What’s the Relationship Between Blockchain and Web3?

The internet has evolved from Web1.0 static page websites of the currently discussed Web3.0, the decentralisation of information. There is a profound change in user behaviour towards accessing information. On the contrary, businesses controlled the user data, later fused with artificial intelligence for decoding the customer’s behavioural purchase patterns. But with the emergence of decentralisation and spreading awareness about maintaining the freedom of information, we have come a long way. It is becoming more evident daily to discuss the relationship between blockchain and Web3.

In layman’s language, Web3 is the revolutionary approach discussed globally to bring back the control and ownership rights of the information in the hands of the user. The Polkadot Founder and Creator Gavin James Wood explain Web3 as “Web3 is the alternative vision of the web where services are not hosted by the single service provider company, but rather, it is a purely an algorithmic approach, where the services are hosted by everybody.”

Such a statement brings us to discuss the concept of decentralisation, where peer-to-peer information transfer is involved, and all participants contribute equally to host a service.

The dynamism of Web3 is vast in front of us all. It halts the traditional paradigms of Web2 technology, which are the mere replica of society. The innovative Web3 comes with its vision to make online platforms decentralised, trustless, and permissionless. It also aims at bringing digital ownership, digital-native payments, and censorship resistance as new standard protocols for web-assisted services.

A blockchain is a distributed ledger that continuously adds new blocks in the chain storing data. These blocks are linked to each other, i.e., the link between the previous and the newly formed block. To understand it in an example, Consider there are three blocks, entitled block 1, block 2, and block 3. Block 2 holds the link to block 1 and block 3, i.e., the user accessing the block 2 data has all the right to view the data stored in blocks 1 and 3.

In the blockchain, all blocks act based on their consensus mechanism. There are ten consensus mechanisms popular in the Web3 industry. These protocols include:

A cryptographic proof where one party is the prover and the other is the verifier

Selection of validators in proportion to the number of holdings

Users can vote for “delegates” to form an informed decision for the network

Ensures all transactions are genuine and all miners arrive at a consensus

Delivers faster transactions based on identity as a stake

Send coins to null addresses and validators earn a privilege to mine with a random selection process to burn native or alternative blockchain currency, and validators earn the long-term privilege for short-term losses

Allocate a non-trivial amount of memory or disk space to solve a challenge presented by a service provider

A lottery system extends the chances of winning across a network to determine who creates the next block and generates a wait time for each node and sleeps for that duration

A sequence of computations to provide cryptographically “verifiable” passage for the public to understand and verify the accuracy of two events

Determines which network node is eligible for adding a new block using “harvesting”.

When understanding the perspectives of both Web3 and blockchain, the foundation pillar appears to be the same. In today’s world blockchain and Web3 are positioned to become essential technologies. Whereas cryptocurrency and NFTs are one of the backbones with the advantages such as decentralisation, permitting anyone to record information on-chain, tokenised assets, and creating digital identities.

The vision of Web3 is to create a better internet, where users are the primary source and in control and ownership of the data. Various relationships that we need to know and understand blockchain and Web3.

One of the drawbacks of Web2 is the concentration of the power was in the hands of tech companies. But with the vast adoption of Web3, it is widely converging the concentration by facilitating the distribution of information and power. With its acceptance, blockchain-powered public distributed ledgers will allow transparency and decentralisation as the primary need to employ.

Blockchain-powered businesses are becoming permissionless by fusing with blockchain protocols. The applications built using the blockchain allow anyone to interact and access their codes, but not subject to change.

Blockchain and cryptocurrency eliminate the need to trust intermediaries, be they government or private institutions. Users of Web3 can conduct transactions without having to rely on any other parties besides the network itself.

The limitless payment infrastructure has a lot more for blockchain believers. Depending on the choices, the audience settles for either centralised exchanges (CEXs) or decentralised exchanges (DEXs) payment gateways.

Now, we know about the relationship between Web3 and blockchain. Technology is new for a moment, but we will see changes in business operations, organisation transparency, the use of information, internet freedom, and much more. We need to wait for a decade and let everyone settle for the same, i.e., Web3 or blockchain.