The expansion of the web and the continual improvement of its infrastructure is essential to making web technology more accessible to users, enabling digital transformation. What are the Web3 use cases and applications? Let’s consult Omatech Web3 through this article!
Expansion of the web and constant evolution in its infrastructure is essential to make web technologies more accessible for users, enabling digital transformation. Originally, Web1 offered us static websites and text-based web pages to provide information to the users and web 1.0 had no focus on user-based input. Hence, this web version is widely known as the “read-only” web.
As the next iteration of the web, web 2.0 was created, which refers to the version of the web (internet infrastructure) we currently use. It can be open, easy to use and interoperable with various services, systems and software products. Web 2.0 entails a web version consisting of web and social media applications.
Now, we are moving towards the next iteration of the internet- web3, the decentralized web infrastructure, which has caused a revolution in the internet world. However, the core concept of web3 is still unclear to many people. Also, businesses have started to search the practical use cases of web3 to leverage its full potential for business transformation. So, let’s discuss the use cases and applications of web3 in the next section.
- What is Web3?
- How does Web2 differ from Web3?
- What are the main features of Web3?
- What are the existing and future use cases of Web3?
- Real-world Web3 applications- Popular projects
What is Web3?
Web3 represents the “next-iteration” of the internet- the evolution of web 1 (HTML-based static websites) and web 2 (dynamic, user-generated web). Web3 is still an evolving concept as many changes are ongoing on its horizon. Also, people are often confused while differentiating between web3 and web 3.0. Hence, let’s briefly discuss these two concepts.
Web3 – The semantic web
Web 3.0 refers to a semantic web; the word “semantic” defines a study of unique language and logic. Tim Berners, the world wide web inventor, coined the idea of web 3.0 as the internet capable of reading and processing data without any human intervention.
Web3 – The decentralized web
Ethereum’s co-founder, Gavin Wood, coined the concept to stop the dominance of a centralized web where tech giants like Facebook, Twitter and Google have the authority to collect and access users’ data. Web3 is powered by technologies and concepts such as blockchain, self-sovereign identity and decentralized storage system, transforming the traditional concept of data ownership and giving the authority to the users.
Architecture of Web3
Web3 represents a serverless internet architecture, generally called a decentralized web, that strives to provide data access and management rights to the users rather than any centralized entity. Web3’s architecture has five core layers, from layer 0 to layer 4. Let’s decode these layers.
- Peer-to-peer network protocols like Devp2p, Libp2p
- Platform-neutral computation languages like WASM, EVM, and UTXO
- Decentralized data storage and distribution protocols.
- Example- IPFS, Bluzelle, Fluence, Swarm
- Trustless web3 interaction platforms.
- Example- Polkadot
- Trustless interaction protocols.
- Example- Ethereum, Bitcoin, Zcash, Polkadot parachains
- Decentralized data messaging platforms.
- Example- Whisper, Matrix
- Layer-2 protocols
- Example- Bitcoin Lightning Network and the Ethereum Plasma.
- Developer languages and APIs
- Example- Web3.js, ether.js, oo7.js, Solidity, Rust
- User- interface Frameworks
- Example- Status, Metamask, MyCrypto, Parit
How does Web2 differ from Web3?
Aspect of comparison
|Data ownership||Centralized entities own and verify the data.||Users (nodes) own and verify the data|
|Mode of access||Credentials like username, email and password are required.||The wallet address is required.|
|Computation Cost||Requires high computational resources as multiple third-party entities are involved.||Requires low computational resources compared to centralized systems.|
|Structure||Represents a centralized infrastructure where participants are connected to an authority.||Represents a decentralized infrastructure, consisting of node and networks that are resposible for data validation.|
|Participation||Centralized authority approves the participants.||Participants are free to join the network.|
|Censhorship||Yes, since intermediaries are involved||No censhorship|
|Single point of failure||Chances for a single point of failure resulting from easy entry to malicious participants.||No room for single point of failure since the network is decentralized.|
|Efficiency||Lower performance||Higher performance|
What are the main features of Web3?
Web3 is a future-ready innovation driven by top technologies such as blockchain, machine learning, artificial intelligence, virtual reality and augmented reality. While web3 provides many benefits over web2, it has the following main features that can transform the current state of the web.
Web3 represents a decentralized ecosystem powered by blockchain technology. Applications and solutions built on the web3 ecosystem are truly decentralized with features integrated like enhanced security, functionality, no censorship and data authenticity.
Semantic web refers to the web3’s ability to make internet data machine-readable. The idea of a semantic web further strives to enable cross-chain data sharing across diverse applications and enterprises. This way, the semantic web seamlessly distributes the content, user data and associated information.
The web3 ecosystem supports hyper-realistic 3D spaces and graphical interfaces, helping your Web 3.0 project offer a more natural and vivid navigation user experience. Leveraging Web 3.0’s metaverse and 3D capabilities, we design immersive games, e-commerce shops and NFT marketplaces based on enterprise demand.
Robust data management
Web3 sits on top of a different infrastructure for data management that utilizes powerful technologies like blockchain and distributed peer-to-peer networks. Businesses need to adopt a new approach to data handling and processing, corresponding to the attributes of the open, transparent and distributed nature of the web3 ecosystem.
Lack of connectivity is one of the major issues in web 2. Powered by semantic metadata technology, web3 provides the users with a next-level data connectivity experience. Users can simultaneously connect to various data sources and access the data. Also, web3 aims to make the internet highly accessible to everyone by introducing revolutionary IoT sensor-based devices, delimiting the access of the internet to smartphones and computers.
What are the existing and future use cases of Web3?
Metaverse and metaspaces
Metaverse is a virtual reality-based world that aims to merge the physical and the virtual world. While metaverse projects can be centralized or decentralized, based on web2, decentralized metaverse projects align with the need of the future. The metaverse projects can leverage the web3 ecosystem and its connectivity attributes to provide the users with an enhanced decentralized experience. Web3 further empowers the metaverse with technologies like IoT and artificial intelligence, enabling realism inside the metaverse.
Decentralized applications use blockchain technology and are not owned and controlled by any centralized entity. Web3 supports development that is advanced both in terms of features and usability. Web3 dApps can range from gaming, DeFi, NFT and metaverse. dApps designed for web3 projects are truly decentralized and interoperable. However, dApps for the blockchain ecosystem do not necessarily need to be interoperable unless the project demands so.
As one of the top use cases of web3, DeFi leverages web3 attributes to improve its existing infrastructure and associated capabilities. Enterprises can combine the DeFi technology with the open and powerful web3 ecosystem to build futuristic DeFi solutions and applications and put them to use. Web3 brings many benefits to DeFi, including access to an open source ecosystem, lower transaction fees, efficient transaction processing and more transparent and automated governance.
Web3 games represent the advanced version of blockchain-based games like play-to-earn, NFT, and play-to-own games. These web3 games use technologies such as blockchain, NFTs and underlying gaming infrastructure, contributing to the development of next-generation games that allows players to own, trade and create in-game assets to generate income from the game. Axie Infinity and Decentraland are the perfect examples of web3 games that have sparked high adoption across the player community. With changes in the web3 ecosystem, web3 games will also undergo considerable changes in the future.
Privacy & Data Management
Blockchain is arguably the most prominent technology with the vision to decentralize the future. However, “complete transparency” sometimes causes concern among users related to privacy. Web3 enables blockchain infrastructure to implement innovative concepts like cryptography and zero-knowledge proof to exercise complete secrecy for enhanced privacy in decentralized digital infrastructures.
Web3 empowers a new era of social media networks that emphasize the creator-driven economy with a core interest in providing content ownership to the users instead of any centralized entity. Web3 social media applications will introduce the next iteration of today’s social media apps like Facebook, Instagram and Snapchat, requiring users to submit their data to an authorized entity. As a significant change, web3 apps enable anonymous access to the users via wallet address and private key.
The real estate industry has already transformed considerably with the advent of NFTs, blockchain and metaverse. Now with web3 providing a more robust and wide ecosystem for real estate, a range of “modern” web3 real-estate projects have been developed that use NFTs, virtual reality and 3D technology to verify ownership and transfer NFT-based real estate properties. Moreover, the transaction is recorded in the immutable and transparent ledger in the blockchain.
Since web3 supports the development of high-end metaverse projects, companies are using web3 technologies to build 3D realistic workplaces that transform their physical workplaces, allow employees’ avatars to work inside the virtual workplaces, interact with their colleagues and engage in fun activities just like the real workplaces.
Advance NFT use cases
NFTs are an essential tool used in the blockchain. NFTs have plenty of use cases on the web3 ecosystem, like incentivizing the audience, granting people digital ownership, and recording immutable data on the blockchain. However, businesses have started raising money by tokenizing their companies, offering exclusivity and ownership on the blockchain, or starting a DAO community (a decentralized autonomous organization or an online community owned by its members).
Real-world Web3 applications- Popular projects
Blockchain application- Polkadot
Polkadot is a decentralized web3 blockchain project designed to achieve the multichain vision for the decentralized web. With features like true interoperability, parachains, parathreads, high energy efficiency and user-driven governance, Polkadot stands apart from the rest of the third-generation advanced blockchains. Polkadot’s ecosystem facilitates the development of innovative dApps and solutions that can seamlessly support diverse web3 projects.
Gaming application- Axie Infinity
Axie Infinity is a new-age web3 gaming platform that implements a play-to-earn model, allowing the players to play, earn and trade NFTs-based game assets like weapons, skin, vehicles, etc., and collectibles. To access the Axie Infinity platform, users must complete a multi-step process, which includes setting up an Axie Infinity account and connecting the wallet.
DeFi application- Uniswap
Uniswap is a web3 DeFi exchange protocol that uses an open and decentralized network protocol to provide ownership completely to the users instead of a single entity. Developers, traders, and liquidity providers participate together in a financial marketplace that is open and accessible to all.
Web3 is a futuristic concept, but it’s in the development stages and yet to become mature. Many industries have started implementing web3 use cases to revamp their business infrastructure and shift to the web3 infrastructure. DAOs and metaverse are the two main examples of web3 use cases that are helping organizations to unlock the true potential of their business. With time and growing technological evolution, new use web3 use cases will land on the horizon to resolve existing inefficiencies of the business.
Please connect with us to hire web3 development or to migrate your existing project to the web3 ecosystem. We are ready to discuss your project requirements.