Difference Between Blockchain and Web3

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Web3 is the last version available on the Internet but is a bit confused between blockchain and web3 by absorbing blockchain in it. Blockchain is quite a crowded form of technology that can be changed, which means that all the data will be recorded on the blockchain which is available publicly, and moreover, no governmental body or financial institution can operate it. Trading cryptocurrency has never been easier than it is on this Trading Platform.

Web3 has generated an economy around bitcoin trading software and Non-fungible tokens and so far one of the biggest tradings ever met is 500 billion USD. In this article, we will look in detail at Web3 and blockchain technology and their major differences.

●       What is Blockchain all about?

Blockchain is nothing but a chain of information blocks that are arranged one after another, the desired information is cross-checked with the help of nodes. There is a compulsory requirement for adding a new block, it can only be added if they are verified which results in tin security and no alternation.

●       Web 2.0 vs. Web 3.0 vs. Web3

Ever since 1989, the internet keeps on getting better and better. Web 1.0 version published the media worldwide using HTML coding but later Web 2.0, a modified version that allowed users to share their life with one another.

web 3.0 is the latest technology also termed as semantic web. It is built with the help of information artificial intelligence and the internet of things which increases the effectiveness of the version. The help of the internet of things (IoT) improves and makes a stronger connection between the offline and online world whereas AI technology helps the computer to understand human language making sense of all the data that is provided by IoT.

●       Decentralized Finance: A Sub-branch of Web3

Web3 is completely based on using blockchain technology to form an honest internet decentralized finance is Web3 version that is a much more transparent system. In order to terminate, DeFi is emerging as the paradigm that allows new forms, values, and various utilities that are never seen in any financial system.

With the help of Ethereum and the addition of new layers in blockchain, Defi solutions are rising with the advancement of time using smart contract technology and this enables the majority of the users to manage their funds in form of a non-custodial manner using the Defi wallet. Let’s explore some of the differences in detail:

●       Decentralized exchanges

DEX or decentralized exchanges are based on peer-to-peer exchange that helps to make trading much easier through the process of direct interaction in comparison to CEXs. Defi platforms are however non-custodial which means users have access to their private keys while doing any sort of transactions, since no central authority is engaged therefore DEXs are associated with smart contracts, and as a result, all transactions are recorded to the blockchain.

●       Lending, borrowing, and staking

Since multinational brands and firms produce a wide range of products and offer different services, DeFi has become the most generally used medium for such big firms. This allows the marketer to borrow when lacking resources or lend to others when they have enough crypto assets and stake by providing liquidity with the help (of LPs).

●       Artificial assets

Thirdly we have synthetic assets, which create some fake or artificial blockchain-based tokens similar to real assets, bonds, commodities, fiat currencies, and much more.

●       Non-fungible tokens (NFTs)

NFTs have certified cryptographic assets that demonstrate trading cards, art galleries, books, and anything special. In recent times NFT has made quite great progress in the market and captured the Defi market. All the investments are regulated and associated with the blockchain platform that utilizes a P2E system that only provides prized in return for favor or work

Moreover, Defi crypto options are also getting encapsulated in transfer, storage, use, and a wide range of other trading operating and crypto assets like stablecoins, governance tokens, utility tokens, and many others.

Closure

Web 3 utilizes decentralized system networks, a wide range of applications, and smart contracts. From the year 2017 to 2020, the Ethereum network has helped to update several protocols which resulted in clarity or transparency, and an open financial system, the new model Web 3.0 has become indirectly the soul of the decentralized financial system which is widely known as DeFi.

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