Blockchain technology – core concepts. The majority of LinkedIn users still struggle to differentiate clearly. As we enter 2024, it’s crucial to understand the distinctions between Web3, Crypto, and Blockchain.
The Misconceptions Surrounding Blockchain Technology
The beginning of 2024 has been less than ideal… I recently came across a LinkedIn News article discussing the ‘Problem with Crypto’. The core issue with Crypto lies in our habit of using this term as a catch-all for a diverse range of technologies, which often leads people to think immediately of Cryptocurrencies, Bitcoin, and speculative assets.
The Challenge of Simplifying Complex Tech Concepts
It’s a hard truth that you cannot simplify and grasp the context of Web3 as easily as you might with other complex subjects like Quantum Physics or AI, even though attempts are being made, including by those of us in the ChatGPT community. Therefore, in 2024, let’s put more effort into expressing our thoughts clearly, enabling more people to objectively assess a variety of technologies and innovations.
Defining Key Terms: Web3, Blockchain, and Crypto
Note: These definitions are not flawless, but they are intended to aid those reading in refining their understanding:
- Web3: This is the decentralized version of the internet, created to transfer control of data and applications from centralized bodies to communities and individuals. It encompasses any technology used in this realm, not limited to Blockchains. Web3 can also refer to the industry and groups striving to develop Web3 solutions.
- Blockchain: This refers to a data and automation structure that logs ‘transactions’ (which aren’t always financial) and is upheld by a decentralized network of nodes (or computer operators). Certain blockchains have the capability to run applications or business logic through smart contracts, enabling the launch of self-operating apps that can continue indefinitely and resist censorship.
- Crypto: This term can be interpreted in two ways: 1. Cryptography, which I will omit for the sake of brevity, although it can cause confusion. 2. Cryptocurrency, which represents the ‘rewards’ granted to those who facilitate and validate actions on a Blockchain network. This is vital for the trustless and automated economic security of the system. These can be exchanged as a medium of value and possess inherent ‘value’ (production cost, opportunity cost). Primarily, ‘Cryptos’ are used to support Blockchain economies, rather than as direct substitutes for cash.
Blockchain technology – core concepts. Let’s begin our discussion from this standpoint. What are your thoughts on these definitions? Feel free to contribute your adjustments or ideas below, so we can assist the entire LinkedIn community in advancing their knowledge in 2024.
Working across multiple aspects of Blockchain and Web3 technologies since 2016; He has helped large organizations and start-ups to harness the benefits of using decentralized technologies to create commercially viable businesses and digital transformations. He has experience in leading and scaling large ecosystem and delivery teams to bring Blockchain-enabled platforms into production.
