We all know that the likes of Cryptocurrency are constantly changing – not only the digital currency that is the flavour of the month to invest in but how we go about those investments and how people go about creating digital currency in the first place. You don’t have to be very technology-minded to have heard of blockchain technology if you’re someone that is interested in Cryptocurrency, because even if you don’t really understand what it is – you know that it is to do with creating and investing in digital currency.
What is Web 3?
If you’re someone that is interested in keeping on top of Cryptocurrency trends and technology then you may have already started to hear whisperings of web 3.0 and be wondering what is web 3.0 wallet? And how is it relevant to you?
Simply put, Web 3 wallets are a new way for people to be able to store digital assets such as Cryptocurrency – it gives the end-user much more control of how their funds are stored and can mean that they have to share less personal data with apps and websites.
Many see Web 3 wallets as the ideal way to host blockchain applications, especially those that work best via a desktop browser. As such, if you’re interested in Non-fungible tokens (NFTs) and Decentralized Finance (DeFi) then you might very well be hearing the term web 3.0 wallet much more often.
The Technology Behind Cryptocurrency Investment
We’re all used to storing our physical money in a wallet, purse or piggy bank at home so it makes sense that when it comes to digital currency you’re also going to need somewhere to store it. Digital currency is currently stored via a process called blockchain – this is in charge of keeping track of your digital transactions, much like a bank statement – except we know that digital currency is much more private. Currently, in order to buy, sell or trade Cryptocurrency you need to go through a third-party service that can help to implement a change in your blockchain transactions and process your purchase or sale.
What Does Web 3.0 Change?
Web 3.0 promises to change all of this – because rather than needing a third party to be able to access your funds you’ll be storing them yourself in your web 3 wallet. Think of it like rather than using your online banking to send money, everything is stored in your own home in physical cash and you remain in complete control of what funds come in and go out. You will be able to set up a web 3 wallet on a web browser (currently supported are Chrome, Edge, Brave and Firefox) and access your funds via your desktop. This is mostly for desktop transactions currently but whether this will change to work more alongside mobile transactions remains to be seen.
In the grand scheme of things, digital currency is reasonably new so it makes sense that the way we buy it, use it and sell it will be tweaked along the way. If you’re serious about investing in digital assets then it’s important that you familiarise yourself with Web 3 as much as possible.