Terms related to web 3.0

Web 3.0 (Web 3) is the third generation of the evolution of internet world wide web technologies. It is still in the evolving phase, strongly based on the decentralized applications, strongly emphasis and extensively use blockchain based technology, machine learning and artificial intelligence to enhance more user friendly applications. It took 10 year to shift from web 1.0 to web 2.0 and expected same time period to implement and reshape the web with web 3.0.

Web 1.0 was the early Internet that lasted until around 2000. At first, websites were just places where you could read information posted on servers and interact with such servers in simple ways. There were search engines and online stores like Amazon and eBay.

Web 2.0 was created at the turn of the century. It was much more interactive, much more collaborative, and much more capable. It was this web generation that gave us smartphones and mobile computers. Web 2.0 could support near-real-time interactions and therefore collaboration was possible. Social networks like Facebook and Twitter were part of it. It also involved the birth of big data and the machine learning algorithms that sifted through it.

BLOCKCHAIN: The first blockchain prototype was born in 1990s, when computer scientist Stuart Haber and physicist W. Scott Stornetta applied cryptographic techniques to the blockchain as a way to secure digital documents from unauthorized data manipulation. However the first blockchain based technology came in 2008, white paper of Bitcoin was published by pseudonym?Satoshi Nakamoto.

In case of blockchain data are stored in multiple computer instead of one central authority. Blockchain transactions take place within a peer-to-peer network of globally distributed computers (nodes). Each node maintains a copy of the blockchain and contributes to the operation and security of the network. One block contains three information- hash, data and last few digit of hash of previous block. As a distributed ledger technology (DLT) the blockchain is intentionally designed to be highly resistant to modification and frauds (such as double-spending). This is true because the Bitcoin blockchain, as a database of records, cannot be altered, nor can it be tampered without an impractical amount of electricity and computational power, it require 51% of the entire node approval to alter or make changes to data in blockchain.

DEFI: DeFi (decentralized finance) is an umbrella term for financial services on public blockchains, primarily Ethereum. With DeFi, you can do most of the things banks support—earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more—but it's faster and doesn't require paperwork or a third party. Here are some of the ways people are engaging with DeFi today:

Lending: Lend your crypto and earn interest and rewards every minute - not once a month.

Get a loan: Get a loan instantly without filling out paperwork, including extremely short-term "flash loans" not offered by traditional financial institutions. Instead of putting your asset or property as a leverage here you have to put your cryptocurrency as a leverage.

STAKING/ YIELDING: Yield farming is a means of earning interest on your cryptocurrency, similar to how you'd earn interest on any money in your savings account. And similarly to depositing money in a bank, yield farming involves locking up your cryptocurrency, called "staking," for a period of time in exchange for interest or other rewards, such as more cryptocurrency.

METAVERSE: The Metaverse is a collection of every virtual world created using blockchain technology. These can be game planets or NFT galleries, curated lands or digital streets. The main thing to always remember when thinking about the Metaverse is that it is not one place. It's a collection of new digital spaces that people call the next iteration of the Internet. Metaverse allows you to use a single identity to travel across and through a growing network of virtual landscapes. This makes it more like a mirror of the real world. When you travel to new cities and countries, you don't need a new passport every time you arrive at a new destination. No single person or organization has total control over the metaverse. There are multiple stakeholders and developers all together create the metaverse. Some platform inevitably have to be the gateways to the metaverse. Through blockchain technology, these platforms gives user the ability to manifest as an avatar inside the metaverse.

NFT: Non-Fungible Tokens (NFTs) are cryptographic assets on the blockchain with unique identification codes and metadata that distinguish them from one another. Unlike cryptocurrencies, they cannot be traded or exchanged for an equivalent. NFTs have the potential for several use cases. For example, they are an ideal vehicle for the digital representation of physical assets such as real estate and artwork. Because they are based on blockchains, NFTs can also work to cut out middlemen and connect artists with audiences or for identity management. NFTs can remove middlemen, simplify transactions and create new markets. Much of the current NFT market is centered around collectibles such as digital artwork, sports cards, and rarities. Twitter's (TWTR) Jack Dorsey tweeted a link to a tokenized version of the first ever tweet, in which he wrote, "just setting up my twttr." The NFT version of the first ever tweet sold for over $2.9 million.

DAOs: A Decentralized Autonomous Organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal of acting in the best interest of the entity. Popularized by cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottom-up approach. Inspired by the decentralization of cryptocurrencies, a group of developers came up with the idea of a Decentralized Autonomous Organization, or DAO, in 2016. The concept of a DAO is to support the oversight and governance of a corporation-like entity. However, the key to DAOs is the lack of a central authority, a collective group of leaders and participants acts as a governing body. DAOs rely heavily on smart contracts. These logically encoded agreements dictate decision-making based on the underlying activity on the blockchain.

CRYPTOCURRENCY: Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a peer-to-peer system that allows anyone from anywhere to send and receive payments. Instead of physical money being transferred and exchanged in the real world, cryptocurrency payments exist purely as digital records in an online database describing specific transactions. When you transfer funds in cryptocurrency, the transactions are recorded on a public ledger. It is stored in digital wallets. Cryptocurrency got its name because it uses encryption to authenticate transactions. This means that advanced coding is involved in the storage and transfer of cryptocurrency data between wallets and public ledgers. The goal of encryption is to provide safety and security.