The future of Web3: Top 3 Trends to Watch Out for in 2023LAB325
Web 3.0 (also known as Web3) can be described as the third generation of the evolution of web technologies. The nomenclature, Web 3.0 indicates that the evolution obviously started from Web 1.0. Web3 is an idea that encapsulates the latest phase of developments in the World Wide Web, and is built on the concepts of decentralization, artificial intelligence, blockchain technologies, and Non-Fungible Tokens-based economics.
At best, this is only an attempt to describe what web 3.0 is at the moment. It will be challenging to provide a proper definition for Web 3.0 because the technology is still evolving. It took about 10 years to fully transition from Web 1.0 to Web 2.0. It might take as much time or less to achieve full implementation of Web 3.0.
Be that as it may, developers have started deploying Web 3.0 technology to create apps with superior features. For instance, Web3 libraries, such as web3.js or ethers.js, can be used to develop decentralized apps that are not limited to a single cloud server but reside on the blockchain (or interact with it).
With all that is currently happening in Web3 development, we confidently say that the future of web3 development is in a specific direction, especially considering its strong dependence on decentralized applications and blockchain-based technologies. Here is a rundown of the top 3 trends in Web3 development to watch out for in 2023.
A major feature of Web3 is its extensive dependence on decentralization. As opposed to the first two iterations of the World Wide Web, which involves centralized government and applications, Web 3.0 embraces decentralized. This means that applications and services will be enabled via a distributed approach, which does not involve a central governing authority.
Additionally, people will be able to pay for goods and services using a decentralized payment system that is already enabled with cryptocurrencies across Web 3.0. It is expected that the use of cryptocurrency in Web 3.0 will replace the use of fiat currency.
Because of the decentralized technology in Web 3.0, blockchain will exercise Peer-to-Peer or P2P principles. So, instead of vast portions of the internet being controlled and owned by centralized entities, the ownership is distributed among web builders and users. Web3 technology will promote a web that is driven by P2P servers built on blockchain technology.
As stated earlier, Web 3.0 relies on blockchain platforms, cryptocurrencies, and NFTs; it uses these key elements to give every contributor the right of ownership. Examples include Vesta Equity and CitaDAO. These are both tokenized real estate platforms that promote a transparent P2P marketplace. The next section dives deeper into the subject of tokenization.
Tokenization of Real Estate
Vesta Equity, a tokenized real estate investment firm, happens to be a practical illustration of how Web 3.0 is helping to promote a peer-to-peer marketplace. The idea of tokenizing the real estate market is to connect property owners and property investors directly with the solution to build a portfolio of real estate properties, divide it, and sell a percentage with residential rights fully retained by the property owner.
Since the investors in tokenized real estate deals are only interested in the appreciation of the property, there is no risk of foreclosure and everyone has a chance to invest and earn without actually buying a property.
CitaDAO is another tokenized real estate platform built on peer-to-peer interaction. The platform uses blockchain-based Decentralized Finance (DeFi) to enable decentralized transactions; frictionless and transparent access to real estate investment.
However, not all properties are guaranteed to bring in yields to investors with tokenization. Instead, real estate tokenization is focused on assets with a proven track record for maintaining their value and attracting investors that will drive real-world income streams. Participants in this scheme acquire Real Estate Tokens (RET) when they invest. RET represents the right to redeem the legal title of the real estate listed. The token holder also trades their RET in exchange for other valuable cryptocurrencies via DeFi Automated Market Makers.
Another top trend heralded by Web3 is crypto mortgages. Some crypto loan platforms now allow people to acquire homes by encouraging them to invest their crypto assets as collateral. Most crypto mortgage lenders offer competitive interest rates compared to that of traditional mortgage firms. By securing a crypto mortgage, crypto owners can transfer their crypto wealth directly into reals estate. This is an attractive alternative to cashing in your crypto holdings, which has received a rather positive critique from the crypto community at large.
A typical example is Milo. The platform provides an opportunity for people to invest their crypto wealth as a down payment to qualify for a mortgage, as against selling it off for cash. This strategy will even encourage more people to participate in the world of crypto, as it is easier than tendering traditional collaterals.
Other Main Features of Web 3.0
Web 3.0 will also be making use of machine learning and artificial intelligence (AI) to empower more intelligent and adaptive applications. Automation is another key feature of Web 3.0 technology, and that automation will be driven extensively by AI. With its elaborate blockchain foundation, Web 3.0 is expected to enable a growing plethora of new applications and services, such as non-fungible tokens (NFTs), decentralized finance (DeFi), decentralized applications (dApps), cross-chain bridges (enables interoperability across multiple blockchains), and decentralized autonomous organizations (DAO).
First picture credits: Image by vectorpocket on Freepik