What is Web3? Understanding Web 3.0 Crypto & Blockchain Technology

31 January 2024
Dawid Siwko
Dawid Siwko
Backend Developer
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Contents

  • Intro

The digital world is constantly evolving, and one of the most significant leaps forward in recent years is the emergence of Web3.

This concept, often central to discussions about the future of the internet, represents a shift from the centralized framework of previous versions of the web to a more decentralized structure.

At the heart of Web3 lies blockchain technology and user empowerment – elements that are set to revolutionize various industries, especially iGaming.

In this piece, we’ll explain the intricacies of Web3 and how it paves the way for a more secure and transparent user experience.

Let’s uncover what is Web3 in more detail and explore how it can enhance iGaming platforms.

Web1 and Web2 – How It All Began

Before we dive into the world of Web3, let’s take a quick trip down memory lane and check out Web1 and Web2. Uncovering these will help us understand why Web3 is such a big deal.

Web1 – The Static Era

Web 1.0 referred to as World Wide Web is where it all started. Back in the 1990s and early 2000s, the internet was mostly a collection of static web pages.

Think of Web 1.0 as a library where you could read but not interact much. It was all about browsing and consuming content, with little room for users to actually contribute.

Web2 – Interactive Revolution

Then came Web 2.0. This is where things got social and interactive. Remember when social networks like Facebook (hello, Meta now) popped up? That’s Web 2.0 in action. 

It wasn’t just about reading content anymore; people started writing, sharing, and connecting. This era was all about creating an ecosystem where users could interact and contribute, turning the web into a two-way street.

The Difference Between Web 1.0 & Web 2.0

The main difference between Web 1.0 and Web 2.0? It’s like going from just watching TV to being in a reality show. Web 1.0 lets you look at stuff, while Web 2.0 lets you be part of the action. It even brought us closer to the semantic web, where the internet began to understand us a bit better.

But even with all its interactivity, Web 2.0 still kept most control over the web with the big tech giants. That’s where Web3 makes its grand entrance.

Web 3.0 Technology: Blockchain-based Future of the Internet

Web3 is a term used to describe a new phase in the evolution of the Internet – a decentralized web. To understand the Web3 definition, you should know it’s built on blockchain technology and brings us things like decentralized applications (dApps), giving us more power over online activity.

Web 3.0’s big promise is to hand the keys of the internet back to the users, making it a more democratic space. Web3 projects are working on making this next generation of the web a reality, where Web3 would transform how users interact.

How Does Web 3.0 Work? – The iGaming Context

In the iGaming industry, this shift to Web 3.0 means more than just embracing new technologies; it’s about rethinking how platforms operate and interact with users. 

Blockchain, the key component of Web 3.0, introduces a new level of transparency and security in transactions and game integrity functioning as a secure ledger for all activities. Cryptocurrencies and digital tokens, integral to this new era, offer new forms of value exchange and asset ownership.

Web3 describes a more inclusive and democratic virtual world, where users have greater control and autonomy over their personal data. For iGaming businesses, it opens up opportunities for innovation, enhanced trust with users, and access to a global market.

It’s a chance to redefine the gaming experience and lead the way in the digital future.

The Web2 to Web3 Transition: What It Means for iGaming

So, we’re transitioning from Web2 to Web3, and it’s a big deal for the iGaming industry. Let’s break down what this shift really means.

  1. More Control, More Fun: In the Web2 world, big tech companies had most of the control. Web3 changes the game. It’s about decentralizing that power, giving players and operators more say in how things run. This is great for building trust and making the gaming experience more about the player.
  2. Safety First with Blockchain: Blockchain development is at the core of Web3, and it’s a win-win for security and transparency. This means fewer chances for fraud and a stronger trust bond with players. Smart contracts, a key feature of blockchain, automate agreements and transactions, ensuring that all parties follow the predefined rules.
  3. Innovate and Thrive: Web3 doesn’t just upgrade security. It opens up new, exciting avenues. From fresh ways to reward players to exploring decentralized finance, the possibilities for innovation are endless.
  4. Welcoming the World: With Web3’s global reach, thanks to cryptocurrencies, we can connect with players from all corners of the world. Plus, it helps cut down on some of those extra costs, especially with payments.

In a nutshell, Web 3.0 will enable iGaming to become more inclusive, secure, and innovative.

The Role of Cryptocurrency in Web3

Cryptocurrencies in Web3? They appear to be a thing. In Web3, they do way more than just handle payments.

For the iGaming world, cryptocurrencies like Bitcoin or Ethereum are a game-changer. They make transactions quick, secure, and transparent, thanks to blockchain technology. This means a lot in the industry, where trust is everything and the speed of transactions can make or break a gaming experience.

Crypto as a Support for Web3

The cryptocurrency boom in Web3 has been impressive. They’ve grown from an intriguing concept to a widely accepted form of digital currency. This growth reflects a growing confidence in cryptocurrencies, which is great news for the iGaming sector.

But it’s not all smooth sailing. There’s the issue of market volatility, which can be a bit of a rollercoaster. And then there’s the regulatory side of things – it’s a bit like the Wild West out there, with rules and regulations still trying to catch up.

In the end, though, cryptocurrencies are at the heart of Web3’s vision for a decentralized and transparent digital world. For those running iGaming platforms, getting on board with cryptocurrencies could really set them apart and offer users a top-notch gaming experience.

Web3 and the iGaming Industry: A New Era

Web3 is revolutionizing not only the internet but also the iGaming industry. Let’s learn more about Web3 and how this shift is bringing a new era to online casinos and sportsbooks.

Security

First up, security. With Web3, the security game is stronger than ever. Blockchain technology is at the forefront here, making sure that every transaction, every bet, and every win is recorded securely and transparently.

This means reduced risks of fraud and a big boost in player confidence. In an industry where trust is key, this is a massive win.

Learn more about building a blockchain network on our blog.

Transparency

Then there’s transparency. Web3 brings everything into the open. Players can see the workings behind the games – like the odds, payouts, and game logic.

Yet, as of now, not all iGaming platforms using Web3 technologies provide full transparency of their internal mechanics like game logic or odds. 

While it’s technically possible to design games on blockchains that offer this level of transparency, it would require specific design choices and implementation by the developers.

Innovations

Web3 opens up a whole new world of possibilities for online gaming. Imagine games that integrate cryptocurrencies or NFTs, offering players new ways to win and own in-game assets

Or think about decentralized gaming platforms where players have a say in how things are run. 

The potential for innovation is huge, and it’s all about making the gaming experience more engaging, fair, and exciting.

For online casinos and sportsbooks, this is a pretty exciting future.

Web3 key components

Web3 and the Metaverse

Metaverse is inextricably linked with the concept of Web3. Think of it as a digital playground where the virtual and real worlds collide. It’s where iGaming gets immersive. You’re not just playing a game; you’re stepping into it.

How Web3 Powers the Metaverse

Web3 could be described as the engine behind the metaverse. Its blockchain tech brings trust and transparency into this virtual universe. It’s what makes the metaverse a place where you can game with confidence, knowing your digital assets and moves are secure.

iGaming’s Virtual Revolution

Imagine walking into a virtual casino that feels as real as Vegas. Web3 makes this possible. It goes beyond flashy graphics. It’s about creating a space where every bet, every game, feels authentic and fair.

NFTs: More Than Just Collectibles

In the metaverse, non-fungible tokens are your prized possessions – they’re your tools, your avatars, even your winnings. Thanks to Web3, owning an NFT feels just as solid as holding a casino chip in your hand.

The Future

Merging iGaming with the metaverse is super exciting, but let’s be real – it’s also a bit of uncharted territory. There’s a lot of tech to figure out, and we need to make sure everyone’s on board and playing safe.

You will read more on the impact of Web3 and metaverse on the iGaming market in our other article, drawing business insights from SBC Summit 2023 in Barcelona.

Wrapping Up: The iGaming Revolution with Web3

Web3 is setting the stage for a major overhaul in iGaming. It brings more security, transparency, and innovation to the table. Yes, there are challenges, like cryptocurrency volatility and evolving regulations, but the potential for a more immersive and player-focused gaming experience is immense.

As we step into this new era, iGaming is poised to not just adapt but thrive with Web3 technologies. It’s an exciting time for the industry, full of opportunities for growth and innovation.

Gear up for the future of iGaming in the Web3 world

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