You’re probably a fan of Spiderman casting his enemies in a swirl of the web but Web3 is so much better than that! We’re talking about a revolution here.
First, there was the world wide web when computers and mobile phones were just coming into existence. Fast forward to the 21st century, we’re using the internet for almost everything.
But then, some tech geeks and visionaries, and just every normal person who understood the crux of the internet felt as though there was one big issue with the current internet ecosystem.
Well, if you’re not aware of it, stay tight! We’ll be explaining to you what Web3 is and how it solves the current issue. We’ll also explain to you all the other terms and tech concepts that revolve around it.
You’ve probably heard it, terms like the blockchain, or, cryptocurrency and maybe even NFTs. It’s out in the ordinary and in a few years you’ll be breathing it just like you’re doing it with smartphones and social media.
The purpose of this article is to give you a basic awareness of the various integral components that constitute Web3. Let’s deep dive and get to know them right now.
For all of you who just think straight and say that there’s just one and only one internet, you’re probably right but a teddy bit wrong.
Ofcourse, there’s just one internet. That being said, there are iterations of the internet and we are basically utilizing the second iteration of the internet. The first iteration i.e Web1 was born in the 1990s when the internet was born.
That was the read-only internet where some tech geeks or new reporters posted content on the web and most people just read it. Then, came the internet that we’re accustomed to in the present times. This is the ‘read and write’ version of the internet.
You know pretty much what you can do with the internet and its applications right now. Video call, chat, write, publish, post, and whatnot. Everything’s just fine, right!
Most people wouldn’t have a problem with the current mode of internet but there are so many who do have. The ones who lost their data to malicious third parties, those who have been robbed of their privacy because they posted something on social media, and so on…
The whole problem lies in the way the internet operates. All of the information that’s associated with us and stored in the internet is accessible to the tech companies whose browsers and applications we’re using.
Data is centralized in this model. That’s why the next iteration of the internet was the only possible solution and Web3 was born. So, basically, Web3 is the third iteration of the internet that’s built on decentralized platforms or blockchains and all the applications running on it don’t have any centralized authority.
Terms and Concepts Associated with Web3!
Let’s take a look at the several terms and technologies that are associated with Web3.
At the heart of Web3 is decentralization and shared autonomy. The blockchain helps to achieve that. Blockchains are distributed, immutable ledgers of data that are built on blocks or peers, forming a network and constructed by mutually agreed rules.
Distributed in the sense that all the data that’s available on the blockchain is open and public; immutable being that nobody, not even the government being able to change information in the network or platform.
A blockchain, unlike other platforms, is decentralized i.e., in other words, no single member has greater say in any matter in the peer-to-peer network. It’s built by blockchain programmers and miners who write the entire code of the platform in such a way that data is secure and transactions of any sort are valid.
Decentralized finance is an integral component of Web3 as every financial transaction is digitalized in this online ecosystem of the internet. Dapps or decentralized applications built on blockchain principles enable the participants in the network to transfer digital currency amongst each other.
Cryptocurrency is the most popular form of digital currency and it’s being used to buy products or services in the Web3 world. You’ve probably heard of bitcoin, which is one of the most popular crypto currencies in the market. Many other decentralized apps use their own native tokens or digital currencies and use it as an interoperable mode of transaction.
Today, many companies are building dApps and tying up with decentralized exchanges to pool in various cryptocurrencies to give digital traders the option of switching between the cryptocurrencies and using their preferred ones.
The concept of an NFT emerged to authenticate ownership of data. NFT stands for non-fungible tokens. Unlike cryptocurrencies that are fungible or don’t have a unique distant value, a user owning an NFT of a particular digital data such as music, photos, artworks, etc…basically ensures that there’s no second user owning it.
Non fungible tokens solve for duplicacy of ownership of digital products and give credibility of ownership to the legit owner. You can own things on the internet you never imagined with the coming of NFTs. Also, many companies today are selling NFT tokens on a stake-model and for voting rights and membership.
4. Smart Contracts
Web3 is not all about decentralization; the pioneers also want to enhance the pace of business processes that are regulated on these ecosystems and hence smart contracts were devised. It’s basically computer codes that are used to automate business processes and they essentially constitute blockchain applications.
Smart contracts ensure that there’s no individual involved in taking decisions that constitute most of the primary decision-making. Instead AI-powered codes take on most of the decision-making routines and enhance the efficiency of business operations. It’s built within fixed rules that are mutually agreed by those who make it and that takes us to the next concept.
Decentralized Autonomous Organizations or DAOs are basically organizations composed of like-minded members focussed on solving a particular issue or purpose. They are binded by a particular set of rules and protocols that’s written in the smart contracts by which they operate.
DAOs use smart contracts to efficiently automate business processes and provide several services such as crowdfunding, proposal execution, and much more. No member in the organization has more power than the other ie. power is decentralized.
These organizations evolve and mature as investors fund them via digital tokens. The investors acquire a stake in the organization’s profits and gain voting power according to the margin of investment. Anybody who wants to join the DAO community must be bound to the rules mentioned in the smart contract.
These 5 technical concepts are what constitute the Web3 majorly. Having got a brief idea about them, you can expand on your Web3 knowledge by partaking in IBC Media’s educational bootcamps and the IBC CEP that tutors students and passionate developers on Web3 and other emerging technologies.
About IBC Media
IBC Media is building the largest, global blockchain ecosystem initiative from India. The company has a pioneering legacy of managing partnerships and establishing grassroots efforts in the Indian market.IBC Media’s debut event — IBC 2018 was a major success which had a confluence of top-line government attendees, VCs, regulators, blockchain companies, speakers, and sponsors.
IBC 2.0, the second edition in this series is the kick-start to IBC’s massive 5-year agenda with a global focus on creating Web3 industry-ready talent across 1000 engineering colleges, building 1000 DApps, a top-line talent pool of 1 Mn developers and 10 Mn retail investors.
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