Web3 – the new generation of the Internet: what are its capabilities?
Since 2020, the popularity of cryptocurrencies has only been increasing globally, with blockchain and the metaverse drawing a lot of interest. But Web3 is also making headlines, and many are curious about how things will unfold for the new generation of the Internet. In 2021 alone, around 3400 developers joined the Web3 space, and many big companies invested their money in it. Without a doubt, this new version of Internet service is promising, bringing significant new opportunities for both investors and technical experts.
Web3 is a great evolution of the Internet that relies on decentralization. Because the blockchain powers it, the network gives users more control over their content while also allowing them to hide their information. As a result, Web3 is considered safer than Web2. Web3 is a multi network that includes IoT, web, and decentralized networks like Bitcoin. It’s a module system where each individual module depends on the others.
It’s interesting to look at how the Internet developed over the years. The shift from Web1 to Web2 resulted in a dynamic Internet that users enjoyed a lot more, enabling them to create content and engage with other network participants via social platforms. However, decentralization is a main disadvantage of Web2, as users lack ownership of their content, leading to censorship, active targeting and data sharing with third parties. Luckily, Web3 changes the nature of the Internet, allowing users to monetize their content and giving them full copyright. The formula of the new gen-internet is simple: read, create, own.
What are the capabilities of Web3?
In the Web2 space, large enterprises own customer data – this means that you swap your information to use a platform like Facebook, for instance. This leads to data privacy issues and an increased risk of hacking. However, since Web3 doesn’t involve intermediaries, data ownership is redefined by addressing the challenges of the Web2 model, thus securing the information and preventing fraud.
Through smart contracts, trade terms and conditions are verified, ensuring a transaction is successfully processed. A decentralized network provides transparency, meaning that all assets in a particular wallet are public, and all the information can be accessed as long as you know the address.
Just as in the case of crypto, some people support Web3, and others only see it as expensive and imperfect, claiming that it is hard to understand for regular Internet users. However, enthusiasts believe that Web3 can potentially create a world that puts people’s relationships at the forefront, positively impacting business and technological improvements. It is worth noting that Web3 is more than just a new phase of the Internet – its impact on the economic sector can’t be overlooked. The current Internet generation differs from Web3 in terms of protocols, with the latter providing more reliability and security, benefitting the financial industries. A significant advantage is that Web3 no longer requires banks and other institutions to transfer funds. Due to this, the financial systems could develop and become more accessible. Moreover, Web3 doesn’t require consumers – instead, users must actively participate in the network, so it can function properly and generate decent profits. While the transition to this new Internet generation can’t happen overnight, the steps toward progress are evident.
Investing in Web3 – what kind of options are available?
Investing in Web3 can be rewarding, and there are different options from which you can choose. For instance, blockchain project tokens are a popular segment that showed significant growth in 2021 (more precisely, 244%), rated top 2 for its development speed. Besides this option, you can also invest in the following:
Non-fungible tokens (NFTs). There are different reasons why investors decide to purchase NFTs. While some want to own the underlying asset, others simply choose this option to gain more knowledge about blockchain.It’s important to understand that NFTs aren’t investments in their nature, so you should first look at the underlying asset’s value before purchasing the NFT. Investing in this sector can be profitable, as the technology is no longer just about collecting cards, and the industry has significant potential for development.
Metaverses. A metaversereplicates the real world; it is a shared digital space where you can interact with other users and enjoy an unparalleled immersive experience.Metaverses can be used for different purposes, such as online gaming, training, education and social networking. Many events can happen within this universe, including a business meeting and a concert. Regarding investments, you can build a house, rent an office or buy land. In the previous year, land has grown 10-fold in price, and this trend won’t likely go anywhere in the future, as institutional investors and huge global companies are putting their money into it.
Company shares. This is a conservative investment method,which some can find most convenient. It is possible to invest in corporations participating in developing digital worlds, such as Meta or Microsoft.
Although appealing, it is vital to remember that these investments involve certain risks and drawbacks, such as uncontrolled data flow. Moreover, it is impossible to tell how land prices in the metaverse will progress in the future. While it may not necessarily be just a bubble, as some perceive it, there’s uncertainty regarding how the market will evolve in the following years, making it critical to approach it cautiously.
The bottom line
Looking ahead, there’s no doubt that the new-gen Internet will bring unprecedented opportunities to users due to features like transparency and decentralization. Web3 is based on the blockchain, giving users full ownership of their content and enabling them to monetize it via innovative digital currencies. This can improve people’s quality of life significantly while also making the Internet an essential part of their day-to-day routine.
Web3’s future looks bright, benefiting investors, companies and Internet users. For example, the next generation of the Internet translates into more jobs and no limitations for content creators, allowing them to create articles, audio, video, photos, and so on. If you want to learn how Web3 will develop, make sure to stay up-to-date with the latest news in the space.
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