What Is Web3 and How Can I Invest in It?

With all the crypto-hype in the metaverse, many people wonder what Web3 is and whether it will be the next big thing. The meaning of Web3 technology and the various cryptocurrencies associated with it will be decoded in this article.

Who First Used The Term "Web3"?

In 2014, Ethereum co-founder Gavin Wood coined the term Web3 to describe a new economy based on blockchain technology, in which individuals exchange services without needing a central authority.

In 2021, the concept of Web3 started gaining traction. With their decentralized peer-to-peer networks, projects such as the Helium Network and ArWave have garnered multi-billion dollar valuations, similar to Gavin Wood's vision of Web3.

What Exactly Is Web3?

Web 2 refers to the current Internet, including platforms such as TikTok, Twitter, Instagram, and others. These platforms are highly centralized, with complete control over their users. Web3 seeks to decentralize these platforms using DAOs or other blockchain-based technologies.

Your MetaMask Wallet, for example, is a Web3 application that gives you complete control over your funds through a browser extension or mobile app.

Different Web3 crypto projects offer different aspects of decentralization. For example, LivePeer uses the Ethereum blockchain to enable decentralized video bandwidth sharing.

The Helium Network, for example, allows decentralized wireless data sharing through its network of IoT nodes. Helium is an example of a Web3 technology IoT implementation.

API3, a decentralized API platform that allows the creation of a reliable metaverse development company, is a more traditional Web3 application.

In short, the decentralization of any centralized platform currently available on Web2 would be considered a Web3 implementation.

Is Web3 About To Be The Next Big Thing?

You are probably already using Web3 technology, not even realizing it. Millions of people use Chrome browser extensions like Metamask and Solana's Phantom Wallet. Web3 is already a well-known and popular trend.

As cryptocurrency investing becomes more mainstream and developers have more time to build decentralized applications, 2022 could be the year of Web 3.

After all, we have yet to see highly interactive and complex apps built on the blockchain, so the current state of dApps is still in its infancy.

What Are The Best Ways To Invest In Web3?

Investing in stocks or cryptocurrencies associated with the development or implementation of Web3 technology is one of the best ways to bet on the technology.

Helium (HNT), Arweave (AR), and Ocean Protocol (OCEAN) are some of the most popular Web3 coins with multi-billion dollar valuations.

Another option is to invest in projects or blockchains that will provide a solid foundation for future Web3 dApps. The main one will be Ethereum, but other alternatives such as Polkadot may be more attractive due to its higher gas fees.

Polkadot is a cross-chain communication protocol developed by the Web3 Foundation. Polkadot's Parachain model was built on the premise that many different blockchains will collaborate in the future of Web3.

Final Thoughts

Unlike the metaverse craze that has hit the crypto markets, Web3 focuses on technology that is primarily hidden from the user. The Web3 Development Company and coins will gain popularity as the technology matures.

To some extent, Web3 is a marketing buzzword, but the concept of decentralization of the Web2 platform is fundamental. We have yet to see dApps or Web3 gain widespread attention; However, as crypto investing becomes more mainstream, users will inevitably recognize the power of Web3.