Web3 relies on blockchain technology as its foundational infrastructure.
The Core Relationship
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Decentralization: Web3 aims to create a more decentralized internet, moving away from the control of large corporations. Blockchain is crucial for this because it is a decentralized, distributed ledger system. This means that data isn't stored in a single location but across many computers, making it much harder to control or censor.
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Building Blocks: As stated by the provided reference, in Web3, "Blockchain is used to create applications that operate on decentralized networks." These aren't just simple websites; they are fully-fledged applications (often called dApps or decentralized applications) that leverage the capabilities of blockchain.
How Blockchain Enables Web3
| Feature | Blockchain | Web3 Application |
|---|---|---|
| Decentralized Data | Data is distributed across many nodes, ensuring no single point of control and increased resilience. | Applications run without relying on a central server, resisting censorship and single-point failures. |
| Transparency | All transactions are recorded on a public ledger, making it auditable and transparent. | Users can verify the validity of operations and are provided with greater transparency into the workings of the applications. |
| Security | Cryptographic techniques ensure the security of the ledger, preventing tampering and fraud. | Enhanced security protects user data and assets within applications, particularly concerning financial transactions. |
| Immutable Records | Once data is added to the blockchain, it cannot be altered or deleted, providing a tamper-proof record. | Transactions are permanently recorded, ensuring the integrity of applications and creating trust. |
Examples of Web3 applications using blockchain
* **Social Media Platforms**: Platforms that operate in a decentralized way, where content is controlled by users rather than a single company.
* **Online Marketplaces**: Platforms for buying and selling goods or services directly between users without a central intermediary.
* **Decentralized Finance (DeFi):** Financial services like lending, borrowing, and trading, operating on the blockchain without traditional financial institutions.Key takeaway
The reference explains that Web3 leverages blockchain to build applications on decentralized networks, highlighting that Web3's decentralized nature is facilitated by the technology of blockchain, thus creating applications with enhanced security, transparency, and user control.
