Many may remember the years when the Internet first went public, and people slowly started to connect to this new and exciting world of information.
At this time, the web1 version of the Internet was read-only, consisting primarily of static images and text. Users could only search and access information but could not communicate or interact with it.
Web2, the version of the Internet currently in use, paved the way for user-generated content, interactive web applications, social media platforms, and marketplaces.
So, what exactly is web3? Web3 is the term used to represent the next internet generation.
This shifting technology archetype aims to diminish the concentration of power among big technology companies and place it in users’ hands. These technologies promote interoperability and decentralization.
Web3 or internet 3.0 describes a blockchain-based decentralized web compromising token-based economies and permissionless applications.
Blockchain plays a fundamental role in the web3 movement and is the core of many community-led web3 projects.
Web3 projects enable users of decentralized applications to determine what data they want to monetize. The value of the generated data remains with the owner, which, in turn, provides mutually beneficial, equitable solutions to big-tech data mining.
The rise of web3 provides an avenue to reclaim the Internet by disrupting infrastructures around storage, data exchange, financial transactions, and more. This upgrade to the Web reintroduces real ownership verifiability and opens the Web back up to secure peer-to-peer interactions.
Even though web3 covers multiple blockchain networks, developers built almost all of its pioneering technologies on or for Ethereum.
The first smart contract enabled blockchain, Ethereum, is predominantly responsible for creating “programmable money.
Several technologies found in the cross-chain decentralized finance (DeFI) platforms and web3 projects are rooted in Ethereum. For example, top blockchain networks like Solana use adapted versions of the Ethereum virtual machine (EVM) to support Ethereum smart contracts.
In turn, Ethereum technologies can be transposed throughout the blockchain and DeFI industries.
So, What is DeFI?
Decentralized finance or DeFI uses trustless protocols and smart contracts to facilitate peer-to-peer financial services on the blockchain. DeFI is one of the core attributes of web3 projects.
The DeFI ecosystem enables anyone to access next-generation open-source technologies without an intermediary. Moreover, DeFI is open to all and runs outside the traditional financial system.
Top web3 projects you should invest in
There are several successful projects in the web3 space. However, here are some of the best projects worth considering.
Filecoin is a decentralized blockchain protocol for securely storing and retrieving data without centralized servers.
Filecoin incentivizes network participants with its native token FIL to give up their free hard drive space and offer excellent performance.
Filecoin offers extremely competitive pricing compared to many centralized services for file storage.
BitTorrent is a decentralized blockchain-based file-sharing protocol that predates the creation of Bitcoin and the term “web 3.0”.
The platform uses the native BTT token to incentivize participants into giving up their computing resources and hard drive space.
BitTorrent intends to establish collaborative partnerships between users for sharing enormous quantities of data in a trustless manner.
Helium is a decentralized network that uses radio-wave technology to mine its native token, HNT. Additionally, helium provides wireless coverage for internet-of-Things (IoT) devices, including GPS and environmental trackers.
Network participants earn passive income in HNT tokens to provide network coverage.
The proof-of-coverage consensus mechanism is used by helium to verify network transactions and validate hotspots providing wireless coverage.
The graph is a middle-layer query protocol that allows developers to rapidly generate decentralized applications on Ethereum.
The graph aims to be a decentralized web3 layer that can’t be manipulated or overpowered by tech conglomerates.
The graph project saves a great deal of time during the developmental process by reducing the time required to get decentralized applications to market quickly.
Arweave is a blockchain-based decentralized platform that offers a ‘permanent serverless web’ that uses distributed servers and perpetual endowments for long-term data storage.
Furthermore, unlike centralized alternatives, Arweave offers ‘information permanence which protects all data from permanent loss.
Arweave has no single point of failure; data is always recoverable as data archiving is distributed across several hundred computers worldwide.
Basic Attention Token
Basic attention token or BAT is the native crypto token of the Brave web3 browser.
Via the TOR browser, Brave offers semi-private browsing. Users can choose to increase rewards by watching lots of adverts.
Brave features a tip function that is innate in various social media platforms. The tip function makes the process of tipping your favorite creators very straightforward.
The data security crisis is increasing at an alarming rate due to unaccountability and lack of transparency.
However, as the world is steadily becoming digital, it makes sense that the technology powering this new prospect should expand to meet the users’ needs that allow its existence.