Web3 represents a new age of online versatility, while also offering far greater protection. However, certain fears and misunderstandings still linger.
Exploring Common Myths About Web3
Web 3.0, otherwise known as web3, is a popular term for the next generation of internet. It comes after web 1.0, the early days static webpages and dial-up modems, which then transitioned to web 2.0 during the famous “dotcom bubble” of the late 1990s. Now, two decades into the new millennium, the next big transition to web 3.0 is taking place.
Though web3 represents far more, for many it has become synonymous with other emerging new technologies, namely blockchain, crypto, and NFTs. This has led to a number of misconceptions.
Blockchain ≠ Crypto ≠ Web3
Blockchain, in simple terms, is basically the distribution and storage of data in “blocks” over an open online database or ledger across the great expanse of systems and computers connected to the internet. It can connect everything from medical records to the details of the members of sites that offer an online casino welcome bonus.The “chain” refers to the unique manner in which these otherwise random data blocks are linked to form pieces of data that have some sort of value.
The great “decentralised” transparency of blockchain also leaves hackers with little to work with, making it far more secure method of data encryption than ever before.
Lingering fears towards its security and privacy come from a misunderstanding of how public and private blockchains work. Though public blockchain is “permissionless”, meaning anyone can become a node within the network, identifying the node can only be done with a public key, which in turn is taken from a privately held key. Unlike a password or bank code though, which can be hacked, as long as that key is held, no safety breach is possible.
Private blockchain, which is usually bank-operated, has the added benefit of bank security, however in the end, both are secure methods.
The “value” of blockchain, though, is often compared to cryptocurrencies like Bitcoin. While cryptocurrencies cannot exist without blockchain, the same is not true the other way round. Blockchain is simply the structure and system that enables crypto and has no other relative or comparable worth.
On a similar vein, web3 is simply the internet medium in which blockchain exists.
Crypto, Therefore Web3, Leads To Illegal Activity
One of the most common fears surrounding cryptocurrency is the belief that it may be used for shady illegal activities. While this can be argued for basically any form of currency, one absolutely proven aspect of crypto is its ability to be essentially “un-stealable”.
Furthermore, though the transactions themselves may be kept secure and anonymous, all other paper-trails still apply, and can be investigated. This could be further improved with government and bank oversight, even without their direct control.
Otherwise, so far, various studies have showed that crypto has actually garnered far less illicit activity than naysayers claim or suspect. This fear has however extended to web3, which is unnecessary and unrelated.
The Worth Of NFTs
Non-fungible tokens (NFTs) are another source of endless debate, and confusion. Like crypto, they represent a certain type of blockchain technology and are not comparable in worth. Rather they represent their own unique worth as “digital assets”.
So, in a nutshell, though all the above are directly linked with web3, none of them define it, nor effect its validity as the next generation of internet.
