Web3 is one of the most recent developments in the field of cryptocurrencies. Experts say it could become the new shape of the web, and the internet would never be the same again.
Web3 is a form of the Internet, in which the power is much more in the hands of the user, rather than in the hands of a series of superpowers.
But what exactly is Web3? Is it really as beautiful as it is said? and how can you invest in web3† You can read that and more on this blog. Let’s get started quickly!
What is Web3?
To properly understand what Web3 is, it is important to first know what Web1 and Web2 are. To do this we have to go back to the beginning of the web.
- web1 It is the first version of the web. It was launched in 1993 and ended in 1998 when Web2 was born. During the Web1 era, the Web, or the Internet, was very very simple† Web pages were very simple and really just contained information. I couldn’t do almost anything on web pages except navigate through very simple buttons.
- web2 it is the second version of the web, which was created in 1998. During Web2, the web became more and more interactive. From now on, the Internet is used more and more as a means of communication and became more and more interactive† Web2 is actually the form of the web we still know today, with major players like Google, Facebook, and Amazon holding the power.
Now that we know what Web1 and Web2 are, we can understand much better what Web3 is. Web3 is the new version of the web, in which the power is no longer in the hands of a number of major players, such as Google, Facebook and Amazon. Instead, the power is in the hands of you and me, the users.
An important property of web3it is so open source it is. This means that the code is publicly available to everyone and anyone can contribute. So anyone can make changes to Web3 and thus users are assured that Web3 only gets better.
Another important thing about Web3 is that the decentralized distributed data is becoming. All these data is connected and therefore it is in the hands of everyone, where before it was in the hands of these aforementioned main (central) players.
Cryptocurrencies, blockchain technology, and smart contracts can play an important role in Web3. Blockchain technology provides a framework in which data can be stored and processed in a decentralized and distributed manner. This of course fits perfectly with Web3. Web3 ‘websites’ could then be built as dApps on a blockchain, using smart contracts. This is where cryptocurrencies could come into play again, where they are used for, for example, transactions.
Do you want more information about Web3? We previously wrote an extensive explanation that explains Web3 down to the last detail! This link will take you to that blog.
The benefits of Web3
Let’s take a quick look at the main benefits of Web3, because why would we want to switch from Web2 to Web3?
- The first advantage is the fact that data stored decentrally is becoming. Everything is connected because of this and development can go faster and faster. This also means that power over the web will be less in the hands of various superpowers.
- A second advantage is that the web more effective and more personalized they will be You decide what you see, instead of Facebook, for example, doing this for you.
There are several other benefits to mention, all of which you can find in our previously mentioned blog on Web3.
The disadvantages of Web3
Of course, Web3 doesn’t just have advantages. Like everything else, Web3 also has some drawbacks. But what are the drawbacks of Web3?
- One disadvantage of Web3 is that older devices probably won’t be able to use Web3 because they probably won’t be able to connect to the network.
- Also, websites dating back to Web1 will look very outdated and thus will no longer be used.
- A third disadvantage of Web3 is that it is very difficult for newcomers Complicated they will be It is currently much more difficult to use than Web2.
Why should you invest in Web3?
In the eyes of the Web3 maximalists, the entire Web, as we know it today, be taken over by Web3 alternatives† This means, for example, that instead of Google, there will be a Google Web3 alternative that will be used by everyone. The same would apply to Facebook, but also to Internet providers, for example.
According to them, the entire Internet as we know it today will be taken over by Web3 alternatives. From the foundations to the icing on the cake. If you also believe in this, or if you dare to bet, it means that there is great investment opportunities coming, and now they already are.
For example, consider Amazon Web Services, which is the branch of Amazon that offers cloud computing and web services. This means, for example, that they may host servers for you, on which you can run your website or software. This Amazon branch would be worth about 500,000 million dollars. So if you believe in the theory of the Web3 maximalists, there would be a Web3 company that would take over this Amazon Web Services marketplace, in a decentralized way. That would mean there is a $500 Billion Web3 Project Is Coming† If you invest in it now, it could pay off very well.
This is just one of many examples of Web3 projects that, if expectations are met, will become giants. Do you believe the predictions of Web3 enthusiasts? So it seems that there are sufficient reasons to invest. In any case, it is important that you do some good research on Web3 first, so that you have a good idea of what exactly it is, and therefore can possibly start investing based on your own findings, and your own findings only.
How do you invest in Web3?
If you’ve made the decision to invest in Web3, it’s of course good to know exactly how you can go about it. This can be done in many different ways. We still don’t know exactly what Web3 will look like, because it is still in its infancy and is in full development. Let’s take a look at some of the different ways you can invest in Web3 that we’re already familiar with.
invest in crypto
As discussed above, there is a good chance that cryptocurrencies will play a significant role in Web3. One of the ways you can invest in Web3 is by investing in Web3 projects that use crypto and blockchain technology.†
For example, think of Filecoin. filecoin is a Distributed and decentralized blockchain network, which allows users to lend the storage space on their device to other users.† Therefore, network users can use storage space on other users’ devices. You can compare this service with the service provided by Google Cloud and one of the services provided by Amazon Web Services. We previously showed how big this market is and how big Filecoin could become if it took over this entire market. FIL is required for the Filecoin network to function properly. FIL is the native token of the Filecoin blockchain network. This is used to transact on the network. Filecoin cannot work without FIL. When Filecoin grows, the demand for FIL will increase and in this way you, as an investor, can benefit from the growth of said network.
invest in stocks
Do you prefer to invest in stocks? You can also reply to Web3 in the actions area. Slightly less direct, because Web3 companies often use tokens and cannot be traded as much on public markets. However, you can certainly invest in companies indirectly linked to Web3 development.
An example of a stock you can buy is Coinbase (NASDAQ:COIN). Coinbase is the second largest cryptocurrency exchange out there, looking at the trading volume for 24 hours. As Web3 grows, so will cryptography, given the close connection between the two. This would mean that more and more people will buy cryptocurrencies. Where are they doing this? For example in Coinbase. This would lead to the growth of Coinbase and therefore its shares could generate good returns.
Another stock you might buy when looking for a Web3-connected stock is Nvidia (NASDAQ:NVDA). Nvidia is a company that manufactures computer hardware and is primarily known for its video cards† These video cards are used, for example, to mine cryptocurrencies, but can also be useful with other consensus algorithms. A consensus algorithm is an algorithm used by a blockchain to control and verify transactions. This again means that as Web3 grows, crypto would grow, so there would be more demand for computing power that can be used with consensus algorithms, and therefore more demand for Nvidia video cards. This, in turn, would mean that Nvidia is growing as a company and its stock is likely to be as well.
become a node
Therefore, Web3 companies offer decentralized and distributed alternatives to the things we already know. Let’s take a look at Helium. Like KPN, you can see helium as a Internet provider† However, the Helium Internet is decentralized†
For this to be possible, Helium needs nodes all over the world. Nodes are participants in the network that allow the network to continue to function. For example, with Bitcoin you have nodes that validate mining transactions. Helium is looking for a different kind of nodes. They are looking for people who want to become a hotspot by purchasing a ‘Helium Radio’.
This Helium Radio is like a crypto miner. However, you have to place or hang this in a certain place, so that it becomes the subject of the web in the most ideal place. In this way, Helium develops a complete network with nodes all over the world, so that the Internet can be available everywhere.
Therefore, an investment in Helium Radio can be seen as an investment in Web3, because you contribute to its development. When you run a hotspot, you receive rewards in the form of HNT tokens.
Helium is not the only Web3 project that offers you the opportunity to become a node and contribute to the network as a node and earn money. There are many such projects.
Web3 would thus become the new form of the Internet. If it really does live up to the hype, this means that we will be presented with unprecedented investment opportunities in the coming years. Today we look at how you can anticipate these investment opportunities. Well, we looked at a couple of ways to do this, namely investing in crypto, investing in stocks, and running a node.
And it’s also important to mention, as always: always do your own research before investing. Learn first, then invest.
Do you still have any questions about Web3 after reading this article? Or are you looking for even more Web3 investment opportunities that we think are emerging? Let us know at facebook group from AllOverCrypto. Also, you can ask all your questions here and you will join a community with more than 100,000 cryptocurrency enthusiasts!
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