What does exactly mean web3 term?

It is practically impossible to go through tech Twitter and do not see the term web3. Mainly this year, there is such a hype on decentralization that there even was announced web5 (web4 was skipped),

but, what is web3?

Agenda:

• introduction,
• Web1, Web2 history,
• Web3 hype,
• Ownership,
• Cryptocurrencies,
• NFTs,
• DeFi,
• Smart contracts,
• Dapps,
• Opportunities,
• Disadvantages of web3.

Web1, Web2 history

With the creation of the Internet, every website was like a digital newspaper, there was possible only reading, consuming informations. It is the description of web1 term.

Web2 gives opportunities to signing up, creating interactive platforms, like Facebook and Twitter. Moreover, user not only consume informations, but also creates an interactive content and communicates with other users.

Web3 is a totally game changer. As Web2 is focused on centralized server-client structure, web3 is entirely decentralized. To achieve decentralization, data are stored in blockchain.

All basic informations about blockchain, you can find in my previous content:

https://twitter.com/kacperhernacki/status/1545029316022509569?s=21

Web3 hype

Why there is such a hype on web3? Actually, because of decentralization, there is no need for middlemen. For example, if you want to make a money transfer, you have to do it through a bank account. In web3 it is just proceeded peer-to-peer.

Above feature makes user more independent and free, also data on different platforms, like articles, videos are not controlled by anyone, because of blockchain. In web3, YouTube administrator can delete not demanded videos, blockchain prevents such a censorship.

Ownership

What is more, In web3 user own the credentials, it is not saved by server side. Platforms like social media, store credentials of every user in centralized database what makes it exposed to hacker attacks.

In web3, every authentication process is made by digital wallet which consist two keys, public and private. Private key is mentioned to not be revealed for anyone, except the owner. With private keys, are made signs of transactions.

However, the public key is visible to anyone in blockchain explorer, and is used like an email address, but to send there coins.

Cryptocurrencies

In decentralized web, digital wallet is the tool to use platforms. As a name indicates, wallet should have some money. In web3, moneys are cryptocurrencies. This coins are used to transactions in these kind of platforms and also pay some fees.

Do you want to know why fees are necessary? Jump into my latest tweet:

https://twitter.com/kacperhernacki/status/1545029292668616704?s=21

NFTs

NFTs are the symbols of web3, but why?

In contrast to cryptocurrencies, NFTs are non fungible, one NFT is not equal to another. For example 1BTC is always equal to 1BTC. But why it is the symbol of web3?

NFT is the digital license which proves that you are the owner of some assets, digital or even physical one. It only validates your wallets private key to approve you as an owner.

DeFi

Decentralized Finances offers financial instruments without any middleman. DeFi allows to borrow or lend funds from others, or invest in funds.

Smart contracts

Without smart contracts there would be no hype on web3. Literally, every web3 developer needs to get acquainted with smart contracts and languages which are used to write them.

Smart contracts are the agreements between sides, which is automatically executed without a middleman. For example, I can bet with someone about the football match and the result. If I lost I pay the other side the reward, If I win, I got paid.

It requires some trust to other side, or the middleman. Smart contract can deposit cryptocurrencies from both of us and execute the bet, then the wallet of the winner is granted.

Not every blockchain allows to deploy smart contract, the most famous are: ethereum, solana and cardano. On the other hand, bitcoin blockchain does not support that.

Dapps

Dapps are defined as decentralized applications. In web3 world there is no place for centralization, that’s why the term dapp is so important. Dapp requires auth process by proceeding digital wallet signing. Basically every action, recording in blockchain needs that.

Opportunities

Web3 opportunities are huge. It can be spoken about the amount of salary for web3 developers, which is super high and is rising, the same with demand of blockchain coders. Well used decentralization can give more freedom to every participant of the network.

Disadvantages

• it can be overwhelming for not tech people,
• Many laws have to be changed, to fully used it potential,
• Existing platforms need to be upgraded

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