You’re undoubtedly wondering why Web3 is becoming so popular! Understanding how it works, on the other hand, we can give some insight into its utility in the present digital context.
Web3 is essentially a new digital frontier built by blockchain for its users. The blockchain’s emphasis on decentralization is an important consideration here. With service providers with vested interests in owning content and digital spaces, Web3 brings a slew of changes to the table.
A decentralized Web3 network gives its users control over its content, assets, and even community changes. Blockchain supports such a shift by focusing on validating data at various stages, often at the user level, via network “nodes.” With each user functioning as a validatory node, data manipulation is unlikely to go undetected.
Furthermore, the inclusion of Smart Contracts on blockchain networks adds another layer of decentralization. These are just a few reasons that answer the question, “why does web3 matter?” and we’ll be getting down to why this technology is so useful and needed in our modern world. Let’s take a look.
What Makes Web3 So Relevant
Although Web3’s killer features are not isolated and do not fit neatly into neat categories, we have attempted to separate them for clarity.
Owning What Is Yours
Web3 gives you unprecedented control over your digital assets. Let’s say you’re playing a web2 game. When you buy an in-game item, it is linked to your account. You will lose these items if the game’s producers cancel your account. Alternatively, if you stop playing the game, you will lose the value you have put into your in-game progress and rewards.
Web3 enables direct ownership via non-fungible tokens (NFTs). No one, not even the game’s developers, has the authority to take your ownership away. If you stop playing, you can recoup the value of your in-game things by selling or trading them on open markets.
Censorship No More
The power dynamic between platforms and content creators are significantly skewed.
OnlyFans is a user-generated adult entertainment site with over a million content creators, many of whom rely on the platform for a living. OnlyFans stated plans to prohibit inappropriate content in August 2021. The statement provoked indignation among platform creators, who believed they were being cheated out of an income on a network they helped build. Following the criticism, the decision was swiftly reversed. Despite the fact that the artists won this struggle, it underlines an issue for Web 2.0 producers: if you leave a platform, you lose your reputation and following.
Decentralized autonomous organizations (DAOs)
In addition to owning personal data in Web3, you may own the platform as a collective by using tokens that function similarly to stock options. DAOs let you manage a platform’s decentralized ownership and to make decisions regarding its future.
DAOs are formally described as mutually agreed-upon smart contracts that automate decentralized decision-making across a pool of resources (digital utility tokens). Users with tokens vote on how resources are used, and the code executes the voting outcome automatically.
However, many Web3 communities are referred to as DAOs. These communities all have varying degrees of decentralization and code automation. It’s very possible that decentralized networks may play a major role in the future internet.
Why Should it Matter?
We need Web3 more than we think. Without Web3, social media platforms wouldn’t exist, crypto assets would be worthless, and customer experiences would be quite limited. This is all made possible thanks to the Web3 space. Without Web3, blockchain technology wouldn’t be possible and a handful of organizations would have never been created and paved the way for this new digital landscape.
This core technology gives us a user experience that the read-only web could never have. The ability to interact in the online world.
The Future Looks Decentralized
Individual users now have access to so much more and the current internet is what makes this possible. Social networks, and social platforms, all exist thanks to the growth of this technology. Ethereum co-founder Gavin Wood named Web3 many years ago and now many ideas of what this decentralized platform could provide have now become possible.
Web3’s digital identity is quite significant in the world, even though most of us don’t even know what it is. Tech giants are making the most of it, finding ways to solve matters users face and changing the culture of customer experiences. It’s no surprise we have such a heavy tech reliance in this generation.
One thing is certain. Web3 is the next step in human innovation and will be a benefit to us as time goes on.
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