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Why Should You Care About Web 3.0?

The Web 3.0 ecosystem is rewriting the internet and the banking sector. Although it may be challenging to grasp at first, it’s time you paid attention to NFTs, decentralized finance, and the Metaverse, given how interested prominent investors and technologists are in them.

You’ve probably heard of Web 3.0 unless you’ve been living offline.

The Web 3.0 ecosystem has received over $27 billion in investments so far, and at the same time, Google searches for “Web 3.0” have soared.

Web 3.0, dubbed “the biggest thing since the advent of the internet,” is grabbing the interest of some of the brightest minds on the planet. You might wonder if you need to level up as thousands of people are doing so to comprehend Web 3.0 better.

So let’s get started. What exactly is Web 3.0, and is it even relevant?

Web 3.0

A more open, user-controlled, and decentralized internet is what Web 3.0 is all about, according to Web 3.0 specialist and CEO of Ether Capital Brian Rosoff.

Web 3.0 aspires to return the power of the internet to its users, in contrast to today’s internet (Web 2.0), when the majority of the value created by its users (such as data) is absorbed by big businesses like Meta and Google (centralized platforms).

The tenets of Web 3.0 include:

 

  • Returning control of user data and privacy.
  • Enabling digital asset ownership.
  • Reducing the danger of attacks.

To be widely adopted, however, the ecosystem as a whole needs significant work in the areas of regulation, volatility reduction, and more infrastructure development.

Where Was Web 3.0 Created?

The internet as it exists today and the internet that Web 3.0 aims to develop are highly different. A few large corporations own the internet’s infrastructure, and its users do not hold the data they produce. As users generate data that is used to generate revenue for the owners of the internet’s infrastructure, users are the internet’s primary “product” of the internet today.

Web 3.0 was developed in tandem with the workings and ethos of blockchain and cryptocurrency networks, where those who contribute to the network’s running receive benefits.

This was initiated in 2009 by Bitcoin, the world’s first cryptocurrency and blockchain network. But Web 3.0 took off after the 2015 introduction of Ethereum.

Unlike Bitcoin, the Ethereum blockchain enables developer communities to create applications known as Decentralized Applications, or Dapps, on top of its network. As a result, entire businesses can be founded using technology that is not owned by any particular entity.

These apps stand out because their backend is built using Smart Contracts. Intelligent Contracts run independently after deployment and cannot be modified. As a result, everyone using the programs feels familiar with “programmed trust.”

The underlying principles of Web 3.0 are this “programmed trust” and managing such programs over scattered networks.

Why is Web 3.0 such a challenge to comprehend?

According to Rosoff, there are two main reasons why Web 3.0 can be challenging to comprehend:

“Web 3.0 is difficult to understand since most people probably don’t spend much time considering the internet’s infrastructure and functions. If you don’t know how your internet services operate, it isn’t easy to appreciate why it has value. The current structure of the internet has many risks and issues, but they are just concepts, he claims.

“The second reason is that Web 3.0 has become a catch-all phrase that might signify different things to different people. The best day trading platform, web 3.0 includes technologies like blockchains, cryptocurrencies, NFTs, the Metaverse, decentralized financing (De-Fi), and even simply decentralizing one’s data.

Why Web 3.0 Matters for You

Three of the many factors in this field that are crucial for modern investors to comprehend are as follows:

Also Read:  Reasons Bitcoin Is Going to Be Big in 2023.

1. NFTs and the Creator Economy

NFTs are revolutionizing the creator economy because Web 3.0’s ethos is focused on enabling people to control and manage their data and assets online (non-fungible tokens).

NFTs give producers, singers, artists, gamers, and others the chance to possess digital assets and unquestionably confirm their validity. NFTs have been made from artwork, album covers, digital photos, and even screenshots of tweets. They are making it possible to monetize creativity in ways that were not previously possible. As a result, plenty of people are making money. For investors, there may be excellent chances if you know how to maneuver the market.

NFTs have undoubtedly drawn criticism over their long-term viability, and interest in NFTs has recently decreased due to shifting macroeconomic circumstances and volatile cryptocurrency markets. However, with $5.4+ billion in profit expected to be made in 2021 from NFT sales, more businesses, like the NFL and McDonald’s, are taking note.

2. De-Fi, or decentralized finance

By June 14, 2022, the decentralized finance ecosystem had over $79 billion.

Decentralized finance, or “De-Fi,” is the aspect of Web 3.0’s economy that uses blockchains and cryptocurrencies to facilitate lending, lending transactions, and interest-bearing on crypto assets. Individually owned digital wallets and Smart Contracts enable the ecosystem to be independent of centralized organizations like banks.

For instance, by lending out their holdings or securing them in software that runs blockchain networks, tax sheltered annuity, millions of people can produce incredible amounts of interest on their bitcoin through De-Fi (far more significant than you would get at a bank on your cash) (similar to how bonds work).

De-Fi is still one of the most intriguing features of Web 3.0 and can transform our financial system, despite the terrible fact that there have been multiple recent examples of significant meltdowns in De-Fi that have practically erased billions in value (Terra and LUNA).

De-Fi is still in its infancy, and there aren’t any clear regulations to guide this high-risk area just yet, but if you’re interested in the future of banking, start learning about it.

The Metaverse 3.0

Everyone has been talking about the Metaverse and what it can be since Facebook changed its name to Meta Platforms.

The Metaverse, which includes live virtual entertainment, AR/VR gaming, and next-generation social networking, is predicted to be an $800 billion market by 2024. Through play-to-earn games like Axie Infinity or Roblox, the Metaverse may potentially turn into a way to make a living.

Due to the buzz surrounding the area, major players are lining up to participate. In the Metaverse, JP Morgan has opened a branch. In the Metaverse, Ed Sheeran performed. Real estate in the Metaverse has cost millions. In the Metaverse, Warner Music is establishing a live music venue. Businesses like Nike and Gucci have also been looking for ways to participate. Even Satya Nadella, the CEO of Microsoft, has spoken about how the Metaverse can change how we live, engage, and work.

Although the future of the Metaverse is unknown, there are many opportunities because of the money invested in it. Working on the Metaverse could lead to an entirely new set of professions. Although NFTs and gaming are at the forefront of Metaverse applications, it’s conceivable that we could all be participating in it someday.

How to Get Started With Web 3.0 Investing

The easiest way to learn about Web 3.0 is to follow the cryptocurrency community on Twitter and look into the various blockchain projects currently being developed. After doing some research, learn how wallets operate and put a modest amount of money into a cryptocurrency or NFT project you are familiar with. This will give you a flavor of what it’s like to be an owner. There are numerous cryptocurrency exchanges and NFT markets available. You can explore more complex applications once you dip your toes in and get a feel for them.

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