Web3 represents a new digital dimension where the Internet becomes decentralized, allowing users to own their data and exchange goods without intermediaries. Powered by technologies such as blockchain and smart contracts, it offers an innovative perspective on how we interact online and could reshape the foundations of our web presence.
Glossary: Understanding Web3
Web3
Web3, often referred to as Web 3.0, is a decentralized internet that relies on a peer-to-peer (P2P) network. This model allows users to exchange goods and services directly with one another, without intermediaries like banks or traditional online platforms. Web3 primarily develops through two complementary technologies: blockchain and smart contracts.
Blockchain
A blockchain is a decentralized digital database where each transaction is recorded in interconnected blocks. This system, using cryptography, makes the data tamper-proof. Blockchains form the technological backbone of Web3 by enabling secure ownership and exchange of data without a trusted third party.
Smart contracts
Smart contracts are computer programs that automatically execute the terms of a predefined agreement between two parties. Originally created on the Ethereum blockchain, these contracts operate without a middle authority and can be used for various digital transactions, whether for payments or triggering insurance claims.
Decentralized Finance (DeFi)
Decentralized finance, or DeFi, offers financial services based on blockchain technology. It enables transactions such as loans, insurance, or savings products without resorting to traditional intermediaries like banks. Transfers are fast and secure thanks to smart contracts.
Cryptocurrencies
Currencies are digital assets exchanged peer-to-peer on blockchains. Alternatives to fiat currencies, they have no physical backing and are not regulated by a central entity. Bitcoin, the first created cryptocurrency, as well as Ethereum and Solana, illustrate this monetary innovation of Web3.
Fungible and Non-Fungible Tokens (NFTs)
Fungible tokens are interchangeable digital assets, like virtual currencies. In contrast, non-fungible tokens (NFTs) are unique and hold value determined by their rarity. NFTs are akin to digital artworks and allow creators to sell their creations directly.
Governance Model
Web3 proposes a participatory governance through decentralized autonomous organizations (DAOs), unlike Web2 where a few digital giants concentrate decision-making power. This shared governance is made possible by the decentralization of information on blockchains.
Web3 Opportunities
The ongoing technological revolutions, such as Facebook’s metaverse, aim to integrate cryptocurrencies into our daily lives. Additionally, decentralized applications (dApps) could transform online sales platforms by enabling individuals to create and sell digital assets, thus disrupting traditional business models.
Security and Outlook
Although still in development and sometimes seeming wild, Web3 promises a more privacy-respecting internet. With more autonomous payment management and a reduction in intermediaries, Web3 represents a major paradigm shift in our interaction with the internet and the digital economy.
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FAQ: Understanding Web3
Q: What is Web3?
A: Web3 is a decentralized Internet based on a peer-to-peer network that allows the exchange of goods and services without the need for trusted third parties. This model relies on technologies such as blockchain and smart contracts, enabling users to own their data and perform transactions directly with one another.
Q: How does blockchain work in the context of Web3?
A: A blockchain is a digital database where each transaction is verified and then recorded in interconnected blocks. This system uses cryptography to make the data tamper-proof and is the cornerstone of the decentralized web, replacing traditional intermediaries with a P2P network.
Q: What are smart contracts?
A: A smart contract is a computerized transaction protocol that automatically executes the terms of a contract without intermediate intervention. Originally created on the Ethereum blockchain, these programs can perform a variety of tasks ranging from automated financial transactions to executing insurance clauses.
Q: What are the advantages of Web3 compared to Web2?
A: Web3 offers a decentralized trust model, shared governance through decentralized autonomous organizations (DAOs), and allows users to own and monetize their own data. It also eliminates the need for intermediaries for financial transactions thanks to smart contracts and cryptocurrencies.
Q: What are common applications of Web3?
A: Currently, Web3 is primarily used in decentralized finance (DeFi), providing financial services without intermediaries. Cryptocurrencies and digital tokens are also essential components, offering new ways to store and exchange value.
Q: What is tokenization and how is it expressed in Web3?
A: Tokenization allows the digitization of the value of goods or services, transforming them into fungible or non-fungible digital assets (NFTs) on a blockchain. This can include voting rights, artworks, or even real estate, enabling a new exchange economy on the Internet.
Q: Will cryptocurrencies become our everyday currency?
A: Although currently confined to DeFi, cryptocurrencies could become commonplace in our daily lives, especially with the development of virtual worlds like the metaverse. Currencies like bitcoin or ether could be used for purchases and transactions in these digital environments.
