“Web3”, “non-fungible tokens”, “decentralised finance”, “Ethereum network”. These used to be highly specific terms used by a niche group of tech enthusiasts and eccentric investors. Today, they’ve not only found their way into standard business speak, but also feature in in mainstream media and public conversation.

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When writing this article, I initially attempted to define some of these terms as I have come to understand them. However, many of these terms are still evolving and only barely defined, with most being relatively new to mainstream use, often discussed in different contexts and with varying degrees of specificity. The wikipedia discussion page on Web 3.0 (notably different from Web3) provides an example of just how complicated it can be to come to a consensus on the term.

 

Rather than debate the definitions, this article will instead focus on the variety of new technologies that are being developed and how they are interconnected. I will also provide a very broad, cursory overview of these technologies, instead of narrowing in on the consequences or definitions of any single example.

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 Non-fungible tokens 

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One of the more popular topics among tech enthusiasts today are non-fungible tokens (NFTs). Whereas fungible items can be replaced by a replica with the exact same value, like any US dollar bill for instance, non-fungible items are instead unique. A trading card of one-of-a-kind artwork, for example, is non-fungible.

 

A non-fungible token is a digital token that proves your ownership of any digital work you purchase - like this famous tweet, purchased for a cool $3 million USD last year. Famous NFT proponents today include Mark Cuban, Shark Tank billionaire and owner of the Dallas Mavericks, and Gary Vee, an American entrepreneur and speaker.

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While NFTs today have been mainly concentrated around artwork, they open up huge possibilities across digital transactions. Music, memes, TikToks, and even concert tickets can now be converted into NFTs, with individual artists to international corporations such as Marvel all getting involved in their creation.

 

 The Ethereum network 

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Most NFTs today are sold through the Ethereum network, which is decentralised - not managed by any individual person corporation - on the blockchain. Transactions are made through smart contracts, which are programmes stored on the network that execute transactions once predetermined conditions are met - for instance, once a bid on an NFT is made and accepted by two parties. Crucially, these smart contracts  are able to trace who exactly had purchased or resold each ticket, establishing digital ownership.

 

Ethereum, however, has a wide variety of offerings besides NFTs. Decentralised Applications (dApps) offer the same functionality as the regular mobile apps we know, it bypass the interaction with corporations. There is no one entity controlling the functionality of a dApp. They are open-source and all records are public, allowing easy review of transactions made on each app and what data they collect.

 

Additionally, smart contracts have the potential to greatly reduce legal issues surrounding the execution of physical contracts. With the terms and execution of each contract being directly written into code, all transactions would be automated with a predetermined and agreed upon condition for execution. The extent to which smart contracts can function in the real world, however, is yet to be seen - particularly with more subjective contractual agreements such as employment contracts, where labour cannot be reduced to a programmed condition.

 

Following the explosion of Bitcoin, Ethereum, and the blockchain network over the last decade, cryptocurrency wallets have also been appearing by the millions. There are currently over 82 million Bitcoin wallets in use with over 272,000 Bitcoin transactions per day. Dozens of cryptocurrency wallet applications are being developed to support these transactions.

 

A crypto wallet is essentially the same as a physical wallet, except that it stores, and allows trading of, select cryptocurrencies. Difference applications support different cryptocurrencies and have unique sets of features. Some of the most popular include Coinbase, Metamask, Exodus, and Trust Wallet.

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 Web3 

 

Finally, Web3 is likely the most broadly defined term used when discussing the new internet. Web3 is based on the use of blockchain technologies to create decentralised platforms not centred around corporations or governments. It also encompasses cryptocurrencies, the Ethereum network, and most forms of blockchain-based token trading.

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For the average user, the actual terminology and financial nuance may be uninteresting; however, if Web3 turns out to really be the successor to Web 2.0 (the internet as we know it), it will represent a complete transformation of how we operate digitally.

 

Corporations and individual entities would no longer be at the centre of our communications. Contract regulations would have to change significantly to accommodate smart contracts, and cryptocurrencies would become a mainstream form of financial transaction.

 

If NFT tickets for live events become reality, tracking the sale of tickets and preventing scams would also become significantly easier; however, anonymity would also be much harder to maintain. Whether or not you are interested in engaging at the moment, these concepts are worth exploring; they may be a fad, but they may also be the reality of the near future.