The True Nature of Web3

Today, I would like to examine the crypto projects that Coinmarketcap has included in the Web3 category in order to better understand what Web3 is. By examining the value propositions of Web3 projects, including Hive, I hope to grasp the true content of this concept.

Polkadot is the largest crypto community embracing the Web3 concept. Founder of Polkadot and the Web3 Foundation, Dr. Gavin Wood was also among the founders of Ethereum. Polkadot is described as a scalable shared chain and the first protocol that provides a secure environment for cross-chain composability. The ability of different blockchains to interact with each other securely and effectively will be important to unite blockchain silos.

Chainlink is briefly defined as a decentralized oracle network. Its main function is to enable smart contract blockchains to securely access external datasets. Chainlink still provides dozens of DEFI applications with price information from centralized exchanges. In time, the information they produce in areas such as weather and sports can be widely used.

Filecoin enables blockchain-based distributed file transfer and storage.

Filecoin is a decentralized data storage network built by Protocol Labs that allows users to sell their excess storage on an open platform. It acts as the incentive and security layer for IPFS (InterPlanetary File System), a peer-to-peer network for storing and sharing data files.

While researching about Filecoin, I came across the following news from September 2021: Filecoin network has recently reached a size of 10 exbibytes (1 exbibyte = 2^60 bytes). 10 exbibytes are the equivalent of 45,000 Wikipedias. We understand that some Web3 platforms, which were once just abstract ideas, are now in flesh and blood.

Theta Network is described as a decentralized video streaming and content delivery network.

Theta Tokens are used in the network to incentivize users to act as peers who share redundant or excess computing and bandwidth resources with other peers.

After these explanations, a clearer picture started to form in my mind.

Our next Web3 project, Helium, is called a decentralized wireless network.

Helium is a decentralized, open wireless network built on a new blockchain for the physical world. The Helium Network is used to route data for long-range, lower power IoT devices that use Helium's LongFi protocol.

The Graph is an indexing protocol for querying networks like Ethereum and IPFS. Developers build applications with open APIs called subgraphs to easily access on-chain data that is indexed by a network of node operators.

It is possible to look at the results produced by The Graph project, which enables easy querying of blockchain data, on sites such as https://debank.com/. Thanks to this infrastructure, data collected from dozens of different DEFI applications can be reported on the site in near real-time. Over time, The Graph will become an important resource for AI projects to be developed on blockchain data.

The Stacks network allows users to directly own digital assets like usernames, domain names, computer programs, etc. On the Stacks blockchain, computing is done on the edges (i.e., client devices), and applications on the platform store data individually and use the blockchain only when necessary.

As we see, Web3 projects create decentralized versions of the components that make up today's internet.

Another project in the field of file storage is Arweave. There are also projects such as Sia Skynet and Storj in this area.

Livepeer is an open-source video infrastructure service, built on the Ethereum blockchain.

Finally, I would like to discuss a familiar name on Coinmarketcap's Web3 list, the Hive blockchain. Hive is represented as a community-run content creation and distribution platform on the Messari site. Although Hive's legacy from Steem is a content creation and distribution platform, it has now expanded its coverage considerably. Alongside blogging sites, Hive has evolved into a versatile blockchain that includes games, video platforms, NFT platforms, and even DEFI applications. When the SPK network development is completed, it will also step into the field of distributed data storage.

Conclusion

Web3 includes components such as data management, file storage, content distribution, IoT, digital advertising, shared computing that will enable the internet infrastructure to become distributed.

Unit costs decrease in the fields of information technologies as the years progresses. Distributed financial transactions have long been feasible. Over the years, distributed web solutions will become efficient for more use cases. Some of today's Web3 infrastructures will become the backbone of the future internet. I see no reason why Hive should not be one of them.

If you are interested in the Web3, you can also like my previous artıcle titled Web 3.0: A Marketing Buzzword or a Real Gamechanger?

Thank you for reading.

Image Source: https://unsplash.com/photos/ZiQkhI7417A Quotations are from https://messari.io/