Unlike Web 2.0, Web3 uses new, decentralized technologies to run. It operates without a trusted third party, uses cryptography to secure transactions, and gives users unprecedented control over their digital identity.
Tokens are the currency of the Web3. They can be bought and sold on decentralized exchanges, and can be held in a non-custodial crypto wallet. They allow for decentralized economic systems, and provide liquidity to the economy. They are separate from bonds and equity holdings.
The Web3 infrastructure includes a crypto wallet, smart contracts in Solidity, and off-chain indexing solutions. These features enable several important functions, such as user identification and verification. Users can use their crypto wallet to store all of their assets, as well as their identities. It can also be used as a passport to gain access to the decentralized Internet. It is the only means of establishing control over data. The Web3 ecosystem is still young, but many Web3 companies are trying to fill infrastructure gaps.
Tokens are also used to incentivize desired behaviors. For example, if users want to participate in a game, they can buy TARO, the native cryptocurrency of RobotEra’s metaverse-based gaming platform. TARO is used to control the in-game economy, and it is currently available in the first presale round.
The Graph protocol has also been dubbed the Google of blockchains. It indexes and stores data on the Internet, and has been ingrained in social media and virtual reality entertainment. The protocol has been used to create a new alternative financial system. It has been used to power smart contracts, which automate decentralized decision-making over a pool of resources. These contracts may require real-world data. These contracts can be slower than a centralized backend, and the costs can be very high. However, this type of system can allow users to create new value.
Web3 also provides a decentralized, permissionless financial system. It is a dynamic ecosystem of financial products and instruments. It is designed to be fair and equitable. It does not lock in exclusive access to users, like companies like Coinbase. It is also resistant to censorship.
Users can also vote on resource allocations. This type of application is called a DAO (Decentralized Autonomous Organization). A DAO allows users to make decisions about the future of the platform without having to trust a centralized third party. It uses code, rather than law, to make decisions. It is more expensive than a centralized backend, but it is also faster.
Decentralized autonomous applications offer an alternative way of organizing people and integrating work and play. Some apps may even allow users to monetize their own data. Users can also take their reputation with them when they leave a platform.
In the next few years, Web3 will expand to include a host of new applications. This will lead to convenient commercial and leisure activities. Many of these applications will use the same look and feel as Web 2.0 applications. However, they will have a different back end. For example, a user’s reputation can be stored on a decentralized platform, instead of in a bank or company.
