Web3's Vision: The Decentralized Future of The Internet
I. Blockchain is More Than Crypto
Centralization has facilitated the inclusion of billions of individuals into the Internet, as well as building a reliable and robust infrastructure on which it lives. However, a small number of centralized organizations possess a significant amount of control over significant portions of the Internet, determining on their own what is acceptable and what is not.
Big tech platforms today control massive amounts of user data, even more than entire governments. According to HubSpot, Google controls a little more than 92% of the search engine market share worldwide. YouTube and Facebook continue to dominate the online landscape, with 81% and 69%, respectively, reporting ever using these sites, reported by Pew Research. These centralized points of failure can be dangerous, especially for data safety and anonymity's sake.
Since its inception, a lot of people will prefer that their data remains in their hands, and emerging technologies are promising to give them just that. And blockchain technology has been causing a stir in the technology industry and its possibilities appear to be boundless. The advent of Web3 is adding to the significance of blockchain technology for various reasons. Its underlying technology is blockchain, which offers a secure and transparent method for storing and exchanging data.
Of course, Web3 is the answer to this dilemma. Instead of a Web monopolized by large traditional technology companies, Web3 embraces decentralization and is being built, operated, and owned by its users and communities. The next evolution of the Internet promises to create a more decentralized, secure and privacy-preserving online world.
Our perspective is that the combination of Blockchain and Web3 is revolutionizing the world as we understand it. The creation of Bitcoin, the rise of decentralized finance, and the capacity of Web3 to democratize the Internet towards a decentralized future all contribute to this change.
II. Beyond Blockchain
The birth of Bitcoin was a response to a broken financial system. Bitcoin and its peer-to-peer payment system were created during the devastating financial crisis in 2008 which was caused by a lack of transparency between banks and their customers whereby unscrupulous banking transferred the risk to investors and borrowers. Many people lost faith in banks and other financial institutions, which were seen as corrupt and unreliable.
By deliberately avoiding creating a hierarchy by providing all users with access to information on how their network processed transactions. Satoshi Nakamato understood that having a public record of all transactions made across the network’s computers would eliminate the need for intermediaries or gatekeepers like central banks.
It’s probable that shortly after you became aware of Bitcoin, there was a significant decline in its value. Bitcoin has experienced a drop in its worth every year or two, causing doubters to quickly dismiss it as dead. They would declare that it was only a fraudulent scheme for geeks and criminals and that it was nothing more than a fringe fascination promoted by techno-libertarians and bank opponents. They argued that Bitcoin could never compete with legitimate tech firms, and then they would ignore it and proceed with their lives.
Naturally, Bitcoin would eventually resurface. Currently, it appears that Bitcoin has infiltrated every corner of society. Amidst the many distractions vying for our attention, a significant number of people were oblivious to the gradual integration of cryptocurrencies into the mainstream.
Crypto, however, is just the tip of the spear. The underlying technology, blockchain, is a distributed ledger, which means it’s a database that runs on a network of computers instead of a single server. It provides an immutable and transparent method for storing information. Blockchain is now being utilized for new purposes, such as creating “digital deed” ownership records of unique digital objects, known as non-fungible tokens (NFTs). In 2022, NFTs have exploded into a $41 billion market seemingly out of nowhere. Even more, obscure relatives like decentralized autonomous organizations (DAOs) function as headless corporations: they raise and spend money, but members vote on all decisions, and they’re executed via encoded rules. These novel applications of blockchain are providing new solutions to traditional problems and changing the way we think about finance and ownership.
The decentralized nature of blockchain, the underlying technology behind the success of Bitcoin and other cryptocurrencies, has led to the emergence of a new financial ecosystem, known as decentralized finance (DeFi).
Notwithstanding DeFi is still in its early stages, the movement started to gain traction in 2019 but it has the potential to revolutionize the financial industry. In the early days of DeFi, the focus was on simple applications, such as decentralized exchanges (DEXs) that allowed users to trade cryptocurrencies without the need for a centralized exchange. The development of DeFi has been driven by a number of factors, including the increasing popularity of cryptocurrency and blockchain technology, the desire for greater financial freedom and control, and the potential for decentralized systems to be more transparent, secure and efficient than centralized ones.
III. Embracing the DeFi with Web3
To reiterate, both Web 3.0 and blockchain strive for openness and transparency. But this is not the end of parallel possibilities. If Web 3.0 becomes a reality, everyone will have access to resources, applications, agreements, and content, as long as cryptographic keys are in place. In addition, there will be a plethora of decentralized options available to make the universe more welcoming to each of us. This means that there is no single point of failure, and applications can be run without the need for intermediaries or middlemen.
With the blockchain providing the path for a more “open” internet, it would ultimately be up to decentralized apps and smart contracts to automate certain operations. This is where the top cryptocurrency players come into the picture. Going forward, the crypto players contributing to Web 3.0 with the best up-to-date technology will garner more attention.
The future of Web3 is incredibly promising, DeFi is just the beginning of this revolution, as it has already shown the potential of decentralized finance applications. As we continue to explore this new frontier, we can expect to see more innovation and growth, leading to a more decentralized and democratic financial services, including social and investing.