The relationship between Web3 and crypto is a symbiotic one. Each technology relies on the other to function correctly. Crypto is used to secure and verify transactions on the blockchain. At the same time, Web3 provides the necessary infrastructure to make these transactions possible. Domenic Carosa and Dan Schatt, executives of DeFi startup Earnity want to use this to its full potential.
In 2014, one of the co-founders of Ethereum coined the term Web3 to pertain to anything relating to the next generation of the internet — and it is a decentralized digital platform. Individuals who support Web3 believe that Web 2.0 is controlled and managed by big tech companies like Apple, Google, Facebook, and Microsoft. As these big tech companies are indebted to regulators, maintaining public trust in data security can be challenging.
Drawing Power from Blockchain
Unlike with Web 2.0, users of Web3 can rest assured that their personal information is safe as they won’t have to turn this over to companies like Google and Facebook to utilize their services. Instead, Web3 would draw its power from blockchain technology and artificial intelligence. Every piece of information will be issued on the blockchain’s public ledger.
Cryptocurrency and Web3 operate similarly, as every transaction needs to be authorized by the network before it is accepted. With Web3 and cryptocurrency, people can exchange information or funds without intermediaries, unlike with Web 2.0 and centralized finance. Web3 is the generation of the internet that is permissionless, providing everyone in the world the opportunity to use it even without access, authorization, or approval from providers.
As Earnity executives Dan Schatt and Domenic Carosa want, a blockchain-dominant internet because it would make it hard for hackers to manipulate, duplicate, and control data. It is no secret that Web3, cryptocurrency, and blockchain technology possess a steep learning curve. However, these innovations are worth learning about as they are sure to become part of the future.