The internet as we know it is centralized, with a few powerful players controlling the most popular services. Web3 works to solve this problem by storing data across a network of many computers, creating a decentralized internet that allows users to control the services they use. The decentralized nature of Web3 also makes it ideal for online gaming, which is driven by blockchain technology. Most decentralized games also incorporate NFTs. However, there are significant logistical concerns to consider.
One problem with Web3 is that there is no regulatory oversight, making it easier for hackers to steal your personal information. This makes it harder for law enforcement to track cybercriminals and more difficult to recover ill-gotten assets. In addition, hackers have already stolen billions of dollars of cryptocurrency using Web3 platforms. Among these hacks, 97% were conducted using DeFi protocols.
Some Web3 apps allow users to monetize their content. LBRY, for example, lets users publish content, set a price, and receive payment directly. It also gives users the option to share their content for free. Another example of a Web3 application is DTube, a blockchain-based community-controlled platform for sharing content.
The Web3 ecosystem is still growing. There are many gaps to fill, and many startups are scrambling to fill them. However, building a high-quality infrastructure takes time. Many of the ideas and companies behind Web3 came to life only in the last year. While interest in blockchain and cryptocurrency has grown in the past year, these innovations are still very much in their early stages.
Many popular social networking platforms are changing to survive in the Web3 environment. Reddit, for instance, has reportedly tested tokenizing karma points to influence sub-communities. However, since Reddit is still owned by one company, this is a controversial idea. New decentralized networks have also sprung up. One of these is Aether, which is being marketed as a Web3 equivalent to Reddit. With Aether, users own their communities and can audit the moderation of their communities. Additionally, they can earn tokens through participation.
Web3 also relies on new decentralized technologies such as blockchain. Blockchain is the foundation of Web3. But the infrastructure is still complicated and not intuitive. In addition, users will need to pay gas fees to use Web3 applications. This makes it less user-friendly than its Web2 counterpart. However, many projects are already working on building their own tokens to ease the user experience.
Another emerging technology is the Metaverse. A new digital environment that merges the real and digital world. An example of this is the popular game Decentraland. Users can buy digital land plots and then use them to create real estate projects. Some of these projects have been sold for millions of dollars. They are an excellent example of the Metaverse in action.
As a crypto-currency, web3 has the potential to play a vital role in the future of the internet. Many major corporations are investing in Web3. In fact, many of them are putting large sums of money into the project.