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Understanding the Relationship Between the Blockchain and Web 3.0
Cryptocurrency talk can get confusing with its distinct and seemingly similar terms being interchanged continuously. As a result, cryptocurrency faced a significant challenge trying to take off and have the world embrace it upon its debut. To a large extent, most people had inadequate knowledge about it and thought of it as another pyramid scheme ready to rip them off.
To understand cryptocurrencies, it is better to grasp blockchains’ mechanics – the underlying technology that runs digital currencies.
Blockchains use a distributor ledger open to anyone to record all the transactions. Blocks are set up such that it is difficult to alter once data is recorded and stored. Blocks contain data, hash, and the previous block’s hash, thus forming a blockchain. Hash is a unique identifier for each block. Each block is created with its hash, meaning that tampering or altering the block will change the hash, resulting in a massive change in the blockchain and making it invalid.
But then a hard-working hacker would take their time to alter all blocks and create a new deceitful chain, wouldn’t they? Blockchain technology, however, relies on so much more to secure its network through hashing, proof of work, and peer-to-peer networks. It can be technical but gets easier as you grasp the concept.
Aside from hashing, which is the unique fingerprint of each block and proof of work, blockchain also ascertains security through peer-to-peer networks. This is to manage the chain instead of a central entity (as was in web 1.0). The peer-to-peer network has open access to everyone who wants to join. The networks become nodes after users have joined.
Nodes get a full copy of the blockchain they can use to track transactions and verify all is in order. When a new block is created, everyone on the network is notified, and they confirm that no tampering occurred. After that, they add it to the blockchain in a consensus– only if they prove it valid. Blocks tampered with are, of course, rejected.
And so, our hard-working hacker will have to find a way of bypassing all these security measures. They would have to alter each block on the chain, redo the proof of work, and get 50% control of the peer-to-peer network.
Understanding How the Internet Developed ( Web 1.0, Web 2.0, Web 3.0)
To understand Web 3.0 and how it can drive the mass adoption of blockchains and cryptocurrency, you must first grasp the meaning of both these terms.
Web 3.0 is an inevitable development closing in. The original web 1.0 could be termed the birth of the internet, with a single server and very little peer-to-peer interaction. When web 2.0 was launched, a centralized system was established, but with increased servers. It was more collaborative and increased interaction, allowing the world to enjoy services from Facebook, Netflix, YouTube, Myspace, etc. It must have seemed like top-tier internet and connectivity at the time.
However, web 3.0 is destined to profoundly revolutionize the internet and connectivity, resulting in so much global change.
In what way and what’s the point, many may ask? Whereas Web 2.0 is centralized, censored by critical players, and few dominate the market (just about six companies on the internet), Web 3.0 will have unlimited new entrants (owners) into the market, impossible to censor, and no ownership.
Web 3.0 allows for a system whereby users control their data while companies work around the core sphere of user control. This is in contrast to web 2.0, which is increasingly criticized for giving a degraded user experience.
How Blockchain is Instrumental in Web 3.0 Development
In trying to link these two, we understand that blockchain is a crucial technology for Web 3.0. The elements of blockchain will serve to revolutionize the internet and even businesses. For example:
- Decentralized data management in which users control data rather than big companies.
Since blockchains present a more decentralized (but secure environment), they control instead of key dominant players. Furthermore, with a decentralized system in web 3.0, every node will maintain a copy of the data and validate the data if need be. Even if one node goes offline, the information is still accessible to everyone else on the blockchain.
- Super secure data management and communication
Since no centralized authority will store captured data and later be manipulated (for example, targeted advertising), users’ privacy will be protected, anonymity will be maintained, and impersonation is practically impossible. Remember, if there is a discrepancy in a block, it is easily identifiable. Once a consensus is met, a block is created, added to the chain, and transparent.
Transparency, privacy, control of data sharing, and storage. It sounds like a libertarian’s dream of the internet because users’ experience will now be upgraded to premium priority. With the decentralized concept, intermediaries are reduced (not entirely done with, unfortunately). Users could maintain one profile and share parts of it accordingly instead of multiple profiles on multiple platforms.