Many people have heard this term at least once in their lives, but find it hard to explain exactly what it means. We'll try to help you figure it out!
Overall, there have been three eras of the Internet:
1990 - 2005
The first era was the discovery of protocols that were decentralized and community driven. The Internet was just being built, there was more freedom, but not much possibility.
The second era was the boom in centralized services. Most of the funds went to large technology companies.
The third era – an era that is starting right now. It combines the spirit of the first era with the advanced decentralized technologies that blockchain and crypto have brought us.
Web3 covers a huge number of fields, from business to gamification. In this article we will try to reveal each direction of the new era of the Internet.
NFT in Web3
NFTs are evolving along with blockchain technology. In the future, thanks to the widespread development of the Web3, NFTs may occupy the following niches:
Images posted on social media that represent an identity.
Art and music: a more efficient and transparent way for artists to monetize their work.
Games: unique assets designed to be used as part of a game.
Utility: items that provide special access, benefits, rewards, or membership in various clubs.
Metaverses: objects that can be owned and exist in new virtual worlds.
And this is only a small part of what is already under development. Soon everything may become much more global.
For example, the use of NFT on all social networks. For artists it could mean going beyond Spotify and Apple Music, and for gamers - playing not only in P2E games, but Dota 2 and CS:GO.
DeFi in Web3
DeFi are financial instruments in the form of services and applications created on blockchain. In the future, they could replace traditional financial sectors.
After all, the financial institutions that exist today are unable to serve a huge part of the world. To give you an example: 1.7 billion people have no bank accounts.
DeFi has gone from zero to over $100 billion in less than two years.
The most popular blockchain in DeFi is Ethereum. However, as decentralized finance has evolved, other blockchains such as Polygon, Solana, Avalanche, etc. have begun to catch up.
Soon DeFi systems may rank as the 31st largest bank in the U.S. by volume. And later, with the development of Web3, DeFi could further displace traditional financial institutions.
With the active evolution of the classic game industry, games based on blockchain technology are also actively developing.
Here are some statistics:
20% of NFTs sold in 2021 are game-related.
49% of cryptocurrency activity comes from games.
50+ is the number of Web3 games with more than 1000 unique users.
$2 billion is the value of all lands in the Metaverses.
At present, Web3 games are built on the concept of play to earn, but there is an increasing trend to merge blockchain and classic games. So we will most likely see Web3 games from major global publishers in the near future.
DAO in Web3
Decentralized Autonomous Organization is a special type of organization in which participants interact without a single control center. This is accomplished through the use of special algorithms (smart contracts).
It is important to understand that DAO is not only about cryptocurrencies. This concept is much broader. It covers not only decentralized finance, but the entire management system.
The prospects for this technology are extremely high. Smart contracts can serve as a replacement for the classical banking, judicial, credit and many other systems.
Web3, what’s next?
We’d like to end this article with a summary:
The Web3 infrastructure will improve. This is due to the discovery of new blockchains and rising competition on the market.
Many developers will increasingly adopt NFT in their own communities. Selling digital goods through NFT will help increase monetization of resources.
Major developers will incorporate Web3 into their games. This is also related to the convenience of monetization.
New Web3 users who earn tokens are likely to prefer to save those tokens in DeFi protocols. Because of this, the classical banking system could weaken. However, this could cause banks to confront Web3, something we can witness already now.
The rise of experimentation with DAO. Introducing Web3 into the most unconventional activities, from voting systems to medicine and microbiology.