Web3 is made up of cryptocurrencies and the blockchain. But the decentralised web also uses AR, VR, IoT, and other technologies that have nothing to do with blockchain or digital currencies. Blockchain technology is the foundation of Web3, the third generation of the internet. But technologies such as machine learning, big data, artificial intelligence (AI), the Internet of Things (IoT), augmented reality (AR), virtual reality (VR), and others make it possible for decentralised apps (DApps) to analyse data in a Web3 environment in a way that is similar to how humans do it.

For example, virtual reality headsets will give customers a great shopping experience by letting them try out the products before they buy them. But these technologies aren’t based on cryptocurrencies or distributed ledger technology. Instead, they aim to improve the efficiency of blockchain technology.

Also, blockchain is an important part of building Web3’s infrastructure because it lets companies decentralise Web2 services like cloud computing, social networking sites, and databases. So, when AI and blockchain technology are used together, organisations will have a better way to handle sensitive data sets.

AI technology can quickly finish the process request by verifying the data that was given, and the smart algorithm will help make quick decisions about giving out money or approving credit. The blockchain can also protect the data sets in a good way. In the same way, other technologies like augmented reality (AR) and virtual reality (VR) are important for defining the metaverse, exploring new ideas, and making virtual experiences better.

Also, cryptocurrencies get rid of the need for a trustworthy middleman by letting Web3 users send and receive money with tokens like Ether (ETH). Also, cryptocurrencies allow for peer-to-peer payments and can be used as a way to send money digitally. Without cryptocurrencies, blockchains would not have a way to encourage people to join the network. Without crypto wallets, users would also have nowhere to store their cryptocurrency.

Web3 is also meant to be open to everyone without permission or trust, as it is based on the crypto ethos. In the same way, nonfungible tokens (NFTs) let users show proof of ownership for things like in-game assets, digital art, personal data, and other things in a clear way.

What does Web3 have to do with blockchain?

Blockchain is the key technology that makes the decentralised web work. It also changes a fundamental aspect of the web as it is now, where businesses try to get as much information from customers as possible.

Tokens powered by blockchain and shared ownership solve the main problem with centralised networks: value is accumulated by a single organisation, which then comes into conflict with the people who have invested in it. The use of blockchain technology in Web3 DApps also makes sure that data is kept separate.

Because a central authority doesn’t check data, decentralisation makes users the real owners of the content. Also, DApps are changing the way community engagement and governance work by letting users vote and give ideas. This gives everyone an equal chance to help make a project happen.

Also, read – The Role Of dApps In Web 3.0

What is a DAO, and how does it work?

In addition to what has already been said, blockchain also lets you make crypto domains like.eth,.crypto, and.dao. A decentralised crypto domain changes a user’s IP address to a human-readable address for their crypto wallet. These Web3 domain names can be traded as NFTs on marketplaces for nonfungible tokens.

Like an email address, a decentralised domain name that represents a blockchain address is easy to remember and makes it easy to send and receive cryptocurrency.

How could blockchain help the growth of Web3?

With features like trustless payments, decentralised governance, cross-chain interoperability, and the ability to earn digital assets while playing games, blockchain technology will make Web3 more accessible to a wider range of people. When you think about how blockchain changes the back-end data structures of the web, it’s easy to see that blockchain is the foundation for Web3. A data structure is a place to store and organise data. It is a way to set up data on a computer so that it is always up-to-date and easy to find.

Blockchain is a very important part of Web3 because it provides cryptographic proof of a series of transactions. This helps build trust among network users. So, the governance layer of blockchain makes it possible for two unknown parties who don’t trust each other to negotiate and complete deals online.

In this type of government, the rules for making changes are written into the blockchain protocol. Developers send in changes through code updates, and each node votes on whether or not to accept the change without the help of third parties.

Also, blockchain-based DApps, domains, and websites make it possible for users and applications to interact without a central server. This has led to the growth of Web3. Web3 apps like Brave Browser, which has features that protect your privacy and block ads, are examples of decentralised web growth.

Also, thanks to the improved capabilities of blockchain interoperability solutions like Polkadot, Web3 is smooth and streamlined, making it easy for users to switch between platforms or apps. With one’s favourite wallet, they can trade NFTs between networks and track the growth of their whole portfolio from one place. This is a big push for Web3 adoption and wider blockchain use.

Also, because games aren’t centralised, Web3 gamers can gather and trade NFTs across the metaverse. This lets them keep control of the information and assets they own. Players can also make money by collecting cryptocurrencies while playing blockchain-based games like Axie Infinity. In the future, this digital currency can be turned into regular money.

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Evolution of the internet into #Web3 which some refer to as the “Decentralized Internet” is a well discussed conversation amongst individuals.
While the #web3community is still growing, some find it difficult to place the relationship between web3 and Blockchain technology

— Telle Greg (@Mustaphv) February 17, 2023

How can businesses get ready for a Web3-based world?

To stay alive in the Web3 world, organisations can make DAOs that compete with each other, use tokenized assets, and share the value they create with their user networks. After the market for NFT art and collectables went up in 2021 and people tried to get a piece of the metaverse in 2022, Web3 is a chance for new business models, products, and established organisations to grow.

Traditional organisational structures differ from one company to the next, but the best people to fill positions are those who can best serve the interests of shareholders. Decentralized autonomous organisations (DAOs) can change hierarchy, delegation, and structure by using NFTs to quickly and effectively set roles and permissions that reflect each person’s rights and responsibilities.

So, organisations should do enough research to make competitive DAOs so they can switch from centralised to decentralised systems. Companies can also use tokenized assets that can be traded on a blockchain. This makes the asset more liquid and lets the owner of it change hands.

Web3 is likely to change how competition works because new companies can quickly reach huge networks of potential customers by building their apps on top of open blockchain protocols. So, companies can get more value from native token holders who already use a blockchain.

Because of this, businesses will have to come up with new ways to protect their user networks by giving users the value they create. But when deciding how to position themselves strategically in relation to Web3, businesses should think about the possibility of future rules. As more people use blockchain and cryptocurrencies, it’s likely that more laws will follow.