Cryptocurrency: Web3 the new big thing. If you are even remotely interested in the world of cryptocurrencies. You are aware that it generates a steady stream of jargon. To mention a few, there’s NFT, dapp, DeFi, and tokenomics, to name a few concepts. Prepare yourself for a new one: Web3 (World Wide Web). The concept is that cryptocurrency can be used for more than just transmitting money or speculating. And that it has the potential to be utilized to create a completely new web. If the believers are correct, there is one piece of cryptospeak that everyone should get familiar with. Even if they never touch Bitcoin.
Without a doubt, the software that underpins the internet is constantly evolving. One of the things that distinguishes Web3 from other platforms. And makes it more than a bit strange—is that it would integrate financial assets. In the form of tokens, with the inner workings of nearly any online activity. The cryptocurrency’s supporters believe that by doing so. It will be able to displace corporations with decentralized, internet-based organizations. Some of which are governed by software protocols and the votes of token holders. ‘It’s the first time we’ve seen actual consumer adoption of cryptocurrency,’ says Jeff Dorman. Chief investment officer of cryptocurrency fund Arca. “With time, every company transformed into an internet company. ” “I believe it will occur in the realm of digital assets.”
Skeptics, and there are many of them, argue that this technology is still far. From demonstrating its utility outside of niche applications. Many of which are tools intended towards cryptocurrency traders. It could also be an attempt to get past regulation at a time. When regulators are preparing to define clearer rules for cryptocurrencies. As is the case with Bitcoin. Overall, Web3 is an intoxicating concoction of fresh ideas.
Why is it Web3? Where were webs 1 and 2?
The term “Web 1.0” refers to everything from the initial interconnection of computer networks. In the 1970s and 1980s to the first flowering of browsers and websites in the 1990s. And everything in between. Web 2.0 was the next phase, during which businesses developed software applications. On top of it, ranging from social media to search engines to wikis. Most of which was dependent on information contributed by users. Despite the fact that much of the web has become decentralized as a result of this. The vast majority of items are still controlled by large corporations.
Essentially, the goal of Cryptocurrency: Web3 is to develop software and platforms that are not reliant on existing enterprises. Or Web 2.0 income models such as advertising. In some cases, users may be able to directly pay for services by using tokens. In an ideal world, Cryptocurrency: Web3 services would administered. Owned, and improved by communities of users who would collaborate to make them better. (As for why it’s call Web3 rather than Web 3.0. It’s primarily due to changes in the way developers communicate online.)
What’s this have to do with crypto?
Bitcoin, the first cryptocurrency, operates on the principle of a public database. Known as a blockchain, which records every transaction. It is decentralize because this ledger is not maintain by a single corporation. But rather by a huge network of computers all connected to the internet. Whose operators are reward for their efforts with the opportunity to earn additional Bitcoins. However, a blockchain is capable of far more than simply recording the movement of digital currency. You may use it to form contracts and to regulate the operation of software and apps.
Web3 applications frequently built on top of a platform known as Ethereum. Which, like Bitcoin, rewards users who contribute to the network’s upkeep. Its cryptocurrency called Ether, and it has a total market capitalization of $511 billion. The apps themselves may also have associated tokens, which may not only used. To pay for services but may also operate as voting shares. Allowing people to influence the development of the apps and even its pricing structure. At least in the beginning, a significant portion of the motivation. For this action is frequently the possibility of an increase in the value of the token. It may rise when more members of the community join. But it may also inflated by speculative activity in the market. There’s a lot of that in the cryptocurrency world.