Unless you’ve stayed away from the internet, the economy, or even politics, you’ve almost certainly heard of Web3. So what does Web3 consist of and why are they talking about it so much?
What is Web3?
Let’s first explain what Web3 is: Web3 is the name given to the idea of a new type of internet service built using decentralized blockchains.
Or, in other words, an Internet based on shared ledger systems using cryptocurrencies like Bitcoin and Ethereum. The prospect of this technology is huge, but it has supporters and detractors.
For example, optimists say Web3 will make it possible to control a myriad of things, from trading in a metadatabase to an economy without intermediaries using figures like DeFi.
Let’s remember that DeFi or Decentralized Finance are financial systems that eliminate the need for banks or centralized intermediaries to transact and instead use smart contracts, which are lines of code that operate automatically without human intervention.
On the other hand, detractors label Web3 as a buzzword. In this last group is businessman Elon Musk, who admits he doesn’t understand the Web3 concept well.
Companies on the Web
However, companies that are not static or upright like banking are approaching this market slowly and with their own rules. This is just an example.
In 2021 alone, combined investment in Web3 technologies between companies and venture capital funds is estimated to exceed $27 billion.
Although we are only at the beginning of Web3, where the most prominent examples are cryptocurrencies themselves, NFT trading and metadata, the potential is enormous, as evidenced by the use of NFTs in the livestock industry.
In addition, new ideas are emerging, such as the use of video games where users earn money (coins) to play, or the creation of pieces of art or music where users can deposit some tokens into works and earn money with their reproduction.
The most interesting thing about Web3 is that we’re just getting started, and with a good imagination, the business results can be tremendous, but the truth is, as we all know, the future is uncertain.