If you want to know the main Web3 vs. crypto differences, you’ve come to the right place. In this guide, we’ll explain the key differences between these two terms. We’ll also talk about the role and benefits of cryptocurrencies in the Web3 space. Likewise, you’ll find out what is Web3 crypto mining.
Here’s all you need to know about the relationship between Web3 and blockchain.
Web3 vs. Crypto — Main Differences
Web3 is the next generation of the Internet that uses the Read-Write-Own model. Crypto is a term that refers to blockchain technology.
Unlike blockchain technology, which aims to provide secure transactions, Web3 technology enables decentralized interactions between users and apps. On that note, blockchain technology is associated with cryptocurrencies like BTC and ETH, while Web3 technology is associated with the creation of dApps.
In short, the main Web3 vs. blockchain differences include:
What Is the Role of Cryptocurrency in Web3?
Now that you know the main difference between Web3 and blockchain, let’s talk about the role of cryptocurrencies in the Web3 space. Cryptocurrencies are the backbone of Web3. Besides representing digital currencies, they enable trustless P2P transactions and power dApps.
Cryptocurrencies also keep the Web3 space decentralized. They use DeFi platforms to enable staking, borrowing, and lending in a decentralized manner, so they don’t have to use intermediaries. In addition, they facilitate micropayments by allowing users to monetize their data or content.
Cryptocurrencies and Web3 run on public blockchains, which enables individuals to create Web3 coins. Web3 coins can be described as a combination of blockchain technology and smart contracts. Some of the best Web3 crypto coins include Ethereum and Solana.
Yes, Web3 can work without crypto. Why? Because other technologies, such as P2P networks, DAGs, and DHTs, can support decentralization. Moreover, digital assets, such as digital tokens, utility tokens, and NFTs, can also replace the role of cryptocurrencies within the Web3 space.Can Web3 Work Without Crypto?
Benefits of Blockchain in Web3
The next segment in our Web3 vs. crypto guide will be dedicated to the benefits of using blockchain in Web3. That said, blockchain uses a decentralized ledger, meaning all data on the network will be public. This will prevent single entities from manipulating the data.
Moreover, blockchain will make Web3 transactions more secure because it uses cryptography, which refers to mathematical algorithms that make data unreadable. Blockchain technology also enables the creation of dApps that can be used for various purposes. For example, Web3 DeFi projects will allow financial institutions to provide services without using third parties, such as banks.
Likewise, Web3 blockchain projects will enable the creation of tradable digital assets, like NFTs and cryptocurrencies. Since these assets will be recorded on the blockchain, everyone will be able to trade them without the need for a middleman.
What Is Web3 in Crypto Mining?
Crypto mining refers to verifying transactions and adding new blocks to the chain. Web3 mining enables individuals to become miners without intermediaries and allows them to verify transactions in real time.
Web3 mining involves the use of PoW and PoS consensus. The former includes the use of mining rigs and pools. Miners will have to solve complex mathematical equations to add a new block. On the other hand, PoS enables miners to validate transactions in an energy-efficient manner. It allows individuals to validate new transactions through staking. A larger number of staked coins equals higher mining power.
Miners who successfully add a new block to the chain will be rewarded with the cryptocurrency they mined.
Conclusion
To sum things up, the key Web3 vs. crypto difference includes their roles. In other words, the role of blockchain technology is to ensure transparent transactions. On the other hand, the role of Web3 is to enable decentralized interactions between users and apps.
Moreover, crypto technology enables the creation of digital coins, while Web3 enables the creation of dApps. The main benefits of using blockchain in Web3 include transparency, security, and the opportunity to create tradable digital assets.
FAQs
Is Web3 the same as crypto?
Can Web3 work without crypto?
Is Web3 similar to blockchain?