With the rapid evolution in the crypto space, we are being introduced to novel terms and concepts very frequently. If you are slightly familiar with this crypto landscape, you must have already heard about dApps, and now we have web3 apps taking the world by storm! However, not all of us have a clear understanding of these terms, so let us explore and fathom what kind of apps these are.
First, what are web3 apps?
You can conceptualize web3 or Web 3.0 as an extension of the cryptocurrency sphere; it is an internet space like our World Wide Web, but it incorporates blockchain technologies, decentralization of data ownership, and digital token economics. The fundamental concept of web3 is defined by trustless interactions, which eliminate the role of a centralized authority. Web3 applications are apps that belong to this web3 space and are executed on blockchain networks, generally the Ethereum blockchain.
From NFT platforms to Decentralized Finance (DeFi), web3 apps are of varied kinds, and you can even connect to them via a crypto wallet. Some of the most popular web3 apps include Decentraland, Ethlance, Sapien, Storj, and DTube, among others.
What are dApps?
Decentralized applications, also known as dApps, are distributed applications that run on P2P blockchain and decentralized computing and typically use smart contracts to function autonomously. Like all other digital apps found in our smartphones, these dApps also offer features and utilities to users.
All dApps are web3 apps, but the reverse is not true
While the terms “dApps” and “web3 apps” are often used interchangeably, there are many basic differences between them.
Firstly, not all web3 apps are dApps because not all of these apps are decentralized. Web3 apps can be modified to make them decentralized, but the modifying capabilities must be distributed between multiple stakeholders. On the other hand, dApps are always decentralized, hence the name. And these are specific kinds of web3 applications. This is why all dApps are web3 apps, but not all web3 apps are dApps.
However, you can access all dApps and web3 apps by connecting via a crypto wallet.
What are the benefits offered by web3 apps?
Web3 apps deliver certain distinct benefits or values to us, which we cannot expect from conventional apps. These benefits include –
- Data privacy and safety – Though web3 apps use your crypto wallet as your identity, no one can easily track your real identity using the data available there. Though your activity on a specific blockchain network can be openly accessed by the public, your data remains strictly private and hidden.
- Personal data ownership – We all know about websites and apps, such as Google, which have earned a reputation for collecting our personal data and monetizing it. Here, we have no control over our personal information. However, web3 apps allow us to control our confidential data – they do not store or accumulate user information because it does not have any access to our real-life personal information.
While using certain web3 apps, you can store your own information in a crypto wallet and monetize it.
- Greater value distribution – In a way, web3 apps have democratized rewards for all the parties involved, which does not happen in the case of traditional apps. For instance, though Facebook users are the ones who generate value and activity, the rewards are largely reaped by the founder and investors of the app. Since web3 apps allow users to reward content they enjoy consuming, it encourages creators to produce content that suits their audience, without worrying about advertisements.
- Free of censorship – Though censorship comes with its benefits, in many cases it is implemented to control or ban the power of expression. The companies that control traditional digital apps have in many cases curbed online public discourse and prohibited access to people with specific viewpoints. However, web3 apps offer a platform that allows users to post content without any threat of censorship. Since blockchain activities are immutable, content once posted on these apps cannot be modified or removed, and is openly viewable by users.
Final words
Web3 apps essentially represent the next mega advancement of internet applications, marking the popularity of creating digital experiences that are decentralized and user-centric. Today, there are more than 14,300 web3 applications, most of which operate on the Ethereum blockchain network. As the adoption of blockchain technologies continues to proliferate, these decentralized web3 apps will shape a digital ecosystem that is truly versatile, more transparent, inclusive, and highly secure.