Web3 is an open-source project which aims to create a new standard for how we interact on the web. It is a new iteration of the way in which we use and access the Internet and focuses on blockchain technology, decentralisation, and smart contracts as its main pillars.
For many of us, the Internet is a key element of our lives, forming a core aspect of our daily routines. The ways we communicate with each other, shop for goods and services, access information, and even pay bills are all done online – and this is not something that looks set to change any time soon.
Below, we take a closer look at all you need to know about Web3, including changes to the ways in which we are set to conduct business and use the Internet as the centre of our daily lives.
What Is Web3?
Web3 is an open-source project which aims to create the next generation of the Internet. It is based on blockchain technology, decentralisation, and smart contracts.
The idea behind Web3 is to provide a platform where users can transact freely without having to rely on intermediaries such as banks or credit card companies. This will allow them to make payments directly between themselves while also being able to track their transactions using a decentralised ledger system.
A key figure behind Web3 is Ethereum co-founder Joseph Lubin. He believes that the current financial industry is outdated and needs to be replaced with a more efficient model that allows people to move money around quickly and easily.
How Does it Work?
In order to understand how Web3 works, we first have to understand what blockchain technology actually is. A blockchain is essentially a distributed database that stores data across multiple computers (or nodes) connected to one another. Each node contains a copy of the entire database, so if someone tries to edit the data, they would need to update every single computer.
This means that no matter how much computing power there is available, it cannot be controlled by just one person or group of people. Instead, everyone involved must work together to ensure the data remains accurate.
This makes blockchains exceptionally secure, because hackers would need to control over 50% of the network’s computing power in order to manipulate the data.
One of the most exciting aspects of Web3 is the fact that it uses smart contracts. These are programs that run automatically when certain conditions are met. They are similar to the terms and conditions found on websites, but instead of being written by humans, they are created by code.
For example, imagine that you wanted to sell your car. If you wanted to do this through traditional methods, you would usually need to go to a dealership, negotiate a price with them, and then wait for them to send a cheque.
However, when using Web3, you could simply type in the details of your car into a website, and within seconds, you would receive a message confirming whether or not you had sold it. You wouldn’t even need to leave your house!
Another key feature of Web3 is that it is completely decentralised. In other words, there is no central authority controlling everything. Instead, each user controls his or her own account, meaning they can access any information stored on the network.
This means that anyone can build applications on top of the platform, allowing them to interact with others directly rather than relying on third parties, essentially “freeing up” the system.
What Are the Benefits?
There are many benefits associated with Web3, including:
- Increased Security
One of the main advantages of Web3 is that it offers increased security. In short, the security of the system relies heavily on the number of nodes that are running on the network. Because each node is storing its own copy of the database, it becomes extremely difficult for hackers to gain control of the system.
This means that Web3 is far safer than existing payment systems, which often require customers to give out personal information before completing a transaction.
- Elimination of Fraud
The second major advantage of Web3 is that if all works as planned, fraud will essentially become almost impossible. This is because all transactions will take place online, meaning there is no way for scammers to steal money from unsuspecting users.
As well as eliminating fraud, Web3 eliminates the need for credit cards. Instead, users will use their own Ethereum wallet addresses to pay for goods and services.
- Elimination of Third Parties
Finally, Web3 removes the need for third-party intermediaries such as banks and financial institutions. Instead, users will be able to complete transactions directly with each other, without needing to rely on middlemen.
How Can Web3 Benefit My Business?
Web3 can also offer a number of benefits for your business, and these include:
- Reduced Costs
Because Web3 is entirely decentralised, businesses won’t have to spend time and resources dealing with third-party intermediaries. As a result, they’ll save money.
- Improved Customer Service
In addition, Web3 provides an opportunity for businesses to improve customer service. For example, if a customer has a problem with an order, he or she can contact the company directly, rather than having to deal with a third party.
- Faster Transactions
In addition, Web3 allows companies to process payments much faster than they currently do. For example, instead of waiting days for a bank transfer to clear, Web3 enables businesses to make instant payments to one another.
Overall, Web3 represents a significant step forward in terms of how we conduct our daily lives. From blockchain technology to using Web3 for mobile games, it is easy to see why so many people believe this technology could change the world forever, as well as provide numerous benefits for individuals and businesses alike.