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Monthly NFT Sales Are 80% Lower Than Last Year, Digital Collectibles Interest Plummeted in 2022
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What is an NFT whitelist, and how can you join one?
A whitelist is a list of wallet addresses with priority access to an NFT collection before making it available to the general public.
Crypto-based scams are constantly sweeping the nonfungible token (NFT) space; therefore, staying updated is the most significant way to prevent both new and existing NFT scams. Other than fraud, intense rivalry for newly minted NFTs may cause prices to rise and transaction fees to skyrocket, making them unaffordable for early supporters.
Nonetheless, these issues have been solved by NFT providers by establishing whitelists or allowlists, giving special privileges and access to a newly minted nonfungible token. Before public minting begins, nonfungible token projects employ allowlists to restrict who can mint NFTs. For example, one can mint NFTs without being concerned about gas wars if they are on the whitelist.
This article will discuss the NFT whitelisting concept and process, why NFT whitelists are used, and how to get on an NFT whitelist.
What is an NFT whitelist?
Whitelisting is a concept used in cybersecurity that refers to approving a list of IP addresses, email addresses and applications while rejecting everyone else. That said, it relates to granting special rights and access to a specific object.
In the NFT space, nonfungible token allowlists are a list of wallet addresses with exclusive minting rights, which ensures the ability to mint one or more NFTs before their scheduled release to the general public, often at a lower cost.
Related: How do you assess the value of an NFT?
A pre-mint, often carried out via a mint pass or an allowlist, gives community members and early backers a chance to the mint before the public sale opens. However, the difference between a mint pass and an allowlist is that a mint pass costs money to mint a certain amount of NFTs ahead of the general sale.
How do NFT whitelists work?
After compiling digital wallet addresses, early access to newly minted nonfungible tokens is given. Getting your address approved for whitelisting is the first thing you need to do as a prospective buyer. Most projects want their NFTs accessible to true fans and early backers, and they evaluate the users’ accounts before adding them to the whitelist.
Related: Nonfungible tokens: How to get started using NFTs
Selected wallet addresses are given a date and time for minting a new token once it has been added to the NFT whitelist. Each project has a different time slot length; however, many allowlists offer a two-day window. Users must wait for the appointed date, and they will be able to access their account at the designated time and mint an NFT as agreed upon.
Benefits of NFT whitelists
Whitelists offer many advantages to investors, collectors and project creators. For instance, allowing devoted fans to mint NFTs before the public can avoid a gas war. In addition, being on the whitelist typically results in a lower mint price than the public mint price.
This means that users on the whitelist will have a free time slot to complete their purchase, and they can spend additional money on actual NFT purchases by saving on gas fees. Furthermore, collectors may be rewarded with airdrops if they are able to mint a high-value project NFT. For instance, holders of the Bored Ape Yacht Club received free Mutant Ape NFTs, allowing existing users to mint new apes for free.
Similarly, project creators save upfront marketing fees and benefit from the early backers’ promotion, who are financially incentivized to remain active in the project and attract new supporters. Additionally, project creators can stop spam from non-whitelisted addresses by creating whitelisted users, which is essential, as shady accounts may raise gas prices and reduce network performance.
Drawbacks of NFT whitelists
Getting onto a whitelist is time-consuming, as it requires consistent engagement on the project’s Discord server and other social media pages. Still, one may not end up on the whitelist if the project fails to gain traction.
Moreover, scammers may conduct a phishing attack and entice investors to click on random links. As a result, users should take caution and only communicate with legitimate project representatives.
In addition, unpopular NFTs may end up being illiquid assets that are challenging to sell on the secondary market. So, always do your own research before minting nonfungible tokens and only put up money if you are satisfied with the project’s future.
How to get whitelisted for NFTs?
By contributing to a project via its Discord server, Twitter, Telegram group, etc., one can gain the attention of the project’s founders to get onto the whitelist. Here are the basic steps to get whitelisted for NFTs:
Look for an NFT project before it launches
In their early stages, the majority of NFT initiatives seeks community members who can aid in raising awareness and reward participants in return. One can search for projects on Twitter and YouTube or use platforms like Rarity.tools to stay up to date with the latest trends.
Join the NFT project’s Discord server
After choosing a project, join its Discord server to interact with other members of that project and contribute to its development. Additional helpful information, such as the background of the project’s founders, roadmap and latest announcements, can be found on the server, which can be used to assess the project’s credibility before joining the whitelist.
Follow the instructions to get whitelisted
The application process to join a whitelist varies from project to project. Follow the instructions by your chosen project to apply to join an allowlist. Once you’ve fulfilled the prerequisites, you’ll need to provide your cryptocurrency wallet address, which, if accepted, will give you access to the whitelist. After being added to the whitelist, you will be given a time slot to mint your token.
How to get whitelisted on Binance NFT
As long as they satisfy the NFT or BNB requirements — e.g., maintain a certain amount of BNB holdings — to commit their tokens toward the sale, customers can have exclusive access to the most recent nonfungible token sales using Binance’s NFT Subscription Mechanism.
Users have the opportunity to purchase NFTs during the sale with participation tickets. The likelihood of your tickets being chosen increases as you subscribe to more tickets. In addition, each user has a subscription cap, and the final NFT will be allocated impartially.
Preparation, Subscription, Calculation and Distribution are the four stages of the Subscription Mechanism process. They are all essential to ensuring that participants have an equal chance in the sale. These phases are explained below:
The steps to participate in the Binance NFT sale through the Subscription Mechanism are listed below:
- Go to the Binance NFT web page after logging in to your Binance account.
- To participate in the NFT sale, click on the banner.
- You will be taken to the subscription page, where you can view information about the project, including the total number of NFTs that have been issued, the number of tickets that can be purchased by each user, the cost of the participation tickets, subscription cap for Participation Tickets, and the subscription countdown.
- Fulfill the required prerequisites determined by each sale.
- By selecting “Subscribe for Ticket(s),” one can enter the number of participation tickets they want to purchase.
- Users can track the progress of their NFT purchase once the winning tickets have been chosen. Successful buyers will discover their nonfungible tokens on the Binance NFT User Center, whereas users with unsuccessful purchases will get a refund from Binance.
How to spot an NFT whitelist scam?
Since the NFT industry is still in its infancy, scammers use fraudulent ways to wipe out funds from victims’ wallets. Therefore, being informed of certain warning signs helps stay protected. As mentioned, getting whitelisted involves a few basic steps. However, if a project representative or a random user asks for a bribe to get your name on the whitelist, it is a scam because genuine nonfungible token creators do not control their community.
Moreover, if you are asked to share your private key or bank details to get onto the allowlist, consider it a red flag and avoid sharing such information. In addition, if you have received an email, text or call from an unverified source about your selection for the whitelist, conduct due diligence on the project before committing funds. Trust only official links posted to the project’s Twitter account or Telegram or Discord channels.
Is it worth trying to get on an NFT whitelist?
Getting whitelisted involves a lot of effort, including investigating NFT presales, continuous contribution to the NFT projects and engagement with the project’s team members. However, one may still fail to get whitelisted, as each project or platform has specific selection criteria. For instance, users must meet Binance’s BNB and NFT prerequisites to participate in the nonfungible token sales using Binance’s NFT Subscription Mechanism.
Regardless, the opportunity to gain early access to intriguing initiatives is typically worthwhile, as one can buy NFTs for a low price and avoid costly gas wars and expensive secondary market trades. Furthermore, users can utilize whitelists to bolster their investment portfolio if they have the proper plan and are willing to put in some effort.
US election agency approves use of NFTs as campaign fundraising incentive
According to the FEC, DataVault will receive “reasonable compensation” for each NFT issued to contributors as well as track all tokens issued for its own records.
The United States Federal Election Commission (FEC) has issued an advisory opinion stating DataVault Holdings may use nonfungible tokens for fundraising efforts.
In a Dec. 15 notice, the FEC said it was “permissible” for DataVault holdings to send nonfungible tokens, or NFTs, to political campaign contributors without violating rules on corporate contributions. According to the election agency, DataVault will receive “reasonable compensation” for each NFT issued to contributors, as well as track all tokens issued for its own records.
“The Commission concludes that DataVault’s proposals to provide political committees with NFTs on the same terms that it regularly offers its non-political clients would be a permissible extension of credit by DataVault in the ordinary course of business,” said FEC Chair Allen Dickerson. “Under the Act and Commission regulations, an incorporated commercial vendor may extend credit to political committees under terms substantially similar to those the vendor offers non-political debtors. DataVault is a ‘commercial vendor’ because its usual and normal business involves the provision of the same services that it proposes to provide to political committees.”
Speaking to Cointelegraph, DataVault CEO Nathaniel Bradley said:
“We are very pleased by the unanimous approval by the FEC of our patented DataVault platform for use by political campaigns here in the US. In a broader view, we believe, Blockchain technology represents the future for elections that seek to be trusted and transparent in their outcomes in the future.”
In September, DataVault’s legal team proposed the firm be allowed to send NFTs as souvenirs — “in a manner akin to a campaign hat” — to individuals who contributed to political committees. The tokens would also give tokenholders the option to use them for promoting a campaign “strictly on a volunteer basis and without any compensation.” Any fees from issuing NFTs or transactions would be reported as a “fundraising expenditure,” according to DataVault.
The FEC issued a similar advisory opinion in 2019 on blockchain tokens, saying certain ones were “materially indistinguishable from traditional forms of campaign souvenirs.” In that case, congressional candidate Omar Reyes’ tokens had “no monetary value” and were used as an incentive to engage in volunteer activities for the campaign.
Related: FEC probe demanded after SBF 'admitted' making dark money donations
NFTs have sometimes been connected to political campaigns globally. In South Korea, the campaign behind Democratic Party candidate Lee Jae-myung said in January it would issue NFTs showing images of the politician and his campaign pledges to those who made donations.
RENGA Black Box, Invisible Friends, Great Goats, C-01, and more collections added to Kraken NFT
We’re thrilled to announce that we have added ten new NFT collections to Kraken NFT for our current beta testers to explore, collect and trade. After revealing the first 70 collections earlier this year, and dozens more over the past few weeks, we carefully selected…
The post RENGA Black Box, Invisible Friends, Great Goats, C-01, and more collections added to Kraken NFT appeared first on Kraken Blog.
Open to all: Explore, collect and trade with the Kraken NFT Public Beta
We are thrilled to announce that Kraken NFT has moved to Public Beta and is now open to all clients! Following today’s earlier launch of Kraken Pro, clients will now benefit from two new and unique services, demonstrating Kraken’s commitment to accelerating the adoption of…
The post Open to all: Explore, collect and trade with the Kraken NFT Public Beta appeared first on Kraken Blog.
Y00ts, BEANS – Dumb Ways to Die, Treeverse – Plots, Taiyo Robotics and more collections added to Kraken NFT
We’re thrilled to announce that we have added ten new NFT collections to Kraken NFT for our current beta testers to explore, collect and trade. After revealing the first 70 collections earlier this year, and dozens more over the past few weeks, we carefully selected…
The post Y00ts, BEANS – Dumb Ways to Die, Treeverse – Plots, Taiyo Robotics and more collections added to Kraken NFT appeared first on Kraken Blog.
A beginner’s guide to NBA Top Shot NFTs
The collective sales volume of NBA Top Shot NFTs has dropped 99% from its February 2021 peak.
NBA Top Shot is a nonfungible token (NFT) marketplace that enables basketball fans to buy, sell and trade NBA-themed digital collectibles.
These collectibles are "Moments" — NFTs of NBA video clips and digital art — available per their degree of rarity. In other words, users can trade NFTs that feature anything from a winning three-pointe from Luka Dončić to a dunk from Lebron James, depending on their availability.
![](https://s3.cointelegraph.com/uploads/2022-12/08b6ca20-dad9-4259-9d03-b6853639e866.png)
The concept is akin to traditional sports collectible where fans attempt to acquire the rarest of items associated with teams, with an aim to either collect or sell it later at a higher price. Except, in the case of NFTs, these collectibles are digital — unique cryptographic tokens that exist on a blockchain and theoretically cannot be replicated.
How does NBA Top Shot work?
NBA Top Shot is officially licensed by the NBA, the NBA Players Association, and Dapper Labs. The marketplace runs on the FLOW blockchain, which Dapper Labs built as a developer-friendly ledger to support "the next generation of games, apps, and digital assets."
As explained above, the NBA Top Shot platform functions like trading cards. It starts with the NBA licensing its reels and digital art to Dapper Labs. In turn, Dapper Labs uses the footage to create Moments as NFTs.
Each Moment has a unique serial number attached to it, which guarantees its authenticity and shows its rarity. In addition, the Dapper Labs team creates only a limited number of NFTs to ensure scarcity. As a result, the commonly available Moments are cheaper in valuation than the rarer ones. The NBA Top Shot website explains that:
An NFT is a one-of-a-kind, non-fungible, cryptographic token representing a unique digital asset for which there is no copy or substitute. An NFT cannot be substituted for another NFT as each NFT is distinctive and unique in some way. An NFT is not a medium of exchange and is not convertible virtual currency.
Each moment is secured by the blockchain, meaning your Moment is Unique and Licensed by the NBA and NBPA.
Moments come as a part of "Packs," similar to how traditional sports cards come in a bundle. In turn, packs are a part of the so-called "Series," which gets launched concurrently with the NBA season. So, fans can collect new packs of NFT moments that feature the season's best highlights.
In addition, fans can collect Moments from the past depending on their availability. For example, they can get Magic Johnson's dunk from May 16, 1980.
NBA Packs and Moments
Collecting NBA Top Shot Moments is not a straightforward task. Typically, users do not know what Moments they will receive when they go ahead with a purchase, given the availability of each NFT depends on the the kind of set or Pack it comes from.
NBA Top Shot features four types of Moments: Common, Fandom, Rare, and Legendary. There is also a fifth category, called Ultimate, but this Moment is attainable only via auction. Anyway, here's how the other four categories work:
- Legendary Moments: comprise 0.09% of the total available Moments, which makes them extremely rare and tough to acquire. Naturally, Legendary Moments are more expensive than most of their counterparts.
- Rare Moments: comprise 1.6% of the total Moments and typically feature historical plays from NBA legends.
- Fandom Moments: availability is not fixed since Dapper Labs create them based on special experiences associated with specific events. For instance, the firm can make Moments available in real time to only those users who were available in the arena.
- Common Moments: comprise 95.8% of the total Moments, meaning they are easily available and cheaper than other categorie.
![](https://s3.cointelegraph.com/uploads/2022-12/a5abde8e-145b-4fda-99f6-c414e8437b99.png)
Dapper Labs groups the top shot Moments into Packs and presents them as Sets. These Sets come in two distinctive categories: Base and Non-Base. Here's how they work:
- Base Sets: These packs fall in Common rarity category and are released in order of Series and release, i.e., Series 1 had 12 releases. They contain three basic Moments and are ideal for users who are just starting their NBA Top Shot collection.
- Non-Base Sets: Unlike Base Sets, Non-Base Sets come in variations and contain at least one Common Moment in addition to a Rare or Legendary Moment. That makes the sets costlier.
![](https://s3.cointelegraph.com/uploads/2022-12/500ba4ab-91d9-42aa-ad4a-5166326df4e6.png)
NBA Top Shot Challenges and Quests
Challenges and Quests serve as a parallel avenue from where NBA Top Shot users can receive Moments, but as rewards not sales.
Related: DeFi, NFT, blockchain games: Key takeaways from DappRadar’s 2022 review
For instance, Challenges grant rewards to users who fulfil a given task in a specific timeframe. In detail, NBA Top Shot can launch a challenge with directives to collect a particular number of Moments in specific hours or days. Users who complete the challenge receive a freshly minted Moment.
Similarly, Quests offer rewards to users for finishing tasks, except the tasks are like scavenger hunts, wherein users are told to locate and build an exhibit for Moments with certain characteristics. As a result, Quests appear to be more difficult than Challenges and, therefore, return greater rewards.
A word of caution
The demand for NBA Top Shot exploded in 2021 with its sales volume reaching a pick around $224 million in sales volume from over 80,820 unique buyers in February. By November 2022, the sales volume had declined to about $2 million from some 10,000 unique buyers.
![](https://s3.cointelegraph.com/uploads/2022-12/594f4920-d8a6-4d97-a769-dffe8b9c04d4.jpeg)
The crash in demand came in line with similar drops across the NFT space with many leading projects, including Bored Ape Yacht Club and CryptoPunks, witnessing lower demand. As a result, some analysts rubbished the NFT market altogether, calling it a bubble.
2022 was the year of killing scams:
— Arlen Parsa (@arlenparsa) December 15, 2022
NFT bubble burst
Crypto collapsed alongside corps like FTX that were huge Ponzi schemes
Conservative pollsters making up numbers were proven wrong
Trump’s company was found guilty of tax fraud
Investors realized Elon Musk isn’t a genius
As a result, venturing into NBA Top Shot space to speculate on its Moments remains a risky proposition and potential collectors should never invest more money than they can afford to lose.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
DeFi, NFT, blockchain games: Key takeaways from DappRadar’s 2022 review
Despite a tumultuous year, DeFi, NFTs and blockchain games drove DApp usage across the industry, according to DappRadar’s 2022 report.
2022 will go down as a challenging year for the cryptocurrency and blockchain space, but the adversity faced has been strewn with plenty of positives for the decentralized application (DApp) ecosystem.
DappRadar has released its yearly report on the industry, focusing on challenges faced alongside notable technological achievements and an increasing number of active daily users.
Cointelegraph highlights the main takeaways from the DApp industry in 2022, which are pertinent, considering macro factors like inflationary concerns in major economies, the collapse of industry-specific projects like Terra/Luna and FTX, as well as market woes across the board.
Perhaps most telling is unique active wallet data (UAW) from 2021 and 2022, demonstrating a 50% increase in the average daily UAW year on year. This is up from 1.58 million daily users in 2021 to an average of 2.37 million daily active users in 2022.
![](https://s3.cointelegraph.com/uploads/2022-12/6fd99535-a7e5-4ed7-8569-6f534291ff6c.png)
It must be noted that there was a downtrend of DApp users from February 2022, which DappRadar associated with the escalating war in Ukraine as well as crypto-specific black swan events, including Terra/Luna and FTX’s collapse.
The decentralized finance (DeFi) industry was particularly affected in the wake of Terra’s TerraUSD (UST) depeg and the resulting cryptocurrency market decline, with a significant drop in total value locked (TVL) of around 73% to $55 billion as of December 2022.
Related: Gaming makes up over half of blockchain industry usage, DappRadar
Layer-1 DeFi protocols saw the biggest drop in TVL, with Ethereum experiencing a 74.5% reduction to $32.12 billion TVL, while the second biggest DeFi ecosystem, BNB Chain, recorded a 62.5% drop in TVL in 2022. Layer-2 protocols fared slightly better, with Arbitrum falling 12% to $1.74 billion. Optimism’s TVL increased by 127.60%, hitting $669 million.
On-chain data for nonfungible token (NFT) trading volume was in contrast to DeFi’s year-to-date. NFT trading volume increased by just 0.41% year on year, while the number of unique traders increased by a staggering 876% to reach 10.6 million users in 2022. NFT sales also trended positively, increasing by 10.6% to reach 68.35 million. OpenSea remains the most popular NFT marketplace, accounting for 73% of organic NFT trading volume.
Blockchain games played a significant role in the DApp space, accounting for 49% of activity in 2022, with an average of 1.15 million daily UAW. In total, the sector produced 7.4 billion transactions this year.
Blockchain-powered trading card game Splinterlands was the most popular platform, according to DappRadar, growing by 85% to reach 217,914 monthly unique active wallets in 2022.
Terra’s implosion accounts for $40 billion of funds lost, while DappRadar estimated the median loss per hack was around $283,000 and losses per month were pinned at $728 million.
DappRadar integrated 49 blockchains, tracked 13,000 DApps and 13,500 NFT collections and noted that the increased number of DApps reflects the resilience and potential of the sector, with projects continuing to build and innovate despite a challenging macro environment.
Hacks, thefts and rug pulls are also featured in DappRadar’s 2022 review. A total of 312 attacks resulted in total losses of $48.74 billion across the board, the highest amount on record since Bitcoin’s inception back in 2009.
What is the relationship between blockchain and Web3?
Amidst the Web3 revolution, the importance of blockchain in Web3 lies in offering a universal state layer to build the decentralized Web.
How can companies prepare for a Web3 world?
Organizations may create competitive DAOs, use tokenized assets, and actively share the value they create with their user networks to survive in the Web3 world.
After the rising market for NFT artwork and collectibles in 2021 and the metaverse land grab in 2022, Web3 presents opportunities for innovative business models, products, and established organizations.
Although traditional organizational structures vary from company to company, positions are best filled by individuals who can best serve the interests of shareholders. By swiftly and effectively establishing roles and permissions using NFTs that reflect individuals’ rights and responsibilities, decentralized autonomous organizations (DAOs) can redefine hierarchy, delegation and structure.
Therefore, organizations should conduct sufficient research to create competitive DAOs to switch their centralized systems to decentralized structures. In addition, companies can use tokenized assets that can be exchanged on a blockchain, which increases the asset’s liquidity and makes it possible to transfer ownership of it.
Related: Asset tokenization: A beginner’s guide to converting real assets into digital assets
Due to the fact that new entrants can instantly reach enormous networks of potential consumers by developing their applications on top of open blockchain protocols, Web3 is likely to change the competitive dynamics. As a result, companies can gain more value from a blockchain’s built-in user base of native tokenholders.
Therefore, businesses will need to develop innovative ways to safeguard their user networks by actively offering users the value they create. However, businesses should consider the possibility of future regulation when deciding how to position themselves strategically in relation to Web3. More laws will probably follow as more people turn to blockchain and cryptocurrencies.
How might blockchain propel the expansion of Web3?
Blockchain technology will increase the breadth of Web3 accessibility with features like trustless payments, decentralized governance, cross-chain interoperability and earning digital assets while playing games.
While considering how blockchain changes the data structures in the backend of the web, it becomes clear that blockchain is the basis for Web3. A storage used to store and arrange data is called a data structure. It is a method of setting up data on a computer to keep it up to date and make it easily accessible.
Because it offers cryptographic proof of a series of transactions, the role of blockchain in Web3 is crucial, especially in raising the level of trust among network users. That said, blockchain’s governance layer allows two unidentified parties who don’t trust one another to negotiate and complete deals online.
In this style of governance, the blockchain protocol contains the rules for implementing modifications. Through code updates, developers submit amendments and each node votes on whether to accept or reject the change without the intervention of third parties.
Furthermore, blockchain-based DApps, domains and websites allow decentralized interaction among users and applications, leading to the expansion of Web3. For instance, Web3 applications like Brave Browser, which offers privacy-enhancing and ad-blocking features, are examples of decentralized web growth.
Furthermore, Web3 is seamless and streamlined, thanks to the improved capability of blockchain interoperability solutions like Polkadot, making it easy for consumers to switch between platforms or applications. With one’s favorite wallet, they may trade NFTs between networks and monitor the growth of their whole portfolio from one location, significantly pushing for Web3 adoption and more widespread blockchain use.
Moreover, Web3 gamers can gather and exchange NFTs across the metaverse thanks to the decentralization of games, which allows them to retain control of the information and assets they own. Blockchain-based games like Axie Infinity also enable players to make money by gathering cryptocurrencies as they play. Later, this cryptocurrency can be changed to fiat money.
How is Web3 related to blockchain?
Blockchain is the crucial technology that powers the decentralized web and alters a fundamental dynamic of the current version of the web, in which businesses squeeze consumers for as much data as possible.
Blockchain-powered tokens and shared ownership address the fundamental issue with centralized networks: value is accumulated by a single organization, which then conflicts with its own stakeholders. In addition, data independence is guaranteed by Web3 DApps through the use of blockchain technology.
Due to decentralization, users become the ultimate content owners as no centralized authority verifies data. Additionally, DApps are altering the paradigms of community engagement and governance by allowing users to vote and give ideas, offering everyone an equal opportunity to participate in the project implementation.
Related: What is a decentralized autonomous organization, and how does a DAO work?
In addition to the above, blockchain supports the creation of crypto domains, such as .eth, .crypto and .dao. A decentralized crypto domain substitutes a human-readable address for a user’s crypto wallet for an IP address, and these Web3 domain names can be traded as NFTs on nonfungible token marketplaces.
A decentralized domain name representing a blockchain address is desirable because it is a simple-to-remember address for sending and receiving cryptocurrency, similar to an email address.
Are blockchain and crypto essential for Web3?
Cryptocurrencies and blockchain are the building blocks of Web3. However, the decentralized web also relies on technologies like AR, VR, IoT and others unrelated to blockchain or digital currencies.
The third generation of the internet, known as Web3, is based on blockchain technology. However, technologies like machine learning, big data, artificial intelligence (AI), the Internet of Things (IoT), augmented reality (AR), virtual reality (VR) and others enable decentralized apps (DApps) to analyze information in a sophisticated human-like manner in a Web3 environment.
For instance, virtual reality headsets will create an exceptional shopping experience, allowing customers to interact with the products before making a purchase. However, these technologies are not based on cryptocurrencies or distributed ledger technology but aim to increase blockchain technology’s efficiency.
Furthermore, blockchain plays a significant role in building the infrastructure of Web3 by allowing organizations to decentralize Web2 services, including cloud computing, social networking sites and databases. Therefore, combining AI and blockchain technology will undoubtedly give organizations a better way to manage confidential data sets.
By validating the supplied data, AI technology can quickly complete the process request and the smart algorithm will help make quick decisions regarding issuing funds or approving credit. Also, the data sets can be effectively protected via the blockchain. Similarly, other technologies such as AR and VR are crucial in defining the metaverse, exploring novel ideas and elevating virtual experiences.
Moreover, cryptocurrencies eliminate the need for a reliable middleman by allowing Web3 users to use tokens like Ether (ETH) to send and receive money. That said, cryptocurrencies support peer-to-peer payments and can serve as a digital-native remittance method. Blockchains would lack the incentive system for network involvement without cryptocurrencies. Also, users wouldn’t have anywhere to store the cryptocurrency without crypto wallets.
In addition, Web3 is intended to be permissionless, trustless, and open to all, as it embraces the crypto ethos. Similarly, nonfungible tokens (NFTs) enable users to transparently demonstrate proof of ownership for items like in-game assets, digital art, personal data and others.