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Web3, often referred to as Web 3.0, is a concept for a new iteration of the World Wide Web based on blockchain technology, which incorporates concepts like decentralization, blockchain technologies, and token-based economics. Unlike the current version of the internet (Web 2.0), which is dominated by companies providing services in exchange for personal data, Web3 aims to create a decentralized online ecosystem.
Key characteristics of Web3 include:
Decentralization: Instead of data being stored in centralized servers, it's distributed across a network of computers, making the system more resilient and less susceptible to control or censorship by any single entity.
Blockchain and Cryptocurrencies: Web3 uses blockchain technology to ensure transparency and security, with cryptocurrencies enabling digital transactions without the need for traditional financial intermediaries.
Smart Contracts: These are self-executing contracts with the terms of the agreement directly written into code. They run on a blockchain and automatically execute transactions when predefined conditions are met, reducing the need for trusted intermediaries.
Token-based Economics: Web3 introduces the concept of digital assets and tokens, which can represent anything from currencies to ownership of digital or physical assets. These tokens can be used to incentivize and reward participants in the network.
Interoperability: With Web3, services and applications are envisioned to operate across platforms and blockchains, allowing for greater interoperability and integration of the internet services.
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