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What is Web 3.0 and why should you care?

What is Web 3.0 and why should you care?

Unless you've lived an offline life, you've probably heard of Web 3.0. To date, $ 27 + billion has be

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Unless you’ve lived an offline life, you’ve probably heard of Web 3.0.

To date, $ 27 + billion has been invested in the Web 3.0 ecosystem, while the term “Web 3.0” has skyrocketed in Google searches.

Called “the greatest thing since the invention of the Internet”, Web 3.0 is attracting the attention of some of the smartest people in the world. Since thousands are shallower to better understand Web 3.0, you may be wondering if you should too.

So, let’s dive in. What the fuck is Web 3.0, and does it even matter?

What is Web 3.0?

According to Web 3.0 expert and CEO of Ether Capital Brian Mosoff, Web 3.0 is about creating the next generation of the Internet that is more open, user-controlled, and decentralized.

Source: Giphy.com

Unlike today’s Internet (Web 2.0), where most of the value generated by its users (eg data) is captured by large organizations such as Meta and Google (centralized platforms), Web 3.0 seeks to harness the power of the Internet give back to its users.

Restoring control over user data and privacy and enabling digital asset ownership – while minimizing the risk of hacks – are the tenants that make up Web 3.0.

However, as a whole, the ecosystem is still in rapid development and major things like regulation, reducing volatility and further infrastructure development need to be done for widespread acceptance.

Where did Web 3.0 come from?

Today’s version of the Internet is very different from the one that Web 3.0 strives to create. In its current form, a significant portion of the Internet’s infrastructure is owned by individual large companies and its users do not own the data they create. In fact, the most important “product” of the Internet today is its users because they create data that is monetized by the owners of the Internet’s infrastructure.

Web 3.0 was born with the mechanics and ethos of cryptocurrency and blockchain networks, where those who participate in the operation of the network benefit from it through rewards.

Bitcoin, the world’s first cryptocurrency and blockchain network, launched it in 2009. But it was the launch of Ethereum in 2015 that enabled Web 3.0 to launch.

Read more: 8 alternatives to Bitcoin – what will be the next Bitcoin?

Unlike Bitcoin, the Ethereum blockchain enables developer communities to build applications on top of its blockchain, called Decentralized Applications, or Dapps. This means that entire companies can be built on technology not owned by a single entity.

What makes these applications special is that their back end is based on things called smart contracts. Once deployed, Smart Contracts run on its own and cannot be modified. This creates a shared sense of “programmed trust” for those who use the programs.

This “programmed trust” and the management of such programs over distributed networks are the foundations underlying Web 3.0.

Why is Web 3.0 so difficult to understand?

Web 3.0 can be difficult to understand for two key reasons, according to Mosoff:

Source: Giphy.com

“Web 3.0 is difficult to understand because most people probably do not spend time thinking about the plumbing work of the internet and how it works. It’s hard to understand your head why it has value if you do not understand how the internet services you use work. Many problems and risks exist in how the internet is built today, but these ideas are abstract, ”he says.

“The second reason is because Web 3.0 is now a catch-up term and can mean something different to anyone. Blockchains, cryptocurrency, NFTs, the Metaverse, decentralized finance (De-Fi) or even just the decentralization of any of one’s data can fall under the Web 3.0 umbrella. ”

Why You Should Care For Web 3.0

There are several aspects of this space that are worth understanding, with three that are particularly important to today’s investors:

1. The creative economy and NFTs

Because the ethos of Web 3.0 is centered on enabling individuals to digitally own and manage their data and assets, it transforms the creative economy through NFTs (non-exchangeable tokens).

NFTs give creators, artists, musicians, gamers and others the ability to own and unquestionably verify the authenticity of digital assets. Art, album art, digital images and even screenshots of tweets were created as NFTs. They enable the monetization of creativity in ways that could not be done before. Many people make bank because of it. If you know how to play the space, there can be great opportunities for investors.

Read more: The complete guide to buying your first NFT

Admittedly, NFTs have drawn criticism for their long-term future, and interest in NFTs has recently taken a hit due to changing macroeconomic factors and sirpto-market volatility. But with $ 5.4 + billion in NFT sales generated in 2021, more companies – from the NFL to McDonald’s – are taking notice.

2. Decentralized Finance, or De-Fi

As of June 14, 2022, more than $ 79 billion has been tied up in the decentralized financial ecosystem.

Decentralized finance, or “De-Fi,” is the financial side of Web 3.0 that uses blockchains and crypto to exchange, lend, and earn interest from crypto assets. The ecosystem is facilitated by individual digital wallets and smart contracts, and does not rely on central parties such as banks.

For example, millions of people are able to generate staggering amounts of interest (much higher than what you would get at a bank on your cash) on their cryptocurrency in De-Fi by lending or locking up their holdings in software used to operate blockchain networks (similar to how bindings work).

Read more: Crypto-loans explained (and how to invest in them)

Although there have unfortunately been several recent examples of major crashes in De-Fi that have literally wiped out billions in value (Terra and LUNA), De-Fi remains one of the most exciting aspects of Web 3.0 and has the potential to make a complete revolution . our financial system.

It’s still early days and clear regulations do not yet exist to control this high-risk area, but if you’re interested in next-generation finance, start learning about De-Fi.

3. The Metaverse

Since Facebook resumed to Meta Platforms, everyone has been talking about what the Metaverse is and what it can become.

By 2024, the metaverse is expected to be an $ 800 + billion market centered around things like live virtual entertainment, AR / VR games, next-generation social networking, and more. The Metaverse can even become a way to earn a living by playing-to-earn games like Axie Infinity or Roblox.

Read more: How the Metaverse will change our financial landscape

Source: Giphy.com

Given the excitement surrounding the space, big players are queuing up to get involved. JP Morgan has established a branch in the Metaverse. Ed Sheeran performed in the Metaverse. Millions were sunk in Metaverse property. Warner Music is setting up a live music venue in the Metaverse. And companies like Nike and Gucci have explored how to get involved. Even Microsoft CEO Satya Nadella talks about how the Metaverse can change the way we live, interact and work.

No one knows what the Metaverse is going to be, but the amount of money that goes into it brings many opportunities. A whole new set of careers can be created by working on the Metaverse. NFTs and games are the forerunner in Metaverse applications, but it is not unreasonable to think that we can all be involved in them one day or another.

How to get started investing in Web 3.0

For those who want to get started in space, Mosoff offers the following advice:

“The best way to start learning about Web 3.0 is by following the crypto community on Twitter and exploring the various blockchain projects out there. Once you have done a little research, get an understanding of how wallets work and invest a small amount in a cryptocurrency or NFT project that you understand. This will help you get a taste of the ownership experience. There are many crypto exchanges or NFT marketplaces out there to choose from. Once you put your toes in and see how it feels, you can delve deeper into more complex applications. ”

Exhibition image: optimarc / Shutterstock.com

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