One of the key technologies that enable and support Web 3 is blockchain. Blockchain is a distributed ledger system that records transactions in a secure and transparent way. It allows users to exchange value and information without intermediaries or central authorities. It also creates trust and accountability among participants in a network.
In this guide, we will explain what Web 3 and blockchain are, how they work, how they are related, and how you can get involved in them. Whether you are a curious beginner or an aspiring enthusiast, this guide will help you understand the basics and benefits of Web 3 and blockchain.
What is Web 3?
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| Web 3 |
Web 3 is a term that refers to the next generation of the internet, which is more open, decentralised, and user-centric. It is also known as the decentralised web or the semantic web.
To understand what Web 3 is, let’s first look at how the internet has evolved over time:
- Web 1: The first version of the internet was mainly static and read-only. It consisted of simple web pages that displayed information to users. Users could only consume content, but not create or interact with it. Examples of Web 1 platforms are Wikipedia and Yahoo.
- Web 2: The second version of the internet was more dynamic and interactive. It enabled users to create and share content, as well as communicate and collaborate with others. Examples of Web 2 platforms are Facebook, YouTube, and Twitter.
- Web 3: The third version of the internet is more intelligent and autonomous. It leverages advanced technologies such as artificial intelligence (AI), machine learning (ML), and blockchain to create a more user-centric and decentralised web. Examples of Web 3 platforms are Ethereum, IPFS, and Brave.
The core principles and technologies of Web 3 are:
- Peer-to-peer networks: Web 3 relies on peer-to-peer networks that connect users directly without intermediaries or central servers. This reduces the risk of censorship, downtime, or data breaches. It also increases the efficiency and scalability of the web.
- Cryptography: Web 3 uses cryptography to secure and verify transactions and communications on the web. Cryptography is the science of encoding and decoding information using mathematical techniques. It ensures that only authorised parties can access or modify data.
- Smart contracts: Web 3 enables smart contracts, which are self-executing agreements that run on blockchain networks. Smart contracts can automate transactions and enforce rules without human intervention or third-party verification. They can also facilitate coordination and cooperation among multiple parties.
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| Smart Contract |
- Tokens: Web 3 introduces tokens, which are digital assets that represent value or utility on the web. Tokens can be used as currencies, rewards, incentives, or access rights on various platforms and applications. They can also enable new business models and economic systems.
What is Blockchain?
Blockchain is a distributed ledger system that records transactions in a secure and transparent way. It is one of the key technologies that enable and support Web 3.
A blockchain is essentially a chain of blocks, where each block contains a batch of transactions that are validated by a network of nodes (computers). Each block also contains a cryptographic hash (a unique identifier) that links it to the previous block, creating a chronological and immutable record of transactions.
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| Blockchain Network |
A blockchain network operates on a consensus mechanism, which is a set of rules that determines how nodes agree on the validity of transactions and blocks. Different blockchain networks may use different consensus mechanisms, such as proof-of-work (PoW), proof-of-stake (PoS), or proof-of-authority (PoA).
Some of the main features and benefits of blockchain are:
- Decentralisation: Blockchain eliminates the need for intermediaries or central authorities to process or verify transactions. Instead, it relies on a distributed network of nodes that operate independently but collaboratively. This gives users more control, autonomy, and freedom over their data and assets.
- Security: Blockchain uses cryptography to secure and verify transactions and blocks. It also uses consensus mechanisms to prevent malicious attacks or fraudulent activities. Furthermore, it creates an immutable record of transactions that cannot be altered or erased.
- Transparency: Blockchain provides transparency and accountability for all transactions and activities on the network. Anyone can view or audit the transaction history and verify its authenticity. This creates trust and confidence among participants in the network.
- Innovation: Blockchain enables innovation and experimentation on the web. It allows users to create and exchange value and information in new and creative ways. It also supports the development of decentralised applications (DApps) that run on blockchain networks and offer various services and functions.
How are Web 3 and Blockchain Related?
Web 3 and blockchain are closely related, as blockchain is one of the key technologies that enable and support Web 3. Blockchain provides the infrastructure and foundation for Web 3 applications and services, such as:
- Decentralised finance (DeFi): DeFi is a term that describes the use of blockchain and smart contracts to create alternative financial systems and products that are more accessible, inclusive, and efficient. Examples of DeFi applications are lending platforms, exchanges, stablecoins, and insurance.
- Non-fungible tokens (NFTs): NFTs are unique and indivisible digital assets that represent ownership or identity on the web. They can be used to create, collect, or trade various forms of digital art, media, or collectibles. Examples of NFT platforms are OpenSea, Rarible, and CryptoPunks.
- Decentralized social media: Decentralized social media is a term that describes the use of blockchain and tokens to create social media platforms that are more user-centric, democratic, and rewarding. Examples of decentralized social media platforms are Steemit, Hive, and BitClout.
- Identity management: Identity management is a term that describes the use of blockchain and cryptography to create self-sovereign identities (SSIs) that give users more control and privacy over their personal data and online interactions. Examples of identity management platforms are uPort, Civic, and SelfKey.
However, Web 3 and blockchain also face some challenges and limitations, such as:
- Scalability: Scalability is the ability of a system to handle increasing amounts of transactions or users without compromising its performance or security. Many blockchain networks struggle with scalability issues, as they have limited capacity or speed to process transactions. This can result in high fees, congestion, or delays.
- Interoperability: Interoperability is the ability of different systems or networks to communicate and exchange data or value with each other. Many blockchain networks operate in silos, as they have different protocols or standards that prevent them from interacting with other networks. This can limit the functionality and compatibility of Web 3 applications and services.
- Regulation: Regulation is the set of rules or laws that govern the operation or behavior of a system or network. Many blockchain networks operate in a regulatory gray area, as they lack clear or consistent guidelines or frameworks from authorities or jurisdictions. This can create uncertainty, risk, or conflict for Web 3 users or developers.
- Adoption: Adoption is the extent to which a system or network is used or accepted by its intended users or audience. Many Web 3 applications and services suffer from low adoption rates, as they face barriers such as complexity, usability, awareness, or education. This can hinder the growth and development of Web 3.
How to Get Involved in Web 3 and Blockchain?
If you are interested in learning more about Web 3 and blockchain, or want to get involved in them, here are some tips and resources for you:
- Learn: The best way to understand Web 3 and blockchain is to learn from reliable sources and experts. You can find many online courses, books, podcasts, blogs, newsletters, and videos that cover various aspects of Web 3 and blockchain. Some examples are:
- Web3 Foundation: A non-profit organization that supports the research and development of Web 3 technologies.
- Blockchain.com: A platform that provides various tools and services for accessing and using blockchain networks.
- CoinDesk: A media outlet that covers the latest news and trends in the blockchain and cryptocurrency space.
- CryptoZombies: A fun and interactive online course that teaches you how to code smart contracts on Ethereum.
- Access: The next step to get involved in Web 3 and blockchain is to access and interact with them. You will need some platforms, tools, and wallets to do so. Some examples are:
- Metamask: A browser extension that allows you to connect to various blockchain networks and DApps.
- Coinbase: A platform that allows you to buy, sell, store, and exchange various cryptocurrencies.
- Uniswap: A DApp that allows you to swap tokens on Ethereum without intermediaries or fees.
- Etherscan: A website that allows you to explore and monitor transactions and activities on Ethereum.
- Contribute: The final step to get involved in Web 3 and blockchain is to contribute to their development and growth. You can do so by participating in various communities and projects that are working on Web 3 and blockchain. Some examples are:
- Ethereum: A blockchain network that supports smart contracts and DApps, and has a vibrant and diverse community of developers, users, and enthusiasts.
- Gitcoin: A platform that connects developers with projects and funding opportunities in the Web 3 and blockchain space.
- DAOs: Decentralised autonomous organisations (DAOs) are entities that are governed by smart contracts and collective decision-making, rather than by traditional hierarchies or authorities.
- Hackathons: Hackathons are events where developers collaborate and compete to create innovative solutions using Web 3 and blockchain technologies.
Conclusion
Web 3 and blockchain are changing the internet as we know it. They offer new possibilities and opportunities for users, creators, and entrepreneurs to create and exchange value and information in a more open, decentralised, and user-centric way. They also pose some challenges and limitations that need to be addressed and overcome.
In this guide, we have explained what Web 3 and blockchain are, how they work, how they are related, and how you can get involved in them. We hope this guide has helped you understand the basics and benefits of Web 3 and blockchain, and inspired you to explore and experiment with them.
If you have any questions or feedback, feel free to leave a comment below. Thank you for reading!
