The significance of adopting new and innovative technology to live up to the standards and competition in today’s digitally agile market is known to investors and organizations. Similar to other businesses and industries, the internet is constantly evolving as well.
The first iteration of web (web1) users can simply read the data; the second iteration (web2) provides additional prospects to write and read. But with web3, users have the opportunity to browse, publish, generate and own their contributed material.
Now the question arises, why web3 is so fascinating? Some people are positive that web3 will completely revolutionize web technology. While web3 is still in the development phase, it is growing quickly. You can invest in this innovative and budding technology in various ways. In this blog, we will weigh some of the best and most profitable possibilities to invest in web3.
Inception of Web3
The phrase “Web3” was initially used in 2014 by the co-founder of Ethereum, Gavin Wood. He defined it as a “decentralized digital ecosystem built on blockchain.” It possesses a brand new hybrid internet that is intended to be established into a decentralized variation of the virtual community.
Users are constructing, controlling, and owning web3 and it’s not under the typical domination of big tech companies. For this purpose, it utilizes the services of Blockchain, cryptocurrencies, and NFTs to return control to the end users which are the general public instead of influential businesses of big techs.
As an alternative to traditional payment methods, Web3 engineers and developers are paid in crypto tokens. Additionally, Web3 users not only have the liberty to choose which projects to support but they have the opportunity of getting paid substantially by investing in Web3.
The Web3 ecosystem:
After becoming mindful of the financial perspective of Web3, let’s have a look at the different protocols, networks, and apps that are developing it. Despite being self-governed, Modularity and interoperability are the strengths of Web3.
The capacity to utilize assets and protocols as building blocks for more refined applications is called Composability. It aids the programmers in producing exceptional products more competently and ultimately intriguing more consumers to the sector. All this is to imply more investments toward the Web3 ecosystems and to grasp its modular constituents.
Web 3.0 applications:
- DeFi: Decentralized finance is enabling financial services with decentralized blockchain as a basis.
- dApp programs run on computers’ peer-to-peer networks or blockchains.
- NFT: Nonfungible tokens are cryptographically existing on a blockchain and cannot be imitated.
- Cryptocurrency: A new world of currency aiming to replace the flat currency like Bitcoin
- DAOs: Governance and structure for Web 3.0 services in a decentralized approach.
- Cross Chain Bridges: Interoperability is enabled across multiple blockchains in the Web 3.0 domain.
How to invest in Web3?
There are several ways to invest in web3 and generate money:
Investing in Crypto:
Cryptocurrencies are the first thing coming to mind when considering Web3 investments as the most apparent strategy in Web3 is buying or selling virtual currency.
If you have technical expertise and knowledge you can start investing in cryptocurrencies through mining. Crypto tasking may also be considered another approach to profit from crypto coins. You can also make money by just retaining crypto.
Investing in Web3 stocks and companies:
Several technological firms are gradually preparing themselves for this phase of technology which may impact the overall economic outlook. This might be due to enhanced involvement and exposure in Web3.
Microsoft and some other big companies are publically trading already and you can get benefited by purchasing shares of the company. Apart from Web3 firms, you can also invest in startups developing Web3-related services.
Investing in NFTs and Metaverse:
Investors may also be exposed to Web3 while investing in NFTs and Metaverse which will aid NFTs and Metaverse development services. NFTs may also be utilized in buying “property” in Metaverse as an investment in Metaverse real estate. That’s a risky strategy though.
NFTs have to potential to gain enormous value in Web3 since they are unique. It can be utilized as a medium or currency to purchase, lease, and swap in Metaverse. NFTs may also be used in painting, gameplay, as an electronic wallet, and other similar purposes. They provide limitless opportunities.
Investment in Blockchain technologies: Ethereum and Polkadot:
Betting on blockchain or projects in another way of investing. It will provide a stable foundation for forthcoming Web3 apps. Ethereum can be the primary one but its steep price makes other options like Polkadot more feasible option.
Who is building Web3?
Visionaries and investors are calculating to gain assurance that their existing tech investments stay sustainable in the forthcoming era of technological revolution by finding and investing in Web3.
Tech giants and venture capitalists are the most prominent investors of Web3 who recon Facebook’s approach to rename itself as Meta as a sign of how firmly Web3 is being accepted in the technological world.
Gavin Wood also established the Web3 foundation in Switzerland to provide financing and training for Web3 initiatives. The organization has already facilitated over 300 initiatives in over 50 countries.
Web3 and individual:
Individual user engagement is appreciated by Web3 from a philosophical standpoint. As a result, most Web3 initiatives highlight their inaugural white paper to describe how many of their tokens are accessible for purchase to the general public.
Additionally, to spark interest in the general public, companies sometimes “airdrop” free tokens to specific communities. The most common approach to investing in Web3 is acquiring web3 project tokens.
Web and Metaverse:
Web3 is vital to the metaverse. It allows the development of various metaverses which aren’t controlled by a set of rules or by a specific company. Web3 and Metaverse may be considered a perfect match since Metaverse users are engaging with other users to assist with environmental regimen and development. Web3 technologies possess the potential to create a set of securities for a floating economy in which people may safely share their biometric/ confidential information and appear in Metaverse content interaction.
Conclusion:
The pace of Web3 progress and the significance of investments by big tech & venture investors for the future World Wide Web cannot be estimated. However, the serious interest of giant firms in this transformation is visible. It’s exciting and daunting all at once, but immediate change isn’t something you should expect. With enough improvement in the support of the infrastructure with web3, the future of the web is optimistic.