What is the relationship between blockchain and Web3?

Cryptocurrencies and blockchain are the building blocks of Web3. However, the decentralized web also relies on technologies such as augmented reality, virtual reality, IoT and others unrelated to blockchain or digital currencies.

The third generation of the Internet, known as Web3, is based on blockchain technology. However, technologies such as machine learning, big data, artificial intelligence (AI), Internet of things (IoT), augmented reality (AR), virtual reality (VR) and others enable decentralized applications (DApps) to analyze information in a sophisticated human environment. -like in a Web3 environment.

For example, virtual reality headsets will create a great shopping experience, allowing customers to interact with products before making a purchase. However, these technologies are not based on cryptocurrencies or distributed ledger technology, but aim to increase the efficiency of blockchain technology.

Additionally, blockchain plays an important role in building the infrastructure of Web3 by allowing organizations to decentralize Web2 services, including cloud computing, social networking sites, and databases. Therefore, the combination of AI and blockchain technology will undoubtedly provide organizations with a better way to manage confidential data sets.

By validating the provided data, the AI ​​technology can quickly process the request and the smart algorithm will help in making quick decisions regarding issuing funds or approving credit. Additionally, datasets can be effectively protected via blockchain. Likewise, other technologies such as augmented reality and virtual reality are key to defining the metaverse, exploring new ideas, and enhancing virtual experiences.

Additionally, cryptocurrencies eliminate the need for a trusted 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 native digital funds transfer method. Blockchains would not have the network involvement incentive system without cryptocurrencies. Moreover, users would have nowhere to store cryptocurrency without crypto wallets.

Furthermore, Web3 is designed to be permissionless, trustless, and open to everyone, as it adopts the philosophy of cryptography. Similarly, non-fungible tokens (NFTs) allow users to seamlessly prove ownership of items such as game assets, digital art, personal data, and more.