Is it snake oil, a Ponzi scheme, or a true revolution? Along with the Metaverse and the strange domain of NFT art, Web3 (also known as Web 3.0) is another popular topic in the “let’s debate the future of technology” list. What precisely is Web3? How does it work?
What Is Web3 and How Does It Work?
Web3 (or Web 3.0) is the next version of the Web. Because Web3 is just a concept, there are many, often conflicting, ideas about how it should look. Various companies emerged as leading companies in the field of web3.0. If you want to look for the best companies then here is the list of top notch Web3 Development Companies. Some argue that we’ve already dipped a toe (or, more accurately, a pinky) in the water and that the technology is now available.
But first, let’s take a look at what we know thus far
In 2014, Gavin Wood, a programmer and Ethereum co-creator, coined the phrase Web3. In a 2021 interview with Wired, Wood compared the present Web 2.0 infrastructure to towns and villages (platforms) where people spend time and interact with one another.
These exchanges, which include financial transactions, are governed by external authorities and the technology corporations that enable them in the first place. These include important social networks and financial entities that govern the flow of money, such as central banks.
But there’s a catch. The rapid evolution of technology such as blockchain and artificial intelligence (discussed further below) makes it impossible to manage and maintain the expanding Web.
Instead of enacting a slew of new regulations, Web3 suggests a collection of new and current technologies, such as open-source software and blockchain, to cut out the middleman. Web3 returns power “to the people,” allowing the Web to self-regulate.
Web3 is primarily advertised as a means of “democratising” or “decentralising” the Web. It shifts the balance of power away from businesses and toward content creators (at least on paper) (read: regular users).
Ironically, large firms such as YouTube and Meta are eager to hop on the Web3 bandwagon. YouTube’s Susan Wojcicki declared in January that the firm intends to embrace Web3 and NFTs (who wouldn’t?) in order to empower creators.
What’s Under Web3’s Hood?
Web3 would not exist without cryptocurrencies, and cryptocurrencies would not exist without blockchain. In a word, blockchain is a safe and private means of storing internet transactions in “blocks”—it may also store other forms of data.
What role does blockchain play in the Web3 revolution? Blockchain decentralises the Internet and an increasing number of sectors by allowing users to exchange money (cryptocurrencies) and digital assets (non-fungible tokens) without the requirement of a middleman or external monitoring.
Have you ever heard of non-fungible tokens (NFTs)?
NFTs are data blocks that are kept on a blockchain. NFTs are more like digital bonds or fine art than cryptocurrencies like Bitcoin and Ethereum. They’re one-of-a-kind and come in a variety of forms and sizes, such as the $200,000 Bored Ape Yacht Club monkeys.
Consider downloading a stock photo from an online resource. To get to the file, you’d have to do a Google search (one middleman), sign up for the service (another intermediary), and lastly pay the creator through a payment provider (déjà vu anyone?).
The photo and all rights would remain with the artist in Web3 reality. The artist could then share the shot online as an NFT, making it instantly available to all Web users. You could locate the file and pay the creator directly, with no middlemen.
This is only one of many ways blockchain decentralises human-human interactions. We can take this a step further by removing proxies from other conservative businesses. Aside from banking, industries such as real estate and healthcare are already experimenting with blockchain.
Web of Knowledge
Web 3.0 or Web 3? Both words are frequently used in the context of the next Web iteration. However, they are not interchangeable. Web 3.0 actually refers to the concept of a “Semantic Web,” which would allow computers to better “understand” and interpret data.
The “Semantic Web,” created by Tim Berners-Lee, is based on logical links between bits of information. To give better search results, a Semantic Web-powered search engine could interpret queries based on context (metadata).
The “Spatial Layer” and the Metaverse
We can’t talk about Web3 without bringing up the Metaverse. If you haven’t read our prior post on the subject, you may do so here. tl;dr The Metaverse is a physical-virtual hybrid that combines both worlds using new and existing technologies.
The Metaverse is still in development, and several firms are competing to create the final product. Aside from making money, the Metaverse’s purpose is to merge the physical and digital worlds through the use of technology such as virtual reality (VR) and augmented reality (AR) (AR).
The Metaverse may one day become an integral feature of Web3 by providing a “spatial layer.” The spatial interaction layer, according to Deloitte, would leverage gadgets such as smart glasses and voice assistants to allow users to interact with “contextual, real-time information.”
These 5 Web3 Trends Are Transforming the Real Estate Industry
Decentralized finance (DeFi) services are not the same as your grandfather’s bank. They are powered by an interconnected system of smart contracts, oracles, and blockchains. DeFi is able to deliver more convenient and smooth service, paving the path for previously unthinkable developments, particularly in neglected communities.
CitaDao.io is a decentralised infrastructure platform that tokenizes real estate. They are developing interoperability with other DeFi applications to address liquidity, access limitations, and lack of composability. Communities can diversify their on-chain portfolios and produce consistent yields by investing in real-world assets with constant liquidity supported by an Automated Market Maker algorithm.
Non-fungible tokens (NFTs) are popular right now, but their uses aren’t restricted to profile images and artist fanclubs. Propy’s patented technology and legal framework reflect property ownership with NFTs. A purchase record is placed on the blockchain, allowing access to the legal documents. This reduces buyer costs and shortens the purchasing process to a matter of minutes.
The USDC token is used in sales on Propy’s NFT Marketplace. (USDC is a “stablecoin,” which means it lacks the volatility of other cryptocurrencies.) Propy completed its first real estate-backed NFT transaction in February, selling a Florida property for 210 ETH (approximately $653,163 at the time) after getting 3,000 bids.
Investment in Fractions
Real estate has generally been an illiquid asset, which has made it less accessible for investment by persons in lower income categories. At the same time, taking advantage of various property market movements around the world has been a privilege reserved for the wealthiest individuals. RealT is attempting to address these issues by employing NFTs to provide fractional investing with lots starting at $50.
RealT’s newest collaboration with DeFI behemoth AAVE creates a completely new market for consumers to borrow stable coins by collateralizing holdings. The combination of blockchain’s short settlement times and low transaction fees is a democratising factor that has the potential to bring stock market-like trading velocity to real estate.
Milo is a fintech business that claims to be the first to offer the world’s first “crypto mortgage,” allowing consumers to use Bitcoin as collateral to qualify for a 30-year loan. When the ratio reaches 30%, Milo will liquidate the assets and store the proceeds in USD.
In an indication of the growing acceptance of cryptocurrencies as portfolio assets, Michigan-based United Wholesale Mortgage said in August that it will begin taking cryptocurrency from its borrowers as part of a test programme. The second-largest mortgage lender in the United States began with Bitcoin and is now investigating other assets such as Ethereum.
Marketplaces for peer-to-peer transactions
According to National Association of Realtors data, the median house sale price in the United States in 2021 was $346,900, up 16.9 percent from the previous year and the highest on record dating back to 1999. Investors can invest into a property’s future appreciation and develop a portfolio of real estate assets in the same way that they do with stocks.
There are a lot of jargon and unsolved questions in the Web3 bubble. Do we really need another Web iteration right now? Is it simply a matter of better governance and contemporary legislation for Web 2.0?
There is one certainty. It will take a few more years for Web3 pioneers to crystallise the concept and demonstrate an implementation that makes sense to normal Web users. Will Web3 stick around for a little longer? The verdict is yet out, but both sides appear to make valid points.
Suffescom Solutions is the most reputable NFT Development Company Web3 Development Company USA. We believe that the future of work will be asynchronous and remote. Furthermore, technologies such as blockchain and the Metaverse give up new opportunities for distant enterprises.
VR brainstorming, haptic digital whiteboards, and virtual conference rooms? Many firms are already working on the technology to make this possible, but we’ll have to wait a little longer for the “as good as real life” experience.
In terms of remote collaboration, it’s difficult to picture a world without central hubs to facilitate it. People are social beings, and we naturally gather in groups to work, talk, and have fun. Can Web3 maintain its social spirit? Nothing but time shall tell!