What Are Key Web3 Concepts?
While the definition of Web3 is constantly evolving, fundamentally, it describes the decentralized web. In contrast to the centralized web that is controlled by a few influential players, Web3 relies on Blockchain technologies to distribute power and ownership around the world.
Blockchain technologies enables Web3 to achieve these three fundamental concepts.
There is equal opportunity for everyone to participate in Web3. Permission does not need to be obtained from a gatekeeper for two parties to enter into a transaction agreement. This makes key use cases such as Smart Contracts possible, where contracts are automatically executed when certain conditions are met by both parties, without involving a third-party who is paid to review and approve or reject the contract.
You do not have to put your sole trust in an institution or third-party to act in a good faith in a “trustless” world. Web3 operates on the basis of incentives and economic mechanisms for the market to function, rather than putting trust in powerful institutions. Because every transaction is transparent and verifiable by you and everyone else, it is virtually impossible for someone to take advantage of the system by using their power for private gain.
- Native Payments
In order to provide incentive and economic mechanisms, Web3 utilizes cryptocurrency as a means to exchange value. By isolating itself from government-backed currencies, the payments can stand on their own, independent from political schemes.