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What is Web3?

Quest DAO 26 83

Via Medium

What is Web3?

While Web3 is still being built and explored, it’s unlikely that we will live in a world where all Web 2.0 companies all move over to using Web3 technologies. However once we understand the potential…

While Web3 is still being built and explored, it’s unlikely that we will live in a world where all Web 2.0 companies all move over to using Web3 technologies. However once we understand the potential of Web3 technologies, it will create a new expectation for how individuals and communities can and will create value.

This could cause a revolution that will completely redefine what it means to be part of a tribe, squad or community. It would allow us; wherever we are and whoever we are, to create aligned financial and social incentives as well as own our digital identities.

Lets go back in Internet History for a bit

Web1 (1980s — early 2000’s) The first phase of the Internet, Web1, was mainly about providing the everyday consumer with online content and information.

  • As consumers could only read information or content online, and not yet interact with it, Web1 was incredibly static.
  • When you think about Web1, think Internet Explorer, Yahoo, or Netscape. While web1 was read-only, the companies we associate with web1 were built on open protocols (meaning pretty much any person or organization could build on the internet and know they were subject to the same rules as the next person or organization).

Web2 is the version of the internet most of us know and use today. Where Web1 was static and “read-only,” Web2 was “read-write,” and interactive. Under Web2, the internet became more usable: web2 was dynamic and users could consume, interact with, and create content on the internet themselves.

  • Along the way, the internet became largely dominated by the four behemoths we know today as Apple, Amazon, Facebook, and Google. Web2 also saw an explosion in the use of smartphones, and most of internet use was through mobile apps and hardware built by these companies. While this meant more people could participate in the internet, it also meant the internet was becoming increasingly controlled by the leading digital platforms.
  • Why is this a problem? In the centralized internet we know today, Apple can take a 30% cut on all paid-app downloads and in-app purchases, Twitter and Facebook can de-platform the POTUS, and the everyday consumer has less privacy, security, and control over their online information than ever before.

Web3, the future internet we’re moving towards, is a decentralized internet. Under Web3, the internet is shared online and governed by the collective “we,” rather than owned by centralized entities.The Web3 world is one that has open-source protocols at its foundation. Web3 is about rearchitecting internet services and products so that they benefit people rather than entities.

Web1: Read

Web2: Read-Write

Web3: Read-Write-Own

Let’s outline some key pillars and structures of Web3 which would have stopped this from happening.

  • Decentralised; Control is distributed so no central authority has control over decision making.
  • Blockchains; Blockchains are cryptographic ledgers where transactions are transparent, open and verified in a trustless way. Blockchains use a network to do this, known as a crypto-network. Cryptonetworks are made up of multiple independent computers all keeping track what is happening. The main blockchains are Bitcoin and Ethereum.
  • Trustless; Web3 is trustless because everything on the Blockchains are verified with programmable code. So while individual members don’t need to trust each other, they can trust in the technology itself.
  • Permissionless; Because Web3 is intentionally decentralised and built using native internet currencies, you do not need permission for building or interacting on public blockchains and they are open source.
  • Open Source; A lot of projects in Web3 are currently being built in an open source way, this means that others can see your code, use your code and work with it to develop and collaborate on the project This can also be known as composability, where developers can use elements of projects to build their own, fighting against technology silos and centralisation.
  • Transparency; Web3 is often built in a transparent way because all transactions are documented on Blockchains, this means that there is a greater incentive against bad actors.
  • Stateful; Like the Cookies previously, Web3 will allow for users to track their data However this time they can own their own data, history, and value they create through using Web3.

How do I get started engaging with Web3?

Start investing in cryptocurrencies

Create an Ethereum wallet

Mint an NFT

  • Follow your favorite creators, galleries on Twitter to find NFT’s and generative art that you’re interested in
  • Mint your NFT from a Smart Contract on Etherscan (instructions here)
  • Mint your own digital content as an NFT and list it on an NFT marketplaces
  • Great twitter thread on how to create an NFT on OpenSea step-by-step

Purchase an NFT

Yield farm

  • Yield farming is staking / lending your crypto assets to smart contract liquidity pools in exchange for returns (yield) in the form of crypto; returns are expressed in APY

Create an ENS domain

  • An ENS domain is pretty much your web3 username. It’s a name for all your cryptocurrency addresses, and decentralised websites. Instead of listing my full 42-character Ethereum address, I can use my ENS, jaydrainjr.eth (just like websites have domains instead of IP addresses)

Join and contribute to a DAO

  • Find a DAO that speaks to you, or one with people that you ~vibe~ with. You may have to purchase membership through community tokens.
  • Participate in your DAO’s Discord server or Telegram chat
  • Participate in governance votes