Web3 is a term used to describe the development of the internet that encompasses decentralized technologies such as blockchain and decentralized applications (dApps). This kind of technology is often referred to as Web 3.0 or the decentralized web.
Web3 is based on blockchain technology, which allows for secure, decentralized transactions and the creation of smart contracts. This technology is decentralized in nature, which means that there is no central authority that controls it. Instead, it is run by a network of users who work together to verify and authenticate transactions.
Web3 works by using a blockchain network, which is essentially a distributed ledger that records all transactions in a decentralized and secure way. This ledger is maintained by a network of nodes, which are essentially computers that run the blockchain software. Each node has a copy of the ledger, which is continuously updated as new transactions are added.
When a user wants to interact with the blockchain, they need to create a digital wallet. This wallet is essentially a program that interacts with the blockchain, allowing the user to send and receive transactions. Each wallet has a unique address, which is used to identify the user.
Once the wallet is set up, the user can interact with dApps. These are decentralized applications that run on the blockchain network. They can be anything from games to financial applications or social media platforms.
When a user interacts with a dApp, they will typically need to pay a fee in the form of cryptocurrency. This fee is used to pay for the computing power required to process the transaction and to incentivize the nodes that maintain the network.
In summary, Web3 is a decentralized system that uses blockchain technology to facilitate secure and decentralized transactions and the creation of dApps. It provides a more transparent and secure way of interacting online and is seen as the next step in the evolution of the internet.
