- Web3 tokens are what will be used to power decentralized applications (DApps).
- Web3 tokens are created on platforms like Ethereum, but usually have their own associated platforms.
- The main web3 tokens are those that are intended to bridge the web2 solutions of today with the DApps of tomorrow.
The term "web3" may have originated less than a decade ago, but its implications are far reaching. While the first generation of the Internet (web1) was powered by singular websites, the second generation (web2) saw the rise of platforms, such as Facebook or Instagram, the third generation (web3) will be powered by decentralized services or DApps. And powering each DApp is a crypto token that powers the respective service.
There are two ways to view web3 tokens. On the one hand, you have crypto platforms like Bitcoin or Ethereum, which are used to create new applications. However, a web3 platform looking to make a real impact will usually have its own token as well. For example, decentralized games like Decentraland come with the Mana token, while the MakeDAO lending platform has a token called DAI.
Here are five of the most important web3 tokens worth checking out today:
Moles
In a nutshell, Polkadot is a blockchain platform designed to connect different blockchains. It facilitates interoperability between Ethereum, Bitcoin, and other blockchain platforms. But before we get to that, let's talk about its beginning.
Polkadot was founded by Gavin Wood, one of the founders of Ethereum, which is also one of the reasons why so many people trust this token. At the time of writing,
WazirX listed the token at โน2,225. According to Coinmarketcap, the DOT token has a market cap of over $1.3 billion.
Polkadot's design divides the platform into the main, or "relay chain", and parallel chains, which are also called "para chains". These parachains are responsible for connecting with other platforms. So someone building a decentralized finance (DeFi) app can build the platform on the relay chain and use the sidechains to connect and interact with other DeFi solutions.
The first five parastrings went live in December, leading Polkadot to reach a
its highest point of $51 at the end of 2021. Aside from the fact that Polkadot is backed by Wood and the Web3 Foundation, interoperability, sustainability, and scalability are some of the main reasons why this token and its underlying platform are expected to drive many future web3 services. according to its defenders.
file currency
Polkadot was released in 2020 and is somehow still untested. However, there is an older and somewhat easier to understand one that you can follow. And it's called Filecoin.
Like other web3 tokens, Filecoin will also power services in the third generation of the internet, but unlike the others, it strikes directly at the core of current web2 business models.
Pundits, critics, and users have often argued that big tech companies like Facebook, Google, and Microsoft wield so much power simply because most of the world's important and sensitive data is processed on their servers and stored in their data centers. data. Which is what Filecoin intends to intervene.
This decentralized storage network started in 2014 and has powered many web3 applications ever since. The idea behind Filecoin is simple: have users join the network and share storage space on their devices so that data can be stored on a decentralized and potentially global network.
In fact, the idea was explored on HBO's hit show Silicon Valley with DApp called 'PiedPiper'. None of the users actually owns any of the data, and no one user has access to all of it either. Since Filecoin has built a huge network of its own, it now offers this as a kind of data center solution for developers who don't want to rely on traditional web2 storage.
The FIL token powers the network. It is what Filecoin offers to those who allow others to use their storage, and its price stood at โน2430 at
WazirX at the time of writing. The more platforms that use Filecoin, the greater the chances that FIL will increase its already large market capitalization of $318 million.
Arweave
Just like Filecoin, Arweave is also a decentralized storage solution. In the words of the company itself, it is "a collectively owned hard drive that is never forgotten." Like Filecoin, ARWeave charges a fee to other services, users, and companies to use its decentralized storage solution. The initial fee is where ARWeave differs from Filecoin. It promises that a single GB of data will be stored forever. For those that provide this storage, the cost of storage decreases over time as more and more data is stored. Which makes it worthwhile for them too.
The AR token was priced at just under โน4000 at the time of writing and its market capitalization was approximately $24 million.
BitTorrent
That said, it is the 54th largest cryptocurrency today, with a market capitalization of over $2.5 billion.
However, the part that could make it really lucrative for an investor is that despite being around for so long, the BTT token was only worth โน0.2 on WazirX at the time of writing. And that's not because Bittorrent is worthless. It's because he's new to the crypto world and his 'to the moon' moment is yet to come, if anything.
However, what BitTorrent has over any other web3 token is a network that has been built over the last 21 years. It is already the largest file sharing network in the world and could use the BTT token to connect to future web3 streaming services and more.
Theta Network
Speaking of tokens that can be useful for streaming and content companies, Theta Network is another one to watch. At the time of writing, this token had a market cap of over $4 billion and was the 40th largest crypto token by market cap, according to Coinmarketcap.
Investors can trade the THETA token on WazirX against USDT. At the time of writing, THETA was priced at $3.99.
Theta Network is a blockchain platform designed for video delivery networks. Today's video delivery platforms, from Netflix to Amazon to Hulu and more, all rely on a centralized delivery network. Which means that all content resides in their own data centers. Theta Network is something like Filecoin, and it aims to divide this network into a decentralized nature.
Some of today's biggest tech companies, including Sony, Samsung, and Google, have already partnered with Theta. It's one of the main reasons people believe in the potential real-world use cases this network could have in the future.
The above five web3 tokens can be traded on crypto exchanges, including one of the leading players in India,
WazirX.
Disclaimer: This is a sponsored post in association with WazirX. Please do your own research (DYOR) before deciding to invest in any asset, cryptocurrency or otherwise.
