What does Web3 do? How should you best use Web3? Want to learn more about how Web3 can be used in the real world? Read on to find out more!
When you look at the important dates, it’s hard to believe how much the internet has changed over the years. In the early days of the internet, ecosystems were built with the help of open protocols. Some of the most important web assets and platforms were built on Web 1.0, the first version of the internet. In the second time period, called Web 2.0, things became more centralised because of closed protocols, while open protocols were more powerful.And then the web3.
Web 3.0, which is also called the decentralised web, is one of the most talked-about things. This is where the internet is going next. The value of the top web3 use cases is probably one of the most important reasons to pay attention to a web3 development company. The next post helps you realise how important Web3 is by getting you to think about how it can be used in the real world.
You should know the top ways Web3 is used.
Web3 is shown to be what it is because it can change how people use the internet. Is web3 just about making changes to web apps and services’ user interfaces (UI)? On the other hand, the best Web3 use cases show a different story.
Look at the following examples of how web3 can be used to see how the idea can be put to use in different ways.
Decentralised Organizations
One of the best examples of a blockchain web3 use case would be “Decentralized Autonomous Organizations,” or “DAOs.” The people who use them own the online communities. The most interesting thing about DAOs is that they can be run by the community as a whole. People have a lot of freedom in decentralised DAOs, which are the best parts of Web3.
The rules of a DAO can’t be changed by a single person or group of people. DAOs also make sure they are independent by using smart contracts to count votes and carry out decisions without help from people. DAOs are a great example of how on-chain governance works on the web3 if you look at them closely. Decentralized autonomous organisations bring the idea of corporate governance into the virtual world by putting rules into smart contracts.
DAOs should be one of the most important ways to use web3 because they could help web3 organisations figure out how to run themselves. The ideas behind DAOs are interesting because they can be used for a wide range of assets and organisations.
Decentralised Finance
Decentralized finance, or DeFi, is a big answer to the question “What is web3 used for?” It’s a new idea that uses applications that don’t have a central location to offer financial services. Decentralized applications are just regular software programmes that are linked to a set of smart contracts. In decentralised applications, smart contracts are called protocols. Protocols help define how the applications will work. The main benefit of decentralised apps in DeFi is that they will be around for as long as the blockchain they are built on is around.
Also, dApps made on open blockchain networks can be used by any computer in the network. Through the real-world web3 use cases in DeFi, many people have found alternatives to traditional financial services. For example, DeFi has made it possible to lend and borrow cryptocurrency, so people who own cryptocurrency can use it as collateral to get loans.
Blockchains for payments are another important part of web3 use cases in DeFi. DeFi has made it possible to use payment blockchains so that people can send and receive digital money. DeFi is one of the best examples of how web3 can be used to improve the way cryptocurrency is used.
Why DeFi is so important
Transactions are cheap, peer-to-peer, almost instant, and don’t care about borders. Payment blockchains in DeFi can be the best example of how Web3 can be used to make financial services easier to use. Payment blockchains could easily make the systems we already have for making payments better. For example, people who don’t have bank accounts can benefit a lot from cryptocurrencies. DeFi also uses blockchain to make sure there is enough transparency to stop fraud, abuse, and waste.
The best thing about DeFi is that it changes how behind-the-scenes financial technologies work. DeFi makes it easier for people to use financial services, get to them, audit them, improve them, and make new ones. DeFi is one of the best ways to use Web3 because it makes joining the financial system easy and cheap. At the same time, DeFi uses web3 principles to give customers full ownership over the financial products they buy.
The Link Between DeFi and Web3
DeFi is one of the most interesting real-world uses of Web3 because it gives a lot of ways to improve financial inclusion. The connection between DeFi and web3 comes from the fact that core internet values are shared by DeFi services. Here are some of the most important connections between DeFi and web3.
- Dedication to open-source code
- Lower transaction fees
- Open accessibility
- Transparency and accountability in governance
- Permissionless
- Encryption-based privacy and security
Privacy and the Digital Infrastructure
Existing blockchain networks’ biggest problem is that everyone can see everything. There are ways to use blockchain web3 to improve privacy and digital infrastructure. Research in new areas of cryptography, like zero-knowledge proofs, makes it possible to show that something is true mathematically without giving away any information.
For example, a user can show a website that they know the password without giving the website the password. So, the user’s password would never be saved in a database on the website, making it safe from attacks that have never been seen before. With Web3 solutions, it’s possible to improve digital infrastructure in ways that protect privacy.
One of the best ways to improve digital infrastructure with Web 3.0 is to make sure that users’ personal information is safe. Developers also have more freedom with Web3 to make more private apps. Since there were so many data leaks in web 2.0, data protection is one of the most important parts of many web3 use cases. Now, web3 can give you the perfect place to start using a suite of apps to protect your data better.
At the same time, the Web3 use cases that improve privacy and digital infrastructure could make it easier to follow the rules. With the help of privacy layers, users who are worried about giving their personal information to an app or service on a blockchain can get over their fears. So, it’s clear that web3 will be a big part of making it easier for blockchain networks to follow rules without taking risks.
Blockchain-Based Games
The most well-known example of Web3 in the real world will make you want to play games that use blockchain. The games are based on blockchain technology and have their own economies where players own the things they use. Blockchain games were some of the first web3 applications, so they are one of the most interesting answers to the question “What is web3 used for?”
You can move items from one game to another in blockchain-based games. When they were just starting out, blockchain games showed us what games will be like in the future. With the help of web3 principles, blockchain-based games could make whole new virtual economies and worlds.
The fact that decentralised technology is used to help creators make money shows that blockchain games are one of the best Web3 uses. In blockchain-based games, NFTs are used to figure out who owns things like avatars, skins, tools, experience points, upgrades, and so on. In an interesting twist, players can move assets between games and sell NFTs on secondary markets for real money.
Play-to-earn models are something else that makes blockchain-based games stand out in the real world. One of the best games that shows how web3 principles can be used in the real world is Axie Infinity. Many people have found that playing the game is a good way to earn cryptocurrency.
Metaverse
On a list of the best ways to use Web3, the metaverse is one of many things to put on the list. The metaverse says that users will be able to move around in a virtual world as digital avatars without limits. You won’t be able to watch it on your computers, but on the internet.
Many Web3 ideas are used in the metaverse to give users experiences that are immersive and exciting. Decentralization and creator economies can be found in the metaverse. Everyone is welcome to join the metaverse development company, and users have full control over their experiences.
Metaverse is one of the best ways to use Web3 because it promises to be an open, shared, and decentralised virtual world. But the metaverse isn’t quite right yet, and only hints of it can be found on different platforms. Big names in tech and business like Facebook, Microsoft, Epic Games, and many others have seen the value of web3 principles in different metaverse applications.
Creators Economy
The creator economy is one of the most exciting things about Web3, even though it’s not really a Web3 use case. Developers, artists, and musicians, among others, can connect directly with their fans and followers through the Creator economy. Creators can work together without any middlemen getting in the way by using web3 principles.
Non-fungible tokens, or NFTs, are one of the most interesting things about the creator economy in real-world Web3 use cases. The new type of digital asset has become so popular that it’s hard to believe. This is because it has a unique value. On top of that, sales of NFTs that get a lot of attention have also helped creator economies grow in a big way.
One of the best uses of Web3 is the creator economy, which gives people who spend a lot of time online in different digital spaces ways to make money. NFTs give creators a lot of new ways to make money and get around the traditional gatekeepers. So, the creator economy use case of Web3 is a good way for people who make things to sell them directly.
Followers can also get exclusive rights to the creator’s work, which makes them care more about the artists and creators. Another important thing to know about NFTs in creator economy use cases is that they can be used to pay royalties. Smart contracts can help NFT owners keep track of secondary sales and get royalties. NFTs are digital assets that can be checked, which is the most important thing. This means they can be used for a lot of different things besides creator economies.
Final Words
The final overview of web3 shows how it can completely change how people use the internet based on the top web3 use cases. From DAOs to the metaverse and DeFi, web3 game development company has something for everyone. Some Web3 use cases are already having an effect, while others are still in the planning stages.
For instance, DAOs and DeFi are two Web3 use cases that are being put into action right now. On the other hand, there is still work being done on the metaverse. The different ways that web3 can be used focus on its core ideas and how they can make exchanging data, owning assets, and doing financial transactions easier than they are now. Find out what Web3 can do by learning more about it right away.
