Web3.0, is the next evolution of the internet that aims to overcome the limitations and problems of the current centralized web. It is a new paradigm for how the internet works, based on the principles of decentralization, open-source, and user control.
Web1.0: Read Only
Web2.0: Read and Write
Web3.0: Read, Write and Own
In Web3.0, the internet is not controlled by a central authority or a small group of companies, but instead, it is built on decentralized technologies such as blockchain, peer-to-peer networks, and distributed storage systems. This enables users to own and control their data, interact with each other directly without intermediaries, and transact securely without the need for traditional financial institutions.
The decentralized web has many potential benefits, including
increased privacy, security, and transparency
increased more open and fair digital economy.
It is expected to enable new types of applications and services, such as decentralized finance (DeFi),and decentralized marketplaces(NFT).
Web3.0 is not simply about technological innovation, but rather about creating a new economic system within the network. Using blockchain as the underlying logic, a completely isolated economic system has been developed that does not require central managers. Instead, it is maintained and operated through its own incentive mechanisms, with its own currency, organizational structure(DAO).
This economic system requires a cryptocurrency to maintain the flow of value within the system, with each blockchain having its own native token, for example
Bitcoin
Ethereum
Tether
A token is needed to maintain the operation of the blockchain. Cryptocurrency is a token within the blockchain system.
There are several platforms built to trade crypotocurrency:
Binance
Coinbass
A new financial system has emerged to increase the liquidity of the cryptocurrency market, giving rise to a new direction in DeFi (Decentralized Finance): no need for banks, brokers, and other intermediary institutions.
Stablecoins are pegged to the US dollar at a 1:1 ratio:
Tether: algorithmically stable
Coinbase's USDC: 100% collateralized and pegged to the US dollar
Binance's BUSD: 100% collateralized and pegged to the US dollar
Different StableCoins may have different algorithms behind them.
The major public chains include:
Ethereum
BNB Chain
Polygon
Cardano
Polkadot
Other applications of blockchain technology include: