Web3 And Blockchain: A Working Relationship
Updated: Mar 22
Initially, the term "Web3" was coined in 2014, thanks to Gavin Wood, one of the co-founders of Ethereum. At its essence, Web3 is the next version, also known as the "3rd generation" of the internet.
As you read this sentence, many tech-savvy individuals and innovative businesses are working to make this a reality. Many of these forward-thinking people hope that the internet can be more equitable.
The dream is that Web3 would be decentralized and function off blockchain technology in an open-based Web format. Fundamentally, Web3 is working to remove the power from a few select companies such as Amazon, Google, Apple, and others; the hope is that average users will regain this power.
Currently, we're in Web2, which doesn't allow the average person to control their data; giant tech companies are the ones who control their user's data. Web3 hopes to change that, giving people back control over their data using blockchain technology and providing a decentralized storage infrastructure for everyone.
The Connection Between Web3 and Blockchain
All Web3 technology and platforms work off of blockchain and distributed ledger technology. At its heart, Web3 uses a decentralized structure to provide a secure and highly transparent system without any need for intermediaries.
One obvious connection between Web3 and blockchain technology is the use of dApps, which is an abbreviation for decentralized applications. These dApps are built on top of the blockchain network, which permits users to engage with this decentralized network much like most applications in use today. The reality is that dApps have tremendous versatility, ranging from social networks to financial platforms.
Along with that, Web3 tech uses smart contracts on top of dApps. These contracts use specialized code to self-execute these contracts based on the terms between the buyer and seller. Smart contracts can double-check that each condition is met between the two parties. Once complete, the funds are released, and the agreement is complete.
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