Have you come across people talking about Blockchain, Crypto and Web3 but haven't had anyone explain them to you? I used to be like you a few years back. You probably come across these words on the internet and although they're all connected, they actually refer to different stuff. Let's break it down together.
First up, let's look at Blockchain. Think of blockchain as a network of computers that have the same copy of information. Every time anyone makes a transaction, or adds it gets recorded on this "chain" of computers. If you know what a ledger is, then this is some foundational massive ledger that anyone can see what is on it but as long as a change has been recorded on it, it can not be changed.
This technology is very secure, transparent and being tamper-proof so many industries are picking it up and are using it or rather innovating ways of integrating it's use. These industries span anything and everything you can think of, supply chain management, finance, voting systems, land ownership and so many more.
Now, onto Crypto which is short for Cryptocurrency. When people mention Crypto they refer to the currencies that operate on the blockchain technology. You have probably heard of Bitcoin and Ethereum and so many other coins which are all Crypto currencies. What makes them special?
Given that these currencies solely exist on the blockchain, they are decentralized meaning they are not controlled by any government or bank. They are managed by the network of computers. Why would the lack of control be a good thing?
The decentralization makes the transactions faster,cheaper and more secure. No bank or government bureaucracy on limits and charges. his has opened up new ways to think about money and finance in general and people are use the Crypto currencies for all sorts of things.
They are using them to make payments, buy stuff online, investing or even as a way to support projects they believe in. So given that cryptocurrencies rely on blockchain technology to keep everything, you get to see how the two are closely linked.
Finally we have Web3. If blockchain is the foundation and crypto is the currency , web3 is like the next evolution of the internet. In Web3 instead of a few big companies controlling everything, power is distributed among the users. (remember Decentralization?)
It is about a more open and fair user-controlled online environment, with users having control over their data and online interactions. This decentalization is on everything from decentralized apps commonly called dApps that run on the blockchain to new forms of online governance and digital identities.
By now, you can see how these concepts are related. Blockchain is the technology (providing the secure infrastructure) that makes everything possible. Cryptocurrencies operate within this infrastructure, offering new ways to transact and invest. Web3 leverages both to create a decentralized user-controlled internet experience.
Understanding these correlations helps you see the bigger picture and appreciate how these technologies might share our future.
Still curious?
There is so much more to explore in this space. Stick around--I've got plenty more insights and updates coming your way. Feel free to leave a comment or share this article with anyone else who might be wondering what all the fuss is about!
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