What are Web3 cryptocurrencies?
Over the last couple of years, the concept of Web3 sometimes
referred to inaccurately as Web 3.0.
The third generation of the Internet has evolved from a vaguely defined
new digital utopia to becoming a leading driver
and all encompassing term in the growth of blockchain and cryptocurrency adoption
for the foreseeable future.
Despite this,
many of us still don't even understand
the difference between Web3 and cryptocurrencies in general.
And it gets more confusing when it appears like every crypto project
has seemingly pivoted to a Web3 rebranding overnight.
One thing is for sure
many consider Web3 to be the killer app that can make crypto truly mainstream.
Thanks to the plethora of hyper technical use cases.
So in today's video, we're going to be talking about
what went through Crypto's arm.
Look at some of the most popular
coins out there and also dissect the compelling use cases they offer.
Please note that none of the information in this video
should be construed as financial advice of any kind,
and this is purely for educational purposes only.
So first, let's start with the basics.
What is Web3?
While there is a lot of confusion surrounding the term, Web3 is typically
considered to be distinct from Web 3.0, which is the next generation of the World
Wide Web, also known as the Semantic Web, where users can read, write, own.
Instead, the Web3 term is used to represent
the next generation of the Internet, which is being created
to free Internet users from the need to use Web 2.0 firms.
So centralized intermediaries who've gained a bad reputation
for exploiting users rights to privacy and freedom of speech for financial gain
by replacing them with decentralized service providers instead.
This is similar to how Bitcoin and other cryptocurrencies have removed
the need for people to use banks
and other financial institutions when transferring or storing value.
Web3 decentralized structure
allows to ensure real data privacy and censorship resistance and also
enables users to control and monetize their private data as they wish.
Instead of lining the pockets of big tech through targeted advertising,
as with regular public blockchains, network
participants are incentivized with web3 cryptos to share the resources in order
to help provide and maintain specific network infrastructure and services.
What are Web3 Cryptos?
Went through cryptos or a new generation of cryptocurrencies
that incentivize the building of new decentralized internet.
These native tokens of web3 projects are distributed as incentives to network
participants such as users, validators, service providers, content creators, etc.
for their support.
Web3 cryptocurrencies combined smart contract and blockchain technology
and promises artists and the creator economy a much fairer sharing of revenue
such as royalties and commission.
Since Web 2.0 firms like Meta, Spotify and YouTube
no longer receive the lion's share for providing a centralized platform.
Is Web3 a cryptocurrency?
Web3 itself is not a specific blockchain or cryptocurrency in itself,
but rather a decentralized version of the Internet
that uses cryptocurrencies to provide specific services to users over
Web3 and cryptocurrencies both run on borderless public blockchains
and share important similarities such as enabling decentralization,
trustlessness, open source technology, and equal access for all users.
What do Web3 cryptos do?
Web3 crypto coins and tokens are used to incentivize
a centralized range of services previously provided by centralized tech companies.
These critical services include data storage, so for example Filecoin
and Arweave network, infrastructure, helium, for example, bandwidth
and processing, power sharing, for example Theta and Render, data indexing,
see the graph, identification, web hosting and social media and much more.
So what are the best web3 cryptos in 2023?
There are hundreds of web3 projects
currently building throughout the crypto winter since 2022,
although fallen token prices, bankruptcies and the fall of major players
like FTX who invested heavily in the Web3 space may end up killing these projects.
Therefore, it's best to play it safe
during a bear market and only consider whether cryptos that already
have a measurable network effect utility and a continuation of traction.
First of all, we have Chainlink.
Chainlink is a Oracle network that connects crypto networks
with real world data, thereby making it one of the most highly touted crypto
projects out there.
Link uses smart contracts to connect to various off chain data sources,
such as data feeds, events, APIs, banking payment networks and more.
Further, many decentralized protocols utilize chainlink's price and market data
feeds on their platform.
While its price doesn't reflect this.
Chainlink is finally starting to kick things up a notch and recently
introduced Link staking, which will make it appealing
as an investment that generates passive income.
Filecoin uses blockchain technology
to enable the decentralized storage of almost all types of data.
So for example, audio, video, images, etc.
similar to centralized platforms like Amazon Web Services Filecoin incentivizes
participants who contribute to hardware sharing with its Filecoin.
It launched with a $200 million ICO and many believe that it is set to play
an important role in the future of Web3, where decentralized storage
will be a critically important component.
Helium, also referred to as the People's Network, is a blockchain powered,
decentralized and wireless peer to peer network that connects
thousands of Internet of things hotspots, devices around the world
in order to share data through the radio wave technology free from intermediaries
that could censor or block or misappropriate this information,
it uses its own proof of coverage, consensus algorithm to validate and reward
participating hotspots with its HNT token as an incentive.
Is a decentralized music streaming platform that aims to become
the blockchain version of Spotify
only with better royalty sharing for artists and attractive rewards
for listeners, and also network node operators in the form of its native asset.
The audio token audience is backed by some of the top names in the music
industry, including Steve Aoki, Katy Perry and more.
They the Network is a powerful blockchain based platform that delivers
decentralized video streaming for both Web3 firms and traditional media
streaming firms
who are struggling to keep up with their users
insatiable need for higher resolution and bigger bandwidth data.
Already, boasts the validator nodes from big tech firms
like Google, Samsung and Sony and continues to make traction
thanks to its ability to be customized and scaled as needed by clients.
Users share bandwidth, storage and processing power in order to earn Theta rewards.
It's no surprise
that Polkadot tops the list of the biggest Web three Cryptos
by market cap as its founder, Gavin Wood, actually coined the term Web3 in 2014
and later launched the Web3 Foundation, which provides funding for builders
Polkadot and its “canary network” Kusama, which is used for early testing as Wood's
realization of the vision for a decentralized web,
an interloper multichain platform that can seamlessly connect compatible
public and private chains called a pair of jeans
through its relay chain to securely interact
with each other in a trustless, immutable and transparent manner
that its native asset helps incentivize services for operations,
security, network governance and bonding tokens for use between
pair chains.
Internet computer, controversially developed
by Dfinity, is building an ambitious World Computer blockchain
that can power a complete range of end to end fully decentralized web services.
Internet computer allows project builders to avoid the security
and privacy pitfalls that come with using traditional
IT cloud computing database and web server providers,
and differentiates itself by using smart contract software called Canisters
and innovative blockchain applications such as chain key cryptography.
Canisters can scale at speeds comparable to Web through services and allows users
to use the web and other blockchains without the need for bridges.
The graph
is an indexing protocol that enables
data heavy networks like Ethereum and interplanetary file system
or IFPS to query data in order to support DeFi and Web3 protocols.
The graph makes it easy thanks to a hosted service
for any developer to create and publish a sub graph.
An open source application programing interface API
that apps can query to retrieve blockchain data by using graph queue out.
The graph makes it easy for developers to pull specific data from blockchains
where they previously had to create
centralized servers and databases for indexing and querying, which was
expensive, time consuming and less secure due to a single point of failure.
Apps that use
the graph only need to provide an API endpoint such as the Uniswap sub graph
to start querying data. For example, trade volumes
thanks to stacks and similar projects.
Smart contract and decentralized application
next generation use cases are finally coming to Bitcoin
without altering its core value proposition of the most
decentralized security and stability that crypto has to offer.
Stacks is a layer one blockchain building on top of Bitcoin.
Its DApps are modular and open built on top of each other and leverage
Bitcoin as a secure base layer for all settlements in network activity.
It’s proof of transfer, consensus mechanism drives Bitcoin adoption
as miners need to pay in bitcoin to mint new stacks
tokens and conversely stack these tokens to earn Bitcoin in return.
Previously known as Blockstack Stacks Native asset STX, and smart contract
focused programing language clarity also used by Algorand is used to execute
smart contracts, validate transactions and add new assets on its blockchain.
Importantly, Stacks was the first SEC qualified cryptocurrency
for sale in the US, hoping it raised nearly $30 million in 2019.
With so much confusion around what the SEC considers to be crypto
securities, it's very bullish for Stacks that STX is not viewed
as one by the states leading securities regulator
Kadena is a
proof of work blockchain that aims to scale Bitcoin by combining
its consensus mechanism with directed acyclic graph (DAG) elements.
Just like Stacks, Kadena aims to leverage Bitcoin security for use by businesses
and in this case by achieving high throughput comparable to traditional IT
service providers, it can mint several blocks at the same time
by connecting several blockchains that work together at the same time
and asynchronously to verify network transactions.
This also boost the chain's security as the bad actors have less time
between blockchain confirmations to attack the network.
Kadena also offers a multichain support, decentralized infrastructure
and the ability to scale at an industrial level
while remaining energy efficient compared to Bitcoin.
Importantly, Kadena offers enterprises the ability
to cover their customers gas fees through the use of their gas stations.
A major hurdle for crypto application in mainstream businesses.
Kadena permissioned Layer 2 blockchain Kuro, can also support up
to 8000 transactions per second across its 500 nodes.
So that's all we have for this week's video.
What are your favorite Web3 Cryptos?