🗄️ What is Blockchain?
Let's think of blockchain as a special diary that is copied among many different computers. This diary can be used to record transactions - like person A sending money to person B.
The exciting part is that once a transaction is written in the diary, it can never be erased! And for a new transaction to be added, all the computers have to agree that it is valid. This prevents anyone from cheating or changing the records.
Since many computers worldwide have a copy of the blockchain diary, it allows information to be recorded in a decentralized way. There is no one central authority in charge. The blockchain rules and math protect the diary from being modified once data is added.
This blockchain diary can be used to keep track of important information, like money. Cryptocurrencies like Bitcoin use blockchain to record who has coins. Blockchains are also programmed with rules that everyone in the network must follow to make valid changes. This ensures that transactions happen properly without the need for a middleman.
Features of blockchain are:
- Decentralized - The data is spread across many computers
- Permanent - Transactions can't be deleted or changed
- Verified - Transactions must be checked before adding to the blockchain
- Secure - Advanced cryptography prevents hacking
💰 What are Cryptocurrencies?
Cryptocurrencies like Bitcoin are digital money built on blockchain technology. Each coin is a unique digital file recorded on the blockchain.
Because blockchain diaries are decentralized and permanent, they provide a way to track who owns which coins. When person A sends 1 Bitcoin to person B, it gets recorded on the blockchain ledger for everyone to see.
Cryptocurrencies use cryptography (advanced math) to keep the system secure. Users have private keys to prove they own their coins and send transactions.
Benefits of cryptocurrencies:
- Decentralized - No central authority controls them
- Secure - Encryption and blockchain prevent fraud
- Accessible - Anyone can access and use cryptocurrencies
Recommend Post: The Future of Secure and Passwordless Authentication
🌐 What is Web3?
Web3 is about using blockchains & crypto technology to make the internet work better. Right now, big companies control a lot of the internet and your data.
In Web1, most people could just read websites. Web2 allowed people to write, share, and connect throughsites like Facebook and YouTube.
Web3 aims to make the internet:
- Decentralized - Not owned by any one company
- User-controlled - You own your data and identity
- Transparent - You can see how it works behind the scenes
Blockchain and cryptocurrency make Web3 possible because they are decentralized networks. Web3 services can be built directly on blockchains rather than company servers.
In Web3, users would control their own money, data, and identity. There would be open competition rather than domination by a few big tech companies. Users could browse decentralized apps and services.
Potential benefits of Web3 are:
- Open networks with no single point of failure
- Users control their identity, data, and assets
- Transparent systems and transactions
- Less dominance by tech monopolies
- Innovative new applications and services
Web3 promises an internet controlled more by users than corporations. The blockchain technology behind cryptocurrency plays an important role in making this possible.
So in summary:
- Blockchain is a decentralized ledger for recording transactions
- Web3 uses blockchain to create a user-owned internet
Top comments (1)
"Web3” as initially discussed online, was mainly about the semantic web (also including many ideas about decentralisation, but not necessarily Blockchain). The definition later expanded to encompass the other upcoming (at the time) trends of AI, and the 'metaverse'. The semantic web part of all this was, to my mind, one of the most interesting parts of all this buzz - even being championed and pushed by Sir. Tim Berners-Lee (yes, that guy, 'inventor' of the Internet), who is still working on this with the Solid Project.
It's really sad that the 'tech bros' co-opted the Web3 moniker to encompass basically just all blockchain/crypto related stuff, which is only a fraction of the original Web3 vision. They essentially buried some really great ideas under a torrent of get rich quick scams. They made it all about money, and created an obsession with an overly complex technology - whilst at the same time sweeping away the promise and ideas that were much more interesting and transformative.