Websites have become increasingly advanced over the years, making them easier than ever to use. Websites and platforms make web browsing much faster, safer, and more convenient. However, they’ve had their pros and cons. Websites today were originally designed for people who wanted to read news online rather than watch videos, search the internet, chat, etc. Nowadays, websites have evolved even further into social networks. Now, the question arises Is Web3 the same as blockchain?
The answer is no. Blockchain is not just about cryptocurrencies. It’s much bigger than that. There are many different types of blockchains out there, each with its purpose. But first, let us understand what Web3 is.
“The blockchain does one thing: It replaces third-party trust with mathematical proof that something happened.” – ADAM DRAPER
What is Web3?
Web3 is the third generation of web protocol, developed by Ethereum. It was created to solve some problems encountered while developing the second generation of the web protocol (HTTP). In short, Web3 is a set of protocols that allow developers to build decentralized applications (dApps) using smart contracts. These apps run on top of the Ethereum network and use its native cryptocurrency Ether (ETH) to pay transaction fees and provide incentives for users to participate in their activities.
We are now entering what I believe will be called Web 3.0. Websites are no longer static pages – they are interactive and connected. These connections allow us to create applications that do things that weren’t possible before. Among the examples is Augur (a decentralized prediction market). Rather than having thousands of people predict events independently, Augur creates a network where everyone’s predictions are aggregated and displayed, making it easier to understand the outcome of an event.
Another example is Blockstack (an identity-based protocol), which gives users control over their data. Users don’t need to rely on third parties to hold their data; instead, they can choose who gets access to their data based on how valuable that data is to them. Both of these examples show that we are moving towards a world where everything is connected to everything else.
The next thing to understand is what the Blockchain is. The Blockchain is essentially a distributed database where transactions are recorded chronologically and publicly. A transaction is simply data that changes ownership or value. To put it differently, if I own 100 grams of gold, and then sell 10 grams of my gold for $10; I am recording this transaction on the Blockchain. So, the Blockchain is just a shared ledger system.
There are two primary ways that blockchain works. One way is called public blockchain, where anyone can access the ledger. Anyone who wants to can add transactions to the chain. The second type of blockchain is private, where only certain parties can access the ledger. Private blockchains are often used by financial institutions to keep track of assets.
“Blockchain is the biggest opportunity set we can think of over the next decade or so.” – Bob Greifeld, Nasdaq Chief Executive
What is the difference between Web3 and blockchain?
Now, coming back to Web3, Web3 is not the same as blockchain since web3 does not deal directly with blockchain technology. Rather, it deals with smart contracts which are self-executing computer code that runs exactly as programmed without any possibility of fraud, censorship, or downtime. Smart contract programs are deployed on top of the Ethereum network.
With Web3, we need to make sure that everything is encrypted. We want to ensure that only certain parties can view the information. To accomplish this, we use cryptographic keys. Techniques for encrypting and decrypting data are known as cryptography. One example of this is public-key cryptography. A public key and a private key are used in public-key cryptography.
Anyone who knows the public key can encrypt messages using the private key. Only the person who owns the private key can decrypt those messages. Using this method, we can send sensitive information securely without anyone else being able to read it.
Now that we understand how Web3 works, let us move on to the blockchain. A blockchain is a decentralized ledger system. Decentralization means that instead of having a single entity controlling the entire system, many entities participate in the system. This gives the system resilience and makes it much harder for hackers to take over. In addition, the fact that it is decentralized means that no single point of failure exists.
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So how Web3 and Blockchain help us?
Well, if we were to use a centralized database, we would have to trust that the company behind it was honest. Even if they were honest, they might accidentally delete records or change things. Since blockchains are decentralized, we can rest assured that the data is safe and accurate.
As compared to Web3, Blockchain is a public database that records transactions. As opposed to Web3 where users own their data and applications run autonomously, Blockchain relies on miners who verify transactions and add them to the chain. Miners receive rewards in the form of cryptocurrency for doing so.
In conclusion, both Web3 and blockchain are incredibly useful technologies. So Is Web3 the same as blockchain? While Web3 is currently focused on the financial industry, blockchain is becoming increasingly popular among other industries. As long as they remain separate, they will continue to evolve independently.
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