With a total investment of $3.24 billion in April, Web3 was the largest fundraiser in the blockchain business.
Investment in the Web3 sector of blockchain technology—the key technology that will enable the web of the future—received $9.463 billion more in 2022 than the combined investment in GameFi and DeFi, according to data from Footprint Analytics.
As a result, the next bull market may see Web3 as the breakout sector. How does Web3 differ from Web2 and what are its advantages and disadvantages?
An overview of Web3 and how it might affect people’s internet use will be provided in this article.
Web3 represents a progression from web2
There are two primary functions of Web2:
On the basis of user-generated material.
Data traffic is controlled only by the platform.
A lot of the user data of the Web2 period is stored in multiple programs, which consumers can’t control or use freely. Web2 is an upgrade above Web1. Web2 has a problem with this.
Users are given back ownership of their data and assets in Web3 to alleviate the pain points of Web2. Theoretically, Web3 offers users their first opportunity to wield influence over the internet.
Early web3 implementations are being included into all aspects of blockchain decentralization, including mining and smart contracts. DeFi and NFTs have been losing ground to Web3 in terms of investment, according to data from Footprint Analytics.
Total funding for Web3 in April was $3.24 billion, the highest amount ever recorded. Web3 may have fueled Google Cloud’s debut into Web3 to get a foothold in the market by providing technical support.
Some industries are using Web3 more than others, including GameFi and Metaverse. Due to the distributed nature of Web3, user data is saved on a chain rather than a single server. Users are in control of their data and can utilize it to generate and profit from new forms of value.
Web2 vs. Web3 in gaming mode comparison
Selling virtual goods such as weapons and armor is at the heart of Web2 games, which are free-to-play. In this approach, the game business is in charge of the game’s creation and has a financial incentive to maximize profits. Items acquired while playing do not belong to the players, and they cannot be resold.
The P2E or M2E paradigm, which is based on making the player the legitimate owner of the in-game items, is prevalent in Web3 games. A primary or secondary market can be established for NFTs that have been obtained in P2E or M2E games, where the player is essentially the game’s protagonist.
