The meaning of Web3 can take many forms, depending on who you ask. To those who are eagerly anticipating and chasing its widespread adoption, it’s a blockchain based ecosystem where pieces of digital culture are traded as NFTs and shared on decentralized social networks. It’s another plane of entertainment, where gamers earn crypto rewards in play-to-earn platforms and traditional gatekeepers have no power over a self-custody driven digital ecosystem.
For those who view Web3 with skepticism, the idea of transforming the world of computing to the blockchain is a change they just can’t seem to wrap their heads around. A digital realm where artists are fairly compensated for their work, asset owners control the return and liquidity of their earnings, and online innovation and engagement is rewarded might seem too good to be true, but the truth is, it makes complete sense.
The Web3 ecosystem is built on four critical components, features that give the platform its exceptional ability to connect and engage users with the world. By offering access to decentralized applications (dapps), eliminating middlemen in two-sided markets, and wielding the powers of composability and tokenization, Web3 is giving users more control and access to the digital sphere than ever before.
The “ecodiversity” of Web3 depends on the preservation of these components, both individually and as a whole. Let’s take a closer look at these Web3 features and how decentralized networks can protect against their erosion and allow this new digital ecosystem to thrive.
Decentralized applications are the straightest path to cutting unnecessary middlemen out of any equation. Using smart contracts, dapps are run on peer-to-peer networks, specifically on blockchain as far as Web3 is concerned. Because there’s no single point of failure or controlling entity, dapps won’t crash if a single server does. They’re tamper and censorship resistant, and easily integrate various cryptocurrencies into their core functionalities (a perk of their blockchain foundations).
There are thousands of available dapps, each having a specific purpose for a Web3 user, such as playing (or making money from) games, trading NFTs, or delving into DeFi. Because of the very nature of dapps, a decentralized network is critical for their very existence, providing a space where creators and users have a direct, uninterrupted connection.
Web3 and cryptocurrency go together like biscuits and gravy, Batman and Robin, or Zelcore and Flux. There’s a beautiful, symbiotic relationship that just exists perfectly. When left to do their thing, magic happens. Throw in an unnecessary ingredient, and chaos ensues.
When it comes to buying, trading, investing or selling assets, there’s no need for an intermediary. Because Web3 is exclusively a peer-to-peer ecosystem, two-sided market transactions happen directly between two market users. These direct market transactions are made possible by decentralized networks, because there is no individual or platform acting as a middleman, as is the case in centralized infrastructure.
The absolute composability of Web3 is what makes it a buzzing, evolving ecosystem that never sleeps. Composability is built on open-source technologies, and this collective access to innovation was a key component of the internet’s original development. Anyone within a network can adapt or expand existing programs to unlock new uses and possibilities.
The uninhibited presence of composability in Web3 can also shorten the timeline for developing new dapps, because developers could use bits and pieces of existing programs instead of building from scratch. Decentralized finance (DeFi), in par has benefited immensely from open-source technology,
Experiencing true composability in Web3 would require interoperability between all apps, including DEXs, dApps, and DAOs, and there are no walls between which apps can connect or communicate with one another. A decentralized network is crucial for the survival of composability, as centralized systems prevent easy cross-communication between applications.
In the realm of Web3, tokenization refers to the way services and assets are broken down into digital primitives. Tokens are essentially the building blocks of the ecosystem, traded with ease across blockchains and applications. They encourage a universal protocol for payment, one that can be integrated into the very core of development.
Much like composability, tokenization almost creates a one-size-fits-all option for Web3 users, but instead of uninterrupted communication between platforms, it delivers a uniform style of completing transactions or swapping ownership.
By incentivizing a standard way of operating and performing transactions, tokenization directly encourages interoperability between developers, apps and users, enriching and streamlining the Web3 ecosystem. When tokenization happens on a decentralized network, there’s no middleman charging transaction fees, and third parties don’t pull a profit.
Like a well-oiled engine, Web3 thrives from having diversified but complementary components that work together to create an experience like no other. While the notion of a blockchain-based web may feel reminiscent of the Jetsons to those unfamiliar with it, Web3 is opening the door to a more capable, interoperable and thriving digital ecosystem.
Smooth sustainability of each of these Web3 components is crucial to the survival of the next phase of the web as we know it. Decentralization is the key to keeping these elements of the delicate ecosystem healthy, and the key for a flourishing Web3.
Zelcore is a decentralized, multi-asset, non-custodial platform that gives you total access to Web3. You can explore dapps and crypto markets, purchase or swap crypto, and store all of your digital assets safely, without ever leaving the app. Web3 is the future of the digital economy, social networking, gaming, and so much more. Download Zelcore today, so you don’t miss out on a single second of your future — Web3 is waiting.