What you need to know about Web3 is its online editing experience with cryptocurrency.

Finance fans say the token market is changing on the internet, is it a good deal or a bubble generator?

If you pay attention to the world of cryptocurrency, you will find that market jargon has come out of it, even if you deliberately don't like it. There are NFTs, dapps, DeFi, and tokenomics. Prepare for the new semester, which will be discussed below. The idea is that cryptocurrencies are not used for making money or speculating, but can be used to create new networks. If the trust is good, it's time for cryptocurrency to be worth understanding even if you haven't been exposed to Bitcoin.

Of course, subsequent software on the Internet is constantly evolving. The difference with Web3 is that it creates financial assets in the form of tokens in the inner workings of almost anything you do online, which is slightly different. His supporters say that by doing so, he could turn the company into an online marketing organization governed by a software protocol and a voting token. “This is the first time cryptocurrency has been presented to consumers,” said Jeff Dorman, chief investment officer for cryptocurrency fund Arca. “Over time every business has become an online business. I think that will happen in the digital space.”

A lot of people don't believe. He said it is still a long way from proving that it applies in addition to niche apps which are tools for cryptocurrency traders. This can be an attempt to circumvent the law when policymakers consider establishing specific rules for cryptocurrencies. All in all, Web3 is the perfect blend of new creative technologies, technological utopias, and financial engineering. Here's a beginner's guide that shows you what you need to know.

Why is it called Web3? What are Web1 and Web2?

Web 1.0 points often described in the 1970s and the 1980s for the first explanation and website Using the subject of the user created by the search Wikipedia on motion. In some of the decisions, the content of the network is divided, but usually run by large companies. The idea of web3 is to create software and platforms that are not expected to normal company and web 2.0 business model (such as ADS). For example, you can use a loop to wait for direct payments. In the ideal world, Web3 service must work for community users, the owners and improve users. (Instead of web3.0, web3 why it is why it is due to the transaction of the development of online discussions.

How does this affect cryptocurrencies?

Bitcoin, the first cryptocurrency, collects all transactions from a public database called a blockchain. This information is decentralized because it is not controlled by the company, but by the vast network of computers connected to the Internet, and employees benefit with the possibility of earning a lot of bitcoins in their work. However, you can use blockchain to do more than just record the results of digital exchanges. You can use it to enter into contracts and manage the operation of your software and applications.

Web3 apps are typically based on a technology called Ethereum, which rewards users for helping them manage a network, like Bitcoin. The token is Ether and has a total market cap of US $ 511 billion. The app itself also contains relevant tokens, and these tokens can not only pay for services, but also manage app enhancements, such as voting rights and polls. Often, at least for the first time, most of the encouragement for these projects is an opportunity to appreciate the value. This can increase more and more users participating in the community, but of course, it can increase by estimation. There are many similar situations in cryptocurrency.

● Why will we hear more about it next time?

Prosperity is an important part of it, but people are starting to see these tools in real life. Following the competition between Bitcoin and other cryptocurrencies earlier this year, venture capitalists have invested thousands of dollars in the development and development of business applications or apps. Many app groups have also received a distribution of tokens, and the price of these tokens has increased, attracting more and more people. Ali Yahya, general cryptocurrency partner at venture capital firm Andreessen Horowitz, said: "We are on the impact and innovation and growth of Web3 will accelerate."

More than 8,700 dapps are normally listed on the DappRadar tracker. This includes many cryptocurrency markets and games. Sometimes the lines are out of focus. Many games involve the acquisition and exchange of counterfeit tokens called NFTs, which are virtual tokens or aggregates that can be sold for a high price.

Operating in a distributed network is clunky, but the user experience is getting better and better. “He was still a child, but everything has changed in the past six months,” said Jonathan Dotan. . One of the team's tasks is to upload more than 55,000 videos of testimonies from genocide survivors to Filecoin, a decentralized network where more than 3,500 merchants around the world store electronic data in exchange for FIL tokens. Dothan said Starling Lab can now inject 3 times more data into Filecoin each day than at the start of the year.

In October, Dish Network Corp. and launched Helium Inc. Operates over a 5G wireless connection. Hotspot providers receive HNT tokens for providing services. “People are starting to realize that this is a new era, remember Airbnb or Uber,” said Amir Haleem, CEO of Helium. The City of San Jose is setting up 20 helium hotspots to obtain HNT tokens to help some low-income people pay for internet access.

Twitter experts work on Bluesky, a division of social media. Game company Ubisoft announced on December 7 that the game will allow players to access NFT products such as character cars. In other words, the decentralized app will face stiff competition from regular online gamers. “The biggest fight here is with the big tech companies,” cryptocurrency investor Aaron Brown said as quoted by Bloomberg. "The commercial engagement of these companies is the key to the hijacking of Web3." Their application has a version similar to Web3.

● Should I be concerned about the distribution of the application?

“Centralization is very easy,” Brown said. Web3 will be "a place for niche groups. People who create new ideas." The goal of many of these companies is to create a Decentralized Autonomous Organization (DAO) where thousands of users can efficiently manage tasks through group chats and tokens. Maria Shen, partner of venture capital firm Electric Capital, said:

Low What are the disadvantages?

While Web3 is often described as the best collaboration, sharing can also include ongoing workloads and reduced liability. Administrators raised concerns about apps that allow people to borrow and exchange tokens with each other without the need for user identification or financial guarantees, especially for certain tasks, such as financial management (DeFi). Many developers claim that they are not responsible because they have become too controlling for the user. “What a dirty little thing that nobody talks about,” said Avivah Litan, analyst at Gartner Inc., a blockchain research firm. “DeFi is now managed by the middle company. But the difference is that you cannot restrict the performance of the contract. These people can be arrested and the authorities can come. They can keep them in jail, but they cannot break the contract. . "

Although newer systems can solve this problem, there are concerns about the high power consumption environment required for some blockchains. Since many numbers are generated overnight, there are many software vulnerabilities and malicious hacker attacks. Many sites can manage online forums, but do not enter contact numbers. If you make a mistake and send money to the wrong account, you could lose it forever. You cannot solve the problem such as calling the bank customer hotline.

Many Web3 businesses have a few paying users, but there is a risk of crazy marketing because they can benefit from a lower investment than tokens. Siv Piknik & Co. For example, the company employs around 30 people and operates two service centers that support Filecoin. They made money creating FIL tokens, and their value has almost doubled this year. However, it is down 82% since April. CEO Kevin Huynh said the trial included clients and eventually he would start paying for it. It's a big bet on Web3. Before investing in food, he trained as a surgeon, completed a 401 (k), and started a business collecting small donations from over 70 relatives and friends. "I think in the end it will improve," he said.