12/22/2021
- There's been so much talk of "Web3" from Elon Musk to Jack Dorsey, Tesla CEO and former CEO of Twitter. I believe they both have an inaccurate understanding of what Web3 is. I will try my best to explain, so that others are informed.
Web3 was created by the Co-Founder of Ethereum. Web3 is another name for Ethereum. Most think Ethereum is a Cryptocurrency, when in reality, Ether is the name of the Cryptocurrency. Ethereum in contrast, actually is a Worldwide Computer (named the Ethereum Virtual Machine), which uses the connected personal computers of individuals, worldwide, as its infrastructure. The dominant internet we are using now, rather than running on Decentralized personal computers scattered across the globe, instead currently runs on Centralized servers owned by only a hand-full of large and dominant companies.
So how does Web3 work? It works just like your laptop. You can program Web3 like any computer to do whatever you can think of. It is programmed in the computer language Solidity. The issue, is that the Web3, Ethereum, Ethereum Virtual Machine, whatever you want to call it, in order to process information, it requires a fee, like paying the utility company in the Winter everytime your heat kicks on. They call this a "Gas Fee".
Gas fees are denominated in Ether. Ether is to Web3 what the U.S. Dollar is to America. But Gas prices are sky high in the Web3 world. So not only does Web3 charge Gas for trading Ether, it also charges Gas for any computation, such as saving an image to be stored in Web3, Creating Smart Contracts in Web3, hosting a Website on Web3, or the even building out the Metaverse on top of Web3.
So Web3, is Ethereum. Ethereum is Web3. Web3 is open to all who stake a claim. I hope this helps. - EM
Disclaimer: The Quantum Coin Foundation is a Web3 Company, whose Smart Contract was created and exists on the Ethereum Blockchain.
The Twitter and Block co-founder is a supporter of crypto, but not so keen on how Web 3 is being funded.