Until now, the era of the internet has changed drastically. From 1989 to 2005, Web 1.0 was a read-only platform. It allowed for the creation of the most prominent web assets. Web 2.0, which is still active, has provided a Platform of Interaction where users can read and write content on websites or applications and interact with one another through social media platforms. Now, all eyes are on Web 3, which will bring revolutionary change to the world of the internet.
All About Web, Web3 Use Cases and Applications
Continue reading to learn more about this emerging web concept. Let’s keep moving forward!
What exactly is Web 3.0?
Web 3.0 is a decentralised concept that is currently one of the hottest topics.
Web3 is the most recent evolution of the internet that leverages machine learning/artificial intelligence, semantic web, and blockchain to enable real-time interaction between individuals. Some of the fascinating features of Web 3.0 are:
- Web3 is open-source because it contains open-source software that is easily accessible.
- Web3 networks do not require permission.
- It provides a trustless environment, allowing users to communicate privately and publicly without the need for intermediaries.
- It would only require the creation of a single profile across all platforms.
- It is an unrestricted platform, allowing users to transfer their assets anywhere in the world.
- Web3 is ubiquitous, ensuring that the internet is accessible regardless of location, time, or device.
Necessity For Web 3.0
Web 2.0 is less dynamic and interactive, which heightens the need for the next-generation technology web3.0. Some eminent giants, such as Google, Facebook, Microsoft, etc., provided users with limited data management, which raised numerous concerns, such as hacking, data leakage, privacy issues, etc.
Customers frequently accuse these large and small businesses of putting their privacy at risk. Several complaints have been lodging against such large corporations, including Amazon’s aggressive business practises and Google’s data privacy issues, highlighting the need for stringent safety protocols.
Blockchain, the primary technology underlying web3, has now been implemented and serves as a dynamic, secure, and interactive web version. There are no centralised databases and web servers in Web 3.0. Data is dispersed across multiple devices and stored securely, resulting in fewer data leaks, and users retain full ownership of their data. Additionally, it decreases reliance on intermediaries.
Now that you understand the meaning of web 3.0 and its increasing importance in the current technological era, it is time to learn about its applications.
Top web3 use cases include numerous terms, including “DeFi” or decentralised finance, The Metaverse, decentralised autonomous organisations (DAOs), blockchain, and the Creator Economy, among others. These terms are so attention-seeking that it is impossible to avoid focusing on web3.0.
Continue reading to learn more about the practical side of web3 and its applications!
Autonomous Decentralized Organizations (DAOs)
DAO is the acronym for decentralised autonomous organisation, which refers to a group of individuals with shared ownership. It is regarded as one of the most prominent Web 3.0 use cases. DAO utilises smart contracts to ensure autonomy in vote tallying and decision implementation without the need for intermediaries. Through these smart contracts, corporate governance is introducing to the virtual world, but there is no need for CEOs or company presidents.
The DAO members (located anywhere in the world) must purchase a governance token in order to be eligible to vote on decisions. All of these decisions or sets of rules are stored as code in smart contracts, which serve as the DAO’s skeleton (decentralized autonomous organization).
These smart contracts are irrevocable once they go live on technologies such as Ethereum, which is an intriguing feature. However, these can only be altered through group member vote. In the event that anyone violates the rules or code outlined in the smart contract, it will not be successful. However, the money can only be spent with the approval of the DAO group. Therefore, the approval of DAO members is required for all actions.
DAO is entirely controlled by its group members, who make decisions collectively as opposed to a centralised entity.
Below are some examples of DAO’s applications:
Donations are accepted worldwide, and the group members have complete discretion over where and how these donations will be used.
A number of independent contractors pool their resources for software subscriptions and office space. Grants and investments – A venture fund for investment capital is created, and repaid funds are distributed to DAO members.
Finance on a Decentralized Basis
Web3’s second largest use case is decentralised finance, also known as DeFi. First, let’s examine how traditional finance banks operate. If a person lends money to a bank for a certain amount of interest, the bank will then lend that money to another bank user in need of funds, and the borrower will be required to pay the specified amount of interest to the bank. In this process, neither the lender nor the borrower is aware of the interest rate charged by the bank. This indicates that conventional banking is a centralised authority that lacks transparency.
However, DeFi’s operation of lending and borrowing crypto assets via decentralised applications for financial services is transparent. DeFi is based on three key elements:
Blockchain-based games are yet another notable web3.0 application. As blockchain is the underlying technology for these games, it opens the door to a virtual world and personalised economies in which in-game items are actually owned. Additionally, it provides the flexibility to transfer game objects to other games.
Among the most popular blockchain-based games in 2022 are:
Blankos Street Party
Lightnite Gods Free CryptoKitties
Sandbox and several others
Metaverse, the emerging technology of the near future, represents one of the most prominent use cases of web3.0. Numerous organisations, including Facebook, have already introduced the concept of the Metaverse, but it requires further investigation.
The metaverse is the virtual representation of any community where individuals represent themselves with digital avatars and communicate with other avatars in the virtual world. Nonetheless, it is surprising that this is possible with a few devices, such as virtual reality headsets and controllers.
Virtual reality, augmented reality, artificial intelligence, social media, and digital currency provide a solid foundation for the metaverse to traverse a virtual world that mimics the physical world. Being on the internet could be more interesting than viewing it on a computer. This would provide an engaging and immersive experience.
Facebook, Microsoft, Epic Games, and many others are examples of businesses that have utilised the metaverse concept. The metaverse is without a doubt one of the best Web3 applications that incorporate decentralisation and creator economy.
Exciting features of the metaverse include:
- It promotes open access for everyone
- Metaverse provides total control over experiences.
- It guarantees the decentralised virtual economy of Creator
What is the creator economy exactly?
The community of content creators is responsible for monetizing their skills. These creators and curators of content could be bloggers, writers, YouTubers, influencers, artists, Web3 Developers, etc. Many large enterprises are investing in this economy due to its potential for long-term gain. To attract creators, platforms such as YouTube, Facebook, and TikTok have already launched their creator funds, tools, and resources.
What effect does Web3 have on the creator economy?
Currently, content creators or curators on web2 monetize their work through advertising, affiliate advertising, and sponsorship agreements.
Web3 is an innovative and exciting platform for the creator economy, in which creators construct and own communities. Non-fungible tokens, or NFTs, would be the primary features of the creator economy. These NFTs will provide creators and their works with a distinct identity and, ultimately, full ownership.
The top web3 use cases include the creator economy, which offers monetization opportunities and enables creators to trade their work through the option of royalty payments. NFT owners can track sales and royalty commissions using smart contracts.
The third generation of the internet, known as web3, will have a significant impact on how we currently use the internet. The introduction of blockchain in web3 will decentralise everything, allowing users to become the sole owners of their assets. Using technologies such as VR, AI/ML, AR, and MR, the aforementioned web3 use cases provide a clear vision of how we will interact with the internet in the future.