The decentralized Internet system built on distributed blockchain and cryptographic protocols, Web3, is expected to be equal, useful and valuable to its participants: builders, users and creators. Web3’s cutting-edge architecture is advancing rapidly, funded by billions of investment dollars. Web3 has potential applications across multiple industries and attempts to solve the ownership issues surrounding privacy, autonomy, and economics within the Internet. By utilizing tokens, cryptography, and decentralized technology, Web3 aims to disrupt centralized, broker-dealer rent-seeking business structures. The latest release from Gartner
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The report states that Web3 will soon reach its turning point in adoption across industries from aircraft maintenance to food safety and will code its applications.

Web2: read and write; Platform Economy Centralized Control by Intermediaries

Internet monopolistic giants Web2 have built their platforms on a zero-price model and, in return, have reserved invaluable user data, allocating all ownership to their platforms and stakeholders. These giants exercise restrictive rights to use and block access to user data, hindering the export of social graphs and other content, preventing participants from leaving existing platforms. These business dynamics have benefited greatly from well-established Web2 platforms, enabling them to become monopolies while making superior money without compensating the users whose content and contributions make these platforms so profitable.

Web3: private reading and writing; The property economy is unreliable, without permission, is everywhere

One of the core principles of the Web3 ecosystem is to share ownership across tokens and tokens with users, in order to add value. Tokens are transformative features in Web3 business models. They represent a programmable asset on the blockchain that gives users ownership, incentives, and participation in the growth and management of Web3 platform networks.

Web3 Buildout: Infrastructure, metaversecollectibles DeFiAnd the DAOs

Infrastructure / Plumbing

Programmable blockchains with multi-layer smart contracts are essential to the Web3 infrastructure. Currently, the Ethereum Blockchain is the primary decentralized data storage and transaction verification platform of choice. Innovative smart contracts and an on-grid Ethereum virtual machine (EVM) provide a powerful computing environment for developers. Smart contracts automatically execute transactions without intermediaries, thus without authorization and without trust. The vast ecosystem of Ethereum decentralized finance (DeFi) and decentralized applications for countless use cases (dApps), such as NFTs, Metaverse, games, and more, have created a thriving ecosystem. Ethereum settles trillions of dollars in transactions annually and is the second largest cryptocurrency in the world by market capitalization.

However, Ethereum’s decentralized design has scalability issues, thus limiting transaction throughput to just 15 transactions/sec (TPS). With millions of users joining the Ethereum network and developers simultaneously building new dApps, the platform’s low transaction throughput has led to severe congestion, greatly increasing transmission costs, and making the Ethereum network expensive to use.

With Web3’s ambitious goal and objectives to serve billions of users, innovative solutions are being deployed to scale Ethereum. Innovative Layer 2 blockchains are working in parallel with Ethereum to improve and scale the network. These Layer 2 solutions bypass the Ethereum highway, dumping traffic so that the Ethereum network runs smoothly and at an affordable cost. These side chains relieve the pressure of transactions from the main chain while maintaining Ethereum’s strong security and decentralized architecture. Polygon, the leading platform for scaling Ethereum, produces significantly faster transactions (up to 7000 TPS) while lowering user costs, expanding the reach and usefulness of dApps, and improving the network and user experience. Mihailo BilicCo-founder of Polygon, said, β€œWe see Polygon as Amazon Web Services (AWS) for Web3, providing the critical platform for blockchain scaling and infrastructure development. What drives me as the founder of Polygon is to enable access for everyone to an open, borderless economy.”

Scalable native blockchain solutions that compete with Ethereum, such as Solana, Binance, Avalanche, Cosmos and Polkadot ecosystems, offer higher transaction throughput as well as lower transaction costs.

On September 15, 2022, the Ethereum protocol moved from Proof of Work to Proof of Stake. A major software upgrade, called consolidation, aims to reduce the massive power consumption of the Ethereum network by more than 90%. The integration/consolidation upgrade, along with existing and new expansion solutions in the pipeline, is expected to unleash innovations, unlock new applications, and accelerate Web3's goals of providing services to the masses.

metaverseThe 3D Internet has revolutionized many industries, such as entertainment, social media, e-commerce, gaming/esports, digital private spaces/virtual real estate, education, healthcare, medicine, manufacturing, and more. Web2 players such as Meta, Unity, Roblox, Epic games and Microsoft have been created
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, and more are quick to risk their metaverse claims. However, they create "walled gardens", where each walled metaverse has its own perks, avatars, features, and currency. Digital Products purchased within each gated Metaverse of Web2 are not transferable and restricted to their platform of origin.

On the other hand, Web3 technologies will allow participants to tangibly own Web3 assets in custodial wallets, in the form of non-fungible tokens (NFTs) or fungible tokens. Thus, enabling users to transfer digital items/content purchased or created across different platforms. Web3 companies, such as Decentraland, Sandbox, LandVault, Gala games, Star Atlas, Axie infinity and many more, are developing innovative products for the burgeoning metaverse. LandVault, a leading real estate developer, builds experiences on top of metaverse platforms and also provides technology to monetize these virtual experiences through product placement, NFT sales, and more. Sam HooperLandVault, CEO of LandVault, says: "We believe the metaverse is the next generation of the Internet. LandVault proposes a comprehensive solution to help companies of all sizes enter this new phase and stay connected to the next generation of the Internet."

collectibles: Art, music, videos, online collectibles, and other unique virtual digital goods are represented by NFTs. Companies and brands use NFTs, digital wallets, and crypto tokens in their incentive reward programs and brand strategy. A brand's NFT can create much deeper consumer engagement while adding a core idea to the company's story. Besides creating a digital proof of ownership of digital collectibles, NFTs can also offer additional consumer benefits such as exclusive rewards, free products and premium memberships to celebrate milestones in the brand's history or sponsorship moments. The major NFT markets are OpenSea, Rarible, NBA Top Shot, Binance, Nifty Gateway, and SuperRare.

DeFi It is a global peer-to-peer ecosystem of smart contract-powered dApps that allow algorithmic lending, savings, yield farming, fast loans, trading, and more in the form of crypto assets. DeFi transactions are open source, peer-to-peer, transparent, permissionless, and borderless. The entire approval process is implemented to oversee financial transactions through smart contract algorithms, eliminating human intermediaries such as brokers, bank tellers/clerks, merchants, and institutions such as banks or payment processors. Few of the notable players are MakerDAO for Stablecoins, Curve for Stablecoins Liquidity, Uniswap, PancakeSwap, Sushi Swapfor public liquidity, and Mean DAO to provide payment infrastructure.

decentralized autonomous organizationsDAOs are online, automated, decentralized communities that distribute decision-making, management, and entity ownership. DAOs principles allow for community governance while avoiding external influences and are applicable across a wide range of assets and organizations, such as proposal implementation platforms, dApps creation, investment financing, and crowdfunding. AAVE, MAKERDAO, and CURVE DAO are examples of successful DAOs.

Investments in building Web3 and continued efforts by global companies to use and implement Web3 applications have increased the demand for talented Web3 professionals. Next-generation talent platform companies such as Bondex and Braintrust are trying to fill talent gaps created by various macro and micro factors while implementing innovative business models that enable co-ownership with users to share and add value.

Web3 is evolving towards a more immersive and valuable internet for everyone. Venture funds invested $33 billion in Web3 projects in 2021 and are on track to nearly double that in 2022. Many expect the broader Web3 sector to grow at roughly 50 percent compound annual growth rate (CAGR) to a multi-trillion dollar industry over over the next decade. Web3 can go from buzzword to mainstream, disrupting existing businesses while creating huge new markets.