Web3 at a glance

Web3, often termed as the "new internet", is the next phase in the progression of the World Wide Web (WWW). If web1.0 was about static web pages and read-only content, and web2.0 brought interactivity, social media, and user-generated content, then web3 is about decentralized and trustless protocols and technologies. It moves away from centralized control and ownership, as seen with big tech companies today.

At its core, web3 is primarily built on decentralized blockchain technology. It emphasizes user control over personal data, trustless interactions (meaning you don't need third-parties to trust each other), and direct peer-to-peer exchanges of value. In some situations, web3 can perform tasks more effectively than traditional web applications, and in certain cases, it can achieve what traditional platforms cannot. Below, we summarize some of the hottest sectors in web3:

• Decentralized Marketplaces: Peer-to-peer marketplaces where users can transact directly without middlemen. This applies to both goods and services. Decentralized finance (DeFi) stands out as one of the most significant sectors in decentralized marketplaces which aims to recreate traditional financial systems, such as loans, savings, insurance, and more, in a decentralized manner using smart contracts on blockchains. Unlike traditional finance, DeFi operates in a fixed and transparent manner, and there is no room for hidden activities behind the scenes in such financial products.

• Borderless Transactions: Traditional financial systems often impose high fees and delays on international transfers. Cryptocurrencies allow for almost instantaneous global transactions with minimal fees amounting to mere cents.

• Digital Authenticity: Traditional digital files can be copied endlessly, making it hard to identify the "original." Non-Fungible Tokens (NFTs), on the other hand, provide a unique stamp of authenticity that can't be duplicated. Every sale or transfer is transparently recorded, ensuring true ownership and history. This means artists and creators can sell their work digitally, knowing there's a verifiable "original" out there. NFTs have gained massive traction in art, collectibles, and even real estate in the virtual space.

• Decentralized Decision Makings: Traditional organizations have a hierarchical structure where decisions often come from the top. DAOs (Decentralized Autonomous Organizations) operate on consensus mechanisms, allowing all members to have a say. Without a central authority, decisions can be made transparently and collectively, ensuring every stakeholder's voice is heard and reducing the risks of centralized corruption or biases.

• Decentralized Web Infrastructure: This includes decentralized file storage solutions and more, which ensure that the foundational aspects of the internet are distributed and not controlled by any single entity.