# Web3 FAQ

**Published by:** [crypto-kingpin.eth](https://paragraph.com/@crypto-kingpin-eth/)
**Published on:** 2023-02-22
**URL:** https://paragraph.com/@crypto-kingpin-eth/web3-faq

## Content

it’s been a while since the emerge web3, but still there is a ton of ambiguity around this space. in this thread I’m gonna clarify some of these misconceptions1) What is Web3?in the simplest term, web3 is an evolved version of the current apps that we are using(web2). in web2 certain entities such as amazon or google own your data and you don’t have any influence over them, in web3 the data is being stored on a blockchain that is decentralized and it is not in control of single entity2) What Can Be Done With Web3?from the social media app that you are using daily, to the banking app that you use to get loans, everything is possible to build within the web3 space. imagine a social media app like twitter that all of your tweets, replies, etc. are stored in a blockchain so nobody can delete your account3) What is DAO?being decentralized doesn’t mean that we don’t need a group of people voting for important decisions, in this case we need to define a way so certain people can vote and participate in the important decisions. A decentralized autonomous organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity. power is distributed across token holders who collectively cast votes4) Is Web3 Safe?security and decentralization is the main goal of web3 space, however that doesn’t change the fact that more than 90% of the project in web3 space are scams. this is one of the downsides of this space that beginners can easily fall into trap and lose their funds. so the short answer for this question is NO, especially if you are new to the space5) What Exactly do I Get as the Buyer of an NFT?the utility of NFT’s was a big topic of discussion for a long time, let me tell you firstly that 99% of NFT’s don’t serve any utility. you can only use them as you twitter PFP or show the image to your friends. however very few of them have useful utilities, like web3 games where owning an NFT gives you certain privileges within the game6) How Much and What kind of Information can be Put Into an NFT?Theoretically you can put large amounts of data into an NFT but most of the time that is way too expensive: Storing data for example on Ethereum costs 0.00002 ETH per 256bits. so storing a megabyte(8000000 bits) would cost 0.625 ETH storing data on ethereum is very costly, that’s why we don’t store files in NFTs, but only a url pointing to that image is being stored in an NFT7) What is the Difference Between Metaverse and Web3?Web3 and Metaverse are two different concepts, although they are often discussed together due to their association with the future of the internet. Web3 refers to the third generation of the internet, which is being developed to be more decentralized and community-driven. Metaverse, on the other hand, refers to a virtual world that is built on top of the internet. the only intersection between them is the fact that most of the metaverse projects are built with web3 technologies.

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