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What Is Web3? Blockchain Explained
The concept of Web3 represents a significant evolution in the digital realm.
The future of the internet will utilise blockchain and AI, that much is certain.
To fully grasp its implications, it’s essential to understand its predecessors: Web1.0 and Web2.0.
The innovation that has happened has taken years to take place, to understand where the internet is going, a good place to start is how it began.
Web3 represents the next iteration of the web, intertwining reading, writing, and ownership. Built upon blockchains, it incorporates tokens, smart contracts, decentralisation, digital wallets, and cryptographic keys.
Blockchains
Web3 really begins with blockchains.
Web3 relies heavily on blockchain technology, a distributed ledger system that ensures transparency and immutability.
Blockchains enable secure and decentralized data storage, which is crucial for transactions and record-keeping.
A blockchain is a distributed database or ledger that is shared among the nodes of a computer network.
As a database, a blockchain stores information electronically in digital format.
Blockchains are best known for their crucial role in cryptocurrency systems, like Bitcoin, for maintaining a secure and decentralized record of transactions.
The innovation with blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.
Key features / Concepts of blockchain technology:
Decentralization
- Traditional Databases: Centralized databases, like a bank’s ledger, have a central authority that manages and maintains the data.
- Blockchain: It is decentralized, meaning the ledger is distributed across many participants in the network, and each participant holds a copy of the entire ledger.
