• What is a blockchain
• 10 characteristics of web3
• 8 applications and services that are already transforming all sectors
A blockchain is a distributed database that stores a record of assets and transactions on a peer-to-peer network. Essentially, it’s a public ledger of who owns what and who manages what.
Transactions and records are secured with cryptography, and the transaction history is stored in data blocks that are later grouped together using cryptographic keys.
This creates an immutable record of all network transactions, which is copied on every computer that uses the network.
Blockchain full nodes validate transactions through a consensus mechanism – PoW or PoS – without the involvement of a central authority.
This technological architecture has made possible, since 2020, the emergence of the third iteration of the internet.
Here are 10 characteristics of web3 to understand the foundations of this new revolution:
1. Sovereign Identity & Ownership
Allows individuals to control and manage their own identity data securely and autonomously, without relying on third parties, with the guarantee that the data stored on the blockchain is secure and immutable.
2. Decentralization – Disintermediation
The technology allows transactions to take place directly between network participants, without the need for centralized intermediaries.
Transactions and interactions between different parties occur without the need to trust a central entity or authority to control and validate the process.
Trust is placed in the code.
Anyone can join the network and participate in validating transactions without the need to obtain prior permission or authorization from any centralized entity.
5. Privacy and Security
The use of cryptographic techniques, such as private and public keys, allows network participants to have control over their own information and maintain the privacy and security of their transactions.
6. Zero Knowledge Proof – ZKP
Allows verification of information without having to reveal the information itself. Useful for protecting the privacy of participants and allowing transactions or records to be made without revealing sensitive information.
The ability to mix and match pre-existing software components of the network (as if they were lego pieces) allows blockchain developers to create more complex and advanced solutions.
Allows digital assets to be used in different contexts and applications; for example, the portability of my followers, content, and data from one decentralized social network to another within the same blockchain protocol.
To move digital assets between different blockchains without restrictions.
It also helps to reduce transaction costs, increase efficiency, and improve accessibility for users Solutions like @Polkadot or @Cosmos allow this.
10. Smart Contracts
Allow for the automation and guaranteed execution of agreements and transactions between network participants without intermediaries when certain pre-established conditions are met
All of these features lay the foundation for the development of web3 applications and services that are already transforming all sectors:
– Tokens: financial, governance, social-utility
– IP Certificates
In future entries, I will address each of these applications and services.
In the meantime:
– Experiment (even by making mistakes)
– Generate new knowledge with your own experience
– Share it with the world
By Ángel González