2021 has proved to be an important year for cryptocurrencies. The word of the year chosen was no fungible token. DeFi has been in the news along with crypto with plenty of announcements. All of these events happened with the pandemic as a background. With the economy in a bit of trouble, people looked for ways to expand their investments and shore up their finances. Crypto seemed a good option and many chose to buy in.
Most conversations revolved around Bitcoin and moved on to bigger projects like CBDE and Ethereum’s network upgrade. News headlines suggest that crypto adoption has become mainstream already. One project has the ability to make this a reality – Web3.
What is this new phenomenon called Web3? It is all about community and the use of the internet. Users can log in and use the internet through decentralized portals instead of relying exclusively on big internet providers or the government. This looks like a logical step for what should happen with the internet. Web versions 1.0 and 2.0 have shortcomings like power being concentrated with a few entity and lots of privacy issues.
We already see Web3 in used by crypto platforms and DeFi spaces like the MakerDAO. The premise for Web3 is to build a worldwide financial system which is not biased and is run on an honor system by a community. DeFi popularity grew rapidly in 2021 and this has resulted in a lot of projects being created and the introduction of related protocols. While DeFi and Web3 protocol projects are separate, these have a lot in common. They are laying a solid foundation for Web3 and its overall adoption.