The Basics: What is Web3?

December 2022
Reni C. Achkar

Web3, also known as the decentralized web, refers to the use of blockchain technology and decentralized protocols to enable greater security, transparency, and interoperability on the internet. It is a term that is often used to describe the next generation of the internet, which aims to move beyond the centralized, server-based model that has dominated the web for the past few decades.

One key aspect of web3 is the use of decentralized protocols, which are protocols that are not controlled by any single entity or organization. Instead, they are run on a decentralized network of computers, which allows them to operate in a more transparent and secure manner. Some examples of decentralized protocols include Ethereum, EOS, and Binance Smart Chain.

Web3 has a wide range of use cases, including:

Decentralized finance (DeFi)

DeFi refers to financial applications and services that are built on blockchain technology and run on decentralized protocols. These applications allow users to access financial services such as lending, borrowing, and trading without the need for intermediaries like banks or financial institutions. DeFi has exploded in popularity over the past few years, and it is likely to continue to grow as more people become aware of its benefits.

Non-fungible tokens (NFTs)

Non-fungible tokens are unique digital assets that represent ownership of a specific item or piece of content. They are often used to represent ownership of things like artwork, collectibles, and virtual real estate. NFTs have gained a lot of attention recently, and it is likely that we will see them being used in a wider range of applications in the coming years.

Decentralized applications (DApps)

Decentralized applications are software programs that are built on blockchain technology and run on decentralized protocols. They are similar to traditional apps, but they are not controlled by a single entity and can be used by anyone with an internet connection. We are likely to see a proliferation of DApps in the coming years, as developers look to build on the security and transparency offered by blockchain technology.

Decentralized data storage:

Decentralized data storage refers to the use of blockchain technology and decentralized protocols to store data in a distributed manner, rather than on a central server. This can offer greater security and resilience, as data is stored on multiple nodes rather than in a single location. Decentralized data storage is likely to become more popular as concerns about data privacy and security continue to grow.

Decentralized autonomous organizations (DAOs)

A decentralized autonomous organization is a digital organization that is run entirely on blockchain technology and decentralized protocols. It is operated by smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. DAOs have the potential to revolutionize the way that organizations are run, and it is likely that we will see more of them emerging in the coming years.

Web3 represents a shift towards a more decentralized and user-controlled internet, and it has the potential to disrupt a wide range of industries and applications. As the decentralized web continues to mature and become more widely adopted, it is likely that we will see many more innovative and exciting use cases emerge.

At The Social Laboratory we aim to be leaders within the web3 marketing space! Reach out to us if you'd like to chat with us about your ventures marketing operations or just web3 in general.