Web3 is an attempt to replace the centralized forces of the previous Web with a decentralized online ecosystem based on blockchain. Its supporters envision decentralized social networks and “play-to-earn” video games where players earn crypto tokens, which they can then use to purchase or sell digital culture. These idealistic supporters claim that web3 will change the internet as we know it, upending traditional gatekeepers and ushering in a new, middleman-free digital economy.
Although web3 doesn’t exist yet, its concept has many fans, including younger techies and those who remember the early days of the web. Its potential is limitless, and it evokes the spirit of the mid-90s. While the concept is mostly theoretical, the idea of a new type of web service is fascinating.
Tokens used for Web3 are also decentralized. These tokens are paid to node operators. They are based on a set of protocols, which are the rules of how an algorithm works. The most common of these is the PoW model, which is known to have significant drawbacks. For instance, bitcoin mining consumes enough electricity to heat 4.5 million homes in the USA.