Find out why cryptocurrencies are important for web 3.0

Encouraging people to participate in the Web3 protocols strengthens the community. The question is to what extent the Internet can be realistically decentralized. Perhaps the biggest trend is the focus on ease of use.

Source: Adobe / Maksim Kabakou

First there was decentralized finance (DeFi), then non-fungible tokens (NFT), and now it looks like the next big thing in crypto might be Web 3.0. While the term remains somewhat of a mystery, the term refers to making the Internet “smarter” in a number of ways, from using artificial intelligence to proactively respond to user requests to using decentralization to bring in new functionality and experiences.

And since decentralization is likely to be one of the main characteristics of Web 3.0, this means that cryptocurrencies and the blockchain will also play a central role. Indeed, industry players who spoke to Cryptonews.com suggest that cryptocurrency will be at the heart of Web 3.0, as cryptocurrency creates a new incentive system and coordination for Internet services.

Cryptocurrencies could fuel a new Web 3.0 ecosystem that features distributed worker protocols, decentralized infrastructure, and user-owned creator platforms, among other emerging trends. Of course, the industry will need to focus on improving and simplifying user experiences before it can hope to achieve a meaningful level of adoption.

How important is cryptocurrency for web 3.0?

Originally (i.e., before encryption), Web 3.0 was seen as a stage in the development of the Internet. As pioneer Tim Berners-Lee and others have envisioned, this would attest to computers and machines “capable of analyzing all the data on the web.”

However, while this definition is still true to some extent, time has passed and now most people working with Web 3.0 technology associate it with decentralization. In this regard, cryptocurrencies and the blockchain play an important, even indispensable role.

“Cryptocurrency and blockchain are a necessity for Web 3.0; they enable the three main characteristics of Web 3.0: decentralization, zero permission, and mistrust,” said Al-Bawab. Precisionwho oversees the development ofinternet computer (ICP), a $2 billion platform that aims to challenge the monopoly of big tech companies.

Adam Soffer, Product Manager for Decentralized Video Distribution Platform Livepeer (LPT), agrees that cryptocurrency and blockchain are at the heart of Web 3.0.

“It allows developers to embed economic rules and incentives into open source software and create networks coordinated with tokens. By incentivizing individuals to participate in Web 3.0 protocols, developers and the community can address issues that require widespread coordination,” he said. Cryptonews.com.

Not everyone in the industry agrees that cryptocurrency will be essential for Web 3.0, but everyone agrees that it will be very important. According to Nick Mancini, Principal Analyst at Chain tradingThere is likely to be a gap between the public and private sectors and their use of cryptocurrencies.

“Cryptocurrencies, as we see them today, are likely to be used largely for public utilities and open source,” he told Cryptonews.com, “that interact with public systems, but do not need internal economies or overarching consensus-based models.”

Likewise, Frank Monge, COO ofhelium (HNT), the developer of decentralized wireless infrastructure, does not necessarily agree that cryptocurrencies will be essential for Web 3.0, but does suggest that blockchain and cryptos will add a unique incentive to make people behave differently from using the Internet like it is now.

“If the incentive is to keep things private and encrypt them permanently and the more you do that the more crypto rewards you earn, then the current behavior of collecting private information and reselling it for rewards will stop,” he told Cryptonews.com.

While Mong realizes that blockchain can provide a decentralized way to access the Internet, he also raises an important question.

He added, “I think the question is how realistically the internet can be decentralized. If the kernel is still owned by a few large entities, those entities can still impose censorship or create barriers to independence and privacy.”

Web 3.0 Examples

When it comes to platforms that currently provide examples of decentralized Web 3.0 technology, opinions differ.

For Adam Soffer, projects that fall under the “distributed work protocol” category are among the most interesting. This one in particular philicoin (FIL), an “open source decentralized storage network that allows developers to build new ways to store data in their applications, as well as enabling individuals to move away from centralized storage services. That monetize data and do not guarantee privacy.”

Also includes file Graph (GRT), which allows users to extract data from blockchains on blockchains. “It allows anyone to build and publish open APIs, or sub-graphs, that can be queried for a large set of cryptograss trend information,” Soffer explained.

As expected, Soffer also includes Livepeer among the favourites, a platform that provides a distributed infrastructure for key services such as video transcoding at a fraction of the cost charged by central providers. “These services are provided by contract operators (referred to as ‘coordinators’ in the Livepeer community) who compete on the basis of service quality, price and location,” he explained.

A notable example of Web 3.0 is undoubtedly the computer Internet, which aims to provide a decentralized version of the Internet and various services and websites.

According to a DFINITY spokesperson, a number of platforms already running on the computer internet are highlighting the potential of Web 3.0. These include in particular DSCVR (Decentralized version of reddit owned by more than 12,000 users),open chat (a real-time messaging app with 19,000 users), but also District (A professional, community-based network that allows users to vote on promotions and will never sell their data.)

Observing the industry from the outside, Nick Mancini believes that the most promising sub-areas of Web 3.0 are decentralized exchanges, media, art, and storage.

“Decentralized exchanges like Uniswap and Sushiswap are changing the way we trade cryptocurrencies, Steemit is changing the way we communicate, OpenSea is changing the way we buy and sell digital art, Filecoin, storge (STORJ) and Sia (SC) is driving the load on decentralized file storage. These are just a few examples of companies tackling innovation in three worlds ready for disruption.

future trends

Looking to the future, Frank Mong believes that “decentralized infrastructure” will be the biggest and most important trend in Web 3.0 related to cryptocurrency. This is perhaps not entirely surprising, given that helium is a public blockchain intended to encourage the development of a decentralized wireless network.

“I think this should happen for a real Web 3.0,” he said. “We’re working on it.”

Si Adam Soffer s’attend à ce que les plates-formes liées aux NFT et à la DeFi fassent l’objet de la plus grande attention à court terme, il s’attend égallement à ce que d’autres domaines prennent de l’importance in the medium term.

“In the near future, I see [organisations autonomes décentralisées]Distributed worker protocols and decentralized user-owned creator platforms, such as Audius.co and Glass.xyz (which are themselves based on distributed worker protocols), are on the rise,” he said.

Additionally, DFINITY expects decentralized social networks to gain momentum, particularly in response to privacy breaches, platform risks, and censorship synonymous with legacy networks such as FB.

“Games will also become very popular on the blockchain. Games are the ideal use case for NFTs,” its spokesperson added.

However, an important trend in the near future, according to Nick Mancini, will be usability, which will be of paramount importance if all other directions – infrastructure, work protocols, social networks, game platforms, creator platforms – will reach critical mass.

According to him, “Perhaps the biggest trend is to focus on usability. To be widely adopted, projects must offer a very simple user experience that your grandparents could use.”

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