OMNIA’s Guide to Web3 for Beginners
Web3, DAOs, NFTs, and countless technical terms are confusing, and we get it. We were exactly in the same position when we first encountered them. More often than not, they require thorough explanations and understandings. But it’s natural: The more technologically advanced our world becomes, the more things we need to keep up. And it’s simple, all we need to do is learn, or at least, know the basics.
If you are eager to learn new things about the world of blockchain, then sure, OMNIA will give you a ride. 👇
What is Web 3?
Before getting to know what Web3 is, we need to understand Web1 and Web2. Yes, there are previous versions of Web3, and they have existed for a long time. Web1 refers to the static, ancient, and 90s-like websites that showcase personal information and company brochures.
Web2 refers to the version of the internet most of us know today. Big corporations like Facebook, Microsoft, Google, and Amazon dominate the internet space and provide services in exchange for your data.
Web3 is an umbrella term for disparate ideas pointing to eliminating the big intermediaries on the internet. They also refer to decentralized apps (DApps) that run on the blockchain. However, there is one thing in common: Anyone can participate and use Web3 without the fear of getting their personal information monetized by giant companies.
What’s DApp?
Dapps are decentralized apps: They are similar to our apps in terms of look and functions, but the key difference is their prerequisite to run on a peer-to-peer network, such as a blockchain (more about blockchain later on).
No person or entity should have control of the entire network. They must be open-source and automatically execute commands. In addition, the data and records must be visible to the public (thanks to blockchain).
Popular DApps include GameFi (e.g., Axie Infinity, Crypto Kitties), Decentralized Exchanges (e.g., Pancake Swap, Uniswap), or even Decentralized Social Media.
For a detailed explanation and applications of DApps, check out this article.
Decentralized Autonomous Organizations (DAOs)
What are DAOs?
DAOs are internet-based businesses collectively owned and managed by the people. Therefore, no one should have the authority to access and modify without the entire group’s permission. In theory, DAOs should bring true democracy to corporate life, meaning it’s ultimately the people’s decision to change the organizations. In DAOs, code is the law: the foundations of a DAO are its stakeholders and Smart Contracts (another word that we will explain below).
More details about Decentralized Autonomous Organizations (DAOs) are here: https://ethereum.org/en/dao/
What is Blockchain?
In simple words, Blockchain is a system of recording information that makes it difficult or impossible to change, hack, or cheat the system.
Essentially, a blockchain is a digital ledger (i.e., record, history) of duplicated transactions distributed across the entire network of computer systems on the blockchain. Each block in the chain contains many transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.
How is it impossible to cheat the blockchain system, you may ask? In Bitcoin’s case, blockchain is decentralized, so there is not a single authoritative figure — instead, all users collectively retain control. In addition, decentralized blockchains are immutable, which means that the data entered is irreversible. For Bitcoin, this means that transactions are permanently recorded and viewable to anyone.
Learn more about blockchain here: Blockchain Explained. In addition, Investopedia is an excellent source for learning anything about investing, both in the traditional and crypto markets, so it is definitely recommended for any readers!
What are Cryptocurrencies?
You must have heard and are familiar with Bitcoin and Ethereum. Most crypto traders and the general public know these are the most popular cryptocurrencies. But what is a cryptocurrency, and why are people putting their money into seemingly some sort of “magic internet money”?
Brief explanation
A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.
Pros vs. Cons
The advantages of cryptocurrencies include cheaper and faster money transfers. In addition, decentralized systems promise a system impenetrable by malicious attacks. On the other hand, the disadvantages of cryptocurrencies include price volatility making them speculative assets rather than store-of-value, high energy consumption concerning environmental issues, and potential use in criminal activities.
The decentralized aspect is also questionable, and we have gone through the length to explain why most of the blockchain infrastructure is still centralized.
Learn more about Cryptocurrencies here.
What are Smart Contracts?
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met, just like any other program. They are typically used to automate an agreement’s execution so that all participants will know the outcome without an intermediary’s involvement or time loss.
However, what a smart contract program does is up to the creator. It can be a sophisticated applet that allows users to execute various commands or a simple math computation. So, as we always say, do your own research and figure out what the smart contract provides to a project.
A deep dive into the topic of Smart contracts can be found here.
NFTs for Dummies
Fungible? Non-fungible? What?
In a nutshell, NFTs represent digital ownership — the virtual equivalent of owning physical properties.
Non-fungible tokens or NFTs are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. They can be used to represent real-world items like artwork and real estate. But they are also popular in video games. For example, when it comes to digital art, a person who buys an NFT art piece is buying the only verifiable version of that piece as minted by the artist.
“Tokenizing” or “Minting” these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud. NFTs can also be used to represent individuals’ identities, property rights, and more.
For Developers interested in Web3
We have heard stories about Silicon Valley talented minds leaving tech companies to work for blockchain projects, and yes, that is indeed happening. Furthermore, if you already have a computer science background, getting into Web3 should not be too hard. If not, it is better to start building your foundation by learning computer programming.
This article here is an excellent read if you are ready to take a deep dive into the Web3 development space.
What is OMNIA’s role in Web3?
Omnia Protocol is a decentralized infrastructure protocol for securely accessing the blockchain so that no single point of failure will ever disrupt blockchain applications or wallets integrating with it.
Omnia’s solution is truly decentralized and requires zero technical knowledge. Therefore, all users can set up their nodes in little time and effort. Learn more about the technological marvel behind Omnia by following our Medium or reading our whitepaper.
