Web 3 Secrets

Greetings CryptoCubers!

We hope you’ve enjoyed the market pumping this week:

- BTC: $69,342

- ETH: $3,688

- SOL: $159

Last week, we discussed DeFi and its impact on the crypto world. This week, we’ll cover Web3 and its connection to crypto!

Understanding Web3

Web3, or Web 3.0, represents the next evolution of the internet, shifting from a centralized model to a decentralized one. While the current web (Web 2.0) relies on big companies to provide services and store data, Web3 aims to give control back to users by leveraging blockchain technology. This new model uses decentralized networks where applications run on peer-to-peer protocols instead of centralized servers. The core idea of Web3 is to create a more open, transparent, and user-centric internet where users own their data and have more privacy and security.

Web3's Impact on Crypto

Cryptocurrencies are integral to Web3 as they enable the decentralized systems it relies on. In a Web3 environment, cryptocurrencies act as native currencies for transactions, incentives, and governance within decentralized applications (dApps). For instance, users can buy and sell goods and services, participate in community governance, or earn rewards for contributing to a network using cryptocurrencies. This interaction fosters a more seamless and efficient digital economy, empowering individuals to have more control over their online activities and financial transactions. Essentially, Web3 and cryptocurrencies together promote a shift towards a more decentralized, equitable, and user-controlled internet.

Examples of Web2 and Web3 Platforms

Web2 Platforms:

1. Facebook - A social media giant where user data is stored on centralized servers controlled by the company.

2. Google - A search engine and suite of services that collect and manage vast amounts of user data to deliver personalized experiences.

3. Amazon - An e-commerce platform where transactions and user data are managed by Amazon's centralized infrastructure.

4. YouTube - A video-sharing platform where content is hosted and managed by Google's centralized servers.

5. X (formerly Twitter) - A social networking service where user interactions and data are controlled by the company.

Web3 Platforms:

1. Ethereum - A decentralized platform that allows developers to build and deploy smart contracts and dApps without relying on centralized servers.

2. Uniswap - A decentralized exchange (DEX) for trading cryptocurrencies directly between users without intermediaries.

3. Filecoin - A decentralized storage network that allows users to rent out their unused hard drive space in exchange for cryptocurrency.

4. Decentraland - A virtual world where users can buy, sell, and build on virtual land using the platform's native cryptocurrency, MANA.

5. Aave - A decentralized finance (DeFi) platform that allows users to lend and borrow cryptocurrencies without needing a traditional bank.

In summary, Web3 is the future of the internet, allowing people to have more control over their data with increased privacy and security. Many large Web2 companies make money by selling data to ad companies, enabling targeted advertising. Web3 changes this by letting users own their content.

Next week, we'll explore how Web3 has given rise to the NFT market, creating a new world of art and ownership!

We hope you enjoyed this week’s edition. Please feel free to reach out anytime, and we’ll get back to you as soon as possible!

Happy investing!

Blessings,  

CryptoCube