What is a web3 protocol?

On Web3, data is stored in multiple copies of a P2P network. While Web2 was a frontend revolution, web3 is a backend revolution. It is a set of protocols led by blockchain, which aims to reinvent how the Internet is connected in the backend, combining the logic of the Internet with the logic of the computer. Web2 refers to the version of the Internet that most of us know today.

An Internet dominated by companies that provide services in exchange for your personal data. Web3, in the context of Ethereum, refers to decentralized applications running on the blockchain. These are applications that allow anyone to participate without monetizing their personal data. When I asked my brother, a Web3 developer, how does Web3 explain, his short answer is that Web1 was read-only, Web2 is read-write, Web3 is self-read-write.

The initial version of the Web was based on open source protocols such as TCP, IP, SMTP and, of course, HTTP. A protocol as a standard way in which multiple computers agree to communicate with each other. These fundamental protocols govern the flow of information and messages on the Internet, and if you want to build an application or service using their rules, you don't have to pay for access. Many web infrastructure protocols such as Filecoin, Livepeer, Arweave, and The Graph (which is what I work with at Edge %26 Node) have issued utility tokens that govern how the protocol works.

These tokens also reward participants at many levels of the network. Even native blockchain protocols like Ethereum work this way. In a Web3 environment where web participants own their data, they can selectively share this data with the applications they interact with. One of the reasons why many people are excited about NFTs as a way to demonstrate digital provenance is that since they are Ethereum tokens (NFTs are now also available on other smart contract blockchains), they are interoperable with the rest of the Web3 ecosystem.

Programmable smart contracts allow the creation of decentralized applications, or DApps, the cryptoeconomic protocols that bring Web3 to life and put it in the hands of users. Web3 is a way for artists and creators to not only own what they produce on a platform, but the platform itself. These applications are often called dapps (decentralized applications), and you will see that that term is often used in the webspace3.Bloomberg has described Web3 as an idea that would incorporate financial assets, in the form of tokens, into the inner workings of almost anything you do online. Instead, web3 applications run on blockchains, decentralized networks of many peer-to-peer nodes (servers), or a combination of the two that form a cryptoeconomic protocol.

Mirror, a Web3 blog network, allows users to sell their work as an NFT and redefines the model of writer and patron with “crowdfunds. I am a developer who recently transitioned to the web3 space from a traditional development environment. Web3's stance is that you should own your own online identity and reveal parts of that identity only when you decide. The technologies that make up Web3 allow people to create and participate in financial protocols that offer unprecedented access, security and transparency, a new economic landscape that is now widely known as decentralized finance (DeFi).

Oracles have emerged as an expansive layer of the Web3 stack, which provides data and services off-chain to facilitate smart contract innovation and cross-chain interoperability to help ensure seamless connectivity between different on-chain environments. Tokens in Web3 applications are also units of value issued to Web3 content creators, but these units of value are digital, programmable, and have functions beyond exchange. While Web3 is still in its early stages, it has the potential to realize the wired ideals of transparency, reliability and convenience that the Internet was built to deliver. Powering the Web3 model is a growing stack of decentralized technologies, such as blockchains, smart contracts, oracles, crypto wallets, storage networks and more.

Web3 combines decentralization and interactivity to create a new model for the Internet in which users can interact directly, without intermediaries. . .

Tim Ludecke
Tim Ludecke

Subtly charming webaholic. Lifelong music maven. Total twitter expert. Professional beer maven. Certified bacon geek. Total internet lover.

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