Real-World Use Cases Of Web3 That You Have To Know — Insights

Web3, the new buzzword indeed the next generation on the Internet. Yes, undoubtedly the Vision Of The Future. The internet evolution has come so far right from the introduction of web1 to web3. Now, everyone’s eye is on the web3 stage, where decentralization and transparency are revolutionary changes, with so many advancements compared to previous generations. Let’s now explore some practical use cases of web3. Dig deeper into this article!

The Story So Far,

The evolution of technology has made us come so far, starting from web1 and web2 to date alongside web3 (the future).

In the beginning, there was web1, which is stated as Read-only web that occurred somewhere between 1990 and 2004. It is mainly about a static website being owned by a company. There are zero interactions between the users and individuals who are producing content and hence known to be a read-only web.

Web2 refers to the second stage of the world wide web evolution. It started to occur in 2004, which was the year when social media came into existence. It was then evolved to read-write web. In the previous stage, companies offered content for users to read. But, in the second stage, they came up with a platform for sharing user-generated content and even with the offering of user interaction.

Web3 [Read-write-execute web] is the next revolution on the Internet. It offers faster user experiences. A few of the most significant technologies that come under web3 (providing decentralized networks) are Machine Learning (ML) and Artificial Intelligence (AI). Notably, Web3 makes use of Non-Fungible Tokens (NFTs) and blockchain technology. The web3 networks are permissionless, decentralized, and rely on native payments rather than relying on banks.

Web3 Use Cases — A Prominent List

Decentralized Autonomous Organization

DAO, i.e., a short form of Decentralized Autonomous Organization. It is nothing but an online community under the ownership of community members. The highlight of DAO is it ensures autonomy by making use of smart contracts to tally votes without the intervention of humans.

The members in the group/community have to buy the governance token in order to have voting rights as they can make decisions or a set of rules. Moreover, these rules are stored in smart contracts, which will be in the form of code.

The key point is that anything that happens in the DAO is fully under the control of community members, having the right to make decisions and frame the set of rules. Interestingly, DAO holds the top most position in web3 use cases.

Best Examples Of DAO:

• Uniswap
• Decentraland
• BitDAO
• MakerDAO
• American CryptoFed DAO
• LexDAO
• Friends With Benefits
• ConstituitonDAO

Decentralized Finance

Decentralized Finance, aka DeFi, which is the concept of utilizing decentralized applications for the purpose of finance. These applications generally rely on smart contracts, which are a set of protocols defining the functionality.

The prominent factor is that there will be no intermediaries or middlemen involved when users borrow or lend crypto coins. This has paved the way for peer-to-peer, decentralized, and borderless transactions, whereas it is not seen in the traditional centralized banking system.

There is no denying fact that DeFi has considerably changed the backend of traditional financial services. Through Decentralized Finance, it is quite simple to use, access, audit, and even upgrade & develop financial services.

DeFi Applied In Different Verticals:

• Borrowing & Lending
• Asset Management
• Identity Management
• Synthetic Assets
• Insurance
• Predictive Markets

Metaverse

Now, coming to one of the most promising web3 use cases is metaverse. It is the term quite often used around the world, literally everywhere we go. It is unquestionably an emerging technology in the forthcoming years.

Metaverse is nothing but people using avatars of themselves in order to communicate with each other in a virtual world in the community. The concept of metaverse mimics the concept of a physical, real-time world with the utilization of technology like Virtual Reality (VR), Augmented Reality (AR), and Artificial Intelligence (AI).

Few businesses have already noticed the prominence of web3 and leveraged it. Some of them are Facebook, Epic Games, Microsoft, etc.

Blockchain Games

Blockchain-based games are now a center of attraction in this digital age. Blockchain technology has opened the door for virtual in-game items. Users bought these in-game items and played games to earn rewards.

Blockchain-based games let gamers or players have ownership of the in-game items. On the most significant note, the users who have bought the in-game assets can also sell them for a fiat currency on secondary marketplaces for gaming.

Good Examples Of Blockchain Games:

• Alien Worlds
• Farmers World
• Splinterlands
• Upland
• Axie Infinity and many more

Non-Fungible Tokens

NFT, aka non-fungible token, has become one of the important factors of web3 development. NFTs represent their identity which holds a unique value. Moreover, these use cases are notably increasing. On a remarkable note, the potential use case of NFT is not confined to digital artworks, and there are so many beyond them. Know More!

Creator Economy

Relying on web3, content creators can directly connect with their followers’ base. Content creators can be anyone like musicians, artists, developers, YouTubers, influencers, and many others. They can monetize their content with their skills. Some of the examples are TikTok and YouTube.

Whereas in the case of creator economy, which is on the basis of web3, denotes non-fungible tokens. Owing to the value of ownership, uniqueness, and other traits of NFTs, the sales of these tokens play an important role in the creator ecosystem.

Examples: Direct Monetization Platforms

• Community Tokens — Collab.Land, Continuum, CryptoLeague, Minti, etc
• NFT Marketplaces — ArtWallStreet, Async Art, Ethernity, etc
• Music — Afterparty, Audius, Mint Songs, Nina, etc
• Content — Glowstick, Mirror, Livepeer, Glass, etc
• Metaverse — Decentraland, Spatial, Genies, Bullieverse, etc
• Play-To-Earn — Admix, CropBytes, etc

Creator Tools

• Payments — Karat, Diagonal, Stir, Willa
• Fan Interaction — Boomerang, Disco, Cooby, Moment House, etc
• Design — Fable, Bildr, Snappa
• Management — Conductive, Passionfroot, Shopcat
• Low/No Code — AppX, Beyond, MintGate

Digital Infrastructure

Digital infrastructure is all about protecting the users’ details. The additional factor of utilizing web3 is that it has extended the flexibility of designing applications with increased privacy and security. The shortcoming of a data breach that we faced in the web2 stage is overcome in the web3 stage, which has put a strong foundation for improved data protection.

Final Overview

The Internet is evolving over time, and web3 will definitely have a direct impact on the Internet. It is a new concept in accordance with blockchain technology with the incorporation of decentralization. Hopefully, you have acquired sufficient knowledge regarding web3 and its use cases briefly.