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What is Web3 and Why is it Important?

The transition to the new digital age, Web3, is inevitable and much closer, no matter how distant it may seem over the mountains. The sooner we face it, the faster we will adapt to it and gain a competitive advantage, from individuals to especially businesses. Web3, a term coined by Ethereum co-founder Gavin Wood in 2014 to describe a decentralized online ecosystem based on blockchain, is the common name for the new digital era. Years later, he would state in his interview that the problem of the current Web2 era is that it’s based on trust when the world needs the truth. Even the big tech giants that benefit the most from centralization are trying to adopt elements of decentralization, Web3, realizing its inevitability. The most extensive resonance was Facebook’s switch to the name Meta. In 2021, CEO Mark Zuckerberg announced that Meta would focus on bringing Metaverse, a virtual reality world, to life and help people connect, find communities and grow businesses. Although the roadmap announced by the corporation has never been implemented after one year, its impact on the market has been enormous, consumer interest in Web3 has increased, and businesses have rushed to adapt to the rules dictated by Facebook and enter the market.
Web3 article

To truly grasp what Web3 is, let's take a look at its predeccesors, Web1 & Web2. So what does it offer us?

Web1

Web1 dates from 1989-2005. When the invention of the Internet was in its infancy, it was not spread to people’s homes. In Armenia, where the Codeex team is located, there was an “Internet Users’ Union” giving special permissions to those who wanted access to the Internet. In the 2000s, along with web2 entry, this right was handed out to operators.

 

Web2

Simply put, WEB1 was designed for businesses to write and for average users to read. It was the age of browser-based Internet access. While Web2 is more interactive. Technological advancement enabled Internet users to express themselves online. The sharing of comments on websites, social networking and distribution, and the popularity of smartphones define this era. And if WEB1 was generally for companies, WEB2 was developing communities. First, it was forums, blogs, later social media, messengers, and TikTok. As a result, the user’s role shifted from passive reader to active participant. Although we are moving toward WEB3, we are still in WEB2, and it still has a lot of potentials to expand.

So What Does Web3 Suggest?

To understand what web3 is, it is essential to perceive the concept of decentralization, the crucial point of web3.

People have been betrayed hundreds of times throughout history and have had to cope with unfair difficulties that they trusted third parties to address. Hence, the world is currently undergoing a severe crisis of trust. These parties stole from people, wasted their money and spied on them. Well, disengaging from these third parties and taking care of our own needs is what decentralization consists of. Imagine a world where we need no intermediaries for sending money to each other, storing our data, and owning our credit without the need for any middlemen. The key difference between web3 and web2 is that in web3, people are at the heart of things and own a piece of the Internet.

Has It Already Started?

The odds are very high that we are already using Web3 technology without even realizing it; the most significant example is cryptocurrencies. Although the term was invented in 2014, the very birth of web3 may date back to 2009 with the mining of Genesis Block, the first block of blockchain-based Bitcoin ever mined by Satoshi Nakamoto. Or someone may argue by saying that it was a lot before Bitcoin’s birth, in 1982, when David Chaum, a doctoral candidate at the University of California, Berkeley, California, described the Blockchain database in his dissertation “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.” Blockchain has the potential to be the greatest gift to humankind and commence the new digital era, transforming not only the traditional financial system by providing an unprecedented level of security but it will affect virtually every sphere of society, such as health care, art, music, entertainment, or manufacturing. However, its most significant impact will be on personal data protection, granting individuals power over their actions, anonymity, and security.

Some of the Components of Web3

DEFI

To embrace the idea of Web3 is vital to get Defi (decentralized finance). There is no need to wait for approval from a bank to accomplish a transaction; here, those are peer-to-peer. In Defi, we can transfer funds in seconds and minutes over the oceans. Decentralized finance is designed to take intermediaries out of the process. One can hold money in a digital wallet instead of in a bank. Choosing the right wallet means ultimate security and safety.

It proposes decentralizing the financial economy, where there will be no controlling center or Central Bank. This is made possible by a phenomenon called Blockchain, an archive in which the data about money and its circulation is stored.

Blockchain will completely transform not only the whole financial economy, but the business landscape in general, from supply chains to show business.

Public Health

Blockchain promises to have an impact on healthcare management as well. For example, a centralized system allows doctors to exchange medical information within hospitals in one country. And what if you go to an overseas clinic? That means unnecessary paperwork and wasted time. Now imagine putting your medical records and medical history on Blockchain, allowing you to securely store and exchange data with healthcare providers around the world in minutes.

In addition, thanks to the way cryptography (the science of encrypting information) and blockchain work, a patient’s medical data will be more private than ever before. The security of medical privacy is guaranteed, and no third party will have access to it.

Supply Chain

Nowadays, people have become more skeptical consumers than they used to be decades ago. In this light, Blockchain can inform people about the products and services they use. Enterprises will put a QR on their product to educate people about the compound of the item. A person can scan a QR code on a product and learn additional information about what it is made of to cut short to see the whole supply chain. It will also benefit the company to ensure that all the supplies are on time and transparent by the third companies, hence a business can control possible delays or raw material emergencies. Consequently, it will endow the individual with independence and freedom of choice and the business with control over its product roadmap.

Taking Australia’s leading airline, Qantas, for example, according to the statistics, it is reportedly losing one in 10 bags in Sydney. It is a private example, but travelers who constantly use airlines at least once had a problem with lost luggage and started to track it to find it. With the adoption of blockchain, this kind of problem will stay in the past. People and airlines will be able to track the bags.

Ownership

NFT- the most cliche word of the second half of 2021 and 2022. But what is it? In short, it’s a public certificate of ownership registered on Blockchain. A digital file of property on the Internet. This opens up plenty of opportunities for businesses and individual investors, from gaming and real estate to art. Developers create NFT e-commerce platforms and NFT marketplaces for trading lands, arts, music, and videos. There is a fast-developing real estate market in platforms like Gym Street Metaverse, developed by Codeex blockchain experts. According to Technavio, a market research company, Metaverse real estate market share is expected to increase by USD 5.37 billion from 2021 to 2026 at a Compound Annual Growth Rate of 61.74%. Meanwhile, a report published by Verified Market Research (VMR) predicts that the NFT market value will rise to $231 billion by 2030.

NFTs have all the potential to serve as a solution to ownership and credit problems. It will give opportunities to talented people to own their brainchild.

Metaverse

NFTs are widely used in Metaverses, 3D virtual augmented reality, where people can immerse themselves through special VR headsets, have their avatars, and participate in many activities, from financial to entertainment. Bloomberg defines the Metaverse as the next tech platform and estimates it to be an $800 billion market. Codeex praises itself for having an award-winning Metaverse project. Learn more about it.

Gaming

NFT and blockchain also have broad prospects in the gaming industry, the Metaverse, and play-to-earn games. In some games, players must perform specific actions to earn rewards in cryptocurrencies, and NFTs also are in-game assets such as weapons and items.

Democracy

NFTs are valuable assets for democratic processes, which, as we have seen, can be fragile even in some Western countries. So what underlies democracy in the first place is elections, people’s right to free and transparent elections. Blockchain and NFTs will make free, independent, and transparent elections possible because the date on the blockchain cannot be interfered with and changed. So literally, the system excludes the addition of poll counting and electoral fraud. Blockchain-based votings are anonymous and secure for voters as well.

Blockchain and Cryptocurrency will also reduce the corruption rate of a country. For example, if state structures store information and data on a blockchain, citizens could do the function of a watchdog and follow where their taxes, for example, are being spent. Same with charity projects.

 

All of the above perspectives can be realized with the help of software engineers and blockchain specialists. At Codeex, blockchain development is not just a source of additional income; we are confident that Codeex’s team is inventing the future by creating future-oriented products.