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Here’s what to know about Web3

The world is constantly evolving. Thirty years ago no one would have thought that the Internet would be available to everyone and that people would spend a lot of time on it every day.

Since then, networks and applications have been constantly evolving. More and more advanced programs and algorithms are appearing. The digital world is constantly evolving and many new technologies are being developed to change the modern internet beyond recognition in the shortest possible time.

One of these technologies is cryptocurrency. Many believe that in the future with the help of cryptocurrencies will be able to achieve maximum decentralization of the internet.

This is a very interesting topic if you are interested in cryptocurrencies, you should start with understanding what Web3 means.

What is Web3

Web3 is a concept of an entirely new network, based on the fact that cryptocurrencies are not just a means to transfer money, but a foundation for creating a new network. Web3 is supposed to embed financial assets in the form of tokens into the inner workings of almost everything you do online.

Proponents say it could replace corporations with decentralized organizations on the Internet. Which would be controlled by software protocols and the voices of token owners.

Skeptics, on the other hand, argue that this stuff is not yet ready to prove its effectiveness beyond certain programs. It could also be an attempt to circumvent regulation. As politicians around the world are already preparing to set clear rules for cryptocurrencies.

Generally speaking, Web3 at the moment is a mixture of ideas, creative projects, techno-utopianism and financial engineering.

Why is it called Web3

Before people came to the term Web3 there was also Web1 and Web2.

Web1 is a term to describe the early Internet. This is everything that starts with the earliest consolidation of computer networks in the 1970s and 1980s. The Web1 era ended in the 1990s with the rise of web browsers and websites.

Web2 is the next stage in the development of the Internet. It began as companies began to build applications on top of existing Internet principles. Social networks, search engines, and entire online libraries began to be created. Most of the content these applications were filled with was user-generated content. This gave an opportunity for rapid development. An obvious disadvantage is that most of the Internet is still run by big companies and can be controlled by them.

The idea of Web3 is decentralization. The plan is to create systems, software and platforms that do not depend on big companies and advertising, as Web2 does now. Such services would be controlled by a community of users.

What impact cryptocurrencies have on the Web3

The original cryptocurrency is Bitcoin, which can be used as an example to show how cryptocurrencies play a role in the creation of Web3. Bitcoin works because every transaction is recorded in a public database called a blockchain.

Because it is decentralized, this database is not maintained by a specific company, but by a huge network of computers that are connected to the general Internet. The operators of these computers are rewarded for their work by being able to earn even more Bitcoins.

But with Blockchain, you can do much more than just record transfers of digital coins. You can use it to make contracts and control the operation of software or applications.

Web3 applications are mostly based on Ethereum technology. Like Bitcoin, it rewards its users who support its network. The coin is called Ether and has a total market value of over 511 billion dollars.

Apps can also have associated tokens that can be used not only to pay for services, but they can also be used as shares that determine the development of the application, or the reward structure.

At first, the main incentive for such activity is the possibility to increase the price of the token. It can rise as more users join the community, but of course, it can also be inflated by speculation. There is a lot of that in cryptocurrencies.

What are the pros of decentralized apps

The main advantage of such a system is that it is convenient for developers. Web3 can become a place where people who have fresh ideas can develop their projects freely and have full control over them.

In this network, there will be so-called decentralized autonomous organizations that will manage their favorite projects with a public chat room and their tokens.

This will give users more control over their favorite products and no longer allow corporations to impose their ideas on consumers.

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