What Are Web 3 Cryptocurrencies?

What are Web3 cryptocurrencies? Over the last couple of years,
the concept of Web3 sometimes Referred to inaccurately as Web 3.0. The third generation of the Internet
has evolved from a vaguely defined New digital utopia
to becoming a leading driver And all encompassing term in the growth
of blockchain and cryptocurrency adoption For the foreseeable future. Despite this, Many of us still don't even understand The difference between Web3
and cryptocurrencies in general. And it gets more confusing
when it appears like every crypto project Has seemingly pivoted
to a Web3 rebranding overnight. One thing is for sure Many consider Web3 to be the killer app
that can make crypto truly mainstream. Thanks to the plethora of hyper
technical use cases. So in today's video,
we're going to be talking about What went through Crypto's arm. Look at some of the most popular Coins out there and also dissect
the compelling use cases they offer. Please note
that none of the information in this video Should be construed
as financial advice of any kind, And this is purely
for educational purposes only. So first, let's start with the basics. What is Web3? While there is a lot of confusion
surrounding the term, Web3 is typically Considered to be distinct from Web 3.0,
which is the next generation of the World Wide Web, also known as the Semantic Web,
where users can read, write, own. Instead,
the Web3 term is used to represent The next generation of the Internet,
which is being created To free Internet users
from the need to use Web 2.0 firms. So centralized intermediaries
who've gained a bad reputation For exploiting users rights to privacy
and freedom of speech for financial gain By replacing them with decentralized
service providers instead. This is similar to how Bitcoin
and other cryptocurrencies have removed

The need for people to use banks And other financial institutions
when transferring or storing value. Web3 decentralized structure Allows to ensure real data privacy
and censorship resistance and also Enables users to control and monetize
their private data as they wish. Instead of lining the pockets of big tech
through targeted advertising, As with regular public
blockchains, network Participants are incentivized with web3
cryptos to share the resources in order To help provide and maintain specific
network infrastructure and services. What are Web3 Cryptos? Went through cryptos
or a new generation of cryptocurrencies That incentivize the building
of new decentralized internet. These native tokens of web3 projects
are distributed as incentives to network Participants such as users, validators,
service providers, content creators, etc. For their support. Web3 cryptocurrencies combined smart
contract and blockchain technology And promises artists and the creator
economy a much fairer sharing of revenue Such as royalties and commission. Since Web 2.0 firms like Meta, Spotify
and YouTube No longer receive the lion's share
for providing a centralized platform. Is Web3 a cryptocurrency? Web3 itself is not a specific blockchain
or cryptocurrency in itself, But rather a decentralized version
of the Internet That uses cryptocurrencies
to provide specific services to users over Web3 and cryptocurrencies
both run on borderless public blockchains And share important similarities
such as enabling decentralization, Trustlessness, open source technology,
and equal access for all users. What do Web3 cryptos do? Web3 crypto
coins and tokens are used to incentivize A centralized range of services previously
provided by centralized tech companies. These critical services include
data storage, so for example Filecoin And Arweave network, infrastructure,
helium, for example, bandwidth And processing, power sharing, for example
Theta and Render, data indexing, See the graph, identification, web
hosting and social media and much more.

So what are the best web3 cryptos in 2023? There are hundreds of web3 projects Currently building
throughout the crypto winter since 2022, Although fallen token prices, bankruptcies
and the fall of major players Like FTX who invested heavily in the Web3
space may end up killing these projects. Therefore, it's best to play it safe During a bear market and only consider
whether cryptos that already Have a measurable network effect utility
and a continuation of traction. First of all, we have Chainlink. Chainlink is a Oracle network
that connects crypto networks With real world data, thereby making it
one of the most highly touted crypto Projects out there. Link uses smart contracts to connect
to various off chain data sources, Such as data feeds, events, APIs, banking
payment networks and more. Further, many decentralized protocols
utilize chainlink's price and market data Feeds on their platform. While its price doesn't reflect this. Chainlink is finally starting
to kick things up a notch and recently Introduced Link staking,
which will make it appealing As an investment
that generates passive income. Filecoin uses blockchain technology To enable the decentralized storage
of almost all types of data. So for example, audio, video, images, etc. Similar to centralized platforms like
Amazon Web Services Filecoin incentivizes Participants who contribute to hardware
sharing with its Filecoin. It launched with a $200 million ICO
and many believe that it is set to play An important role in the future of Web3,
where decentralized storage Will be a critically important component. Helium, also referred to as the People's
Network, is a blockchain powered, Decentralized and wireless peer
to peer network that connects Thousands of Internet of things
hotspots, devices around the world In order to share data through the radio
wave technology free from intermediaries That could censor or block
or misappropriate this information, It uses its own proof of coverage,
consensus algorithm to validate and reward

Participating hotspots
with its HNT token as an incentive. Is a decentralized music streaming
platform that aims to become The blockchain version of Spotify Only with better royalty
sharing for artists and attractive rewards For listeners, and also network node
operators in the form of its native asset. The audio token audience is backed
by some of the top names in the music Industry,
including Steve Aoki, Katy Perry and more. They the Network is a powerful blockchain
based platform that delivers Decentralized video streaming
for both Web3 firms and traditional media Streaming firms Who are struggling
to keep up with their users Insatiable need for higher resolution
and bigger bandwidth data. Already, boasts
the validator nodes from big tech firms Like Google, Samsung and Sony
and continues to make traction Thanks to its ability to be customized
and scaled as needed by clients. Users share bandwidth, storage and processing power in order to earn Theta rewards. It's no surprise That Polkadot tops
the list of the biggest Web three Cryptos By market cap as its founder, Gavin Wood,
actually coined the term Web3 in 2014 And later launched the Web3 Foundation,
which provides funding for builders Polkadot and its “canary network” Kusama,
which is used for early testing as Wood's Realization of the vision
for a decentralized web, An interloper multichain platform
that can seamlessly connect compatible Public and private chains
called a pair of jeans Through its relay chain
to securely interact With each other in a trustless, immutable
and transparent manner That its native asset helps
incentivize services for operations, Security, network governance
and bonding tokens for use between Pair chains. Internet computer,
controversially developed By Dfinity, is building an ambitious World
Computer blockchain That can power a complete range of end
to end fully decentralized web services. Internet computer allows project builders
to avoid the security And privacy pitfalls
that come with using traditional

IT cloud computing database and web server
providers, And differentiates itself by using smart
contract software called Canisters And innovative blockchain applications
such as chain key cryptography. Canisters can scale at speeds comparable
to Web through services and allows users To use the web and other blockchains
without the need for bridges. The graph Is an indexing protocol that enables Data heavy networks like Ethereum
and interplanetary file system Or IFPS to query data in order to support
DeFi and Web3 protocols. The graph makes it easy
thanks to a hosted service For any developer
to create and publish a sub graph. An open source
application programing interface API That apps can query to retrieve
blockchain data by using graph queue out. The graph makes it easy for developers
to pull specific data from blockchains Where they previously had to create Centralized servers and databases
for indexing and querying, which was Expensive, time consuming and less secure
due to a single point of failure. Apps that use The graph only need to provide an API
endpoint such as the Uniswap sub graph To start querying
data. For example, trade volumes Thanks to stacks and similar projects. Smart contract
and decentralized application Next generation use
cases are finally coming to Bitcoin Without altering its core value
proposition of the most Decentralized security and stability
that crypto has to offer. Stacks is a layer one blockchain
building on top of Bitcoin. Its DApps are modular and open
built on top of each other and leverage Bitcoin as a secure base layer
for all settlements in network activity. It’s proof of transfer, consensus
mechanism drives Bitcoin adoption As miners need to pay in bitcoin
to mint new stacks Tokens and conversely stack these tokens
to earn Bitcoin in return. Previously known as Blockstack Stacks
Native asset STX, and smart contract Focused programing language clarity
also used by Algorand is used to execute Smart contracts, validate transactions
and add new assets on its blockchain.

Importantly, Stacks was the first SEC
qualified cryptocurrency For sale in the US, hoping
it raised nearly $30 million in 2019. With so much confusion around
what the SEC considers to be crypto Securities, it's very bullish for Stacks
that STX is not viewed As one by the states
leading securities regulator Kadena is a Proof of work blockchain
that aims to scale Bitcoin by combining Its consensus mechanism with directed
acyclic graph (DAG) elements. Just like Stacks, Kadena aims to leverage
Bitcoin security for use by businesses And in this case by achieving high
throughput comparable to traditional IT Service providers, it can mint
several blocks at the same time By connecting several blockchains
that work together at the same time And asynchronously to verify network
transactions. This also boost the chain's security
as the bad actors have less time Between blockchain confirmations
to attack the network. Kadena also offers a multichain support,
decentralized infrastructure And the ability
to scale at an industrial level While remaining energy efficient
compared to Bitcoin. Importantly,
Kadena offers enterprises the ability To cover their customers gas fees
through the use of their gas stations. A major hurdle for crypto application
in mainstream businesses. Kadena permissioned Layer 2 blockchain
Kuro, can also support up To 8000 transactions
per second across its 500 nodes. So that's all we have
for this week's video. What are your favorite Web3 Cryptos?