The Internet has gradually developed from the "read-only" Web 1.0 to the current Web 2.0 situation, which is generally described as participation and social drive. Now, we are slowly moving towards the next stage of the Internet - Web3.0, which is generally called Web3 in the digital asset industry. Web3 promises to allow people to own objects digitally, conduct online transactions easily, and better control their personal data. Blockchain and encryption ecosystem already have products applicable to Web3. Is blockchain and cryptocurrency necessary for Web3? How do they fit into the spirit of Web3? Next, let's have a look.

Is blockchain and cryptocurrency necessary for Web3?

Cryptocurrency and blockchain are the foundation of Web3. However, the decentralized network also depends on technologies unrelated to blockchain or virtual currency, such as AR, VR, and the Internet of Things.

The third generation Internet, known as Web3, should focus on blockchain applications. However, machine learning, big data, artificial intelligence (AI), the Internet of Things (IoT), augmented reality (AR), virtual reality (VR) and other technologies enable decentralized applications (DApps) to analyze information in a Web3 environment in a way similar to human complexity.

For example, the virtual reality helmet will create an extraordinary consumer experience, allowing customers to interact with the product before purchasing. However, these technologies are not based on cryptocurrency or distributed ledger technology, but are designed to improve the efficiency of blockchain applications.

In addition, blockchain plays an important role in building the infrastructure of Web3. It allows organizations to decentralize Web2 services, including cloud computing, social platforms and databases. Therefore, the combination of AI and blockchain applications will undoubtedly provide a better way for organizations to manage confidential data sets.

By verifying the data provided, AI applications can quickly complete step requests, and optimization algorithms can also help quickly make decisions related to asset distribution or credit granting. In addition, data can also be efficiently maintained through the blockchain. Similarly, other technologies such as AR and VR are also crucial in defining the meta universe, exploring new ideas and improving virtual experience.

In addition, cryptocurrency allows Web3 users to send and receive assets with tokens such as Ethereum, thus avoiding the need for reliable intermediaries. In other words, cryptocurrency is applicable to point-to-point payment and can be used as a data native remittance method. If there is no cryptocurrency, the blockchain will lack the incentive system for network participation. In addition, if there is no crypto wallet, customers will have no place to store cryptocurrencies.

In addition, Web3 aims to achieve no license, no trust, and open to everyone, because it embraces the spirit of encryption. Similarly, the non homogenous token (NFT) allows users to transparently verify the ownership of property, digital art, personal data, etc. in the game.

How do blockchain and cryptocurrency integrate into the spirit of Web3?

Decentralization: As mentioned above, one of the key issues of Web2 is that rights and information are concentrated in the hands of a few key participants. Blockchain and encryption can disperse Web3 by promoting more extensive information and rights. Web3 can use the public distributed ledger driven by the blockchain to achieve higher transparency and decentralization.

No license: Blockchain based projects replace the unique system of traditional enterprises with publicly available code. The unlicensed nature of applications built on the blockchain allows anyone anywhere to browse and interact with them without restriction.

Distrust: Blockchain and encryption circumvent the need to trust any third party, such as banks and personal intermediaries. Web3 customers do not need to trust any entity outside the network itself to conduct transactions.

Payment track: Cryptocurrency can be used as the digital native payment infrastructure of Web3. Digital currency may improve Web2's expensive and huge payment infrastructure because it truly has no borders and does not have to be mediated.

Ownership: Crypto has already brought tools such as hosting encrypted wallets, allowing customers to store their assets without intermediaries. Customers can also connect their wallets to decentralized applications to apply their assets or present their data objects in a variety of ways. Everyone can apply transparent public ledgers to verify the ownership of these funds and objects.

Anti verification: The blockchain is designed to be anti censorship, which means that neither party can unilaterally change the transaction record. Once the record is imported into the blockchain, it is almost impossible to delete it. This function can help maintain various comments reviewed by the government and the company.

Speaking of this, I believe you have a certain understanding of whether blockchain and cryptocurrency are necessary for Web3, and how they integrate into the spirit of Web3. In general, Web3 may deal with the big problems of the Internet today and minimize the energy of the technology giant. However, to some extent, this is still an ideal vision rather than a practical reality. Blockchain and encryption are generally referred to as one of the technologies most likely to cause the Web3 revolution, because it aims to promote decentralized, licensing free and trust free interaction. In addition, blockchain applications and digital currencies cannot compete with other key parts of the Web (such as AR, VR and the Internet of Things), because they may produce the most promising solutions when they are integrated with each other.