Web3-indeed the future of Internet
Blockchain technology is perhaps the one technology that most inspired the idea of Web3, and so it’s the most on-the-nose example. Many other Web3 technologies rely on a blockchain to work, so it is foundational to Web3.
Cryptocurrency (also known as “crypto”) is decentralized digital cash that isn’t controlled by any government or a central authority like a bank. Cryptocurrency uses blockchain technology to record how much currency there is and who holds what amount of it.
Initial Coin Offerings are related to cryptocurrencies because the “coins” on offer are crypto. When you invent a new type of cryptocurrency (presumably with an exciting innovation), you need initial money to get the ball rolling.
This is probably one you’ve already heard of, but NFTs are another cornerstone of Web3. NFTs are essentially a form of crypto, but each NFT is unique and cannot be exchanged for another. That’s what the non-fungible part of the name means. NFTs are linked to digital or physical assets in the same way that the paper title deed for a house represents ownership.
When you use a cloud-based service like Google Docs, you’re using a centralized app. Google has access to all the information in your documents, can read it all, and control it. The tradeoff is that we can store our information in the cloud, easily collaborate with others, and enjoy a long list of other cloud-app conveniences.
If you buy a car today and take a loan from the bank to do it, there’s a lot of paperwork involved. The bank sets up a contract with you describing the rights and obligations of both parties. According to the contract, if you default on your payment, the bank has to enforce specific actions (such as repossessing the car) according to the agreement
