By Mashell. C, Gate.io Researcher
Web 3.0 is the internet of the future, based on distributed ledger technology.
AR, VR and MR are some technologies that support the metaverse.
Cryptocurrencies and NFTs are examples of building blocks of the metaverse.
Web 3.0 products include decentralised lending, insurance and borrowing.
metaverse, decentralisation, DeFi lending, liquidity mining, virtual reality, Augmented reality
Metaverse and Web 3.0 have become very popular words as they paint a promising technological future which may revolutionise the way people live and do business. Although these two concepts are different, they have something in common. They imply decentralised futures for social media interactions and the internet. Now, we want to delve into the differences, similarities and connections between the two.
What is web 3.0?
Web 3.0 refers to the decentralised web, which is the internet of the future, driven by distributed ledger technology. As such, the data is stored and distributed in a decentralised way as the system uses many computers to store, share and even verify data. This is different from web 2.0 where the data is centrally stored and distributed. More interestingly, computers are able to interpret data in a similar way to what human beings do.
However, it is important to note that web 3.0 is likely to operate alongside web 2.0. This is because we may witness many tech companies that generate, store and distribute data. These include social media companies such as Twitter, Facebook and Twitch. Even when dealing with the blockchain system, we still find centralised organisations which offer many services.
Typical examples of centralised organisations that operate alongside decentralised ones are crypto exchanges such as Gate.io. Other such tech companies include web browsers like Google, Opera Mobile and Microsoft Edge. The problem with some of these centralised organisations is that they breach user privacy, control the content they generate as well as extract customer data.
Basically, Web 3.0 has resulted in the availability of new products and services. For example, decentralised finance has come up with services which compete with the legacy ones such as DeFi lending, borrowing, liquidity mining and cloud mining. In the end, we have the blockchain economy.
Also, people are able to sell their content as NFTs, participate in play-to-earn games and decentralised autonomous organisations (DAOs). In addition, people can earn, buy, hold and sell some digital assets such as cryptocurrencies. Thus, web 3.0 gives people more opportunities to earn sustainable income online than web 2.0.
What is metaverse?
The metaverse is a virtual space where people interact with three dimensional objects, connecting the physical and digital worlds. In order to participate in this digital space, people should use the right hardware in the form of goggles or special headsets which enable them to alter their realities. For example, virtual reality (VR) headsets block out your current surroundings and immerse you in the digital world. On the other hand, the AR headsets enable individuals to superimpose digital information on the physical world, integrating real objects and virtual ones.
As referenced above, virtual reality (VR), augmented reality (AR) and mixed reality (MR) are key technologies required to have the metaverse. However, there are other technologies that complement these.
Use cases of the metaverse
As we may anticipate, the metaverse is a game changer on how people interact with each other and do their businesses. Let’s focus on its few use cases.
Some social media companies are working on creating the metaverses where people can interact in, using their avatars. In fact, there will be immersive interaction among the users.
The metaverse should also exist in the gaming sector. With the deployment of the right technologies people can play games in an immersive environment.
Some metaverse companies will be able to host virtual concerts with artists or host sporting events where thousands of people can virtually attend simultaneously.
It is also possible to expand the metaverse to incorporate business activities such as meeting attendances or shopping online. Imagine a situation where people will have to try out some digital clothes online.
The metaverse will likely play an immense role in the education sector, where colleges and universities may offer online education in an immersive environment.
Differences between the metaverse and web 3.0
First, Web 3.0 signifies the future state of the internet while the metaverse defines the vision of how the internet will impact our daily lives through connecting our physical and digital realities.
Web 3.0 is about how individuals manage their identities, privacy and a state of things where people will control their creations. Yet, the metaverse is the digital space where people can interact with others and some 3 dimensional objects as if it’s in a real world set up.
Second, the other difference comes from the underlying technologies. Web 3.0 focuses on creating a decentralised ecosystem which relies on the blockchain and digital assets such as cryptocurrencies and non-fungible tokens, governed by a wide network of computers.
Apart from key elements such as decentralisation and connectivity, the metaverse relies on fundamental technologies like virtual reality, augmented reality and mixed reality as well as supporting hardwares such as headsets.
Lastly, the other core difference relates to the application of the two. The metaverse integrates various aspects such as gaming, entertainment, social media and education. Web 3.0 applies to the entire web rather than focusing on a few applications or functionalities. For instance, web 3.0 is supporting an emerging blockchain based economy, buttressed by multiple products.
The current state of web 3.0 and the metaverse
Although we have not yet witnessed the perfect web 3.0 and the metaverse, several building blocks and supporting infrastructure already exist. As already mentioned, cryptocurrencies and non-fungible tokens are key assets that support both web 3.0 and the metaverse.
People are already benefiting from using these digital assets and the related products which exist on various exchanges. Just like in the case of web 3.0
cryptocurrencies and NFTs will have a key role in the realisation and expansion of the metaverse.
Gate.io, for instance, provides DeFi 3.0 products such as decentralised lending and borrowing. For now, we focus on the key products which web 3.0 supports.
Non-fungible tokens are an important component of web 3.0 as they power various gaming platforms. Some of them also act as in-game assets for blockchain based games. There are different NFTs in the Gate.io marketplace
. Notably, these NFTs have varying prices, making it easy for the buyers to choose the ones which they can afford.
Gate.io users can buy and hold their cryptocurrencies in anticipation of their appreciation. The good thing is that a user can lock some cryptocurrencies such as BTC and earn interest. Therefore, web 3.0 offers people the opportunity to earn money through investing. In order to hold their cryptocurrencies, the users should visit the Hold and Earn section
. Then, individuals can hold their cryptocurrencies for a period as short as 7 days and earn interest.
Web 3.0 enables people to earn from liquidity mining. With liquidity mining an investor invests in a pair of cryptocurrencies and gets a share of the trading fees. The amount the investor earns is in proportion to the amount he/she invests in the pair. If you go to Liquidity Section
on Gate.io, you will be able to choose the pair to invest in.
Apart from investing in cryptocurrencies, web 3.0 enables people to borrow funds during times of need. Gate.io has a crypto loan product
, where you can borrow some cryptocurrencies. However, this requires you to have collateral in the form of another cryptocurrency.
The metaverse and web 3.0 support each other very much. For example, the creator economy in the metaverse complements the decentralised financial sector existing on web 3.0. However, these two may have different use cases. Despite the fact that the web 3.0 and the metaverse are not yet fully fledged, we already enjoy some of the benefits through various investment and earning opportunities.
Author: Mashell. C, Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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