stories, with companies like Bored Ape Yacht Club and NBA Top Shot developing NFT communities. Additionally, NFT projects like Coinbase, a cryptocurrency clearing house, and OpenSea, the largest digital marketplace for crypto collectibles and NFTs, have also grown to become giants.
While Web3 will be a risky investment, some companies and sectors will have greater incentives to make the leap. For example, Time is looking into Web3 after Web2 destroyed its business model. Nike and the NBA are familiar with the challenges of commoditizing moments and limited-run sneakers. And even though Web3 may be more difficult to adapt for most businesses, there are some key differences between the two. The first is that Web3 allows users to take their reputations with them when they leave the platform.
The second big difference between Web3 and Web2 is that the Internet is no longer centralized, but it is decentralised. Blockchain is the primary component of Web3, and the technology behind it is becoming more mature. Web3 has the potential to revolutionise the internet as we know it. Blockchain-based systems are also known as decentralised networks. In addition to decentralisation, Web3 also incorporates smart contracts and blockchain.
A third key difference between Web3 and the Internet of Things is that Web3 projects are rooted in the world of the internet. Blockchain technology was born out of a need for an independent monetary system. Bitcoin brought permissionless systems into the world, and the blockchain network allowed for anonymous fund transfers. However, these systems were resource-intensive and not particularly fast. Hence, many people did not adopt them. The web of things is already advancing.
While there are other ways to gain access to web3 applications, the most common and most coveted is to use it in applications. Web3 projects can be built by any organization. Volunteers sometimes contribute their time for free. However, large Web3 projects often raise money through an Initial Coin Offering, which is a method of selling project crypto tokens for a higher value in the future. Furthermore, web3 projects can be funded by venture capital firms, as many of them understand software development and roadmaps.
Web3 projects are attracting a lot of energy, money, and talent, but remaking the internet is a massive undertaking. It will take time to build a high-quality infrastructure. While blockchain has the potential to be the next big thing, there are many skeptics who believe the Web3 ecosystem is rotten with speculative money, theft, and privacy issues. Furthermore, they say that Web3 is plagued with a culture of centralized institutions and middlemen that undermine the idea of a decentralized web.