10 Web 3.0, Crypto & Metaverse terms you need to know (if you want to grow your online business)
- February 14, 2022
- Category: Blog articles
Web 3, blockchain, crypto & metaverse are coming and they are taking the world by storm. These new technologies will reach every industry and flip it upside down in the next 5 years and forever (actually it is happening as you are reading this post). So you either educate yourself from now and enjoy the early-mover advantage or you come late to the party and struggle with your business to survive.
By reading this post you will have an idea about the near future of technology, economy and communication that are actually forming the way we live in this world. With that being said, let’s dig into 10 Web 3.0 terms you need to know (if you want to grow your online business)
Web 3.0 is the third generation of internet services for websites and applications that will focus on using a machine-based understanding of data to provide a data-driven and Semantic Web. The ultimate goal of Web 3.0 is to create more intelligent, connected and open websites.
As the shape of Web 3.0 is still vague, experts expect it to establish a decentralized digital ecosystem where users will be able to own and control every aspect of their digital presence. Some hope that it will put an end to the existing centralized systems that are prone to data exploitation and privacy violation.
A metaverse is a network of 3D virtual worlds focused on social connection. In futurism and science fiction, the term is often described as a hypothetical iteration of the Internet as a single, universal virtual world that is facilitated by the use of virtual and augmented reality headsets.
The metaverse is a combination of numerous technologies including virtual reality, augmented reality, and eye-tracking. All of these elements are used to create the ultimate virtual experience within a virtual universe. Examples of a metaverse include Fortnite, Roblox, and The Sandbox.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
Blockchain is used today in smart contracts, NFTs, cryptocurrencies transactions, by giant organisations like Microsoft, Amazon, Tencent, Nvidia, J.P. Morgan, Walmart, Alibaba, PayPal, Samsung and the Bank of China
Decentralized autonomous organization
A decentralized autonomous organization, is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.
This means that DAOs are free to contract and trade permissionlessly with any person or organization also on that network. The same goes for any decentralized cryptocurrency that supports DAO creation, such as Cardano, Solana, or Polkadot.
A non-fungible token is a unique and non-interchangeable unit of data stored on a blockchain, a form of digital ledger. NFTs can be associated with reproducible digital files such as photos, videos, and audio.
A non-fungible (meaning unique, non-replaceable) token (NFT) is a unique digital code that represents some kind of digital item. It could be digital art or music, for example. An NFT is secured and stored on a public blockchain. One token is not interchangeable for another, and a token cannot be further divided.
Businesses from all types of industries started leveraging NFTs to create a loyal customer base by offering exclusive perks through branded NFTs. Check Sayl to see how you can use it to grow your business.
A smart contract is a computer program or a transaction protocol which is intended to automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement.
What’s smart about smart contracts is that once a condition is met, the contract is executed immediately. Because smart contracts are digital and automated, there’s no paperwork to process and no time spent reconciling errors that often result from manually filling in documents.
Internet of value
The Internet of Value is a concept proposed by Ripple which envisions a world where value moves and is exchanged like information is exchanged today in the Internet era.
With the Internet of Value, a value transaction such as a currency payment can happen instantly, just as how people have been sharing messages, images, and videos online for years. And it’s not just money.
The Internet of Value can enable the exchange of any asset that holds value, including stocks, votes, loyalty points, securities, intellectual property, music, scientific discoveries, and more. Without any intermediaries like banks, credit card companies or any third party.
Initial Coin Offerings are another form of cryptocurrency that businesses use in order to raise capital. Through ICO trading platforms, investors receive unique cryptocurrency “tokens” in exchange for their monetary investment in the business.
ICOs (or Pre-Sales) offer high potential profits if you can determine which cryptocurrency is a good investment. Since you’re buying early, prices are often lower, and some ICOs offer tokens at discounted rates. ICOs are accessible to anyone. Unlike some IPOs, there aren’t any restrictions on who can invest.
The study of the economics of crypto tokens or cryptocurrencies is called tokenomics. It fundamentally involves studying the factors that impact the demand and supply of tokens. The factors include quality, distribution and production of crypto tokens.
In tokenomics, crypto tokens (or simply tokens) are units of value that blockchain-based projects build on top of an existing blockchain. Crypto tokens, like cryptocurrency, can be exchanged and hold a certain value but they are a completely different digital asset class.Tokens can be used for investment purposes, to store value, or to make purchases. … Altcoins and crypto tokens are types of cryptocurrencies with different functions.
Staking / yield farming
Both approaches to earning passive income rely on holding crypto assets to earn rewards, and each strategy allows investors to share in the value of the decentralized financial ecosystem.
The main difference is that yield farming requires users to deposit their crypto funds on DeFi platforms. Where staking requires cryptocurrency holders to ‘stake’ their coins (lock their coins in) for a fixed period where they cannot withdraw their assets or make them illiquid.
For investors seeking liquidity when comparing yield farming vs. staking. Staking offers increased returns.
As the Crypto & Metaverse worlds are evolving super fast and constantly taking unexpected turns, we might need to have a Part 2 of this post, so make sure you keep an eye on our Twitter or it is better to follow our CEO Geert Roete and our CTO Benoit Hossay as they keep sharing valuable pieces of content on LinkedIn that absolutely improve your business performance.