If you have not been hearing about Web3, it’s possible you have been off the internet or maybe your news feed is filled with other issues. Web3 is all over the internet, some people talking about it, while most are trying to understand what it really is. Nonetheless it’s still at a budding stage, so tech enthusiasts would definitely have diverse views about it.
Investors are beginning to drop some coins into the Web3 nest. The same way crypto rose attention, Web3 is also something major tech enthusiasts are seeing the need to pay attention to. Nestcoin has keyed in and made a major move to push it forward.
Nestcoin is a company that builds, operates and invests in Web3 applications, it intends to be instrumental in this transition and has raised a $6.45 million pre-seed round to that end.
What is Web3?
It is an idea of a new iteration of the World Wide Web based on blockchain which incorporates concepts such as decentralization and token based economies. In other words, it is the third stage in the development of the internet. With the level of development we currently have, this is definitely a big deal, maybe even larger than life.
Yes! If there’s Web3 there is definitely Web 1 and 2. Web1 refers to the earliest interconnection of computer networks to the first use of browsers in the 90s; Web2 on the other hand, involves building of applications, social media and search engines — it is the present internet we are making use of.
Web3 aims at creating software and platforms that are not dependent on traditional companies and Web2 business models such as advertisement. Web3 is meant to be operated by, owned by and improved by the community of users. It was coined by Gavin Wood, co-founder of Ethereum blockchain.
Web3 and Crypto
Crypto as we all know is built on blockchain and as such an upgrade on blockchain is an upgrade on crypto. Web3 happens to be that upgrade, it aims at moving blockchain from the transfer of digital coins for profit to making contracts and controlling how software and apps work. It promises a high form of decentralization where no one is in charge of any data created.
Decentralization is the linking factor between Web3 and crypto. Web3 apps are often based on ethereum. They make use of tokens not only for paying for services but act like voting shares that govern the app’s development and fee structure.
The role of Nestcoin’s Preseed
This may sound like a bluff but Nigeria is at it again. So far we proved to the world beyond reasonable doubt that crypto is something we can handle, Jack Dorsey’s Btrust team can testify. This time around Nestcoin’s move is telling the world more that just “we are interested too” but “we are up to the task, let’s do this!”
Yele Bademosi, co-founder of Nestcoin believes that crypto trading cannot drive mass adoption of blockchain and crypto-native applications. To create products with millions of users in the next couple of years, companies should build accessible applications which are the basics of Web3.
“The current situation of crypto, and now more like applications that everyday people use and love, whether it is like consumer applications, finance apps, entertainment, gaming, but these applications now have potential to reach millions of users across frontier markets. And that’s sort of what we are trying to do with Nestcoin”, Yele stated.
The aim of Nestcoin is not just to join the bandwagon but to put Africa on the same pedestal with other continents. This adoption will cover all Africa has missed out on in Web2. It will enable Africans to also participate in building up the general outlook of Web3 and Crypto in a few years.
It is not an exaggeration to say that the adoption of cryptocurrencies has actually boosted the African economy to a great extent, it may just not be obvious just yet. Africa’s cryptocurrency market grew by 1,200%, to $105.6 billion, between July 2020 and June 2021, per research by New York-based research firm Chainalysis. Intrinsic issues such as regional inflation, weak currencies, high unemployment rates and economic uncertainty are a couple of reasons behind this growing adoption. With these issues not leaving Africa anytime soon, crypto growth is a necessary evil, despite several governments’ efforts to stifle it.
The company’s pre-seed round, the second-largest in Africa and largest in Nigeria and sub-Saharan Africa right now, will provide it with the drive to build these products and several others in a few years to come. Other investors like Payourse a Nigerian based blockchain start-up raised $600k.
The Obvious Flipside of the Coin
It is almost funny and even ironic how some of the biggest crypto enthusiasts in the world are not embracing Web3. Elon Musk and Jack Dorsey are not thrilled by the new talk of Web3, Metaverse and even NFTs. They have disengaged from the whole thing, regarding it as “dystopian” and “annoying”. They frankly think it is just an over flogged issue that no one should be putting a lot of hopes in.
Avivah Lifan, a Blockchain Analyst, believes Web3 hides the “dirty secrets that no one talks about.” The growing suspicion centres on a number of things. This includes the fact that there’s no room for money laundering checks since no one controls the data.
Also the fact that once transactions are made to the wrong person, there is no going back. No customer care to call, no police to begin the chase, not to mention that hackers never stop trying. That’s decentralization for you!
Another major concern especially for Africa is the computing power to run such advanced blockchain. How far can we go with that? At least before the systems are upgraded to consume less power.
In a nutshell, change is one thing that is constant. Crypto as good as it may seem today is bound to change tomorrow. Maybe Web3 could be the framework to lead the change. Whatever the way, Africa has shown the potential of meeting up with the task.