Web3 is a suite of libraries and protocols for cryptography, consensus algorithms, and peer-to-peer networking that enables developers to build decentralized applications (dApps) on decentralized and public blockchains. These platforms typically provide the infrastructure that allows protocols to interact with active chains like Ethereum and its smart contracts. Furthermore, they also offer critical definitions for protocols needed for them to interact with dApps.
Is Web3 the future of Blockchain Interoperability?
Undoubtedly, blockchain technology can revolutionize how we interact with the digital world. The technology allows for a distributed, secure and tamper-proof ledger of transactions that can be used to track anything of value. One of blockchain’s key challenges is making different isolated networks interoperable with others. To resolve this fragmentation, Web3 comes in.
As mentioned earlier, Web3 is a set of protocols and standards aiming to make different blockchain platforms compatible. Using Web3, developers can create highly functional dApps that can work across various networks, regardless of their build. Subsequently, this flexibility opens up multiple possibilities for how developers can use the technology to solve real-world problems through decentralized ledgers.
Will NFTs benefit from Web3?
NFTs promise to shape tokenization and digital ownership. According to estimates, the sphere could command billions of dollars in years to come. Therefore, with the rise of web3, NFTs will benefit in several ways since:
- It would be easier to transfer NFTs through networks because Web3 provides a more secure and efficient way to manage and transfer ownership.
- There will be a more fluid, interoperable, secure, and highly liquid base layer to create vibrant decentralized marketplaces where users can swap NFTs, regardless of the source blockchain where it was minted.
- Web3 is decentralized, therefore, NFT traders would swap tokens without relying on a third party.
Is Web 3.0 the Metaverse?
The Metaverse refers to a virtual world, an extension from the real world. Users can interact with others and with digital objects in a near-realistic way using special VR or AR gear. Ideally, the Metaverse is where people could virtually work, play, and socialize.
There are many similarities between the Metaverse and Web 3.0. In both cases, it involves using advanced technology to create a virtual world connected to the real world. Moreover, these technologies emphasize the importance of user interactions and the ability to develop and use digital objects.
However, there are also some critical differences between the two concepts.
Web3 is often described as an interoperable decentralized web that significantly improves on Web2, the publishing web. In web3, instead of relying on central authorities, such as governments or corporations, users interact directly without a third party. Subsequently, Web3 has allowed for a more democratic and open internet, where everyone has more control over their data and, most importantly, privacy.
The Metaverse, on the other hand, is not necessarily decentralized. Its creators have a choice to launch it on centralized platforms such as Roblox, Fortnite, and more, but unlike before, allow its players control, say of some in-game items.