Inter-relation of Web3 to Cryptocurrency Cryptocurrency has evolved from an advanced alternate payment method to a mainstream currency that is used for high-end transactions; with the aid of encryption algorithms. Despite its technical complexities it has managed to become a transactive asset for most of the trade enthusiasts.
Moreover, cryptocurrencies have helped to build a lot of careers within the FinTech industry; with the influence of cryptocurrency to the financial paradigm it has been everybody’s interest to know about the facility that allows cryptocurrency to function as it does. The parameter we can use to explain that would be; WEB3!
If web3 is an unfamiliar term you can refer to our previous blog. The proportionality of web3 to cryptocurrency can be defined as cryptocurrencies and blockchain being the building units of web3. Web3 - the third generation of the internet, is based on blockchain technology. However, technologies like machine learning, big data, artificial intelligence (AI), the Internet of Things (IoT), augmented reality (AR), virtual reality (VR) and others enable decentralized apps (DApps) to analyze information in a sophisticated human-like manner in a Web3 environment. Furthermore, blockchain plays a significant role in building the infrastructure of Web3 by allowing organizations to reorganize Web2 services, including cloud computing, social networking sites and databases. Cryptocurrencies then take full control of web3 by eliminating the need for a reliable middleman by allowing Web3 users to use tokens like Ether (ETH) to send and receive money. That said, cryptocurrencies support peer-to-peer payments and can serve as a digital-native remittance method. Additionally, Web3 will integrate blockchain and cryptocurrency to create a decentralized ecosystem for its users. According to Messari and Jeff Dorman, Arca’s Chief Investment Officer, Web 3 crypto coins have risen by 22% thus far, beating Bitcoin, NFTs, and other sectors in the crypto market (via CoinDesk on 1 August 2021).
A technology boost seems to be near as digitalization has taken over everything and as to web3 it seems like a whole lifestyle is being made making web3 the internet and cryptocurrency the standard currency.
As web3 has the ability to make everyone call it the ‘internet’ in the near future, the only mainstream choice to conduct transactions would be through cryptocurrencies, making a whole web3 – cryptocurrency philosophy within the world wide web.
The inter-relation between web3 and cryptocurrency is almost similar to the relationship between web2 and normal currency, even thou, we cannot predict as to how this combination is going to be a new normal, we can expect and predict the technical variations of blockchain technology that is going to take place.