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Web3, a new frontier in technology powered by blockchain technology
Last updated Jul 27, 2022 at 6:59 PM
Posted Jun 9, 2022 at 1:00 PM
Recently, Blockchain technology has introduced ideas that defy the imagination. Web3, one of the most recent technologies, has now joined non-fungible tokens (NFTs) and the metaverse virtual world in the blockchain ecosystem, and it is imperative to see how all these technologies interoperate. Some clarifications will help make this new world of technology intelligible.
What is Web3?
Web3, a new frontier in technology powered by blockchain technology, promises an improved degree of personal and data privacy. In the current Web2 Internet age, users’ activities on the Internet and even their personal data are not in their sole custody. Web3, however, the latest iteration of the internet experience, is a decentralised, protected and user-centric technology that allows users to take charge of whatever they do on the Internet -- the content, digital assets, and so on. Web3 connects users by blockchain protocols or peer-to-peer nodes without mediation. So how can Web3 be incorporated into the various developing technological innovations in the blockchain industry, and will it be able to meet its promises?
The Metaverse -- a world inside the world
As of 2021, the global market size of the Metaverse -- a 3D virtual space where everything happens virtually – is USD 38.85 billion with an expected rise to USD 678.8 billion by 2030.
The Metaverse is a sub-arm of the blockchain technology where real human activities are dubbed into a cyber space. With avatars in the metaverse, users can collaborate, work, socialise, even attend concerts just as in real life. The Metaverse replaces a 2D screen with a 3D cyberlife, combining augmented reality (AR), virtual reality (VR), mixed reality (VR) , cryptocurrencies, gaming and so on. How then will user information and activities be secured in the Metaverse?
Web3 and the Metaverse
Without the decentralised, secure and permissionless protocols that Web 3 provides, the Metaversal experience and conceptual framework will be no better than a monitored life. The decentralised network of Web3, however, enables users to operate and govern the blockchain protocols themselves thereby acquiring shares called tokens or cryptocurrencies. Web3 cryptocurrencies in the Metaverse could thus allow users to sell, buy, and exchange digital assets without an intermediary or third-party control, and with the autonomy to control personal data.
NFTs and the advent of Web3
Between 2018 and 2022, there was a ten-fold increase in the market of non-fungible digital assets in Non-Fungible Tokens (NFTs). Various NFT marketplaces display digital assets, but users of some platforms have to undergo some registration and verification before they can buy or sell. Web3 will eliminate the need for such precautions and still protect NFT users and their assets. The NFT marketplace requires Web3 if it is to realise its full potential.