How to invest in web 3.0

History Of  Web 3.0

In 1991, the first website in history was launched. It is still available online today.

Since those early days, the internet has grown exponentially, and it now has more than 5 billion regular users, accounting for roughly 63% of the world's population.

Some believe that a new internet paradigm known as Web 3.0—also known as Web3—is on its way. They argue that a next-generation set of technologies will disrupt society in the same way that Web 1.0 did in the 1990s.

Despite these lofty claims, Web 3.0 can be both perplexing and elusive. Let's take a closer look at Web 3.0's claims and criticisms to better understand what it's all about. 

Web 1.0

The first version of the internet was known as the "static web," and it consisted primarily of read-only webpages with few interactive features.

Web 1.0 provided little more than the ability to browse static pages. A small group of people were in charge of creating content, and information was difficult to come by.

Web 2.0

In October 2004, O'Reilly Media and MediaLive hosted the first Web 2.0 conference to highlight a slew of new web-based software applications.

YouTube was launched in late 2005. The video-sharing site was a key component of the Web 2.0 revolution, which marked the internet's transition to a more dynamic content era. Users were now able to interact with web pages, communicate with one another, and create content.

For many, the emergence of social media networks is the most significant symbol of this era. Smartphones quickly followed, with the first iPhone debuting in 2007.

We were all creating, sharing, and commenting on content from the palms of our hands before we knew it. If Web 1.0 was the read-only version, Web 2.0 is the write-only version, Web 2.0 could be considered the read/write upgrade, or what we now call the internet.

Web 3.0

This brings us to the topic of Web 3.0. Consider it the internet's "read/write/own" upgrade.

It's difficult to pin down a precise definition of Web 3.0 because it's still primarily a collection of ideas. Web 3.0 incorporates the technologies and concepts at the heart of cryptocurrency for cryptocurrency developers and enthusiasts: decentralisation, token-based economies, and blockchain.

This Web3 vision is a more democratic version of today's online world. It revolves around the concept of ownership, transferring control from dominant big data companies and other central authorities to the masses. This is what decentralisation entails.

Decentralization means that internet users can conduct business directly with one another, eliminating intermediaries and removing power from controlling entities.A greater emphasis is being placed on user privacy, transparency, and ownership.

This is where blockchain technology and cryptocurrency come into play. Cryptocurrencies and the token economy facilitate this decentralised model by allowing information to be stored on a distributed ledger independent of any controlling entity.

Despite some crypto projects' claims of democratization, such as token holders being able to participate in governance, a common criticism of Web 3.0 is that power is concentrated among venture capitalists and early adopters.

Technologies for Web 3.0

There are numerous paths that Web 3.0 development could take in the future. Here are a few Web3 technologies that are beginning to be deployed today:

DeFi stands for Decentralized Finance.

DeFi, which stands for decentralised finance, is one of the most intriguing sectors.

DeFi aims to eliminate the need for central authorities such as banks, payment processors, and other intermediaries in the financial sector. In their place would be a blockchain-based peer-to-peer financial system.

Advocates argue that this approach would reduce fees, increase transaction speeds, and better allocate capital.

As with most Web3 applications, there would be increased transparency because all loan amounts, collateral, and other data would be visible to anyone on publicly accessible blockchains.

Accessibility is also improved, which is important for certain jurisdictions. DeFi would be available to anyone with an internet connection, with no paperwork or third-party verification required.

According to its supporters, DeFi can achieve the majority of what banks and other financial intermediaries provide. This includes, among other things, bank deposits, lending and borrowing, asset trading, and insurance.

Popular DeFi protocols include Uniswap (UNI), Aave (AAVE), and Chainlink (LINK), which are used to conduct financial transactions.

NFTs stand for Non-Fungible Tokens.

Non-fungible tokens (NFTs) are a type of blockchain-based digital asset.

Each NFT is distinct (non-fungible), and no two NFTs are the same. This is in contrast to money, which is fungible—one dollar is the same as any other dollar.

Advocates see a wide range of potential use cases for NFTs, but the only widespread application to date has been for digital artworks. As the crypto market took off in 2021, multimillion-dollar sales of digital art NFTs became common.

However, as crypto winter arrived in 2020, the NFT market crashed. Professional investors and art critics alike dismissed NFTs as nothing more than a speculative bubble.

The crypto world hasn't given up on NFTs, and Web3 supporters see them as useful for verifying intellectual property, authenticating documents, and implementing various crypto gaming features.

"NFTs have the potential to transform a wide range of aspects of our daily lives, including tamper-proof identification, concert ticket sales, and much more," says Giorgi Khazaradze, CEO of crypto trading platform Aurox. "For the time being, however, NFTs remain extremely speculative."

NFTs are supported on the blockchains of many traded cryptocurrencies. To name a few, Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) are examples.

DAOs stand for Decentralized Autonomous Organizations.

Decentralized autonomous organisations (DAOs) may appear complex, but the underlying concept is straightforward. A DAO is a group formed for a common goal, with all of its rules, plans, and objectives encoded on the blockchain.

DAOs are run by their members. Proponents assert that a DAO lacks hierarchy, bureaucracy, and red tape. They typically operate on a democratic structure, with votes cast in relation to how many crypto tokens users own.

                                           

"What attracts many users to a DAO is that all financial transactions are recorded on a blockchain, removing any third-party involvement," says Felice Gorordo, CEO of eMerge Americas.

"Instead, transactions are routed through immutable, transparent smart contracts." 

How to invest in web 3.0

According to futurists, Web 3.0 will become an essential part of the internet's ever-expanding evolution. If this vision comes true, it could open up new opportunities for investors and developers.

If you believe in the future vision, purchasing cryptocurrency is a simple way to gain exposure to Web3. You can buy cryptocurrencies that support DAOs and DeFi protocols, as well as NFTs, which are digital art tokens.

Remember that Web 3.0 is still in its infancy. This type of investment is highly speculative and should be discussed with a financial advisor.