Use cases of Web3March 30, 2023 2023-03-30 14:42
Use cases of Web3
Use cases of Web3
Gradually, Web3 is bringing a positive revolution to our take on the internet. This is not just about cryptocurrency or digital transactions. Web3 relies on the use of blockchain technology to enable various use cases like the advent of non-fungible tokens (NFTs), Ethereum, cryptocurrency, and proof-of-work.
In this article, we will be exploring the various use cases of Web3. Let’s dive right into it.
NFTs, or non-fungible tokens, have gained massive popularity in recent times. Shortly after the covid-19 pandemic, non-fungible token started to gain traction by presenting the world with unique digital assets that can be traded just like other conventional assets. Owners can sell collectibles and pieces of art to buyers who find them worth the money.
The special thing about NFTs is not only because it is Web3-based, but because every asset sold is verified on a blockchain. What this implies is that they cannot be copied or exchanged. This way, a new economy is being provided for creative minds to monetize their creations in a transparent and secure way.
Proof-of-work and Proof-of-stake
There are two mechanisms of consensus used in blockchain technology, namely proof-of-work and proof-of-stake. Proof-of-work requires the active participation of miners to solve a complex mathematical equation in order to validate transactions on the blockchain. On the other hand, proof-of-stake involves the direct investment of a validator’s cryptocurrency in order to validate transactions. Both consensus mechanisms come with a reward and they are important use cases of decentralized internet (Web3).
Ethereum is a popular use case of Web3. In fact, it is a decentralized network that enables creation of decentralized applications (DApps) and smart contracts. Over the past years, Ethereum has become a vital infrastructure for Web3 by offering the foundation for dozens of decentralized finance (DeFi), non-fungible tokens (NFTs), and DApps. The use of smart contracts by Ethereum has enabled automated and transparent execution of transactions for persons and companies.
Crypto, as it is called for short, is a digital asset that deploys the use of cryptograph to control and secure creation of new units. Popular cryptocurrencies such as Etheruem and Bitcoin are key use cases of Web3, as they provide users with autonomy over their digital assets. Unlike the centralized system where location can be a major limitation, execution of crypto transactions can be done on the blockchain from anywhere in the world. They can be used for direct investment or payment, and more businesses are starting to adopt them.
In conclusion, proof-of-work, NFTs, proof-of-stake, crypto, and Ethereum are all incredible use cases of Web3. We can see today how they are revolutionizing the online ecosystem and changing the narrative of what reliability is. Web3 does not only promise security, it has and is still creating a democratic and all-inclusive internet experience for businesses. A kind of environment that fosters innovation. You can only stand to wonder about the possibilities of Web3 as you continue to explore the decentralized internet.
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