This article does not provide any investment advice!
Any investment in the Web3 space is an extremely risky investment, and anyone who claims to invest in Web3 is risk-free is a scammer!
This article only explains the relevant industry information!
What is Web3
Web3 refers to the next generation of the internet, which is built on blockchain technology and distributed applications (DApps). Web3 aims to improve the security, transparency, and accessibility of the internet through the use of decentralized applications and protocols. Unlike Web2, Web3 is no longer a network controlled by centralized companies and servers, but by the users themselves.
At its core, Web3 are decentralized applications (DApps), which run on a blockchain rather than a traditional centralized server. These applications enable autonomous management through smart contracts and blockchain technology, ensuring the security and privacy of data and user information.
In addition to DApps, Web3 includes decentralized storage, identity verification, digital currencies, smart contracts, and other blockchain-based services. The goal of Web3 is to build an autonomous, transparent and fair internet that gives users greater control over their data and assets.
What is the difference between Web3 and Web 2.0
Web3 and Web 2.0 are two different concepts, and there are many differences between them.
Decentralization: Web3 is a decentralized network, while Web 2.0 is centralized. Web3 uses blockchain technology and smart contracts to achieve decentralization, which allows users to interact and collaborate directly without going through an intermediary. Web 2.0 is controlled and managed by a central authority, and users need to interact and cooperate through intermediaries.
Data privacy: Web3 pays more attention to users' privacy and data security, and it uses encryption technology and decentralized data storage to protect users' personal data. Web 2.0 tends to have centralized companies controlling and managing user data, and there is a risk of data leakage and privacy violations.
Trustlessness: Web3's decentralized and smart contract technology enables partners to automatically execute agreed cooperation rules without mutual trust. Web 2.0 requires mutual trust between the two parties, and cooperation needs to be based on trust.
Applications: Web3's applications are decentralized and run by multiple nodes working together, which makes applications more reliable and stable. Web 2.0 tends to have applications controlled and managed by centralized companies, with the risk of a single point of failure.
Overall, there is a clear difference between Web3 and Web 2.0. Web3 focuses more on decentralization, data privacy, and trustlessness, while Web 2.0 focuses more on centralization, business models, and user experience. With the continuous development and maturity of Web3 technology, it is believed that it will bring more changes and innovations.
DAPP – the heart of Web3
DAPP is one of the most important concepts of Web3, DApps is an abbreviation for distributed applications, which refers to decentralized applications running on the blockchain. Unlike traditional centralized applications, DApps do not rely on centralized servers to run, but instead use smart contracts and distributed networks to enable autonomous management.
DApps are designed to give users greater control over applications while improving application security and transparency. Therefore, DApps usually have the following characteristics:
Decentralization: DApps do not rely on centralized servers to run, but instead run on the blockchain, giving users greater control over their data and applications.
Open source: DApps' code is generally open source, which means that anyone can view and review an application's code, ensuring its security and transparency.
Self-governing: DApps use smart contracts to enable self-management, ensuring that the operation of applications is automated, transparent, and fair.
Encryption: DApps use encryption technology to ensure the security and privacy of user data and assets.
DApps can be applied in many fields, such as digital currencies, financial services, social networks, games, and more. Currently, Ethereum is one of the most popular DApps platforms, and many DApps are developed based on Ethereum.
What can Web3 do?
Decentralized applications: Web3 applications are decentralized, no longer controlled by centralized companies and servers, but by the users themselves. This means that users have more control over their data and assets.
Security and transparency: Web3 uses smart contracts and blockchain technology to ensure the security and transparency of applications. A smart contract is an autonomously executed protocol that ensures that the operation of an application is automated, transparent, and fair.
Digital assets: Web3 supports the creation, storage, and trading of digital assets. These digital assets can be digital currencies, tokens, artwork, music, etc.
Decentralized Applications (DApps): At the heart of Web3 are decentralized applications (DApps), which run on a blockchain rather than a traditional centralized server. These applications enable autonomous management through smart contracts and blockchain technology, ensuring the security and privacy of data and user information.
Decentralized storage: Web3 supports decentralized storage, which means that data is stored on multiple nodes and is no longer controlled by a single centralized server. This improves the security and reliability of your data.
Authentication and digital identity: Web3 supports decentralized authentication and digital identity, which can improve the security and privacy of user data and assets.
Smart contracts: Smart contracts are an important part of Web3, they are self-executing protocols that ensure that the operation of applications is automated, transparent, and fair.
In summary, Web3 can implement many functions that the traditional Internet cannot do, such as decentralization, security and transparency, digital assets, decentralized applications, decentralized storage, identity verification and digital identity, smart contracts, etc.
What are the ways to make money in Web3?
As the next generation of the Internet, Web3's ways to make money mainly focus on the following aspects:
Holding cryptocurrency: Cryptocurrencies are an important part of Web3, and holding cryptocurrencies can earn capital profits through price fluctuations. However, the cryptocurrency market is volatile and risky.
Participation in mining: Blockchain technology requires significant computing resources to verify transactions and generate new cryptocurrencies. Participating in mining can earn rewards by providing computing resources. However, mining requires high-performance computers and high energy costs.
Create and trade digital assets: Web3 supports the creation and trading of digital assets, including tokens, artwork, music, games, and more. Creating and trading digital assets can make capital profits, but it requires technical and market insight.
Development of DApps and smart contracts: The core application of Web3 is decentralized applications (DApps) and smart contracts, and the development of DApps and smart contracts can earn technical service fees and token rewards.
Provide Web3 infrastructure services: Web3 requires reliable infrastructure services, including node operations, data storage, and network transmission. Providing Web3 infrastructure services can earn corresponding service fees and token rewards.
It is important to note that Web3 is a nascent field, where ways to make money and business models are still evolving and changing, and investors and entrepreneurs need to make informed decisions based on market needs and technology trends. At the same time, because Web3 is in the early stage of development, there are also high market risks and technical risks.