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Reminiscent of the days of non-interactive links and static web pages, accessed primarily via dial-up access, all that comes to mind is the transition from web1.0 to web2 in the middle of the internet bubble – all in the age of the millennium. And now web3, which is disrupting the internet at unprecedented levels, is trending with the introduction of crypto, NFTs and blockchain to global markets.

Web3 is a blend of the modern web and its predecessors, decentralized in a form that has received a lot of attention and debate. Processing information in a human way through machine learning, decentralized ledger technology and big data is the USP of this third generation internet known as web3.

Here we will debunk the myths around web3, which need to be addressed in order to make it transparent.

blockchain

In simpler terms, blockchain means a computer file for storing data. It is an open database or register distributed over many systems or computers, therefore decentralized (without third party involvement). Its transparency offered the blockchain the ultimate traction, giving attackers no focal point to hack into it. However, what’s disappointing right now is how these myths surround her identity.

Blockchain is heavily looked down upon for its security and privacy. The myth around its verification must be busted, because this whole process is completely secure thanks to hash. Therefore, the privacy of your data is completely secure and depends on public or private release factors. For example, the public blockchain is permissionless, allowing anyone to become a node by accessing to join the network. However, it can only be identified by means of a public key (derived from a private key). On the other hand, a private blockchain is a bank-operated system where users need permission to access, read or write information, providing more privacy to their data. This implies that both are safe.

Another myth compares the value of Bitcoin to that of the blockchain, which can often be used interchangeably. Indeed, Bitcoin has no identity without the blockchain, and this technology underpins Bitcoin. Yet they are highly differentiated in various terrains. For example, the difference in smart contract execution, transparent record keeping, supply chain auditing and information transfer are some of these indicators. Nevertheless, the blockchain stands out in certain aspects, followed by distributed databases and transparency, which makes it exist beyond Bitcoin.

Cryptocurrency

Although we mention blockchain, which addresses several issues, both private and public, it becomes equally crucial to mention the common link between cryptocurrency, blockchain, and Bitcoin when it comes to Web3. Bitcoin is a cryptocurrency that works on the concept of blockchain, along with others like Ethereum, Ripple, etc. Introduced in 2009, it gained popularity and also courted rumors during this period. The Most Popular Myth About Cryptography Suggests Its Use In Illegal Activities. Studies claimed to link criminal organizations to digital currencies, suggesting their illegal use, like any other form of currency throughout history. This point is still not supported by facts.

In this wake, Reported chain analysis“Total transaction volume grew to $15.8 trillion in 2021, up 567% from 2020 totals, transactions involving illicit addresses accounted for just 0.15% of crypto transaction volume. currency in 2021, which is lower than expected.”

The security of transactions with linked blocks, encryptions and consensus mechanisms, makes it almost impossible to “steal” cryptocurrency on the blockchain.

“The government is open to promoting innovation and well-founded advancements in distributed ledger technologies, which are coming to blockchain,” Finance Minister Nirmala Sitharaman said, amid lingering concerns over the use abuse of cryptography.

NFT

The use of NFTs (non-fungible tokens) has increased dramatically over the past year and these are sold at an impressive numerical value. This surely challenges the myth regarding the bursting of the NFT bubble. NFTs are digital assets with only verifiable quality. Non-fungible means no free exchange status on an individual or duplicate basis. They can be seen on the blockchain’s public ledger and are visible on all nodes.

The Biggest Myth Around NFT Is Its Relationship With Cryptocurrency. Although they are both built on blockchains, the major difference is in their fungibility. Crypto is a fungible asset, traded only with the asset having the same value. Consider the scenario of trading Ethereum only with another crypto having the exact value, unlike NFT. On the other hand, each NFT contains a unique and irreplaceable value. Therefore, NFTs represent a digital asset, not a currency.

Followed by further clarification of its identity as an asset, which indicates that it is not just the asset, but a uniquely represented digital data record linked to an asset (mostly digital ) by cryptographically associating the token with the asset. In other words, NFT is simply separated from the asset, but a key to find the asset is called digital assets or “hash”.‘. Also, it is the NFT, not an asset stored on the blockchain’s digital ledger.

In addition, the blockchain is the platform where NFTs are sold, which raises doubts about its environmental impact. But in reality, most of this process comes from renewable energy modes, for example. the next Ethereum merger, where most NFTs are traded, goes from POW (proof of work) to POS (proof of stake).



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