2022-06-13
Web3 already gained its popularity last year thanks to the interest of cryptocurrency enthusiasts. To better understand the decentralised online ecosystem, it is regularly contrasted with previous versions of the internet. But Web3’s transparency, verifiability and governance overwhelmingly prevail. If you also find this topic relevant, attend the “RIGA COMM 2022” Web3 conference in Riga on 6-7 October.
Applications are now increasingly exposed to user data security risks and failure to comply with privacy policies. Almost every application collects user data, creating databases for the purpose of making a profit. Experts say the goals set by Web 3 are to address all these risks and flaws by redesigning and improving application and user interaction so that the user has control over their data. Plus, you’ll be able to authenticate with your digital wallet address in apps!
Advantages of Web3
In fact, the term Web3 or Web 3.0 is nothing new – it was introduced in 2014 by Gavin Wood, co-founder of the cryptocurrency Ethereum. But in 2020, thanks to the benefits of Web3’s decentralised management, the term became more widely known. Web3 consists of decentralised applications and is stored on the Ethereum or Bitcoin blockchain, powered by open-source software. A digital wallet is essential for Web3; authentication does not require personal data and content belongs to users, not to Instagram, Facebook or Google and Microsoft, for example. Another privilege of Web3 is accessibility – Web3 access and its applications do not require third-party permission.
Versatile use
Web3 is characterised by the cryptocurrency and digital assets used in the ecosystem. The user creates their own virtual wallet, and sells and buys NFTs (non-fungible tokens), which no one can track or control. The NFT also allows you to buy various services in a virtual environment. This is made possible by DeFi (Decentralised Finance) – decentralised financial systems where ownership is vested in the user, so that all financial activities take place between people without the involvement of a bank or other financial institution.
The role of Web3 in decentralised autonomous organisations
It should be noted that Web3 is not just about finance or the internet; blockchains can be used in other ways too. A good example is Decentralised Autonomous Organisations (DAOs), which are traditionally companies and organisations but are not managed by, for example, a central bank. These organisations usually have staff who agree on the specific rules of the game – certain principles that apply to everyone involved. Employees usually work part-time and are paid in cryptocurrency tokens. With tokens, employees can vote on decisions and/or join another DAO organisation, where new members are only admitted after collecting a certain number of tokens.
Cryptocurrency games
Gamers might like the GameFi and Play-to-earn (P2E) ecosystems, as these platforms feature blockchain games. Meaning, for a certain number of tokens, a gamer can buy, collect and care for a specific character in the game. Later, after reaching a good level in the game, the gamer can sell their character to another player and make a profit.
Issues using Web3
As the Web3 ecosystem and definition itself continue to evolve, there are various issues in its use that engineers are trying to overcome. One of the issues is moving the digital token from one blockchain to another. For example, a user can navigate through different metaverses, but only purchase and use the NFT of their choice in a specific metaverse.
Web retrospective
From the 1990s to the 2000s – Web1 – read-only capabilities.
From 2000 until now – Web2 – the user reads and creates their own entries, while technology companies control the content according to certain accepted parameters.
As of 2020, Web3 is still in development, where the user reads, writes and owns a digital asset.
See you at the RIGA COMM 2022 Web3 conference!
Are Web3 goals achievable? What Web3 technologies have entrepreneurs in the Baltics developed? These and other questions will be answered and the advantages of Web3 will be discussed at the “Riga COMM” Web3 conference to be held on 7 October in Riga. Plan your visit to “Riga COMM 2022” now!