Intro to Web3 and Why It’s Better (TLDR; It’s more secure and valuable)

  1. What Web3 is: Functionally, Web3 is rooted in secure transactions backed by cryptographic guarantees that enable digital asset ownership. It’s important to understand that shift, as well as how it’s being successfully used today.
  2. Why Web3 Data is better: There are 2 key reasons that Web3 data is superior: 1) it’s more secure, and 2) it allows you to extract increased value out of digital assets. It’s so much better that Web3 technology is going to deprecate its predecessors the same way physical media has been deprecated — using Web2 will feel as bizarre as using CDs.

What Web3 is

Functionally

  • Example: Sites like Yahoo serve content for consumers.
  • Web1 deprecated physical media (ex. floppy disks, CDs)
  • Example: Platforms like YouTube allow users to create content and serve it to each other.
  • Web2 deprecated siloed software without APIs (ex. Siebel vs. Salesforce)
  • Example: Users can securely interact and exchange digital assets using cryptographic guarantees for high trust.
  • Web3 is deprecating insecure data exchanges (ex. legacy APIs).

In Practice

  • Investment (and speculation): Bitcoin established itself as a form of digital gold, a “cryptocurrency”. There are many cryptocurrencies out there that serve little purpose aside from being an investment vehicle.
  • Decentralized Finance (DeFi): DeFi uses algorithms and protocols to create financial systems based on code as opposed to the complex infrastructure of a bank. For example some DeFi products return a yield for investment just like a bank loan.
  • Non-Fungible Tokens (NFTs): NFTs are digital assets whose ownership can be verified on the blockchain, allowing them to be valued and traded on liquid markets. Many of these assets already exist today, like digital pictures and music.

Other Resources

Why Web3 Data is better (increased security, more value)

Web3 Data is More Secure

  • Permissionless public systems are possible because of a complex architecture that is secured by nothing but its operational algorithms. It doesn’t matter that anybody can spin up an Ethereum node with effectively “administrator privileges”, the system has shown itself to be hacker-proof in spite of being open.
  • Permissioned private systems use similar architectures in combination with classic enterprise security techniques.

Web3 Data is More Valuable

It’s time to get involved

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