Web 3.0 is coming and crypto will be essential there

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Source: Adobe / Maksim Kabakou

First it was decentralized finance (DeFi), then non-fungible tokens (NFT), and now it looks like the next big thing in crypto could be Web 3.0. Although somewhat vague, this term refers to improving the intelligence of the Internet in a variety of ways, from using AI to proactively respond to user queries, to using decentralization to unlock new functions and experiences.

And given that decentralization is probably one of the core properties of Web 3.0, that means cryptoassets and blockchain will play a similar central role as well. In fact, industry players speaking with Cryptonews.com suggest that crypto will be at the heart of Web 3.0, with cryptoassets used to create a new incentive and coordination system for decentralized internet services.

In particular, crypto could help foster a new Web 3.0 ecosystem characterized by distributed working protocols, decentralized infrastructure, and user-owned creator platforms, among other emerging trends. Of course, the industry will need to focus on improving and simplifying user experiences before they can expect to attract a significant level of adoption.

How important will cryptography be to Web 3.0?

Originally (i.e. before crypto), Web 3.0 was seen as a stage in the evolution of the Internet that would be defined by the Semantic Web. As pioneer Tim Berners-Lee and others conceived, this would witness computers and machines capable of analyzing all data on the web.

However, while this definition still remains to a certain extent, time has passed and most people working with Web 3.0 technology now associate it with decentralization. As such, cryptocurrency and blockchain play an important, if not indispensable, role.

Crypto and blockchain are a necessity for Web 3.0; they enable the three key characteristics of Web3 decentralization, lack of permission and lack of trust, said a spokesperson for the DFINITY Foundation, which oversees the development of the Internet Computer (ICP), the platform. $ 2 billion form that aims to challenge the big tech monopoly.

Adam Soffer, product manager of decentralized video distribution platform Livepeer (LPT), agrees with this assessment, saying cryptocurrencies and blockchain are at the heart of Web 3.0.

They are the ones that allow developers to build economic rules and incentives into open source software and create token-coordinated networks. Encouraging individuals to participate in Web3 protocols enables developers and society to tackle issues that require large-scale coordination, he told Cryptonews.com.

Not everyone in the industry agrees that crypto will be essential to Web 3.0, but they all agree that it will be very important nonetheless. According to Nick Mancini, Senior Research Analyst at Trade the Chain, there will likely be a divide between the public and private sectors and their use of cryptocurrencies.

Cryptocurrencies, as we see them today, are likely to be widely used for utilities and open source, this is where the market will head for anything that is built around a community aspect or consensual. For private companies that don’t need cryptocurrencies, they will likely build private systems that interact with public systems, but don’t need in-house savings or fully consensus models, he said. at Cryptonews.com.

Likewise, Frank Mong, COO of Helium (HNT), the developer of decentralized wireless infrastructure, doesn’t necessarily agree that cryptography will be essential for Web 3.0, but he suggests that blockchain and cryptocurrencies would trick people into behaving. differently from the way they use the Internet as it is now.

If the incentive was to keep things private and keep things encrypted all the time and the more you would, the more crypto rewards you will earn, then the current behavior of collecting private information and reselling it for rewards s would stop, he told Cryptonews.com.

While Mong acknowledges that blockchain can provide a decentralized way to access the internet, he also recalls an important issue.

I think the problem is how realistically the internet backbone can be decentralized. While the core is still owned by a few large entities, those entities can still censor or create barriers to independence and privacy, he added.

Web 3.0 Examples

When it comes to platforms currently offering examples of decentralized Web 3.0 technology, it’s no surprise that views differ as to which is more notable.

For Adam Soffer, projects falling under the category of distributed work protocols are among the most interesting. This includes Filecoin (FIL), which is a decentralized, open-source storage network that allows developers to create new ways of storing data in their applications, as well as allowing individuals to move away from centralized storage services that monetize data and do not guarantee confidentiality. .

It also includes the Graph (GRT), which allows users to extract data from blockchains on blockchains. It allows anyone to create and publish open APIs, or subgraphs, that can be queried for a wide range of information on crypto trends, Soffer explained.

As you might expect, Soffer also includes Livepeer among its favorites, a platform that provides distributed infrastructure for key services such as video transcoding at a fraction of the cost charged by central vendors. These are provided by node operators (known as orchestrators in the Livepeer community) who compete against each other on the basis of quality of service, price and location, he said. .

Perhaps one of the most prominent examples of Web 3.0 is the Internet computer, which aims to provide a decentralized version of the Internet and various services and websites.

And according to the spokesperson for the DFINITY Foundations, there are already a number of platforms running on the Internet Computer which highlight the potential of Web 3.0. This includes DSCVR (a decentralized version of Reddit that is owned by its over 12,000 users), OpenChat (a real-time messaging app with 19,000 users), as well as Distrikt (a professional, community-owned network that allows users to to vote on upgrades and never sell their data).

Looking at the industry from the outside, Nick Mancini believes that the most promising subdomains of Web 3.0 include decentralized exchanges, media, art, and storage.

Decentralized exchanges like Uniswap and Sushiswap are changing the way we trade tokens, Steemit is changing the way we communicate, OpenSea is changing the way we buy and sell digital art, and Filecoin, Storj (STORJ) and Sia (SC) are leading the charge on decentralized file storage. These are just a few examples of companies tackling innovation in three worlds ready to be disrupted, he said.

Future trends

Looking ahead, Frank Mong says decentralized infrastructure will be the biggest and biggest trend for crypto-related Web 3.0. This is perhaps not entirely surprising, given that Helium is a public blockchain aimed at incentivizing the development of a decentralized wireless network.

I believe this must happen for real Web 3.0. We are working on it, he said.

While Adam Soffer expects NFT and DeFi-related platforms to receive the most attention in the near term, he also expects other areas to gain prominence in the medium. term.

In the near future I see [decentralized autonomous organizations], distributed work protocols and decentralized / user-owned authoring platforms such as Audius.co and Glass.xyz (which are themselves powered by distributed work protocols) have a strong trend, a he declared.

In addition to this, the DFINITY Foundation expects decentralized social networks to become important, especially in response to the invasion of privacy, platform risk and censorship synonymous with legacy networks such as Facebook.

The game will also become very popular on the blockchain. Gaming is the perfect use case for NFTs, its spokesperson added.

However, an important trend for the near future, according to Nick Mancini, will be usability, which will be paramount if all other trends in infrastructure, work protocols, social networks, game platforms, creator platforms are to reach critical mass.

He said: Probably the most important trend is the emphasis on usability. To achieve mass adoption, projects need user experiences that are so simple that your grandparents could use them.

___Find out more: – What is the metaverse? High-Tech Plan to Facebookify the World – Blockchain Gaming ‘May Be Key to Mass Adoption’, overtaking DeFi, NFT

– This is how DAOs play a bigger role in DeFi and NFT sectors – Crypto Elephant is changing the way the world works – Marc Andreessen

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