What does Web3 do? What are the best ways to use Web3? Want to know more about how Web3 can be used in the real world? Continue reading to find out!
The internet has changed so much over the years that it’s hard to believe, especially when you look at the milestones. In the early days of the internet, open protocols made it possible to build the ecosystem of the internet. Web 1.0, the first version of the internet, was the place where some of the most important web assets and platforms were built. In the second era, called Web 2.0, closed protocols made things more centralised, while open protocols were more powerful.
One of the most discussed topics is web 3.0, also called the decentralised web. This is the next stage of the internet. One of the most important reasons to pay attention to web3 development company is probably the value of the top web3 use cases. The following post helps you understand how vital web3 is by making you think about how it can be used in real life.
Top Use Cases of Web3 That You Should Know
The things that make web3 what it is shown are that it can change the way people use the internet. Is web3 just about making changes to UX parts of web apps and services? The best Web3 use cases, on the other hand, show a different story.
Take a look at the following use cases of web3 to see how the idea can be used in many different ways.
1. Decentralised Organizations
DAOs, which stand for “Decentralized Autonomous Organizations,” would be one of the best examples of a blockchain web3 use case. They are online communities owned by the people who use them. The most exciting thing about DAOs is that the community can run them through consensus. The best parts of Web3 can be seen in decentralized DAOs that give people a lot of freedom.
No one person or group of people can change the rules of a DAO. On top of that, DAOs make sure that they are independent by using smart contracts to count votes and carry out decisions without help from people. If you look closely, DAOs are an excellent example of how on-chain governance works on the web3. By putting specific rules into smart contracts, Decentralized Autonomous Organizations bring the idea of corporate governance into the virtual world.
DAOs should be one of the top web3 use cases, mainly because they could help web3 organizations figure out how to run themselves. The ideas behind DAOs are interesting because they can be used for many assets and organizations.
2. Decentralised Finance
Decentralized finance, or DeFi, is the following big answer to the question, “What is web3 used for?” It is a new idea that uses decentralized applications to provide financial services. Decentralized applications are just regular software programs linked to a set of smart contracts. Protocols, which are what smart contracts are called in decentralized applications, help to define how the applications will work. The main benefit of decentralized apps in DeFi is that they will be around as long as the blockchain they are built on is around.
Also, any computer in the network can use dApps that were made on open blockchain networks. Many people have found alternatives to traditional financial services through the real-world web3 use cases in DeFi. For example, DeFi has made it possible to lend and borrow crypto so that crypto owners can get loans using their crypto as collateral.
Blockchain Essential Part of Web3
Payment blockchains are another essential part of web3 use cases in DeFi. DeFi has enabled payment blockchains to be used so that digital transactions between people can happen. DeFi is one of the best examples of how web3 can be used to improve how cryptocurrency is used.
With low-cost, peer-to-peer, almost instantaneous, and borderless transactions, it is easy to see why DeFi is so important. Payment blockchains in DeFi can be the best example of how Web3 can be used to make financial services more accessible. Payment blockchains could easily make the payment systems we have now better. For instance, cryptocurrencies can be a significant way to help people who don’t have bank accounts. DeFi also uses blockchain to achieve the transparency needed to stop abuse, waste, and fraud.
The best thing about DeFi is that it changes how financial technologies work behind the scenes. DeFi makes it easier for people to use, access, audit, improve, and create financial services. DeFi is one of the best Web3 use cases because it makes it easy and cheap for people to join the financial system. At the same time, DeFi uses web3 principles to give consumers full ownership over the financial products they buy.
The DeFi and Web3 Connection
DeFi is one of the most interesting real-world Web3 use cases because it gives a lot of chances to improve financial inclusion. The connection between DeFi and web3 depends on the fact that DeFi services share core internet values. Here are some of the most important things that show how DeFi and web3 are connected.
- Dedication to open-source code
- Lower transaction fees
- Open accessibility
- Transparency and accountability in governance
- Encryption-based privacy and security
3. Digital Infrastructure and Privacy
The biggest problem with existing blockchain networks is that everyone can see everything. There are blockchain web3 use cases that are designed to make privacy and digital infrastructure better. Research in new areas of cryptography, such as zero-knowledge proofs, makes it possible to show that something is true mathematically without giving away any information.
For example, a user can show a website that they know the password without telling the website the password. So, the user’s password would never be stored in a database on the website, making it safe from attacks that have never been seen before. Web3 solutions can make it possible to improve digital infrastructure in ways that make privacy more certain.
Protecting users’ personal information is one of the best ways to use Web 3.0 to improve digital infrastructure. Web3 has also given developers more freedom to make more private applications. Since there were so many data breaches in web 2.0, data protection is one of the most important parts of many web3 use cases. Now, web3 can give you the perfect place to start using a suite of applications to protect your data better.
At the same time, the Web3 use cases that improve privacy and digital infrastructure could also make it easier to follow the rules. Users who are worried about giving their personal information to an application or service on a blockchain can get over their fears with the help of privacy layers. So, it’s clear that web3 will play a key role in making it easier for blockchain networks to comply with regulations without taking risks.
4.Games with Blockchain
The most well-known real-world example of Web3 will make you want to play blockchain-based games. Built on blockchain technology, the games have their own economies in which players own the items they use. Blockchain games are one of the most exciting answers to the question “What is web3 used for?” because they were some of the first web3 applications.
Blockchain-based games give you the freedom to move items from one game to another. In their early stages, blockchain games have given us a glimpse of what gaming will be like in the future. With the help of web3 principles, games based on the blockchain could create whole new virtual worlds and economies.
The fact that blockchain games are one of the top Web3 use cases is clear from the fact that decentralized technology is used to help creators make money. NFTs are used in blockchain-based games to figure out who owns things like avatars, skins, tools, experience points, and upgrades. In an interesting twist, players can sell NFTs on secondary markets for real money and move assets between games.
Play-to-earn models are another big thing that stands out about blockchain-based games in the real world. Axie Infinity is one of the best games that shows how web3 principles can be used in the real world. Playing the game has been a promising way for many people to earn rewards in cryptocurrency.
The metaverse is one of the many entries in a list of the best ways to use Web3. The metaverse promises that users can move around as digital avatars in a virtual world without limits. You won’t be watching it on your computer screens but the internet.
The metaverse uses many Web3 ideas to give users immersive and exciting experiences. In the metaverse, you can find decentralization and creator economies. The metaverse encourages everyone to be able to join and offers users complete control over their experiences.
Metaverse is one of the best ways to use Web3 because it promises to be an open, shared, decentralized virtual world. But the metaverse is still far from being accurate, and you can only find hints of it on different platforms. Big names in tech and business like Facebook, Microsoft, Epic Games, and many others have seen the value of web3 principles in various metaverse applications.
6. Creators Economy
Even though you can’t really call the creator economy a Web3 use case, it is one of the most exciting things about Web3. The Creator economy is a way for developers, artists, and musicians, among others, to connect directly with their fans and followers. Creators can use the principles of web3 to work together without any middlemen getting in the way.
NFTs, which stand for non-fungible tokens, are one of the most exciting parts of the creator economy in real-world Web3 use cases. Due to its unique value, the new type of digital asset has become so popular that it’s hard to believe. On top of that, NFT sales that get a lot of attention have also been a big part of strengthening creator economies.
The creator economy is one of the best Web3 use cases because it gives people who spend a lot of time online in different digital spaces ways to make money. NFTs, give creators a lot of new ways to make money while getting around the traditional gatekeepers. So, the creator economy use case of web3 can be a good way for people who make things to sell them directly.
Followers can also get exclusive rights to the creator’s work, which makes them more invested in the artists and creators. Royalty payments are another essential thing to note about NFTs in creator economy use cases. Smart contracts can help NFT owners keep track of secondary sales and earn royalties. Most importantly, NFTs are digital assets that can be checked. This means that they can be used for many things other than creator economies.
Based on the top web3 use cases, the final overview of web3 shows how it can completely change how people use the internet. Web3 game development company has a lot for everyone, from DAOs to the metaverse and DeFi. Some of the Web3 use cases are already having an effect, while others are still in the planning stages.
For example, DAOs and DeFi are two Web3 use cases currently being implemented. On the other hand, there is the metaverse, which is still being made. The different use cases of web3 focus on its core ideas and how they can make data exchange, asset ownership, and financial transactions more efficient than they are now. Start learning more about Web3 now to find out what it can do.