Web3 Explained

Reading time: 4 min

Do you remember when you first discovered the Internet?

One day, my dad brought home a brand new, bulky computer. He booted it up and gave me a quick tour showing me how the mouse worked, how to use the keyboard, and how to play the games.

Then he clicked on AOL and introduced me to the Internet.

The internet was a portal to a whole new world—and I was instantly hooked. My early adventures were spent playing RuneScape, reading gaming forums, and choppin’ it up with the homies in AIM chatrooms. The fact that I could instantly talk to my friends or someone across the world blew my mind.

We’ve come a long way since then.

The early internet (”Web1”) was all about static content. Websites were like digital brochures, with limited user interaction.

Then came the shift to “Web2”, the era of social media. Not only could we consume content, but now anyone can easily create and share content. Platforms like Facebook, YouTube, Instagram, and Twitter have transformed the way we interact, communicate, and connect with each other.

We’ve started living more of our lives online and our digital identities are becoming as important, if not more, than our physical ones. They're not just usernames and avatars anymore, they're becoming extensions of ourselves.

Now, we’re entering another shift: Web3. An Internet powered by blockchain, where our digital lives hold value, and where we can truly own a piece of the digital world.

Last week, we talked about how the Metaverse isn’t coming, it’s already here. (Here’s the newsletter if you missed it). Today, we’re going to talk about how blockchain, crypto, and NFTs are paving the way for the next evolution of the Internet.

Before we start, let's break down some key terms you should know.

Blockchain is like a giant, global spreadsheet that securely records transactions. It’s a decentralized network meaning thousands of computers around the world work together to make sure all the information is correct and that it can’t be tampered with.

Everyone can see the transactions, anyone can access it, and no single person owns it.

Think of it like a permanent digital history book. Anyone can read and write in it, but no one can erase what’s been written.

NFTs (non-fungible tokens) are unique digital assets that are stored on the blockchain. They can be anything from digital art to music albums to virtual real estate. Each NFT has a digital signature, proving its authenticity and ownership.

Think of NFTs as blockchain-verified digital files.

Until now, there was no way to truly own something on the Internet.

You can buy a digital skin on Fortnite but you can’t withdraw, sell, or trade them.

The money you store in your savings account is controlled by a bank that could lock you out of your account or stop you from withdrawing if they wanted to.

You could get banned from a social media account and have your whole digital identity erased in a snap.

This is where blockchain comes in.

NFTs introduced the ability to have limited, immutable, provable digital assets that you can truly own.

Art, photography, videos, music, virtual real estate, game skins, Snapchat filters, digital sneakers, tweets, blog posts, newsletters. You name it.

The digital items you create, collect, and attach to your digital identity now have real, transferrable value. And because it’s on a shared global platform, you can take your digital items with you to other platforms.

Imagine owning a pair of digital sneakers that you could wear in different online games and unlock special access on various platforms.

Last week, Fortnite and .SWOOSH (Nike’s digital sneaker platform) announced a partnership with a virtual sneaker hunt.

For a limited time, you could get yourself a pair of digital Air Max 1s to wear in Fortnite. And if you connect your .SWOOSH account, then you can also earn Nike achievements from in-game activity.

In the future, your virtual items and achievements will work across both platforms.

Any digital sneakers you buy, you’ll be able to rock them in Fortnite and other platforms that Nike partners with. Wear them in Madden, FIFA, CoD, or maybe even as an AR Snapchat filter.

If you want to keep them safe then you can securely store them in your digital wallet.

Or let’s say you don’t care for Nikes, but you had free time to collect rare digital sneakers from games. You could sell them to someone else and receive value for your time.

Because the blockchain is transparent and permanent, digital items have provable rarity and can hold value.

Web3 is a major shift in how we interact with the digital world. We're not just users anymore—we're participants in an open digital economy. And we're just scratching the surface of what's possible.

This transformation won't happen overnight. But one thing's for sure: It’s a wild time to be alive.

Peace,

Fifty Sat

P.S.

Continuing on the topic of Metaverse, next week we’ll talk about the different ways you can invest in it.

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