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Web3: Cryptocurrencies and Blockchain 101

Elita Torres

Whether you’re new to the crypto world or already an enthusiast, chances are, you’ve encountered the term ‘Web 3.0 or Web3.’ But have you found yourself looking for a Resource page that talks about what web 3.0 is? Are you stuck wondering what Web 3.0 actually means? Well, dubbed the next generation of the internet, Web 3.0 or Web3 operates in a decentralized ecosystem where it allows peer-to-peer transactions without relying on third parties. This system will integrate a combination of blockchain and cryptocurrency with smart contracts to allow users to have control over their data. 

To help you further understand the concept, we will go through everything you need to know about the Web3 browser and how blockchain and cryptocurrencies play a significant role in bringing it to life. 

What is Web3?

The concept of Web3 pertains to the next generation of the internet, where users can control and own their digital assets and other online content. It is decentralized, which removes control from large corporations to mediate the internet and have authority over our data and assets. 

Today, we use a centralized internet, meaning we don’t have ownership over our data because it is in the control of large companies like Google, Apple, or Facebook. But since Web3 is decentralized, you can leverage your information, access all your data, do virtual transactions, and govern sections of the internet without needing permission from central authorities. Therefore, users can protect their privacy better. 

We can fully grasp how Web3 works by taking a step back to how the web evolved as we see it today. 

Web 1.0 – the initial iteration of the internet, appeared in the 1990s. Some of you might not remember it, but at that time, it functioned nearly like a massive encyclopedia, allowing users to review topics on an infinite number of subjects with no interaction.

Web 2.0 – the version of the internet that we have been using since the early 2000s. Consider websites like YouTube or Instagram, where users are both content consumers and producers. The main issue is a rising lack of privacy caused by the vast amounts of data we share with some of the major organizations in the world. They utilize these data to tailor the information we get to our preferences, turning each of us into a marketable commodity for advertising firms.

Individuals now want to recover control. Therefore Web 3.0, a new version of the web where people are not only consumers and content providers but also partial owners of projects and assets, is formed. And Web 3.0 is supported by ground-breaking blockchain technology, which leads us to our next point. 

The role of Blockchain Technology and Cryptocurrencies in Web3

When the topic of Web3 comes up, it is often associated with cryptocurrencies and blockchain. It’s not surprising since Web3’s primary principle is its decentralized feature, and crypto is known for doing transactions outside third parties, thanks to a decentralized record-keeping system called blockchain technology. 

The crypto associated with Web3 provides users with various services, such as computation, bandwidth, storage, identification, and hosting services, formerly offered by cloud providers. Individuals can earn a living in Web3 because it provides monetary incentives (tokens) to those willing to create, govern, contribute, and improve the vision of the projects to execute the services mentioned. Additionally, consumers can pay to use a service, much like they would pay a cloud provider like Amazon Web Services, to access these services. The only difference is it eliminates all wasteful and needless intermediaries we usually encounter on web services.

Web3 also heavily relies on NFTs, digital currencies, and other blockchain entities. For instance, Reddit is now paving the way for Web3 by employing cryptocurrency tokens that allow users to contribute significantly to the community in which they participated. By posting a specific subreddit, users could earn ‘community points’ depending on how many users downvote or upvote a particular post. The system then stores these points in blockchain technology to distribute ownership among users and allow them to gain more control over their assets without being taken away. 

Top Web3 Cryptocurrencies 

Here are a few instances of Web3 crypto projects constructing the next-generation web:

Why is Web3 Important?

Thanks to Web3, you can own digital assets in a way that has never been possible. For instance, once you spend real money on an in-game item in the online game on Web 2.0, the item is added to your gaming account. However, every in-game item you’ve previously gathered is gone once it suddenly stops its operations. You won’t experience any of the mentioned problems if you use Web3, as it enables direct user ownership via non-fungible tokens (NFTs). 

Furthermore, Web3 offers a free space for content creation while enabling users to exercise control, ownership, and monetization rights. How? Through blockchain and cryptocurrencies.

Blockchain technology plays a crucial part in designing Web3. Users can interact with various online services using peer-to-peer network governance and blockchain technology. In contrast to centralized servers of a single entity, peer-to-peer networks are essentially decentralized networks of computers. Users have complete control over their data in these settings and can engage in peer-to-peer, permissionless transactions. 

Blockchain, therefore, makes it simple to do away with the requirement for intermediaries. You can access the world of web3 if you have an internet connection and a bitcoin wallet for Web3. By employing various online applications, users would afterward have complete control over their digital identities and the means and timing of data sharing. Users can utilize their private keys to keep their identity and data secure.

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