We have come a long way from documenting the data on physical pieces to putting it on a cloud server. The emergence of Bitcoin in 2009 not just brought an idea of peer to peer transactions to the mainstream but blockchain too. Coming to the present, the latest development includes what the people are calling the next iteration of the internet, Web3.
In simple terms, Web3 is going to be a decentralized internet where users will be the owners. Currently, we are the products as platforms like Twitter, Facebook and more, own our data. The next iteration of the Internet will allow the people to have complete ownership over their data. So, how is this possible? And what should the people expect if the concept really comes into the mainstream? Let’s have a look.
Blockchain
Blockchain is going to be the underlying technology of Web3. It is a distributed immutable ledger which records the data that no one can alter. Several companies including Microsoft, IBM, and more are using this technology to give a boost to their businesses.
The internet is a vast space of data which the hackers can alter by finding loopholes in ecosystems. In blockchain, an attacker needs at least 51% authority on the chain, that too to start the attack. Here’s the catch, if the hacker needs to alter the data stored in the 100 Millionth block, he needs to alter all the blocks lying behind it. No one’s got that much time in the world I guess.
Cryptocurrencies
The world saw crypto asset’s emergence in 2009 with the pseudonymous Satoshi Nakamoto releasing Bitcoin alongside its whitepaper. A cryptocurrency is a decentralized virtual asset which acts as a medium for exchange between the users. Currently, there are over 22,000 digital currencies roaming in the market.
Decentralized Autonomous Organizations (DAOs)
As the name suggests, these are basically communities controlled by the encoded rules controlled by the organization’s members. They are not prone to any central entities like governments and hence, aren’t influenced by any policy changes. In November 2021 people came together to form ConstitutionDAO to acquire the original copy of the US constitution. Bloomberg said the effort “showed the power of the DAO”.
Non-Fungible Tokens (NFTs)
People should think of NFTs as cousin sisters of crypto. It is a token on a blockchain representing ownership of a user. It will become a Web3 pillar as people will be the owner of their data and can sell it in the form of non-fungible tokens. The concept has increasingly caught people’s eyes, especially when it comes to gaming.
In games like The Sandbox, Axie Infinity, Decentraland, and more, users are allowed to sell in-game items like avatar skins, virtual land plots, and more to generate IRL revenue streams.
Source: https://www.thecoinrepublic.com/2023/01/01/what-are-the-4-pillars-of-web3/