How Does Web3 Work?

Imagine a social media application on Web3. Instead of your photos and data being stored on a company's servers, they would be recorded on a blockchain. You, as a user, would have a private key that proves your ownership of that data and the content you create. You could interact with other users peer-to-peer, and developers could build on this infrastructure without needing permission from a central entity.

Examples of Web3:

Cryptocurrencies: Bitcoin ($BTC), Ethereum ($ETH), etc., are the monetary foundations of Web3.

NFTs (Non-Fungible Tokens): Unique digital assets whose ownership is verified on a blockchain (digital art, collectibles, virtual properties).

DeFi (Decentralized Finance): Platforms that offer financial services (loans, exchanges, insurance) without banks or intermediaries.

DAO (Decentralized Autonomous Organizations): Organizations governed by smart contracts where token holders vote on decisions.

Play-to-Earn Games: Video games where players can earn cryptocurrencies or NFTs with real value.

Metaverse: Interconnected virtual worlds where users can interact, own assets, and participate in digital economies, often built on Web3 principles.