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What is Web3? — Terminology for absolute beginners

Sumita Pathak's photo
Sumita Pathak
·Nov 21, 2022·

3 min read

In our day-to-day life, we are always hearing discussions going on about crypto, Bitcoin, blockchain and NFTs. It can be confusing as what we are using is completely different from what is coming. These new terms are the fundamentals, based on which we can understand the future.

So here are the trending topics which you, as a complete beginner, can totally understand:

1. Web3 explained Web1, also called “the read-only Web,” consisted of static pages for accessing facts, information, and content. The web was not interactive as we have now.

Then came web2, “the participative social Web,” which we use in our daily life right. It allows all forms of interactions like commenting, tagging, blogging, and social media.

Web3 is the “read, write, personalise Web.” It is based on concepts like decentralization, blockchain, and token-based economics, where we all get ownership.

2. So What is Decentralization? De-central-ised means there is no central authority that controls you. It is a peer-to-peer community that is constructed upon a network of users, so anyone can add their own node to the system without permission from a central authority as long as they fulfill the necessary hardware and software requirements.

3. Blockchain A blockchain is simply a stored, distributed, and permanent database among multiple nodes on a computer. Blockchains store a continuously growing historical ledger of information so people can securely transact over the web.

4. Smart contract A smart contract is basically a code that lives on the blockchain you can read and write from. On meeting certain predetermined conditions, they automate the transactions without the involvement of any intermediary.

5. NFT A non-fungible token (NFT) is a digital artifact that can be used to represent ownership of a variety of digital assets, including art, photography, music, and more.

6. Mining It is the process of adding and validating an existing transaction to the blockchain. Miners have to do competitive computational work to update the distributed ledger.

7. Gas fees These are the fees one must pay in Ether (ETH) to complete a transaction. Gas fees are used to compensate miners for the computational work required to process and validate your transactions.

8. dApp- A dApp, or a decentralized application, is an application you can build on the blockchain network using smart contracts and Web 3.0 javascript libraries.

9. DAO Decentralized Autonomous Organization gives voice to each one of its members to manage the structure of itself, unlike traditional management, where an individual or a small group always guides the direction.

Key Takeaways Web3 is the decentralized form of the internet. It works on decentralized systems which prevent fraud involving personal data and provides security through digitization. Everyone can take part in the creation and governance of the community they are a part of. Though it is in its infant stage, it is slowly being incorporated into our day-to-day life.

 
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