Everything You Need To Know About Web3

This is a guest post by Bash Sarmiento

Because I have spoken about cryptocurrencies and NFTs before, I thought it a good idea to impart some knowledge on the future of the internet, i.e Web3.

Web3 is the next era of the internet, where users are in control of their data and applications. Many businesses and tech experts have been predicting its rise for years, and it is finally starting to become a reality! If you want to learn more about Web3, check out our guide to everything you need to know.

What is Web3?

To begin learning about this new technology, you must first answer the question: What is Web3?

Simply put, it is a decentralized platform that runs on blockchain technology that provides a secure and transparent way for users to interact with each other. In particular, Web3 allows users to interact with decentralized applications (DApps) and smart contracts on the Ethereum blockchain.

A DApp runs on the Ethereum blockchain. It is like a traditional web application but is powered by smart contracts - self-executing contracts that run on the blockchain. They can ease transactions between users securely and transparently. For instance, a smart contract could be used to manage a rental agreement between two parties.

Now that you know the basics of Web3, take a closer look at some of its key features.

Key Features of Web3

One of the most important features of Web3 is that it is decentralized. This means that it is not controlled by any central authority, such as a government or a corporation. Instead, it is powered by the Ethereum blockchain, which is a global network of computers that anyone can join.

Another key feature of Web3 is that it is secure. All data and transactions on the Ethereum blockchain are encrypted and stored in a public ledger. This makes it almost impossible for anyone to tamper with the data or make fraudulent transactions.

Lastly, Web3 is transparent. Because all data and transactions are stored on the blockchain, anyone can view them. This makes it easy to track down any potential problems or fraud.

What is the difference between Web2 and Web3?

Now that you know what Web3 is, you might be wondering how it differs from its predecessor, Web2. The main difference is that while Web2 is centralized, meaning that there is a single point of control, Web3 is decentralized. There is no single entity that can control or manipulate the network.

Another key difference is that while Web2 runs on central servers, Web3 runs on a decentralized platform. Finally, while Web2 apps are mostly closed-source, meaning that only the developers can see and change the code, Web3 apps are open-source. This means that anyone can view and contribute to the code, making it more transparent.

How is Web3 used?

Albeit a relatively new technology, Web3 already has many applications. And with its vast potential, there will likely be even more applications for this technology in the future.

Web3 Wallets - A Web3 wallet is a crypto wallet that allows you to store and manage your Ether and other Ethereum-based tokens. It also allows you to interact with DApps on the Ethereum blockchain.
Decentralized Exchanges - On decentralized exchanges, users can trade cryptocurrency without the need for a central authority.
Identity Management - Web3 can be used to build decentralized applications that manage user identity securely and transparently.
Supply Chain Management - DApps can also track the movement of goods and materials through the supply chain.
Voting - Applications that allow users to vote on decisions made by a group or organization can also apply Web3 technology to facilitate the process and secure each vote.
Insurance Contracts - Decentralized insurance contracts can be developed by using Web3. With this type of contract, users can insure themselves against risks such as theft, fraud, or natural disasters.
Web3 Bounties - Web3 bounties are a way to incentivize users to complete tasks. Bounties are often used by developers to find bugs in their code or to improve the usability of their applications. These can be used to post and manage bounties for tasks such as bug fixes, security audits, or product development.

What are the risks of using Web3?

As with any new technology, there are some risks associated with using Web3. These include the risk of technical vulnerabilities and the risk of fraud or theft. However, these risks can be mitigated by taking proper security precautions and by using trusted platforms and services.

The Future of Web3

The goal of Web3 is to create a more democratic, open, and secure internet for everyone, and the future of Web3 is bright. It has the potential to revolutionize the way that people interact with the internet and can be used to build a new generation of decentralized applications.

Additionally, because it is based on the Ethereum blockchain, it is highly scalable and can be used to power large-scale applications. Although it is still in its early stages, there are already several projects and businesses applying Web3 to various areas such as social media, finance, and gaming.