Find out why cryptocurrencies are needed for Web 3.0

Encouraging individuals to participate in Web3 protocols strengthens society. The question is how much of the internet can realistically be decentralized. Probably the biggest trend will be the emphasis on usability.

Source: Adobe / Maksim Kabakou

First there was decentralized finance (DeFi), then non-fungible tokens (NFT), and now it seems that the next big thing in crypto may be Web 3.0. While still somewhat vague, this term refers to making the Internet “smarter” in a variety of ways, from using AI to proactively responding to user requests to using decentralization to bring in new features and experiences.

And since decentralization is likely to be one of the key features of Web 3.0, this means that cryptocurrencies and blockchain will also play a key role. In fact, industry players who spoke with Cryptonews.com suggest that cryptocurrency will be the core of Web 3.0, where cryptocurrencies serve to create a new incentive and coordination system for Internet services decentralized.

Cryptocurrencies can promote a new Web 3.0 ecosystem characterized by distributed work protocols, decentralized infrastructure, and user-owned creative platforms, among other emerging trends. Of course, the industry needs to focus on improving and simplifying user experiences before it can hope to create a meaningful level of adoption.

How important will cryptocurrency be for Web 3.0?

Initially (ie before crypto), Web 3.0 was seen as a phase in the development of the Internet. As pioneer Tim Berners-Lee and others devised, it would testify about computers and machines “capable of analyzing all data on the Web.”

But while this definition still holds true to some degree, time has passed, and now most people working with Web 3.0 technology associate it with decentralization. In this regard, cryptocurrencies and blockchain play an important, even indispensable, role.

“Cryptocurrencies and blockchains are a necessity for Web 3.0; they enable the three key features of Web 3.0: decentralization, zero permissions, and zero trust,” said one doorman. DEFINITYwhich oversees the development ofinternet computer (ICP), a $ 2 billion platform that aims to challenge the monopoly of large technology companies.

Adam Soffer, Product Manager for the decentralized video distribution platform Livepeer (LPT), agrees that cryptocurrencies and blockchain are at the core of Web 3.0.

“They are what enable developers to integrate rules and financial incentives into open source software and create token-coordinated networks. By encouraging individuals to participate in Web 3.0 protocols, developers and society can tackle issues that require large-scale coordination, “he told Cryptonews.com.

Not everyone in the industry agrees that cryptocurrency will be crucial for Web 3.0, but everyone agrees that it will be very important. According to Nick Mancini, chief analyst at Trade the chainthere is likely to be a gap between the public and private sectors and their use of cryptocurrencies.

“Cryptocurrencies as we see them today are likely to be used extensively for public and open source tools that interact with public systems but do not need internal economies or comprehensive consensus-based models,” he told Cryptonews. com.

Also Frank Mong, director of operationsHelium (HNT), the developer of a decentralized wireless infrastructure, does not necessarily agree that cryptocurrencies will be crucial for Web 3.0, but suggests that blockchain and cryptocurrencies will add a unique incentive. to make people behave differently than they do by using the internet as it is now.

“If the incentive was to keep things private and permanently encrypt them, and the more you do, the more cryptocurrency rewards you earn, then the current behavior of collecting private information and reselling it for rewards would cease,” he told Cryptonews. com.

While Mong recognizes that blockchain can provide a decentralized way to access the Internet, he also raises an important issue.

“I think the question is how much of the internet can realistically be decentralized. If the core is still owned by a few large entities, then those entities can still censor or create barriers to independence and privacy,” he added.

Examples of Web 3.0

When it comes to which platforms currently offer examples of decentralized Web 3.0 technology, opinions differ.

For Adam Soffer, projects that fall into the “distributed work protocol” category are among the most interesting. These are especially filecoin (FIL), which is a decentralized, open source storage network that allows developers to build new ways to store data in their applications, as well as enable individuals to move away from centralized storage services. and does not guarantee privacy. “

It also includes Curve (GRT), which allows users to extract data from blockchains on blockchains. “It allows anyone to build and publish open APIs or sub-graphs that can be queried for a wide range of crypto-grass trend information,” Soffer explained.

Predictably, Soffer also includes Livepeer among its favorites, a platform that provides distributed infrastructure for key services such as video transcoding at a fraction of the cost charged by key providers. “These services are provided by node operators (referred to as ‘orchestrators’ in the Livepeer community) who compete on the basis of service quality, price and location,” he explained. .

One of the most prominent examples of Web 3.0 is without a doubt the computer internet, which aims to offer a decentralized version of the internet and various services and websites.

And according to the spokesman for the DFINITY Foundation, a number of platforms already operating on the computer Internet highlight the potential of Web 3.0. These include in particular DSCVR (a decentralized version of Save your owned by its more than 12,000 users),OpenChat (a real-time messaging application with 19,000 users), but also district (a community-based professional network that allows users to vote on upgrades and never sell their data).

Looking at the industry from the outside, Nick Mancini believes that the most promising subdomains of Web 3.0 are decentralized exchanges, media, art, and storage.

“Decentralized exchanges like Uniswap and Sushiswap are changing the way we trade with crypto, Steemit is changing the way we communicate, OpenSea is changing the way we buy and sell digital art, and Filecoin, Storj (STORJ) and sia (SC) carry the load on decentralized file storage. These are just a few examples of companies tackling innovation in three worlds ripe for disruption, ”he said.

Future trends

Looking to the future, Frank Mong believes that “decentralized infrastructure” will be the biggest and most important trend in Web 3.0 related to cryptocurrencies. This is perhaps not entirely surprising, as Helium is a public blockchain that aims to encourage the development of a decentralized wireless network.

“I think it’s going to happen for a real Web 3.0. We’re working on it,” he said.

While Adam Soffer expects NFT- and DeFi-related platforms to receive the most attention in the short term, he also expects other areas to gain prominence.

“In the near future I can see [organisations autonomes décentralisées]”distributed work protocols and user-owned / decentralized creator platforms, such as Audius.co and Glass.xyz (which are themselves based on distributed work protocols), are on the rise”, he stated.

In addition, the DFINITY Foundation expects decentralized social networks to gain momentum, especially in response to invasion of privacy, platform risk and censorship synonymous with older networks such as Facebook.

“Games will also be very popular on the blockchain. Gaming is the perfect use case for NFTs,” its spokesman added.

An important trend for the near future, however, according to Nick Mancini, will be usability, which will be crucial if all other trends – infrastructure, work protocols, social networks, gaming platforms, creative platforms – are to reach critical mass. .

According to him, “the biggest trend will probably be the emphasis on usability. To be widely adopted, projects must offer a user experience so simple that your grandparents could use it.”

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