#Web3 , a decentralized network, operates on blockchain technology, which is a distributed ledger system that records transactions across many computers so that the record cannot be changed retroactively. Here's a deeper dive into how it all works, with a focus on #Ethereum (ETH) and other related projects and technologies.

Blockchain Basics and the Role of Ether

Blockchain

Blockchain is the core technology that powers Web3. It is a decentralized database in which information is stored in the form of a chain of blocks. Each block contains transaction data and is linked to the previous block via a cryptographic hash, creating a secure and transparent ledger system.

Ethereum

#Ethereum is one of the most famous and used blockchain platforms that powers smart contracts and decentralized applications (dApps). Ether (ETH) is a cryptocurrency that is used to pay transaction fees and computing services on the Ethereum network.

Web3 Components and Projects

Smart contracts

Smart contracts are programs that automatically execute when certain conditions are met. They allow you to create decentralized applications (#dApps ), providing security and process automation.

Example: Uniswap is a decentralized exchange (#DEX ) that allows users to trade tokens directly through smart contracts without intermediaries.

Decentralized Autonomous Organizations (DAOs)

#DAO are organizations governed through smart contracts and decentralized voting. DAO participants make decisions about the development and management of the project through voting, where each coin gives the right to vote.

Example: MakerDAO is a DAO that manages the stablecoin DAI, which is backed by cryptocurrency collateral.

Decentralized Finance Applications (DeFi)

DeFi is financial services built on the blockchain that operate without intermediaries such as banks. These apps provide lending, borrowing, trading and investing services.

Example: Aave is a cryptocurrency lending and borrowing platform where users can obtain loans or make their assets available for others to borrow.

NFTs (non-fungible tokens)

NFTs are unique digital assets that can represent ownership of art, gaming items, music, and other unique digital objects.

Example: CryptoPunks is a collection of unique digital avatars, each of which is an NFT on the Ethereum blockchain.

Real projects and innovations

Chainlink provides decentralized oracles that allow smart contracts to securely interact with external data and systems. This enhances the capabilities of blockchain applications by allowing them to use real-world data.

Polkadot

Polkadot is a blockchain platform that allows different blockchain networks to communicate with each other. This ensures interoperability between different blockchains, enhancing the capabilities of decentralized applications.

Filecoin

Filecoin is a decentralized storage system that allows users to rent free hard drive space or purchase storage space. It provides a decentralized, secure and cost-effective alternative to traditional cloud storage.

Conclusion

Web3 is the development of the Internet, based on decentralization, security and transparency, provided by blockchain technologies. Ethereum and other blockchain platforms provide the necessary tools to create decentralized applications and services that change the way we interact, do business, and manage data.

1. Ethereum (ETH) is a platform for smart contracts and decentralized applications.

2. Uniswap (UNI) - a decentralized exchange for trading tokens.

3. MakerDAO (DAI) - stablecoin and platform for decentralized finance.

4. Chainlink (LINK) - decentralized oracles for interacting with external data.

5. Polkadot (DOT) - a platform for cross-blockchain interaction.

6. Filecoin (FIL) - a decentralized data storage system.

These projects represent the wide range of capabilities of Web3 and provide insight into how decentralization can change various industries.