Cryptocurrencies and the blockchain are the building blocks of Web3. However, the decentralized web is also based on technologies such as AR, VR, IoT and others not related to blockchain or digital currencies.

The third generation of the Internet, known as Web3, is based on blockchain technology. However, technologies such as machine learning, big data, artificial intelligence (AI), Internet of Things (IoT), augmented reality (AR), virtual reality (VR) and others allow decentralized applications (DApps) to analyze information. in a sophisticated human environment. -as in a Web3 environment.

For example, virtual reality headsets will create an exceptional shopping experience, allowing customers to interact with products before making a purchase. However, these technologies are not based on cryptocurrency or distributed ledger technology, but rather aim to increase the efficiency of blockchain technology.

Additionally, blockchain plays an important role in building Web3 infrastructure by allowing organizations to decentralize Web2 services, including cloud computing, social networking sites, and databases. Therefore, the combination of AI and blockchain technology will undoubtedly provide organizations with a better way to manage sensitive data sets.

By validating the data provided, the AI ​​technology can quickly complete the application process and the intelligent algorithm will help make quick decisions regarding the issuance of funds or credit approval. Also, data sets can be effectively protected through the blockchain. Similarly, other technologies like AR and VR are crucial in defining the metaverse, exploring novel ideas, and elevating virtual experiences.

Additionally, cryptocurrencies eliminate the need for a trusted intermediary by allowing Web3 users to use tokens like Ether (ETH) to send and receive money. That said, cryptocurrencies support peer-to-peer payments and can serve as a digital native remittance method. Blockchains would lack the incentive system for network participation without cryptocurrencies. Also, users would have nowhere to store cryptocurrency without crypto wallets.

Furthermore, Web3 is meant to be permissionless, trustless, and open to all, as it embraces the cryptographic spirit. Similarly, non-fungible tokens (NFTs) allow users to transparently demonstrate proof of ownership of items such as in-game assets, digital art, personal data, and more.