Heard people talking about Web3 Ecosystems but don’t really know what they are? In this blog we will simply define and explain them.
A Simple Definition Of A Web3 Ecosystem.
Web3 is the third iteration of the World Wide Web which began as a reading platform and developed into a writing platform. The third stage of the web embraces ownership. It puts the ownership of everything currently being managed by centralized authorities back into the hands of the people. Hence a Web3 ecosystem encompasses all the applications and functionality that can be built into this powerful new incarnation of the web.
The Back Story
The term “Web3” was coined by Gavin Wood, the co-founder of the Ethereum blockchain, in 2014. He envisioned Ethereum as a “decentralized online ecosystem based on blockchain”. Web3 expands that vision to the grandest scale transforming the internet into a platform that enjoys all the best features of the blockchain, because it is being built on the blockchain. Think decentralized, transparent, secure, immutable and trustless. A Web3 ecosystem will put users back in control of their own data, stripping central authorities of their rules, power and control.
What Will A Web3 Ecosystem Look Like?.
A basic Web3 ecosystem will have all of the elements already being utilized on the blockchain as well as many others still being developed and still more yet to be even imagined.
These will include:
DeFi – Decentralized finance is already a key component of blockchain technology. Think all of the trading and financial options you already have at your fingertips without a central authority and intermediaries making the rules and taking their cut.
DApps – digital apps that run on the blockchain network rather than on one singular computer. Because dApps are decentralized, they are outside the control of central authorities.
NFTs – Non-Fungible Tokens are tradable tokens on the blockchain that represent a unique asset, either digital or physical. They already exist but will be a huge part of a Web3 ecosystem.
Semantic web – an extension of the web that uses metadata to make the internet machine-readable.
Virtual reality – computer simulated environments allowing interaction in a seemingly real way.
Artificial Intelligence – computer programs performing tasks previously only done by humans including abilities such as decision making and perception.
Features Of Web3 Ecosystems
Web3 ecosystems will be run by smart contracts. They are fundamental to the operation of any transactional blockchain and will be like the fuel or foundation of the ecosystem. But they will also have other distinct properties including:
Decentralization – The ecosystem is self-governed through the trustless protocols built into its fabric. There can be no argument over transactions or proof of assets and no need for middlemen.
Autonomy – Users will have total control of their data without the need and security risk of a central authority.
Reach – Web3 ecosystems reach all users from government to private enterprise to individuals. Participants help build the platform rather than just be passive users. Web 2 ecosystems only reach active participants.
Incentivization – Tokens and coins are used in Web 3 to incentivize participants who provide value to the platform such as developers or users who provide computing power.
When Can I Use A Web3 Ecosystem?
Now! They are developing and growing everyday on blockchains such as Ethereum. They are still only a fraction of what they will become. But there is no better time to familiarize yourself with the intricacies of the platform and its potential. Get involved, read subreddits on the topic, join a blockchain community and if you’re really keen, think about learning how to write and design smart contracts – it will be one of the boom jobs of the near future!
Want To Know More About Web3 Ecosystems?
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