What is Web3 and what is its role in NFTs?

Web3 (or Web 3.0) it will revolutionize the way we use the internet by incorporating decentralization via blockchain technology. Some believe it will change the internet in the way bitcoin (BTC) and other cryptocurrencies have altered the financial paradigm. To understand Web3, it helps to understand Web1 and Web2:

Web1 (or Web1.0) it’s what we now call the early days of the Internet. Web1 allowed you to consume internet content, but little else. Internet sites were static and non-interactive; you could just send simple one-way messages or emails. Companies were starting to build their own websites, but largely as a glorified press release; it was not a way to interact with the public.

That way, you could compare Web1 to a physical newspaper. Composed of paper and ink, you are just a consumer of content. There’s no way to transparently see how popular an article is or who’s reading it, and you can’t interact with other readers.

Web2 (or Web2.0) it’s what most people simply think of as the current Internet. Web2 is interactive and allows you to create your own content, comment and react to content, and interact with other users. This has enabled the creation of social media networks and other interactive sites like Facebook, Twitter, Reddit, etc. Using our previous comparison, you might think of Web2 as our newspaper migrating to a website that allows you to interact in ways not previously possible.

Web3 is a response to concerns about personal data usage and internet privacy. In Web2, user data is largely controlled by major social media platforms, web browsers, and websites. Web3, in contrast, is designed to be a more transparent and censorship-resistant version of the Internet. More democratic than its predecessor Web2, it gives people control over both the architecture of the Internet and user data.

Using blockchainbased on protocols in concert with artificial intelligence,

Did you know?

Web3 is a decentralized version of the internet that allows users to own their data.

Beyond that, Web3 embraces the cryptographic ethos and is designed to be permissionless (no centralized gatekeeper), trustless (no need to trust a third party), and open to all (minimal or no censorship of individuals/ideas ).

NFTs and Web3

Non-fungible tokens (NFTs) have many blockchain features that make them useful and integrable with Web3. As unique blockchain tokens, NFTs allow you to transparently provide proof of ownership for things like digital art, music, data, game assets, personal bests, and more.

Some social media platforms now have NFT verification systems that allow you to use a crypto wallet to prove NFT ownership and use it as a profile picture (PFP). Beyond that, NFTs give you control over your digital identity and can also grant you membership and voting rights. For example, an NFT with voting rights could allow you to vote on where charitable funds go, how a blockchain operates, or even change the characteristics of an NFT platform itself (such as which artists are featured and what fees are charged).

Did you know?

NFT use cases continue to expand; you can even use them to create Web3 website domains

.

When you register or sell a Web2 address such as “examplezyx.com”, you typically pay a third party to provide these services. Web2 uses a centralized database called Domain Name Service (DNS). Decentralized Web3 domain options like Crypto Name Service (CNS) and Ethereum Name Service (ENS) allow you to connect your domain to a crypto wallet to accept cryptocurrency. You can even trade your Web3 domain on an NFT marketplace, just like any other NFT.

The deepening intertwining between NFT and Web3 is expanding what is possible on the Internet through promises of decentralization. The use of NFTs and cryptocurrencies on the Internet will likely become ubiquitous to take advantage of the above possibilities and yet-to-be-developed solutions that will make the Web2 to Web3 transition even more dramatic than the Web1 to Web2 migration.

Stay up to date on cryptocurrency news, get daily updates in your inbox.