These Top Web3 Features Will Change the Way We Interact Online

Looking at the most significant moments in the history of the internet reveals how dramatically it has changed over time. Open protocols laid the groundwork in the early days of the internet for the development of the online ecosystem. Developing some of the most well-known web platforms and assets began with the creation of Web 1.0, the initial version of the Internet. Closed protocols brought centralization to the second era, or Web 2.0, while their capabilities performed better than those of open protocols. The decentralized web, or Web 3.0, is the next phase of the internet and is currently a hot topic of conversation. One of the main reasons to highlight Web3 is the importance of the top utilities it brings. In this article, we'll explore its various real-world use cases to help you understand the significance of Web3.

Decentralized Autonomous Organizations

Decentralized Autonomous Organizations, or DAOs, would rank highly among blockchain web3 use cases. In essence, these are online communities that are managed by community members. The feature of community governance, which is dependent on member consensus, is the intriguing feature of DAOs..

The regulations of DAOs cannot be altered by a single person or centralized organization. Furthermore, DAOs guarantee autonomy by employing smart contracts to count votes and carry out decisions without requiring human involvement. If you examine closely, one of the main Web3 examples of on-chain governance is DAOs. Decentralized Autonomous Organizations use smart contracts to encode particular policies, thereby bringing corporate governance into the virtual world. 

The Importance of Decentralized Finance

The next answer to the question "What is web3 used for?" is DeFi, or decentralized finance. It's a unique concept that uses decentralized financial applications (known as dApps) as a core feature to provide utilities. In essence, decentralized applications are generic software programs connected to a set of smart contracts, also known as protocols, that help in specifying particular functionalities of the financial utilities. DApps have the important benefit of being able to keep running for the duration of the underlying blockchain which strongly improves the security on the user end.

DApps developed on open blockchain networks enable any computer connected to the network to participate. DeFi, for instance, has made it possible for crypto owners to trade, borrow money and lend it out using their crypto as security. That's why blockchain transactions are a key component. Payments that enable peer-to-peer digital transactions are one of the best Web3 use cases that demonstrate a real increase in DeFi's usage. The ability to conduct direct, low-cost, peer-to-peer, nearly instantaneous and international transactions sets DeFi apart.

Furthermore, the current payment systems could be easily enhanced by blockchain technology. DeFi can be a crucial component of the distribution process for those without bank accounts. DeFi additionally makes use of blockchain to achieve the necessary transparency to prevent fraud, waste, and abuse. Different financial services can be developed, upgraded, audited and used more easily thanks to DeFi.

Privacy and Digital Infrastructure

In current websites, total transparency is the main problem. However, blockchains are specifically designed to enhance digital infrastructure and privacy. Improvements in different areas of cryptography, like zero-knowledge proofs, allow for mathematical confirmations of the validity of arguments without revealing any information.

Users can access a website with their password without actually providing it to the website. Because of this, the user's password would never be stored in the website's database, protecting against hacks. Web3 solutions guarantee sustainable development in digital infrastructure for enhanced privacy. 

Blockchain Games Unlock a New Perspective

The games, which are built on blockchain technology, allow users to create their own personalized economies in which they actually own in-game items. Given that they were the first web3 applications, blockchain games are among the main Web3 highlights. 

The ability to move in-game items to different games is a flexible feature of games built on blockchain. To determine the players' ownership of in-game items like avatars, skins, tools, experience points, and upgrades, these games use NFTs. Additionally, besides having the ability to move assets between games, players can sell their NFTs for real money (Fiat) on secondary markets.

Play-to-earn models are an essential component of blockchain-based games. Axie Infinity is among the best example of a real-world game that makes use of Web3 features. Many people have found it to be a promising app that allows users to play the game and earn rewards in cryptocurrency.

Metaverse - Being Inside of the Internet

The metaverse is among the many examples of the best Web3 features. The metaverse is a three-dimensional displayed internet that offers an endless virtual world in which users can roam around as virtual avatars. Essentially, instead of just viewing it on your computer screens, you will be inside of the internet.

The metaverse uses a lot of web3 concepts to give users immersive and interesting experiences. It contains elements of decentralization and creator economies and encourages unrestricted access for everyone by giving users total control over their experiences. 

Fostering Creator Economies

The creator economy points out new artistic communities where followers and supporters can interact directly with developers, artists, and musicians, among others. The Web3 principles enable creators to collaborate seamlessly and without the need for middlemen. The value of uniqueness has driven the new class of digital assets to unforeseen levels of popularity and they have been essential in bolstering creator economies. 

People who spend a significant amount of time online in different digital spaces can take advantage of monetization opportunities. NFTs allow creators to bypass traditional gatekeepers and access a plethora of new revenue streams. As a result, the creator economies can provide a good avenue for creators to directly sell their work. The unique characteristics show its potential to transform users' interactions with the internet. Is Web3 limited to making changes to UX aspects in web services and applications? The best web3 use cases, on the other hand, tell a different story. You will discover how the web3 concept supports a wide range of applications by looking through the following use cases. 

The final summary of Web3's most popular use cases illustrates how it can completely transform online experiences. Web3 has a lot in store for the entire world, from DAOs to the Metaverse and DeFi. Some of them are still in early stage development, but others have already begun to have a world-wide impact.