The Internet is significantly transitioning from Phase 2 to Phase 3, known as Web3 or Web 3.0. This new version of the Internet, focusing on decentralized technology, AI, and user-centric content, is expected to grow significantly in the coming years. With more people nowadays interested in investment, significant queries revolve around how to invest in Web 3.0 and leverage its early growth.
It is essential to understand what to expect in the next phase of the Web and how it should position itself for the future. In this Blog, we will discuss Web 3.0 Technology, how to invest in Web 3.0, and its various advantages.
What is Web 3.0?
In the 1990s, a simplified version of the Internet called Web1 became available to everyone. This version mainly contains static content such as news, digital print media, and advertisements. Simply put, it was a simple read-only internet for users.
Then came Web2 or Web 2.0, the dot-com boom driven by increased internet speeds. Interactivity and socialization were the main factors that differentiated Web1 and Web2. The latter allowed users to create content through social media and personal websites, even if it didn’t benefit them financially.
Meanwhile, Web2 giants such as Facebook and Google made the most of selling their users’ personal information.
Then came his Web3 or Web 3.0, the next stage in developing the Internet. This new edition allows users to read and write content while fully owning their data and digital assets using blockchain technology. Web3 will enable users to share and monetize their content selectively.
Why should you be interested in Web 3.0?
Evolution is inevitable. Everything is evolving, and the current stage of the Internet will grow to a better version, Web 3.0. However, the idea is still in its early stages. Everyone is looking for ways to achieve the ultimate goal of this new Internet, which is decentralization.
Therefore, if the investment proves worthwhile, it can be a great investment opportunity as it has the potential for significant upside.
How to Invest in Web 3.0?
Investors wondering how to invest in Web 3.0 have several options. Among these are NFTs, virtual items within the metaverse, and various related cryptocurrencies.
Various Web 3.0 projects are built on blockchain. A cryptocurrency can be thought of as an asset that represents it. For example, the Brave browser is a blockchain-based decentralized alternative to Chrome.
Its native token, the cryptocurrency used to purchase/pay for services in the Brave browser, is the Basic Attention Token (BAT). If you think the Brave browser will create intense competition as a decentralized alternative to Google Chrome, we recommend investing in the BAT cryptocurrency.
Similarly, various decentralized projects have been built using blockchain technology, allowing investors to invest in Web 3.0 through currencies.
2. Coin set
Consider this an extension of the points above. A coin set is a basket of cryptocurrencies based on a specific theme. Suppose you are confident about the rise of the metaverse. However, a great many metaverse projects have been built. Researching them all and deciding which one to invest in can be tedious. This coin set includes the top cryptos representing the Metaverse project.
Coin sets also help with diversification and risk management because instead of investing in one cryptocurrency, they invest in multiple cryptocurrencies.
NFT stands for Non-Fungible Token. As the name suggests, these are non-fungible (or non-reproducible) tokens or digital assets. Initially, the concept was intended to tokenize digital art on the blockchain. Artists originally released their graphics as NFTs. It soon spread to other art forms, such as music albums and videos.
However, the definition and scope of NFTs have expanded over time. For example, a Web 3.0 game project launches an online multiplayer cricket game. However, you will need to create a team of players to play the game, and those players will be sold as NFTs. Every player is different, unique, and has special abilities. These traits can also improve performance as you play games.
As the number of points increases, so does the bill – the value of each player. Therefore, if you sell them, you can make a good profit. Essentially, it’s about playing and earning. How cool is that? Eventually, Web 3.0 will be filled with objects sold as NFTs. So if you do the proper research and invest wisely, you can expect significant growth.
Suppose you want to avoid investing in cryptocurrencies or NFTs due to market volatility. There are still opportunities to invest in Web 3.0. You can invest in the stock of companies building Web 3.0 infrastructure. Various Web 2.0 companies are helping build the infrastructure for their next-generation projects. For example, blockchain and related activities require high computing power.
That means semiconductor companies like AMD could benefit. Likewise, Coinbase is one of the largest cryptocurrency exchanges in the world. Both companies are publicly traded, but they are contributing to Web 3.0, and we encourage you to invest in Web 3.0 through these companies.
The metaverse is one of the hot topics of Web 3.0. It’s a virtual world where you can do anything. Walk around the neighbourhood, buy your dream home, or take your friends to a Justin Bieber concert. You combine social media and virtual reality with a blockchain network to create a virtual world online.
There are several ways to invest in Web 3.0 by investing in the metaverse. For example, you can build and sell a house to a buyer. Alternatively, if you don’t know how to design, you can buy a commercial building (such as a mall) in the metaverse and rent it to brands to showcase their products or open a virtual shopfront. Yes, it is. Brands open stores and advertise on the metaverse.
Advantages of Investing in Web 3.0
Here are some of the critical benefits of Investing in Web 3.0
1. Access to data
Web 3.0 is a connected ecosystem that enables interoperability. It is based on decentralized apps (dApps) whose access cannot be censored or restricted.
Web 3.0 is, therefore, not under the control of a single entity, and users have uninterrupted access to information.
2. Data Ownership
Web 2.0 is primarily driven by centralized platforms (Google, Facebook, Amazon, etc.) that monetize user data in various ways. Users do not have complete control over their personal information or the content they share on these platforms.
But if you invest in Web 3.0, it promises to give users control over their online data through a decentralized network. Users can share information based on their preferences.
3. Opportunity for content creators
Most content creators today struggle to capitalize on their work because of platform intermediaries. Fortunately, Web 3.0 gives creators even more opportunities to add value to their work.
First, creators have full ownership of their work. Second, Web 3.0 interoperability allows developers to discover new tools and marketplaces to extend their reach. Finally, tokenization will enable creators to encourage shared ownership of their digital assets, thereby increasing the liquidity of their assets.
4. Improved security
Decentralization and cryptography form the basis of public blockchains. It helps prevent security breaches (such as the 51 percent attack) and protect user data from malicious attackers.
Web 3.0 and related technologies are spreading rapidly, creating new investment opportunities. If you decide to invest in Web 3, your future financial success can be significantly enhanced, but it’s essential to understand the risks. Web3, like other aspects of cryptocurrency, is still in its early stages, so be careful before investing.