Competing with DeFi, GameFi…, Web3 has reaffirmed its place at high order on CoinMarketCap’s market capitalization rankings. Let’s find out the top 3 most prominent Web3 in April in this article!
What is Web3?
Before going into detail about the top 3 significant Web3, we need to understand what it is?
“Web3 is an alternative vision of the web, where the services we use are not hosted by a single service provider, but they are purely algorithmic things, in a sense, that are hosted by people.” Gavin Wood said.
Let’s see the transformation of the web through the ages in the image below:
As can be seen from the diagram, Web3 was designed to fix the drawbacks of Web2 and Web1. The concept of Web 3 is a serverless intelligent Internet made up of interconnected decentralized webs. Any middleman has no control over the data, identity, or personal information of users (such as Facebook or Google).
Web3 will put all power in the hands of users. You don’t have to be concerned about your personal information being sold to a third party for commercial purposes, or that you can freely transfer money to anyone using a non-custodial wallet (a type of decentralized wallet, where the customer owns the wallet’s private keys) which cannot be prevented.
Top 3 most significant Web3 projects in April
Therefore, Web3 projects are extremely potential and attractive to many investors. And here are the top 3 Web3s with the highest order on CoinMarketCap’s rankings by market capitalization.
(Watchlist is calculated at 5:00 AM, April 21, 2022 (UTC)).
If you are familiar with the name “Ethereum” – the irreplaceable platform network for Dapps, Polkadot is also a new name, considered a counterweight to Ethereum in the expansion of the ecosystem.
The Polkadot blockchain network and the DOT tokens are actually the brains of the Web3 Foundation. This project makes it simple for anyone to create their own blockchain using the Polkadot system.
Polkadot solves the problem:
- Transaction Processing Speed: Process up to 1000 transactions per second, 10 times the speed on Ethereum.
- Scale: Polkadot connects multiple blockchains together thereby creating a premise for future network scaling.
- Reliability of new networks: Due to a lack of confidence from parties investing in new networks, large communities are typically difficult to develop. Polkadot, on the other hand, solves this problem by employing the Relay Chain technique to connect resources from several chains.
Polkadot now has a market valuation of over $19 billion, and there is plenty of room for more growth in the future. Because, in comparison to Ethereum, Polkadot has no aim of competing, but it does demonstrate the bridge feature, which connects platforms to Ethereum.
Polkadot is backed by Web3 Foundation, Binance, and MathWallet, and is a frequent guest on The Block, CoinDesk, and other prominent crypto publications. As a result, the Polkadot project is deserving of being the first name featured in the top three Web3 projects because of its benefits and commercial potential.
Chainlink is the first tangible initiative in which Bank of America sees a long-term potential. Sounds pretty reliable, right? So let’s find out more about this project’s potential!
Chainlink, for starters, is a decentralized Oracle network. Chainlink is a blockchain bridge that was launched at the end of 2017 with the goal of transporting information and data from the real world to the blockchain and vice versa.
So what is the problem Chainlink solves?
Outside of the blockchain, the smart contract is unable to communicate with any data sources. Only pre-programmed orders are executed by smart contracts. When a deployment order is received, the smart contract will execute while also self-checking the implementation of the contract’s commitments and terms.
Chainlink was created to address a problem that existed between the input and output data sources of smart contracts: connectivity, or the connection between smart contracts and data outside the blockchain.
Chainlink works by passing blockchain input data between chains to activate smart contracts and generate output data (a payment, certificate of ownership, etc.)
According to a Bank of America research report released on February 16th, the expert believes Chainlink is currently the primary driver of the increasing total value locked in DeFi. The current market capitalization stands at $6.5 billion. The platform’s oracle network, on the other hand, has generated over 2.5 million verification chains for distribution and supports the NFT range, which starts at nearly zero towards the end of 2020.
With a market value of $6.5 billion, which is quite little compared to the whole crypto market, the long-term potential of LINK (Chainlink’s token) is still highly fruitful with its reputation as the number one giant in oracle scope.
Each new initiative has its own goal in mind. If Polkadot overcomes the limitations of previous generation blockchains, and Chainlink improves the connectivity between smart contracts and data outside the blockchain, then Filecoin is a blockchain solution that enables decentralized data storage.
Filecoin is a peer-to-peer network that keeps files on the internet with built-in economic incentives to ensure that data are reliably stored. Any corporation has no influence over available storage or cost.
Filecoin operates in a very straightforward manner. Users pay a nominal charge to request that their archives be uploaded to the exchange, at the lowest feasible cost. Filecoin then tokenizes the file and divides it into numerous pieces, each of which is transferred to a different storage location.
- Reduce data storage costs: Filecoin creates a marketplace that can leverage unused storage space in data centers.
- Have the Right encouragement: Filecoin tailors inducements for all participants, can balance, recover in response to disruption events, and keep data safe and flowing.
- Resilient and censorship-resistant: Without a middleman, data storage is distributed while remaining accessible and well-secured.
With a current market cap of $3.8 billion, Filecoin becomes the largest decentralized network supporting multiple platforms for safe, cost-effective, and highly secure storage. The project has the participation of many big investors such as Andreessen Horowitz, Sequoia Capital, and Union Square Ventures…, which is also one of the things that create the investment potential of this project.
Above are the top 3 most prominent Web3 in April. Of course, this order can completely reverse when other Web3 projects are also following closely on the rankings. To choose an investment, you need to learn and analyze the information carefully before withdrawing capital.
And if you are interested in Web3 applications for businesses, then contact Arcanic Tech immediately for the most detailed advice!
Arcanic is a blockchain outsourcing company that offers all-in-one services. For enterprises and start-ups, we’re specialists in the blockchain ecosystem, Dapps, smart contracts, and more.