Understanding Web3, the Future of the Internet

Explanations #

The blockchain is a immutable and decentralized database that operates without intermediaries. It uses the resources of its users as computing power to perform tasks. Let's use the blockchain wallet as an example, which is similar to a bank. When it's created, it generates a seed phrase that identifies your account and private keys for your transactions using asymmetric cryptography.

A seed phrase is a unique password used to identify a user. It is, as it is called, composed of simple words in sequence. e.g. appear iron portion escape fragile escape true eager client wrap lonely pet

Some wallets also offer the option to add a mnemonic passphrase, a PIN, or a password, but it is important to note that these are not the same as a seed phrase. Think of it as a two-factor authentication solution.

In the traditional financial system, sending money requires trusting banks and surrendering control of your money to them; your money is theirs. However, the blockchain operates on principles of pseudo-anonymity and distributed ledgers, creating a sense of community and trust among its users. Transactions are verified by network miners through a process called "minting," during which new blocks are added to the blockchain. This process allows miners to earn cryptocurrencies as a reward.

Miners represent someone allocating his devices' power to the blockchain in exchange for crypto-currency. It is available to anyone but is sometimes not worth it depending on the crypto-currency and electricity cost.

How much heat would you like? #

It exists different types of blockchain wallets that can be installed on any devices each having its cons & pros: heat wallets or cold wallets. Heat wallets, the opposite of cold wallets, are wallets directly connected to the internet. In the opinion of certain users, it is what Web 3.0 makes vulnerable: Your private key, on a heat wallet, can be known by the company and sometimes not given to you. They are a kind of today's bank in crypto-currency, sometimes called crypto-bank. See coinbase or binance. However, Heat wallets have their utility, such as for day-to-day transactions, and withdrawing crypto-currency as currencies.

Non-fungible tokens #

NFTs, or non-fungible tokens, are a popular topic in the blockchain world today. NFTs are unique assets that are identified by unique codes and metadata and cannot be traded at an equivalent value. They are often digital art pieces, such as images or 3D models, and owning an NFT gives you a token with metadata proving your ownership. Marketplaces like OpenSea and Rarible have been created for buying and selling NFTs using cryptocurrencies.

Real world blockchain use cases #

Blockchain is a hot topic, especially in regards to environmental disasters and equity. I'm not going to dive into it today, it's a complex and subjective subject. However, rather than digital arts NFTs, blockchain can be used ingeniously: For example, the use of blockchain in the real estate industry has the potential to streamline and secure various processes, including property ownership records, mortgage documents, and real estate transactions.

One example of how blockchain could be used in real estate is through the creation of a digital registry of property ownership. This registry could be stored on the blockchain, allowing for a secure and tamper-proof record of ownership. This could help to reduce fraud and errors in the property ownership record-keeping process.

In addition, the use of smart contracts on the blockchain could automate and facilitate the process of buying and selling real estate. For example, a smart contract could automatically transfer ownership of a property from the seller to the buyer once all the conditions of the sale have been met, such as the payment of the purchase price. This could help to speed up the process of real estate transactions and reduce the need for intermediaries, such as lawyers.

Conclusion #

Overall, the use of blockchain has the potential to increase efficiency, reduce the risk of fraud and errors, and make the process of buying and selling more secure and transparent.

It is up to us, the developers, to develop this technology to the maximum with equity.