Have you been wondering how you can invest in web3? The Internet is fast approaching a new phase of innovation. Moving from just the read-only web “Web1” to “Web2” and now “Web3” and beyond.
While the invention of web3, a lot of companies has moved from “Web2” to decentralized technology “Web3”, and a lot of people are still skeptical about how this web3 works.
If you fall under this category, and you want to know how the bandwagon of the decentralized technology “Web3” works then continue reading.
What Is Web3.0
With the help of technologies like machine learning (ML), big data, decentralized ledger technology (DLT), and others, websites and apps will be able to handle information in a smart, human-like manner in the context of web 3.0.
The idea of a semantic web is another element that is included in the evolving definition of Web 3.0. Web inventor Tim Berners-Lee is one of many who has pushed for semantic technology to be incorporated into the web.
The move from the first web, Web 1.0, to Web 2.0 took more than ten years, and it is anticipated that Web 3.0’s complete implementation and reshaping of the web will take just as long, if not longer.
Web3 incorporates intuitions like decentralization, blockchain technology, and tokenomics. The phrase “Web3” was originated by the Co-Founder of the Ethereum blockchain “Gavin Wood” in 2014. The concept of web3 gains a lot of traction in mid-year 2021 through crypto enthusiasts.
The decentralized web solves how data is being stored and processed, eliminating the need for centralized authority that makes individual data unsafe.
Web 3.0 will alter how websites are developed as well as how users interact with them through the innovation of the “web1” and the “web2” technology.
Data will be able to be interacted with by individuals and machines. Programs must be able to comprehend information theoretically and culturally for this to happen, though. With this in mind, the semantic web and artificial intelligence are the two pillars of Web 3.0. (AI).
However, let’s check out some examples of “Web3”
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Web3 Examples
There are some common examples of Web3 you don’t know about that may blow your mind, here are the list;
The Metaverse
With a lot of buzz about the metaverse, many people got a misconception of the metaverse. The phrase “metaverse” has been in use for a while now, but it was first used by author Neal Stephenson in his science fiction book Snow Crash in 1992.
Stephenson described the metaverse as a vast digital universe that coexists with the physical world in his novel. However, in 2022, researchers are still unsure of whether the real-world metaverse would develop similarly.
Another vague idea that appears to overlap and connect with Web3 ideas is the metaverse, should either ever become a reality.
The Metaverse is an illustration of how we might use the web in the future. To produce a lasting and integrated user experience, it largely relies on virtual reality (VR) and augmented reality (AR).
In the Metaverse, you engage with the web in a much more embodied way and your digital possessions meld with the real world. It resembles the virtual world from Ready Player One in some ways, but hopefully less dismal.
Smart Contracts
In a smart contract, the conditions of the agreement between the buyer and seller are directly encoded into lines of code, making it a self-executing contract.
The agreements and underlying code are spread throughout a decentralized blockchain network. Transactions are traceable and irreversible, and the code regulates their execution.
Without the need for a centralized authority, a legal system, or an external enforcement mechanism, smart contracts enable trusted transactions and agreements to be made between dispersed, anonymous parties.
There is a ton of paperwork involved in purchasing a car today and obtaining a loan from the bank to do so. The bank drafts a contract outlining your rights and the bank’s obligations to you.
The agreement states that the bank is required to take particular legal procedures (like seizing your car) if you fall behind on your payments.
Smart contracts have the same functionality but don’t need centralized enforcement or monitoring system. Everything happens automatically to the contract’s provisions and logic.
Smart contracts make it far more economical than standard contracts to supply financial services or to create legal agreements between parties. Additionally, once engaged, they cannot be altered and are much fairer.
A smart contract will, of course, only be as good as the terms and logic contained in it, just like any other contract, but provided that the contract is fair, it will be enforced impartially.
Decentralized Application(Dapp)
Digital apps or programs known as “decentralized applications” (dApps) exist and operate on blockchain or a peer-to-peer (P2P) network of computers rather than a single computer. DApps, or “dapps,” exist outside of the jurisdiction and control of a single authority.
The Ethereum platform or Binance smartchain is frequently used to create DApps, which can be used for a range of things like gaming, finance, and social networking.
Utilizing a centralized app is what using a cloud-based service such as Google Docs entails. Your documents contain information that Google has access to, can read, and can manipulate. The benefit of this trade-off is that we can quickly work with others, save our data on the cloud, and make use of a variety of other cloud-app advantages.
What if, though, you could benefit from these cloud services without having to adhere to a centralized authority? Decentralized applications, or “dApps,” play a role in this. The majority of dApps do their online computation on the Ethereum blockchain, and as a result, these computations are funded by Ethereum “gas” fees.
How To Invest In Web3
Have you been craving to invest in the decentralized web? But you don’t know how to. However, a lot of people thought investing in web3 is mainly in cryptocurrency, though it is way beyond that. Web3 includes conventional businesses in addition to cryptocurrencies (e.g. MetaMask, Crypto.com).
Since you now know the overview of what web3 is, and some of the examples of web3, here is how to invest in Web3;
Invest in the stock and firm of Web3
A Web3 stock is a company’s stock that is engaged in converting the Internet from Web 2.0 to Web 3.0.
Many technology companies are gradually repositioning themselves in anticipation of Web3, which is receiving increasing attention and interest. This could be a reflection of how the market is performing as a whole. By purchasing the shares of some of these businesses, such as Microsoft, which are already active on the open market, you can get access to Web3 innovations.
In addition to investing in stocks of Web3-related businesses, some startups are items linked to Web3.
Examples of Web3 Stocks
- Coinbase Coin: This is one of the greatest Web3 stocks since Coinbase is the biggest cryptocurrency exchange in the world that makes blockchain transactions possible.
- Twitter (TWTR): One of the biggest social media networks in the world, Twitter is expanding its reach in the Web3 sphere. They recently introduced an NFT functionality.
The Metaverse and NFTs
Non-fungible tokens (NFTs), Web3, and the Metaverse are not the same thing. People do, however, think that the three can work well together. Investors can gain exposure to Web3, which is anticipated to support NFTs and Metaverse applications, by indirectly investing in NFTs and Metaverse.
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A Web3 Token
The token or cryptocurrencies of many web3 enterprises will be available for purchase through initial coin offerings (ICOs) and crypto trading platforms. This is like purchasing stock in a firm, where you get to directly contribute to its success.
Notably, owning Web3 coins exposes investors to the company’s success and failure. Therefore, before purchasing any cryptocurrency that a Web3 project offers, it is crucial to conduct a comprehensive investigation or research.
Examples of a Web3 token; $Cake, $Bake, $BSW, $1inch e.t.c
