What Exactly is Web3?
The web has been around for as long as the internet itself. Web3, Web3.0, or Web3 is the most popular word on the internet right now. It’s a vision of a perfect world that was made famous by big tech companies and then given back to regular people. It’s a plan to make the internet more like a democracy than the way it is now, which is more like a business. Here’s a picture that shows how the web has changed over time:
How is Web3 Different?
Web 3.0 is different from its predecessors because it is not centralized, but it is still interactive like Web 2.0. The idea behind Web 3.0 is that outside parties will have much less control, or we will get rid of them altogether. But this is also where things start to get complicated with how they work.
How does Web3 Work?
Blockchain is the most important part of web3. Blockchain is the technology that supports the whole ecosystem, including web3, non-fungible tokens (NFTs), and cryptocurrencies. Web3 is now a synonym for everything crypto, and most Web3 projects are decentralized applications that run on the Ethereum network.
The idea is that the data would be stored in different places instead of in server farms, which is what happens now. This information would be recorded in a digital ledger called the blockchain. This would make the flow of information very clear and stop people from misusing it.
Advantages of Web3: Here are a few of the benefits of Web3:
Security:
Due to its use of cryptography and strong hashing methods, Blockchain is safe and can’t be changed. This is because data can’t be changed or hacked without being noticed.
Open:
Apps built on web3 use open-source software made by a community of developers who are easy to reach and whose work can be seen by the whole world.
Collaboration:
Web3 is run by a DAO, which stands for “Decentralised Autonomous Organization.” This is a new type of organization that doesn’t have boards or executives. These autonomous organizations follow a set of rules that are written in code. This means that anyone can join and work together to help the organization grow.
Ownership:
Since web3 uses decentralized networks, these are making it easier for everyone to make content and cutting out the middleman. These apps let communities earn tokens for direct participation and activity in the community. Since these tokens have monetary value, the user feels like they have a stake in the project.
Immersive Video Streaming
Web3 is known for providing fascinating and real-life-like experiences to viewers. It has drastically impacted television viewers. The videos are quite impressive due to the HD-quality graphics. People can feel everything happening on the screen’s other side of the screen due to futuristic technologies.
Recently, people have lost interest in watching their favourite content on their TV sets. But if we consider the IPTV, the videos are shown here by transferring them on the internet. Only, the owner will have access to the content. The only peculiarity it faces is the crashing issue. The “IPTV not working” is the most common message displayed on the screen because of the excessive traffic.
Some Technical Terms Around Web3:
Here are some of the most common words and phrases you should know about Web3:
Smart Contract:
In our previous blogs, we talked at length about smart contracts. Find out more about it here. In short, a smart contract is the back-end code that we deploy on a Blockchain network, like Ethereum Blockchain, and it is deployed in the bytecode format. For smart contract development, one needs to hire experts from an esteemed Web3 development company.
The details of the project should be discussed in advance to maintain clarity. Even the factors that impact the cost of app development need to be talked about by having a conversation with their business analysts.
Interface for Application Binary:
ABI, in short, is an interface that lets our application talk to a smart contract that has been deployed using a smart contract address. For Ethereum and EVM, this is all that makes up a smart contract. To use functions that are defined in high-level languages, users must convert names and arguments into byte code so that the byte code can understand them. The languages that compile the EVM have strict rules about how these conversions work, but in order to do them, you need to know their exact names and types.
A block is a group of transactions that are written to the blockchain at the same time. Each block has information about the block before it, which links them all together.
Consensus:
Consensus is when all of the nodes on a blockchain agree on something. For new transactions to be verified and new blocks to be added to the blockchain, everyone needs to agree on something.
Transactions:
Transactions are actions that change how a blockchain, like Ethereum, is set up. For example, if Suresh sends Pushkar 1 ETH, Suresh’s account must be debited and Pushkar’s account must be credited. This action that changes the state happens during a transaction.
Gas:
This is a fee that a user pays on the Ethereum blockchain to make a transaction or run a smart contract.
Mining:
In a Proof of Work system, this is the process of verifying transactions, putting them into blocks, and adding them to the blockchain. Miners are the people who take part in this process.
Proof of Work is a consensus mechanism that requires miners to solve complicated maths puzzles in order to verify transactions and create new blocks. When a miner solves a puzzle correctly, they get to make the next block and get the block reward and transaction fees that go with it.
Proof of Stake is a consensus mechanism that requires nodes called “validators” to stake a certain amount of cryptocurrency on the blockchain in order to verify transactions and create new blocks.
DAO is short for “Decentralised Autonomous Organization.”
DAO stands for “Decentralised Autonomous Organization.” It uses open-source code and is run by the people who use it. It is run by the community and is completely independent and open to everyone. Smart contracts are basically computer programs that carry out the decisions that have been agreed upon. For example, Bitcoin can be thought of as a DAO because people agree to buy and sell the cryptocurrency based on a set of rules, and the Bitcoin blockchain keeps track of everything.
DApp-
These are Decentralised Applications that are built on open-source code and live on the blockchain. These are programs that are built on a decentralised network and have both a smart contract and a user interface on the front end.
Conclusion
Every day, people worry more and more about the privacy of their data, which means that web3 innovations will come faster than ever. It’s important that you have a basic understanding of this space because it will change how we work.
