WEB3

sapal@newsletter.paragraph.com (Sapal) — Thu, 23 Dec 2021 12:20:19 GMT

Web 3.0 is the next step of the internet. It is currently still being built, so there is not yet a single, established definition of what exactly Web 3 is or will be.

But in general Web 3 refers to an internet made possible by decentralized networks such as Bitcoin and Ethereum. The key innovation of these networks is the creation of platforms that are not controlled by a single organization, but which can still be trusted by everyone. This is because every user and operator of these networks must follow the same hard-coded rules known as consensus protocols.

The second innovation is that these networks allow the transfer of value or money between accounts. These two things – decentralization and “internet money” are the keys to understanding Web 3. The main advantage of Web 3 is that it tries to address the biggest problem arising from Web 2: personal data is collected by private networks and this data is then sold to advertisers or even stolen by hackers.

With Web 3, the network is decentralized; hence no one can control the network and decentralized applications (dApps) built on top of the network are open. The openness of the decentralized web means that no party can control data or limit access. Anyone can create and connect to different dApps without the need for permission from a central company.

Wallet

sapal@newsletter.paragraph.com (Sapal) — Thu, 23 Dec 2021 12:17:28 GMT

Crypto wallets allow you to send and receive cryptocurrencies such as Bitcoin and Ethereum, as well as store private keys, which are passwords that allow you to access your cryptocurrencies. There are a variety of wallets available, from hardware wallets like Ledger (similar to a USB stick) to mobile apps like Coinbase Wallet and those that make using cryptocurrencies as easy as shopping online with a credit card.