Described by Web3 advocates as the next-generation Internet, this emerging technology utilizes decentralized computer networks and applications to allow users to control their own digital identity and interact with others on the platform. This new approach aims to empower individuals to control their data, while also giving them a voice in the design of their own digital ecosystem. In addition to providing a decentralized web, Web3 also uses non-fungible tokens, like ETH, to send money directly in a browser without requiring a trusted third party.
While it may be early to tell, Web3 promises to fundamentally change the way the world communicates. It does this by breaking down the walls of the Web 2 era, which relied on centralized hubs such as Facebook and Google for massive data collection. Using Web3 as an entry point, people can form communities, develop apps, and own a portion of the global platform through non-fungible tokens.
In its simplest form, Web3 is a decentralized online environment based on the blockchain. This allows individuals to create and interact with content through smart contracts, or ‘dapps’. A decentralized app is an open source application that’s written on the blockchain, allowing users to interact with the funds on the network without the need for a centralized intermediary. Some of the most popular Web3 browsers include Osiris, Brave, and Opera.
While the idea of a web of smart contracts is not new, the real world application of these technologies is limited. The blockchain technology used to create these applications can’t support large numbers of users at once, and the cost of transaction is high enough that it’s not affordable for many. This is where wallet providers are attempting to solve the problem.
Although Web3 is still in its infancy, it’s been getting a lot of attention. VC firms and crypto analysts are excited about the potential of this new technology. Despite the hype, the infrastructure required to implement Web3 isn’t yet ready for prime time. Fortunately, the crypto community is quickly catching up with the hype, and a number of major players are trying to fill the gaps in the infrastructure needed for the new generation of the Web.
There are a number of projects out there, ranging from a decentralized version of Amazon Web Services to a decentralized storage system. While many of these initiatives are utilizing the Ethereum network protocol, there are also projects that don’t. The most successful of these are ones with well-thought out roadmaps and contributors who are enthusiastic about sharing their opinions.
The most popular Web3 project, however, is Polkadot, which is one of the most popular cryptocurrencies on the market. Unlike Ether, the Polkadot network is faster, has low fees, and ranks higher in terms of speed and quality. This makes it a strong candidate to be the market leader for the decentralized Internet.
Other notable Web3 projects include Filecoin, which is a Web3 version of the Amazon Web Services (AWS) that is gaining popularity. Similarly, the Chainlink (blockchain middleware) that powers the aforementioned ‘web of smart contracts’ can be used to integrate a traditional bank account into a Web3 platform.