In this article, we explore some of the top Web3 projects to look out for in 2022. Also, we discuss some of the foundational pillars of Web3 and the technology that powers the most prominent blockchain and Web3 projects.
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What is Web3?
The iteration of the internet that most are familiar with is Web2. The first version of the Web (Web1) primarily consisted of static images and text. Users could look at the images and read the text, but not much else. The advent of Web2 would pave the way for interactive web applications, marketplaces, user-generated content, and social media platforms. However, many of the biggest players in the industry are coming under increasing scrutiny for their use of personal data and targeted advertising.
So, What is Web3? Web3 is the term used to describe the next generation of the internet. This shifting paradigm of technology aims to reduce the concentration of power among big tech companies and place it in the hands of users. These technologies promote decentralization and interoperability.
Also, blockchain plays an essential role in the Web3 movement and is at the heart of many community-led Web3 projects. Moreover, Web3 projects enable users of decentralized applications (dApps) to decide what data they monetize. Plus, the value this data generates stays with the owner. In turn, this provides an equitable and mutually-beneficial solution to big-tech data mining.
Although Web3 spans multiple blockchain networks, most of the pioneering Web3 technologies were built on or for Ethereum. Ethereum was the first smart contract-enabled blockchain. Also, Ethereum is largely responsible for bringing about the term “programmable money”. Accordingly, many Web3 developers cite Ethereum as a catalyst and a lynchpin of the Web3 movement.
Many of the technologies found in cross-chain decentralized finance (DeFi) platforms and Web3 projects have roots in Ethereum. For example, top blockchain networks such as Binance Smart Chain and Solana use adapted versions of the Ethereum Virtual Machine (EVM) for supporting Ethereum smart contracts. In turn, this enables Ethereum technologies to be transposed throughout the blockchain and DeFi industries.
Decentralized finance (DeFi) is one of the core features in several Web3 projects. DeFi uses smart contracts and trustless protocols to facilitate peer-to-peer financial services on the blockchain. Furthermore, the DeFi ecosystem enables anyone to access next-generation open-source technologies without the need for intermediaries. Moreover, DeFi operates outside of the traditional financial system and is open to all.
Check out the DeFi 101 course at Moralis Academy to learn more about DeFi. Here, we teach students how to safely interact with top DeFi projects using MetaMask, the number-one Web3 wallet. Also, take your DeFi game to the next level with our DeFi 201 course. This course teaches students about yield farming, liquidity pools, crypto arbitrage, and more! Dive into the world of Web3 with Moralis Academy!
A decentralized autonomous organization (DAO) is a member-led community that provides a safe way to commit funds towards a particular cause without intermediaries or centralization. DAOs are a safe and efficient way of collaborating online with people you may not know.
Furthermore, DAOs are managed by members. Also, DAOs have treasuries that can allocate funding to a specific cause. However, nobody can access these funds unless the entire group approves. Moreover, the governing process takes place via on-chain governance proposals and voting.
As such, DAOs offer an equitable, inclusive alternative to traditional governance models. Nobody can spend funds without the consent of the group. Plus, all decisions are transparent and visible on the blockchain. The DAO model helps to remove trust between parties and minimizes friction in project governance. In turn, this makes collaboration on Web3 projects more efficient and fair.
One of the biggest crypto trends in recent years is the “metaverse”. The metaverse is a term that describes a series of three-dimensional, interactive virtual worlds. Whereas the internet is something we see, the metaverse is somewhere we exist. It includes immersive gaming platforms, virtual workspaces, and social engagement applications. Plus, the metaverse enables anyone to develop digital economies using blockchain technology.
Many of the decentralized applications (dApps) and blockchain protocols that feature in the metaverse are also a part of the Web3 world. To learn more about the metaverse and the technologies that enable it to exist, save our “What is the Metaverse?” and “What are dApps?” articles for later! Also, see our “What are NFTs?” and “Top Crypto Games” articles to learn more about the metaverse and crypto gaming!
Top Web3 Projects
With so many successful projects in the Web3 space, there are countless candidates for the top Web3 projects list. However, in the following section, we’re going to observe the top-ranking Web3 projects from the CoinMarketCap top Web3 project list (arranged by highest market cap). This list provides a cross-section of the different applications for Web3 technologies and the diversity of the Web3 industry.
Filecoin is a decentralized blockchain-based protocol for securely storing and retrieving data without centralized servers. The project uses the native FIL token to incentivize network participants to give up their free hard drive space and offer optimal performance. Accordingly, Filecoin is creating a decentralized data economy for Web3.
Furthermore, Filecoin offers highly competitive pricing for file storage compared to many centralized services. Plus, users benefit from the many privacy-preserving features at the heart of the protocol.
Helium is a decentralized machine network that uses radio-wave technology to mine the native HNT token. Also, Helium provides wireless coverage for Internet-of-Things (IoT) devices, including environmental sensors and GPS trackers.
Network participants can use a small hotspot device at home or in their office to facilitate low-power network coverage for miles. In return for providing network coverage, participants can earn a passive income in the form of HNT tokens. Accordingly, Helium is positioned to become one of the leading names in Web3 by offering a simple, cost-effective solution for IoT connectivity. Moreover, Helium uses the novel Proof-of-Coverage consensus mechanism to verify network transactions and validate the provision of wireless coverage by Hotspots.
IOTA is an Internet of Things (IoT) data transfer protocol that uses Directed Acyclic Graphs (DAGs) rather than blockchain technology. DAGs are a form of distributed ledger technology (DLT) like blockchain. Plus, DAGs boast many of the same properties as blockchain but without some of the perceived inefficiencies.
One of these inefficiencies is transaction fees. Most public blockchain networks require payment for validating transactions. However, DAGs provide higher throughput and greater scalability by removing the need for transaction fees. They achieve this by enabling senders to validate two other transactions with each of their own.
Rather than incentivizing miners to validate blocks and add them to a blockchain, IoT data can be transferred without friction. Moreover, IOTA makes exchanging value and data fast and cost-effective. Accordingly, the platform is helping to foster a variety of trustless digital economies.
BitTorrent is a blockchain-based file sharing protocol. The platform uses the native BTT token to incentivize participants in a token-based economy to give up their hard drive space and computing resources. Furthermore, BitTorrent aims to establish collaborative partnerships between users for sharing large quantities of data trustlessly.
The platform offers decentralized torrent file sharing along with a browser-based torrent and streaming service. Moreover, BitTorrent and sister brand µTorrent boast over two billion users.
The Graph is a middle-layer query protocol that enables developers to quickly create decentralized applications (dApps) on Ethereum. The aim of The Graph is to become a decentralized Web3 layer that tech conglomerates can’t manipulate or overpower. Also, the project reduces the amount of time required to get dApps to market quickly, saving a great deal of time and energy during the development process.
Indexers are tasked with running nodes and processing queries throughout the network. They must stake the native GRT token in order to have “skin-in-the-game”. This incentivizes all network participants to act honestly, as malicious behavior could cost an Indexer their stake.
Arweave is a blockchain-based decentralized data storage platform. The platform offers a “permanent serverless web” service that uses perpetual endowments and distributed servers for long-term data storage. Also, the platform enables all network participants to earn the native AR token by renting out unused hard drive space.
Furthermore, the platform offers “information permanence”, protecting all data from permanent loss. Unlike centralized alternatives, Arweave has no single-point-of-failure. Instead, all data archiving is distributed across hundreds of computers worldwide. Accordingly, data is always retrievable.
Basic Attention Token (BAT)
Basic Attention Token (BAT) is the native cryptocurrency of the Brave Web3 browser. Brave is a free-to-use, open-source web browser that pays users in the native BAT token for their “attention”. Users can earn a passive income by watching privacy-preserving adverts. Plus, Brave prevents website trackers and other nasties from following you around online.
Furthermore, Brave offers semi-private browsing via the TOR browser. Users can choose to watch no adverts or watch lots of adverts to increase rewards. The browser minimizes online surveillance and provides a secure way of concealing browsing habits from big tech companies.
Moreover, Brave features a “Tip” function which is integrated into various social media platforms. This feature makes it extremely straightforward to tip your favorite content creators. Plus, it bypasses third-party payments processors so that creators receive all of the revenue!
Holo is the Airbnb of cloud hosting services. With Holo, anyone can use their computer to generate value by hosting peer-to-peer Web3 applications. Network participants can earn HoloFuel for hosting applications and supporting the network. Plus, app creators pay hosts for renting out their computing power.
Also, Holo adheres to all regulatory requirements, including the backing of the HoloFuel token. As such, the expansive development taking place under the Holo umbrella is helping to create a sustainable economic model.
Sia is a blockchain-based data marketplace. The platform requires no sign-ups and is an affordable alternative to traditional cloud storage services. Also, Sia enables users to control their own data using private encryption keys. As such, no external company or third party can gain access to or manipulate any of the files held throughout the decentralized Sia network.
The Sia data marketplace allows storage providers to compete against each other. The result is the lowest possible price. Also, the native Siacoin is a tradable cryptocurrency that renters use to pay for data storage.
Web3 Projects to Look Out for in 2022 – Summary
A lack of transparency and accountability has enabled a data security crisis to evolve at an alarming rate. As such, internet users are becoming increasingly tired of the abuse of power from tech behemoths. Many are simply opting out, by reducing the amount of time they spend on social media and taking breaks from the screen. However, as the world becomes increasingly digital, it makes sense that the technology powering this new landscape should evolve to meet the needs of the users that allow it to exist.
The Web3 movement encourages decentralization. The Web3 projects covered in this article outline the broad range of applications that benefit from decentralization and trustless technologies. Moreover, a user-owned internet is advancing ever-nearer thanks to the many Web3 projects pushing the boundaries sector-wide.
The use of blockchain technology is becoming increasingly prominent in almost every industry. Blockchain and Web3 projects are optimizing business practices and revolutionizing supply chains globally. Check out the OriginTrail 101 course at Moralis Academy to discover how blockchain is revolutionizing supply chain management.
Following this, be sure to check out the Blockchain for Enterprise course! Here, we teach students how companies such as Microsoft, IBM, and Coca-Cola are implementing blockchain.vAlso, don’t forget to follow us on Twitter @MoralisAcademy! We’d love to hear about your favorite Web3 projects!