Top 5 Defining Features of Web3
There are a few unique features about the future of the internet that makes it distinctively different from the internet and the tech ecosystems that we currently operate in:
Web3 is built on decentralized technologies such as blockchain, which enable the creation of decentralized applications, commonly referred to as dApps, that are not controlled by any single entity or authority.
Web3 is designed to be more interoperable, meaning that different dApps and blockchain platforms can communicate and interact with each other seamlessly. Universal wallets such as Metamask (self-custodial wallet), cross-chain communication, interoperability layers, and standardization are just some of the tools being deployed in the Web3 ecosystem to ensure there won’t be any “Should I go with Apple Store vs. Google Play Store?” or “Playstation vs. Xbox?” questions in the Web3 space.
3. Token economics:
Many Web3 projects use token economics to incentivize users to contribute to the network and help govern its operations. This can help to create a more democratic and decentralized ecosystem by giving users a say in how the network is run.
4. Data Privacy & Security:
Web3 aims to increase data privacy and security by giving users greater control over their personal data and enabling them to share it securely with others on the network. This can help to prevent data breaches, identity theft, and other forms of cybercrime.
5. Open-source software:
Many Web3 projects use open-source software, which allows anyone to access and modify the code. This increases transparency and accountability by allowing users to see how the software works and verify that it is not engaging in malicious or unethical behaviour.