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Web3, GameFi, Metaverse, and NFTs: How to explain to your granny.
Last updated Jul 27, 2022 at 6:59 PM
Posted Jun 9, 2022 at 4:00 AM
Web3, GameFi, Metaverse, NFTs, blockchain, and cryptocurrencies – if confusion about these technological innovations is keeping you back from enjoying the benefits of the new online opportunities, this article may help you figure it all out.
Web3: The major takeaways
Why does web3 have a 3? This basically means that there has been a web1 and web2 era of the internet. Web1 was the era of static web pages where visitors could only read and nothing more. Web1 was a multi-company asset, and the websites usually had open protocols starting with HTTP, FTP, SMTP, etc. As technology advanced, we transitioned into the web2 iteration of the web, where website visitors could interact with the web page. Platforms such as Facebook, Google, and Twitter allow you to post your personal content and interact with people. However, your personal data must be provided before you can use these functions. Also, you don’t possess complete control over your data and content after putting them on such platforms. So what is web3? In the third internet iteration, users would be able to combine the openness of web1 and the user interaction of web2 but with a completely decentralised characteristic. The internet would be owned by both the builders and the users using a decentralised blockchain network. Users would be able to read, write, and own part of the web and therefore decide what they wanted to do with their data and online content.
GameFi is the combination of two words -- Game and Finance. GameFi is a play-to-earn (P2E) gaming model built on the blockchain protocol; its ecosystem uses NFTs and cryptocurrency for its environment. GameFi often gives players some economic rewards that can either be used in the gaming environment or transferred for a cryptocurrency exchange or sold in marketplaces. These rewards are earned in the virtual gaming space by battling other players, completing tasks, or advancing to higher stages. DappRadar listed more than 1,400 blockchain-built games as of March 2022.
Metaverse and NFT explained
The metaverse is the merger of financial, physical, and virtual experience in a 3D world where users can attend conferences, work, meet, game, and socialise. GameFi exhibits something like a metaverse through its in-game activities coupled with the virtual economy. The metaverse will be driven by an augmented reality where each user will have a distinct avatar representation. The Web3 metaverse could host a completely decentralised ecosystem. SecondLive, Decentraland, and Axie Infinity are examples of the metaverse.
What does NFT mean?
NFTs (Non-fungible tokens) are unique digital assets that are irreplaceable. Unlike Bitcoin which can be traded for one another, NFTs have a singular identity. NFTs can be in the form of music, videos, in-game items, artwork, or any other collectibles.
Terminologies and innovations in the blockchain industry emerge constantly, so there is a need to demystify complex and technical terms for anyone that might want to understand what is going on.