Can Web3 free users from monopolies to become its center?

According to funding data from Footprint Analytics, the Web3 sector of the blockchain industry—which refers to the core technology that will enable the web of the future, i.e., blockchain infrastructure—received $9.463 billion more investment in 2022 than GameFi and DeFi’s combined investment of $5.488 billion.

This indicates that Web3 is well-positioned to be the breakout sector in the next bull market. But what exactly is Web3, and how does it differ from Web2?

This article will outline Web3 is and how it might change people’s relationship with the internet.  

Web3 is an Evolution of Web2

Web2 has two main features: 

• Built on user-generated content.
• The platform monopolizes data traffic.

Web2 is essentially an improvement on the Web1 era, but the user data of the Web2 era is deposited in different applications, which users cannot control and use freely. This constitutes a pain point for Web2.

Web3 features decentralization, improving the pain points of Web2 by returning control of data and assets to the users themselves. In theory, Web3 gives users their first chance to gain power online.

The Embodiment of Web3 in the Decentralization of Blockchain

Web3 technology is in its early days and is being adopted in all sectors of blockchain decentralization. According to Footprint Analytics, Web3 is gradually receiving more investments than sectors such as DeFi and NFTs.

April saw the most significant amount of funding for Web3 of any sector, with a total investment of $3.24 billion. Could the rapid growth of Web3 be the reason for Google Cloud’s entry into Web3 to capture market share with technical support?

Web3 is on the rise, mainly used in sectors such as GameFi and Metaverse. After all, Web3 is decentralized, and users’ data is stored on the chain. Users have ownership of their data and can use their data to create and capture value. 

Web2 Game Mode vs. Web3 in Gaming

Web2 games are F2P, the core of which is selling virtual items such as equipment. In this model, the game company controls the development direction of the game, and it aims to make more money from the game design. Players do not own items they buy or obtain while playing and cannot sell them on the secondary market.

Web3 games are embodied in the P2E or M2E model, which is centered on making the player the valid owner of the in-game items. In P2E or M2E, the player becomes the main participant in the game, and the acquired NFTs of the game can be bought and sold in the primary or secondary market. 

Changes Brought About by Web3

In addition to the above-mentioned user data and asset ownership, Web3 brings many changes at the decentralized infrastructure and application levels. For example, there are the most basic privacy protections, data storage, and DAO governance at the application level. At the application level, there are GameFi game projects, social entertainment, etc.

• Polkadot represents Web3 infrastructure, solving the problem of data interaction between blockchains with different characteristics, forming a Web3 cross-chain solution, and bringing more convenience to on-chain projects.
• Compared with traditional centralized storage data platforms, it is straightforward to be deleted by centralized operations. The decentralized storage platform  Arweave solves the problem of long-term data storage and prevents data from being deleted if it is too large.
• STEPN has inspired millions of users to be healthier through its gamified sneaker upgrade system.

Summary

Although Web3 technology brings new changes and innovations to users. Based on the decentralized nature of blockchain, can it achieve complete user equality and break the platform monopoly?

Web3 technology is still in its early stages, making it difficult to achieve true decentralization. Footprint Analytics believes that the centralized application and platform model of Web2 will coexist with the decentralized application and distribution model of Web3 in the long term. User identities, value systems, and user organizations will overlap in Web2 and Web3.

This piece is contributed by Footprint Analytics community.

The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.

Date & Author: May 2022, Vincy

Data Source: Footprint Analytics – Web3 Dashboard

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