What Is Web3, and Why Is It the Future?

Web3 is an exciting new horizon of the internet, and we want you to understand all the cool mechanisms that go into it.

Specifically, Web3 is expected to use blockchain technologies and token-based economics to create a more decentralized internet.

If this sounds daunting to understand, don’t worry! Below, we’ll break it all down and explain where Fashion League fits into this new digital ecosystem.

 

The Origins of the Web: Quick Recap

We’ll first have to talk about its origins to understand this third and newest iteration of the internet.

Web 1.0, the original world wide web, was created by Tim Berners-Lee and brought to the public in 1991. Think clunky and utilitarian web pages and nineties TV shows where code blinks on black screens. In a nutshell, Web 1.0 was informational, static, and read-only.

Web 2.0, on the other hand, is what we think of as the modern internet. Intelligent and entertaining, it offers glossy design elements, lots of interactivity, and a streamlined user experience. It can be accessed through desktop browsers like Safari and smartphone apps alike.

Web 2.0 includes search engines like Google, streaming services like Netflix, online marketplaces like Amazon, and social media platforms like Facebook. With Web2, users are not only consumers as they were with Web1 but are now also creators. Web2 allowed for the advent of bloggers and influencers that now dominate the online space — everything from your favorite travel blog to Jake Paul. Still, most Web 2.0 content is centralized under the control of a small group of big tech companies like the ones mentioned in this paragraph, which is one of the major differences between it and Web3.

Web3 isn’t expected to totally replace Web 2.0 for some time. However, a Harvard Business Review article calls Web3 the future of the internet and deems it a blueprint for a better internet future. And in 2014, Gavin Wood, a computer scientist and co-founder of Ethereum (ETH) cryptocurrency, described Web3 as “Insights into a Modern World.”

 

What Is Web3?

Web3 is meant to provide security for its users’ data. With its decentralized design, your data would be stored in a “crypto-wallet” and not tracked or monetized by third parties.

Can you imagine a world where your information isn’t being used against you? Where you’re not being tracked and marketed to at every turn? This is the future of Web3.

Proponents argue that the current centralization of Web 2.0 (and its associated financial institutions) stifles creative cooperation and erodes freedom, democracy, and economic dynamism.

Detractors suggest that the decentralized internet will be highly inefficient and volatile since it’s based in part on unstable cryptocurrencies. Critics also suggest that even a decentralized internet will eventually centralize and coalesce around centers of financial and social power, just like Web 2.0.

At the end of the day, though, the best possible version of Web3 would bring new creativity and collectivity to the world. Instead of corporate interests controlling the internet, the power would be in the hands of communities. Not only that, but people would be making and spending income in totally new and innovative ways.

 

Key Features of Web3

Sound too good to be true? Let’s dive into some of the key features of Web3 to see what they entail.

  • Cryptocurrency
  • Digital wallets
  • Blockchain
  • DAOs
  • NFTs

We know that new technology can change rapidly and that some of these concepts are complex, so we’ll break each one down below.

 

Cryptocurrency

Cryptocurrency, a major buzzword in modern economic discussions, is essentially an encrypted digital currency that uses a decentralized system to verify and record financial transactions on a public ledger. Since these currencies are not associated with a government or institution, it is part of the world of decentralized finance or DeFi.

Some common cryptocurrencies include:

  • Ethereum (ETH)
  • Bitcoin (BTC)
  • Binance Coin (BNB)
  • Tether (USDT)

People store cryptocurrency coins or tokens in digital wallets — more on this below — and can use them to buy regular goods and services on the internet. However, most cryptocurrency owners are currently investing in them as a new and exciting asset class, which has been termed “digital gold.”

Cryptocurrency is sometimes volatile, and its value can fluctuate sharply. Still, it’s a key part of Web3’s decentralization, since it’s not dependent on central banks, government-owned financial institutions, or federal economic policies.

 

Digital Wallets

Cryptocurrencies are stored in digital wallets, which are essentially secure smartphone apps that store payment information and passwords. However, digital wallets are expected to play an even larger role in Web3’s advancements.

To achieve the advanced user privacy that Web 2.0 currently lacks, Web3 will put data ownership in the hands of individual users themselves. Users will control their data in digital wallets like MetaMask or open-source Electrum, which can hold both currency data and identification details.

In other words, a digital wallet will be the way you both pay for things and prove who you are on Web3. These wallets will have interoperable functionality, which means that they’ll work with various decentralized apps (dapps), products, and systems.

 

Blockchains

Blockchains are peer-to-peer distributed databases (a.k.a. public ledgers) on computer networks where cryptocurrency transactions take place. A form of database, blockchains store digital information and are central to maintaining secure and decentralized records of cryptocurrency transactions.

Essentially, blockchains are a way to guarantee the security and authenticity of data — including financial transactions — without the need for a third party to verify.

Blockchains are also invaluable for their smart contracts: self-executing codes that automatically kick in when certain predetermined conditions are met. As you’ll see below, these smart contracts aren’t just useful; they’re also vital for other key parts of Web3’s promising future.

 

DAOs

In the wild west of the decentralized internet, people want to know who will be in charge. Decentralized autonomous organizations, or DAOs, have been proposed as the solution for decentralized decision-making and governance.

Basically, DAOs are self-managed organizations run by individuals who have purchased governance tokens. Thanks to the blockchainsmart contracts that DAOs operate on, the organizations’ actions and decisions can be seen by everyone. This helps to prevent corruption, censorship, and fraud.

How Do DAOs Work?

For example, a smart contract might ensure that policies and proposals that receive a certain amount of votes are automatically enacted. Or, it might help enact the DAO’s unique bylaws, meaning that tedious day-to-day organizational management can be replaced by self-executing code.

Critics argue that requiring the purchase of tokens to govern in a DAO creates a class-based system of gatekeepers. However, others note that DAOs are much less hierarchical than traditional top-down governing organizations and that the financial barrier to entry is typically low.

 

NFTs

Lastly, the infamous NFT, or non-fungible token, is a key part of Web3’s exciting new offerings.Cryptocurrencies like Bitcoin are fungible, meaning that one token can be exchanged for another token of exactly equivalent value. NFTs, though, are completely unique digital items that cannot be exchanged for another, making them non-fungible.

NFTs come in many forms, including digital art, gifs, memes, songs, videos, and more. Collectors and speculators have created a massive art market out of NFTs in just a few years, with some popular NFTs like Bored Apes and CryptoPunks selling for tens or hundreds of thousands of dollars each.

Most people invest in NFTs for the same reasons that they’d invest in an oil painting or sculpture: They like it aesthetically, and they believe its value will rise in the future.

However, the gaming and virtual reality industries are also using NFTs as an increasingly important part of their ecosystems. NFTs can add dimension and a sense of real ownership to in-game sales.

For instance, instead of just customizing your in-game character, you can actually own that character as an NFT. That means that you can export your design to other games and even sell it on an NFT marketplace like OpenSea.

Other games allow you to purchase NFT accessories — everything from digital armor to jewelry — for your characters. At Fashion League, we use NFTs to help you create and expand your own fashion shop, become a virtual fashion designer, and, of course, buy and sell on the blockchain.

 

What Is Fashion League?

As the first female-centered fashion RPG on the blockchain, Fashion League is part of the Web3 future.We’re owned by women and for women to help promote the next generation of fashion creators and gamers in Web3.

At its heart, Fashion League is a fun-first game where players can build and manage their own fashion shop, enter community-wide competitions, become virtual designers, and sell their designs to other players, ultimately becoming Fashion League’s greatest.

On top of that, players can earn money thanks to the game’s player-centric ecosystem, which is where Web3 comes in. The more and better you play, the more in-game cash and rewards you get.

You can also earn game money by selling your digital fashion items, collecting sales tax when owning land in Fashion League, renting or selling your digital assets to other players, and more. During Fashion League’s weekly conversion events, players get the chance to convert their in-game cash into tokens. Players can then exchange these tokens into cryptocurrency on a cryptocurrency exchange platform.

 

Fashion League and the Future

If you’re interested in Web3 but not sure where to get started, Fashion League is a great option. It’s an easy way to get involved with NFTs, create your own digital designs, and make money, all while having fun playing a game.

The future of a game like Fashion league, which can combine the fashion industry with Web3 and the metaverse, looks promising. According to a recent KPMG report, demand for luxury goods in the metaverse could reach as much as $50 billion USD by 2030.

Want to learn more about where to start with Fashion League? Check out our website to find out how to build your fashion empire.

 

Sources:

World Wide Web | Mozilla

What Is Web3? | Harvard Business Review

The Web3Decentralization Debate Is Focused on the Wrong Question | WIRED

Decentralization, DAOs, and the Current Web3 Concerns | Coin Telegraph

What Is Cryptocurrency? | Forbes Advisor

What Is a Blockchain? How Does It Work? | Investopedia

NFTs, Explained: What They Are and Why They’re Suddenly Worth Millions | The Verge

Understanding Web3: The New Version of the Web That Works on Blockchain | Business Insider