Why is Cryptocurrency important for Web 3 platforms?

Even if you slightly follow the crypto industry, you are probably familiar with the lot of terminologies it generates. NFT, Metaverse and DeFi are a few examples. Get ready for a brand-new one: Web 3.0. The idea is that cryptocurrency can be used to create a completely new network rather than only for trading or transferring money.

What is Web 3.0 and how does it work?

Web 3.0 community is the concept of a DAO(Decentralized Autonomous Organization ). With a DAO, Web 3.0 technologies and communities offer a type of self-governance to move away from centralized control over platform operations.

Web 3.0 places more emphasis on the use of technologies like machine learning and AI to provide relevant content for each user as compared to the stuff that other end users have provided. Virtual assistants, which are becoming more prevalent as features integrated into devices or through third-party apps, will also be made available on an artificially intelligent web.

The concept is that cryptocurrency can be used to create a completely new network rather than only for trading or delivering money. It is a possible future version of the internet built on public blockchains. The third generation of web technology is known as Web 3 (Web3.0). The entire implementation and transformation of Web 3.0 are anticipated to take a long time.

Key features of Web 3.0

• Decentralized: The ownership of the internet is divided among its creators and users rather than being managed and owned by substantial portions of centralized organizations.

• Permissionless: Web 3.0 is permissionless the decision of who should get rights and services cannot be made by a central authority.

• Trustless: Web 3.0 does not require any ‘trust’ as it means that there is no third party needed for a transaction between two or more parties.

• Cryptocurrency-enabled: Instead of depending on the outdated infrastructure of banks and payment processors it uses cryptocurrencies for sending funds.

• Edge Computing:  Web 3.0 is dependent on the development of edge computing, which allows apps and data to be handled at the network edge on gadgets like smartphones, laptops, appliances, sensors, and even smart automobiles.

• 3D Graphics: It intends to blur the distinction between the physical and the digital by reinventing graphics technology and bringing three-dimensional (3D) virtual worlds into sharp focus.

Importance of Cryptocurrency for Web 3.0

You'll observe that cryptocurrency is frequently discussed when Web 3.0 is brought up. This is due to the significant role that cryptocurrencies play in several of these systems. For everyone who wishes to take part in developing, running, contributing to, or enhancing one of the projects itself, it offers money rewards (tokens).

Web3 emphasizes ownership 

In Web 2.0, you have no control over how your data is saved. In reality, companies regularly collect and store user data without their consent. Blogs, posts, tweets reviews, comments, and likes are all examples of user-generated content (UGC) in today's world web. It is the foundation upon which the largest social media and e-commerce platforms of the present were created.

In Web 3.0, instead of being controlled by a Central Organization, this database is kept up-to-date by a global network of computers and is encrypted. Any ownership transfer transaction is recorded on the blockchain, and the new owner receives an NFT as evidence of ownership. Users will become the owners of their data and other technical assets.

Use of Crypto-economics

Web 3.0 platform focuses on the implementation of Crypto-economics. By examining crypto-economic models that have already been tried and evaluated in real-world situations, future networks can be made more effective and decentralized systems.

Decentralized Autonomous Organizations, or DAOs, are tokenized, which give genuine, liquid, and equitable ownership to increasing segments of stakeholders and align incentives in creative and interesting ways.

Cryptocurrency is also an opportunity for Web 3.0 or any business to create their economy. It solves the difficulties that distributed parties have in reaching consensus without the aid of a reliable central party. In the crypto-economy, economics and computer science are combined to investigate decentralized marketplaces.

Decentralization In Web 3.0

The future of the internet is Decentralization which implies that all data will be held on the blockchain and will belong to the entire public, but without Cryptocurrency the concept of decentralization will be a waste because using centralized money or currency will shift the control of transactions to an authority or government. Therefore, to achieve decentralization Web 3 needs to use a decentralized currency(Cryptocurrency) as a medium of transfer.

As Cryptocurrency offers several choices that are just not available with traditional money, we can use Cryptocurrency to ensure transparency in the transactions. For instance, programmable money can enable precise revenue sharing in real-time and increase transparency.

Cryptocurrency can also be used to manage the risks and opportunities of engaging in digital investments and it is all set to serve as an alternative to fiat currency.

Conclusion

Developers have been working to improve both Web3 and cryptocurrency due to the rapid growth of these technologies. For example, in the Web 3.0 era, search engines would deliver customized views depending on the context of your search. Web 3.0 is more like an effort of Cryptocurrency to reinvent the Internet.

Ultimately, the internet will become more decentralized and peer-to-peer but decentralized networks won't magically solve all of the issues with the internet. However, they provide a considerably more effective strategy than centralized systems. Since centralized platforms have dominated for so long, many individuals are unaware of other ways to develop online services. As Web 3.0 aims to achieve decentralization it needs the application of Cryptocurrencies. 

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