The next Internet 'Web 3.0' is based on encryption and on top of that, the Internet in the form of.
There is talk of crypto everywhere. Why do cryptocurrencies matter? It is no longer limited to just digital currency. Silicon Valley sees it as the digital infrastructure on which the next form of the Internet will be built.
It has three stages. In the first phase, currencies such as bitcoin, ether, dodge coin, etc. were developed. Today there is a $2 trillion market for cryptocurrencies.
But now things are getting complicated. Currencies play a dual role in crypto. On the one hand there are the currencies which people buy and sell. But on the other hand, when you get some cryptocurrencies, it creates a huge, decentralized computing force. It has a dark side. There are many mathematical calculations for these cryptocurrencies and they are recorded in countless computers. This has made some crypto networks a threat to the climate.
Then comes the second phase of cryptocurrencies. Now that there is digital money, where anyone can verify transactions, shouldn't there be digital financial services, based on contracts, that can be enforced through codes rather than banks or law? This is the principle behind decentralized finance.
The expectation is that financial intermediaries such as banks will be replaced by automatic contracts based on the ledgers of various crypto networks. This means direct decentralized transactions, that too worldwide, without any intermediary financial services.
But it is the third phase, which brings glare to the eyes of crypto supporters. They think crypto will form the basis of a better Internet, which some call Web 3.0. Think of it this way- the current internet helps us in exchanging information. We share news, music, video games, tweets, pictures and more.
The Internet provides information (content) almost for free. But that's why it's vulnerable to valuable information, which is sometimes needed. The Internet lacks methods to verify identity, content ownership and authenticity.
The technology behind crypto solves this problem. In theory the original Internet would let you copy any information (content), but the next Internet would easily give you ownership of the digital content.
That is, you will be able to earn by selling it directly. This will increase the cost of digital content. The new Internet will allow you to prove that the information, content or digital content is yours and that you can buy or sell it. This has the potential to create a true economy of digital content.