What is Web3?

Web3 is a concept in the evolution cycle of the internet that is developed on the principles of decentralization using blockchain technology. It was first introduce by the Ethereum co-founder Gavin Wood. Web3 is based on three key concepts which are decentralization, trust minimization and built-in crypto-assets.

Features of Web3

1. Decentralization: They do not require any centralized third-party service providers. Information and programs are executed in the peer-to-peer networks and decentralized nodes.
2. Blockchain Technology: The backbone of Web3 that enables more royalty to end-users through a trustworthy ledger for transactions and information.
3. Cryptocurrencies: Cryptocurrencies such as Bitcoin, Ethereum are central to Web3 since they facilitate economic activities without the involvement of a central bank.
4. Smart Contracts: Smart contracts that operate on an automated basis with the contract’s provisions being computer code which eliminates dependency on third parties.
5. Ownership and Control: There is increased usability of the data and digital assets by the users.

Web3 Applications

1. Decentralized Finance (DeFi): The main focus on the production of financial services without the involvement of an intermediary. Some of them are Uniswap, Aave, and Compound.
2. Non-Fungible Tokens (NFTs): Digital resources which provide the proof of ownership of an object, tangible or intangible. Some are OpenSea and Rarible.
3. Decentralized Autonomous Organizations (DAOs): The DAOs for organizations managed by smart contract and for ones that are controlled by the votes of the communities. The major platforms are MakerDAO and DAOstack.

The development of the World Wide Web has set certain milestones that have changed people’s experience of using information networks. At the moment, two terms are mainly used: Web3 and Web3.0, they are becoming important when it comes to debating the future of the internet. As much as both of them have a similar name, they are two different concepts and approaches. The purpose of this article is to show the differentiation between Web3 and Web3.0, to know about them and their classification as well as their functions.