Founded in 2014 by Gavin Wood, the Web3 Foundation is an initiative to create a decentralized, fair, and trustworthy Internet. Web3 aims to eliminate the role of centralized middlemen and agencies and to give people back control over their digital identity. Web3 also aims to introduce smart contracts and blockchain technology. This gives people more control over their data and the ability to create new unique applications.
Unlike Web2, Web3 has a higher barrier to entry because it requires users to understand complex technical documentation and navigate unintuitive user interfaces. Because of the centralized nature of Web2, Web2 applications are dependent on a bank or other trusted third party for payments. In addition, Web2 requires users to trust their content to the platform they are using. This means that the content creator needs to trust the platform to protect their work and protect their privacy. Web3 enables users to use their digital identity to access their content and monetize their work without relying on a third party.
Web3 uses non-fungible tokens (NFTs) to allow users to purchase and trade in-game items. In addition, NFTs are used to create a new alternative identity. NFTs are also used to vote on resource allocation. A DAO (Decentralized Autonomous Organization) is a Web3 application that relies on code to automate decentralized decision-making over a pool of resources.
Web3 crypto projects are a new category of crypto projects that integrate decentralized technologies such as the blockchain and smart contracts into their projects. These projects support the vision of the decentralized Internet. These projects may include decentralized cloud storage, decentralized storage networks, decentralized gaming applications, or other applications that support the Web 3.0 vision.
One example of a Web3 application is Filecoin, a decentralized cloud storage network. This project is similar to Amazon Web Services, but instead of relying on a centralized third party, it uses its own blockchain. This makes it decentralized and censorship resistant.
Another example is the RobotEra project, a Web3 metaverse that provides users with a sandbox-like environment to create and customize robots. Users can earn native utility token IBAT by competing in matches. This gives players a living wage while playing the game.
The Web3 crypto projects have been blooming for the past four days. However, these projects have risks, so it is recommended to invest cautiously. During the early stages of development, the value of these coins will likely increase. However, at any point in time, these projects can fail. Therefore, investors should only invest based on their available budget and risk tolerance.
Web3 combines decentralized technologies with smart contracts to allow users to own their data and their digital identity. This gives users more control over their data and the ability to choose features on their own. It also enables users to avoid trusted third parties and centralized agencies.
The Web3 ecosystem is relatively young, but it is gaining momentum. More progress is needed to get Web3 adopted by the general population.