The era of the internet has changed drastically so far. Web 1.0, active from 1989 to 2005, was a read-only platform. It provided grounds for developing the most prominent web assets. Web 2.0, which is active to date, has been providing a Platform of Interaction where users can read and write content on websites or applications and can engage with each other via social media platforms. In this era, closed protocols introduced centralization. Now, the eyes are on Web 3, which will bring a revolutionary change in the internet world.
To learn more about this emerging web concept, continue reading below. Let’s keep the ball rolling!
Web 3.0 is a decentralized concept that is one of the hot topics in this day and age. It is an open-source platform aiming to improve user experience, provide personalization, and easy accessibility.
In simple words, web3 is the latest evolution of the internet that leverages ML/AI, semantic web, and blockchain to provide real-time interaction among individuals. Some of the exciting characteristics of web 3.0 are:
Web 2.0 is static and less interactive, which intensifies the need for the arrival of the next-gen technology “web3.0”.
The pain point associated with web 2.0 is that some eminent giants like Google, Facebook, Microsoft, etc., were offering limited data management to users, which raised numerous concerns, including hacking, data leakage, privacy issues, etc.
Customers often blame these large-scale and small-scale organizations for putting their privacy at stake. There have been several complaints against such giant firms, including Amazon’s aggressive business practices and Google’s data privacy issues which raised the need for some serious safety protocols.
Henceforth, blockchain has been introduced, the main technology behind web3, and serves as a dynamic, safest, and interactive web version.
In web 3.0, there are no centralized databases and web servers. Data is distributed across numerous devices and stored securely, resulting in reduced data leaks, and users get complete ownership of the data. In addition to this, it reduces dependency on intermediaries.
Now that you know the definition of web 3.0 and its rising need in this technological era, it is time to know about its use cases.
Top web3 use cases incorporate numerous terminology, such as “DeFi” or decentralized finance, The Metaverse, decentralized autonomous organizations (DAOs), blockchain, the Creator Economy, etc. These terminologies are so attention-seeking that nobody can resist drawing their focus toward web3.0.
Continue reading below to know the practical aspect of web3 and some of its applications!
DAO stands for decentralized autonomous organization, defined as the group of people coming together with ownership. It is considered as one of the top use cases of web 3.0. DAO utilizes smart contracts to ensure autonomy for tallying votes and implementing decisions without intermediaries. The concept of corporate governance has also been introduced in the virtual world through these smart contracts, and there is no requirement for CEOs or company presidents.
The group of members (sitting in any corner of the world) involved in DAO purchase a governance token to become eligible for voting on decisions. All these decisions or sets of rules are stored in the form of code in smart contracts, which serve as the backbone of the DAO (decentralized autonomous organization).
The interesting fact about these smart contracts is that once they go live on technology like Ethereum, these are irrevocable. However, these can be changed only by voting of group members. If, in any case, someone acts against the rules or code defined in the smart contract, then it will not come to be fruitful. Although, the money can be spent only with the DAO group's approval. Therefore, the approval of members of DAO is mandatory to perform any action.
DAO is completely in the hands of its group members, who take decisions collectively instead of any central entity.
The other biggest use case of web3 is decentralized finance, also called DeFi. First of all, let's rewind the working of traditional finance banks. Suppose if a person lends money to a bank on some amount of interest, then the bank further lends that money to another bank user who is in need of money and for this, the borrower has to deposit the particular amount of interest to the bank. In this process, neither a lender nor a borrower knows the amount of interest the bank gives and takes respectively. That means that traditional banking is centralized authority and is not transparent.
However, DeFi has a transparent operation of lending and borrowing in the form of crypto assets via decentralized applications for financial services. DeFi is built on 3 major things:
The Decentralised finance applications or DeFi apps or dApps are software applications associated with a series of smart contracts. Here, the smart contracts act as a middleman that holds the crypto assets such as USD coin, Ether coin, Tether coin, Bitcoin, etc. The prominent factor of dApps is that they are built on open blockchain networks that enable participation from all around the world.
While using DeFi, crypto owners can lend or borrow the coins without involving any intermediary. In this manner, the whole amount of interest against the loan goes directly to the lender.
DeFi works on blockchain technology, a global network, and people from diverse locations can use it. It allows peer-to-peer digital transactions and instantaneous and borderless transactions. DeFi facilitates payment blockchains that improve the existing payment systems.
With DeFi, you can easily use, access, audit, upgrade, and develop financial services. There is no denying that DeFi is becoming one of the advantageous web3 applications solely focusing on making the transactions transparent and presenting prolific opportunities for financial systems.
Another notable application of web3.0 is blockchain-based games. As blockchain is the technology behind these games, it opens doors to the virtual world and personalized economies with actual ownership over in-game items. It also offers flexibility to transfer the in-game objects to other games.
Imagine you are playing any blockchain-based game and buying any in-game items like avatars, weapons, tools, etc.; this gives you full ownership of those items. Since it uses NFTs for ownership, you are free to trade those NFTs for fiat currency or to transfer them to other games. The decentralized technology behind this let players have full authority over entire gaming.
Another one of the most prominent use cases of web3.0 is Metaverse, the emerging technology in the coming future. Many organizations, including Facebook, have already introduced the concept of Metaverse, but it is yet to be explored more.
The metaverse is the virtual representation of any community where people use digital avatars to represent themselves and can communicate with other avatars in the virtual world. However, the surprising factor here is that this is possible with a couple of gadgets like virtual reality headsets and controllers.
Technologies such as VR, AR, AI, social media, and digital currency lay a strong foundation for the metaverse to traverse a virtual world that mimics a physical world. You can buy anything using your digital currency, such as clothes, weapons, etc. It could be interesting to be on the internet rather than watching it through the computer. This would provide you with an immersive and engaging experience.
A few organizations that have leveraged the metaverse concept are Facebook, Microsoft, Epic Games, and many others. Undoubtedly, the metaverse is one of the best web3 applications that include the element of decentralization and creator economy.
Some of the exciting features of metaverse are:
Do you know?
The creator economy is flourishing widely and it received more than $1.3 billion in funds in 2022. The creator economy is expected to jump from 50 million to 100 million in the coming years. This is a huge figure!
What exactly is the creator economy?
Well, it is the community of content creators who monetize their skills. These content creators and curators could be bloggers, writers, YouTubers, influencers, artists, developers, etc. Considering the long-term profit, many large-scale ventures are investing in this economy. Platforms like YouTube, Facebook, and TikTok have already launched their creator funds, tools, and resources to attract creators.
Presently on web2, content creators or curators create monetized content via advertising, affiliate advertising, and sponsorship agreements. However, there is no trust created between the creators and the company. Web3 will change the whole scenario since it is decentralized and requires no intermediaries.
Web3 provides a new and exciting platform for the creator economy in which creators build and own communities. Here, major highlights of the creator economy would be NFTs or non-fungible tokens. These NFTs will give a unique identity to creators and their work, ultimately offering them full ownership.
The creator economy, listed in the top web3 use cases, offers monetization opportunities and also enables creators to trade their work through the option of royalty payments. NFT owners can use smart contracts to track sales and royalty commissions.
The third generation of the internet i.e., web3, will drastically impact how we use the internet now. Blockchain introduced in web3 will decentralize everything and users can become the owners of their assets. All the above-listed use cases of web3 give a clear vision of how we would be experiencing the internet in the future with technologies like VR, AI/ML, AR, and MR.
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