The next iteration of the Internet is Web 3.0 or decentralized web, a key topic of discussion today throughout the technological world. Before finding out “How is web 3.0 being used in business?” You should know what web3 is in general. Simply put, web3 or web 3.0 is the third stage in the evolution of the Internet. The new era provides decentralized networks to provide a faster user experience with better personalization.
Notable technologies behind web 3.0 development include artificial intelligence, semantic web, and machine learning. The web 3.0 blockchain use cases also demonstrate the involvement of cryptographic protection in web3 to ensure the security of user information. The value of the best web 3.0 use cases is probably one of the main reasons why web3 is gaining attention around the world.
Main unique features and features of web 3.0
- Web 3.0 is open because it includes open source software that is available to everyone;
- Web 3.0 networks are permissionless because users and providers do not need permission from centralized controlling organizations;
- Another impressive feature evident in real web 3.0 use cases is the freedom of users to interact privately and publicly without any intermediaries in a trustless environment;
- Most importantly, web 3.0 also offers ubiquity, which can ensure the availability of the Internet regardless of location, time, or device. For example, IoT technology can help access internet services using many smart gadgets other than voice assistants.
The hallmarks of web 3.0 prove its ability to transform the user experience on the Internet. Is web3 just a re-imagining of UX elements in web apps and services? In contrast, the best use cases for web3 tell a different story.
Let’s take a look at six of the best concepts for using web 3.0 today:
Decentralized Autonomous Organizations
One of the main use cases for the web3 blockchain would point to Decentralized Autonomous Organizations or DAOs. These are mostly online communities owned by community members. An interesting feature of the DAO is the ability to manage the community, which depends on the consensus of the participants. In fact, the main points of web3 can be found in DAO with decentralization and autonomy.
An individual or centralized organization cannot change the rules of the DAO. In addition, DAOs provide autonomy by using smart contracts to count votes and implement decisions without the need for human intervention. If you look closely, DAOs are a prime example of network management in web3. Decentralized Autonomous Organizations introduce the concept of corporate governance into the virtual world by encoding certain policies in smart contracts.
DAOs deserve to be ranked among the top web3 use cases, especially for their potential in offering a governance model for web3 organizations. Interestingly, DAO principles apply to a wide range of assets and organizations.
refers to decentralized finance or DeFi. This is a new concept based on the use of decentralized applications for financial services. Decentralized applications are basically general software applications associated with a series of smart contracts. Smart contracts in decentralized applications, called protocols, help define specific application functions. The outstanding advantage associated with decentralized applications in DeFi is that they will exist as long as the underlying blockchain exists.
In addition, dApps built on open blockchain networks allow any computer on the network to participate. Real life use cases for Web3 in DeFi have helped many people find alternatives to traditional financial services. For example, DeFi has provided the possibility of crypto lending and borrowing, in which crypto holders can receive loans against their crypto as collateral.
Another important point of using Web3 in DeFi concerns payment blockchains. DeFi has enabled payment blockchains that can facilitate peer-to-peer digital transactions. In fact, DeFi is one of the top web3 use cases that shows a plausible improvement in the use of cryptocurrencies.
The value of DeFi is made clear by the possibility of low-cost, peer-to-peer, near-instant and borderless transactions. Payment blockchains in DeFi can serve as the best example of web3 for providing access to financial services. Payment blockchains can easily enhance existing payment systems. For example, cryptocurrencies can serve as a vital asset for distributing aid to people without bank accounts. In addition, DeFi also uses blockchain to achieve the desired transparency to counter abuse, waste, and fraud.
The best thing about DeFi is that it changes the foundation of financial technology. DeFi provides an easier way to use, access, audit, upgrade and develop financial services. DeFi is clearly one of the best web3 use cases focused on enabling cost-effective and easy participation in the financial system. At the same time, DeFi is also using web3 principles to give consumers full control over the ownership of financial products.
Linking DeFi and Web 3.0
DeFi stands out among the real Web3 use cases as it provides ample opportunity to expand access to financial services. Connecting DeFi and web3 depends on the fact that DeFi services embrace the core values of the open web. Here are important pointers that demonstrate how DeFi and web3 are related to each other.
- Commitment to open source;
- Lower transaction fees;
- Open accessibility to all;
- Transparency and accountability in management;
- without permission;
- Privacy and security based on encryption;
Privacy and digital infrastructure
The most important issue in existing blockchain networks is full transparency. You can find web3 blockchain use cases designed to improve privacy and digital infrastructure. New research into innovative aspects of cryptography, such as zero-knowledge proofs, allows for mathematical proofs of validity without revealing information.
For example, a user can prove to a website that he knows the password without giving the password to the website. As a result, the user’s password will never enter the site’s database, thus ensuring security against unprecedented attacks. Web3 solutions can provide plausible improvements in digital infrastructure to ensure better privacy.
As one of the best use cases for web3, digital infrastructure improvements are based on protecting user privacy. In addition, web3 has expanded the flexibility of application development with improved privacy. Data security is certainly one of the highlights among the many use cases for Web3 given the massive data breaches in Web 2.0. Now web3 can be the perfect foundation for accessing a suite of applications to better protect your data.
At the same time, use cases for Web3 to improve privacy and digital infrastructure can also improve compliance. Privacy levels can help users overcome their concerns about sharing personal information with an application or service on the blockchain. As such, web3 will obviously play a critical role in facilitating the path to risk-free compliance on blockchain networks.
The best-known example of web3 in real-world use cases is blockchain-based games. Developed on blockchain technology, games offer their own personalized economy where players actually own in-game items. Blockchain games are one of the notable answers to the question “What is web3 used for?” especially given the fact that they were the earliest web3 applications.
Blockchain-based games provide the flexibility to port game objects to other games. In the initial stages, blockchain games have shown a promising glimpse into the future of gaming. Supported by web3 principles, blockchain-based games can open up entirely new virtual worlds and economies.
The significance of blockchain games as one of the best use cases for web3 is evident in the use of decentralized technology to facilitate monetization opportunities for creators. Blockchain-based games use NFTs to allocate ownership of in-game items such as avatars, skins, tools, experience points, and upgrades. Interestingly, players can sell NFTs for fiat currency in the secondary markets, along with the privilege of transferring assets between games.
Another notable feature of blockchain-based games in real-life Web3 use cases points to play-to-earn models. One of the best examples of using web3 principles in the real world with games is Axie Infinity. It has served as a promising tool for many people to earn cryptocurrency rewards by playing the game.
Among the many reviews on the best use cases for web3, you will obviously come across the metaverse. The Metaverse promises a limitless virtual world, a three-dimensional embodied Internet, where users can navigate as digital avatars. Essentially, you will be on the Internet, not watching it through computer screens.
The Metaverse uses many web3 principles to provide an immersive and engaging experience for users. You can find an element of decentralization and the creator economy in the metaverse. The Metaverse promotes open access for anyone and allows full control of the experience in the hands of users.
The recognition of the metaverse as one of the best use cases for web3 relies heavily on the promise of an open, shared, and decentralized virtual world. However, the metaverse is still far from reality, and you can only find a few hints of the technology on different platforms.
The creator economy
While the creator economy is not exactly a use case for web3, it is one of the bright spots in the web3 landscape. The creator economy points to emerging communities of creators, including developers, artists, and musicians, who are directly connected to followers and supporters. Creators can rely on web3 principles for seamless collaboration without intermediaries.
One of the highlights of the creator economy in real-life web3 use cases relates to NFTs or non-fungible tokens. The popularity of a new class of digital assets has reached an unrealistic level due to the value of uniqueness. In addition, the high-profile NFT sales have also played a vital role in empowering creator economies.
The creator economy is one of the best use cases for web3 because it provides monetization opportunities for people who spend most of their time online in various digital spaces. NFT provides creators with many new opportunities for monetization, bypassing the usual gatekeepers. Thus, the use case for web3 in the author economy can offer creators a profitable way to sell their work directly.
In addition, subscribers can gain exclusive ownership of a creator’s work, thereby increasing their stake in artists and creators. Another important feature of NFTs in creator economy use cases indicates the possibility of paying royalties. NFT holders can use smart contracts to track secondary sales and earn commissions from royalties. Most importantly, NFTs serve as verifiable digital assets, thus paving the way for many other applications outside of the creator economy.
An overview of web 3.0, based on the most common use cases for web3, shows today how it can completely change the web experience for everyone. From the DAO to the metaverse to DeFi, web3 has a lot to offer the world. While some use cases for Web3 have already begun to have an impact, some of them are still under development.
For example, DAO and DeFi are two examples of web3 use cases that are being actively implemented right now. On the other hand, there is a metaverse that is still under development. The various use cases for web3 focus on the core principles of web3 and how they can eliminate common inefficiencies in data sharing, asset ownership, and financial transactions.