Blockchain & Web3

• Are there any real applications for blockchain other than cryptocurrency?

Blockchain is mainly viewed as software for cryptocurrency, but it can do so much more than that. One of the significant use cases is supply chain management, in which tracking goods via blockchain guarantees transparency and traceability from the point of origin to the point of delivery. Another great use is digital identity verification, which allows the user to centrally manage and share personal data without relying on some intermediary. Blockchain offers a secure and tamper-proof storage solution for medical records in the healthcare area, with patients controlling their data. Smart contracts would support the execution of contracts in real estate and finance with less reliance on intermediaries. As for the voting system, blockchain serves as an added layer for security and transparency, preventing various types of electoral fraud.

• How do blockchains protect against cyberattacks and increase transparency?

Cybersecurity is very much enhanced with the decentralization and immutability offered by the ledger maintained on Ethereum, thereby protecting it from any malicious changes. High levels of encryption ensure the protection of each transaction carried out within a distributed network wherein hacking simply cannot change previous records without in fact attacking the entire system. In contrast to that, the blockchain has no single point of failure being a centralized database, thus making it almost impossible to be hacked. The system, by virtue of this, earns major transparency because then any change made to any data becomes visible to each of the participants on the network, thus making them accountable. Well-suited for fighting fraud, protecting sensitive private information, and building trust in sectors like finance, health, and government.

• Discuss the advantages and disadvantages of decentralized finance.

DeFi is the future of finance, letting users access financial services directly through smart contracts on a blockchain without the need for banks as traditional intermediaries. Some of the advantages given by DeFi over traditional finance are accessibility (anyone with an internet connection is welcome to join), low transaction costs due to the absence of middlemen, and transparency, with all transactions published on the blockchain. On the flipside, DeFi also has some risks: Hackers are able to take advantage of smart contract bugs; its legal status remains dubious; price manipulation and rug pulls may exist in some DeFi projects. DeFi is wrapped in a lot of promise, but potential users must perform their due diligence and be prudent before making investments.

• Is Web3 the future internet?

Web3 is the next step Internet-wise: the shift from centralized typical tech coups to decentralized Web3 ecosystems ruled by their users with the power of blockchain. Whereas Web2 Google/Facebook platforms represent a monopoly on all user-generated content creation and data, Web3 seeks to restore ownership of digital identity and assets to users acting through decentralized distributed applications (dApps). It seeks better privacy, security, and autonomy for users in a way that minimizes censorship and exploitation of their data. But Web3 is quite in its infancy, with challenges such as scalability, high gas fees, and user experience. While the potential to overhaul the internet exists, such a radical shift towards Web3 will happen when these barriers are finally removed.

• Which industries are witnessing rapid benefits from Web3 adoption?

Many industries are innovating and creating efficiencies using Web3 technologies. The financial world has been disrupted, to an extent, with DeFi platforms offering decentralized lending, borrowing, and trading services. The gaming industry is witnessing the incorporation of blockchains into their economies under a play-to-earn model, which allows players to own in-game assets in NFTs. The art and media sectors are now utilizing NFTs to allow artists to sell directly to consumers and avoid intermediaries. In the real estate sector, blockchain facilitates fast and secure ownership transfer that ensures property transaction transparency. Education, meanwhile, is gearing up to use Web3 to verify credentials and confirm the genuineness and immutability of certificates and degrees. As Web3 develops, increasing numbers of industries will reap advantages from this kind of decentralization and trustlessness.