DeFi
September 28, 2022
What is Token Burn and it's effects on price
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
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Lately, everyone from teenagers to grownups have been talking about the web 3 revolution and the opportunities it is bringing. On one side there are companies which are on the apex of web 2, whereas on the other side, the web 3 sector is just about to blossom and is looking for getting recognition.
Most of you must have heard about the web 3 revolution due to its close interrelation with cryptocurrency and blockchain. However, there are still many unclear things about web 3.
The concept of web 3 is still not known to many and thus it is necessary to have more discussions about web 3 in order to spread awareness regarding it and the upcoming opportunities which no one should miss.
In this article, we will introduce you to this new world of web 3 and we will try to create a picture of how it is going to work out in the near future. But first, let’s go a little back in time and see how the world of the internet looked back then.
The Internet has evolved a lot from the 1990's and we have discovered some significant uses and applications in this timeframe. Depending on the major discoveries in each era, this timeframe has been divided into three generations so far.
Let’s take a closer look at all the generations briefly from web 1 to web 3. We will emphasize more on the latest web 3 developments later in this article.
The world of the internet began with Web 1.0 which was the first generation of the world wide web (www). As it was the beginning of the Internet era, there were very few content creators and the majority of people were consumers.
This generation of the internet involved just the personal static pages which displayed content from the server's file system. However, there was no sharing of information in the Web 1.0 phase. Web 2.0 is the phase where things start getting interesting.
The internet we are currently using and experiencing can be called as web 2. As compared to the previous generation of internet, web 2 is more interactive. It is more content driven and social where people can connect and create or consume content.
Social media and E-commerce are two big sectors which got established in the web 2 phase. Companies like Facebook, Twitter, Instagram, whatsapp are babies of web 2 in terms of social media.
Whereas companies like Amazon ruled the E-commerce sector in web 2. The internet of this web2 generation can be said to be dominated by big tech giants like Apple, Google and Netflix. However, the dominance of these companies is what brought web 3 into the picture.
On power to the web 2, the web 3 generation of the internet will bring ownership of data and control in addition to read and write ability. Currently, we just use the services offered by the web 2 companies for free or in exchange with our personal data.
However with web 3, you will be able to own the content you create. Instead of following and acting as per the rules stated by a web 2 company, you can publish your content or art on a decentralized platform where as a creator you own the content or as a shareholder or token holder you can govern the platform.
Therefore, web 3 can be called as “Decentralized Internet” where the decisions about a platform are taken by the people using that platform instead of giving full control in the hands of companies like Google which takes decisions with or without concerning users.
If you have been following cryptocurrencies and the world around it, this upcoming web 3 revolution must have excited you a lot. The blockchain technology and cryptocurrencies are the building blocks of web 3. Lets see how cryptocurrencies and web 3 are actually connected.
As discussed above, the web 3 is focused more on building decentralized versions of the current web 2 economy which puts the users at first. On one side, web 3 is looking forward to bringing decentralization to the internet economy, while on the other side, cryptocurrencies have already established decentralization.
As web 3, cryptocurrency and blockchain, all three share the same underlying principle, in order to bring web 3 into the reality, projects based on blockchain and making use of cryptocurrencies are required to be built.
In web 3, cryptocurrencies can help decentralize the finance sector. The smart contracts can automate many systems without the need of a centralized governing body. Various apps being built on DeFi protocols on blockchains like Ethereum and Polkadot can further help in making web 3 as a complete ecosystem.
Following are the few concepts and features on which the web 3 is going to be based on.
With decentralization at its core, web 3 is designed to respect privacy by default. Any kind of data in the web 3 is stored on multiple locations as the users are actual owners of their own data.
Therefore, there is no need to have big data centers of a particular company like Google or Meta who store the data at one fixed location. Allowing data in such a huge quantity all at one place gives too much power in the hands of one company and is also vulnerable to cyber attacks.
Currently in web 2, the implementation of AI and machine learning is very limited although they have shown great caliber in fields like self-driving vehicles and in smartphones to some extent. However, web 3 is going to make use of AI even more extensively.
The AI implemented would continuously learn from users and their behaviors to make their experience better each time. Companies will be able to develop better products and services with the help of AI and data predictions given by machine learning programs.
As web 3 is a decentralized version of the internet, there is no single organization which controls the web and thus you won’t require permission from any entity to participate in web 3. No one can restrict or block your access to any service on web 3 applications.
In web 2, platforms are owned by companies and they offer services to users. Thus, the company decides whom to give access to their services and whom to not. However, web 3 works in a permissionless manner where participants can directly interact with each other without interference of any central organization.
Web 3 surely brings great advancements over web 2, however it cannot completely replace web 2 due to its limitations. Let’s discuss the aspects where web 3 lacks behind.
Believe it or not, web 3 is far more complex than web 2. This complexity provides greater benefits in the field of decentralization and privacy focused internet. But at the same time, it makes the experience more complex and not everyone is comfortable with it.
All the transactions on web 3 are decentralized and hence are slower as compared to transactions processed by banks. The involvement of miners and validators on the network makes the process secure but slower.
Applications based on web 3 are usually difficult to understand at first as people are not familiar with most of the web 3 concepts. It takes time to learn how to use a particular software based on web 3.
Web 3 is a significant and a necessary upgrade over web 2 and we are slowly moving towards it. This article was an introduction to web 3 and its early insights. We hope this article helped you get comfortable with the upcoming web 3 revolution.
We have discussed both the pros and cons of web 3 and how cryptocurrency is going to be a major part of web 3. To be one of the early adopters of web 3, one should be familiar with how cryptocurrencies work. You can check out our articles about the same to educate yourself on it.
If you liked this article, do share your feedback with us. Feel free to contact us if you have any questions regarding web 3 and the team Hyper Growth will be happy to help you.
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