What Web3 Technologies Will Change The World As We Know It?
Web3 technologies are the technologies that will enable and empower the decentralized web. This includes technologies such as protocols that allow for decentralized communication/data storage and decentralized apps, or dApps, that run on these protocols. Web3 technologies also include
Web3 technologies follow some of the same principles, like decentralization, trustlessness, and accessibility. Let’s examine how Web3 technologies will change the world over the next several decades.
What Is DeFi?
DeFi stands for “decentralized finance.”
Most people now associate the Web3 sector with cryptocurrencies like Bitcoin and Ethereum. While these are both still important for mass blockchain adoption, there are emerging DeFi projects like Maker DAO, AAVE, and Uniswap that make decentralized finance possible.
What makes DeFi so revolutionary? Decentralized finance gives consumers access to financial products and services without having to deal with centralized institutions like banks. In other words, imagine a world where an individual can invest, lend and borrow money without ever having to open a bank account.
If you were looking for an obvious sign that DeFi is here to stay, consider that JP Morgan Chase, one of the largest financial institutions in the world, recently executed its first DeFi trade on the public blockchain.
What are NFTs?
There’s no question that NFTs have been branded to the public in the form of digital art collections, but the technology has many other use cases. For example, NFT technology could be used to tokenize real estate as an asset or even potentially revolutionize the events industry.
As virtual worlds emerge, digital ownership will become more important and relevant. In the same way that your “deed” to a house or car proves ownership, the need to establish ownership in digital worlds will help fuel new markets in virtual worlds. We’ve already seen billions of dollars flowing into virtual land in the metaverse, sold as NFTs.
Other exciting use cases for non-fungible tokens include built-in royalties, phygital fashion, and ensuring authenticity in the supply chain. While the NFT markets may have cooled since 2021, we still see exciting NFT collections gaining traction in 2022.
What is the metaverse?
One of the most relevant Web3 technologies is the metaverse. For those who don’t know, the metaverse refers to a collective of virtual worlds, enhanced with virtual reality technology or mixed reality technology, that users can access through either a browser or headset.
Facebook is largely responsible for the metaverse hype ever since the giant tech company pivoted to the metaverse late last year, renaming the social media giant as Meta. While it seems like the general public is still skeptical about the future of virtual worlds, it hasn’t stopped major global corporations like Disney and Nike from being interested in the potential of the metaverse.
While the metaverse may not be off to the most triumphant start, many still believe that it will eventually play a central role in Web3’s future development. Experts estimate that the metaverse may be worth trillions of dollars within the next decade.
How Will These Web3 Technologies Evolve?
There’s a lot of speculation about how these Web3 technologies will evolve. While critics claim that Web3 will be energy-intensive, others argue that Web3 technologies can adapt to become the bridge to a more sustainable world over the next several years and decades. It will also be fascinating to see how blockchain technology disrupts law, healthcare, and real estate sectors.
It’s also important to recognize that there will be Web3 technologies that ebb and flow, with some dominating more than others over the next several years. It may take years for the world to fully understand the value of the metaverse, and there may be times where DAOs become popular as the NFT market subsides.
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