Web3 And Why Developers Should Learn It?

Andy Charters
.
August 21, 2023
Code

In just ten years, the internet has evolved dramatically!

Our daily lives have been impacted by the progression of the internet.

In our personal, professional, and educational lives, we use the internet almost every day.

It is impossible to overstate the importance of the internet in history.

Its possibilities are still being realized, despite the industry's exponential growth since its inception.

Today's internet is like the automobile industry of 1920, according to experts.

In the same way, the automobile of the time was a game-changing technology, the internet is an emerging technology that is still in its infancy and needs significant improvements.

The article will discuss the latest paradigm shift taking place on the internet: Web3.

Here, we'll explain what Web3 is, what it gets used for, and why aspiring developers need to know it.

Let’s Start!!

Web2 and Web3 differ in a few ways, but the essence of both is decentralization.

By adding a few new features to the internet as we know it today, Web3 enhances the internet as we know it. In more detail, Web3 is:

  • Participants can collaborate and communicate on the network publicly or privately without needing a trusted third party.

  • Participants can participate without permission from a governing body, including users and suppliers.

  • A community of developers creates apps using open-source software, and they are in the public domain.

In Web3, developers rarely create and deploy apps that run on a single server or store their data in a single database, often hosted and managed by a single cloud provider.

Alternatively, The Web3 app environment combines blockchains, peer-to-peer networks with many nodes (servers), or a hybrid of the two, called decentralized apps or dApps.

To establish a secure and stable decentralized network, developers are rewarded for providing the highest quality services to everyone using the service.

The topic of cryptocurrency also comes up when discussing Web 3.

As a result of their reliance on cryptocurrencies, many of these protocols have a financial incentive from tokens to develop, govern, contribute to, or improve them.

In addition to providing compute, storage, bandwidth, and identification, these protocols can provide web hosting and other online services previously provided by cloud providers.

In addition to technical skills, people can earn a living in a variety of ways by participating in the protocol.

Users of the protocol, however, usually pay a fee to use it, much as they would pay a cloud provider.

A typical network participant or developer receives the money directly from the network.

In this way, just as in other forms of decentralization, the need for unnecessary and often wasteful intermediaries is reduced.

Filecoin, Livepeer, Arweave, and The Graph, for example, have utility tokens that govern how the protocol works.

In native blockchain networks, like Ethereum, these tokens are given to participants at all levels of the network.

How Does Web3 Identify Users?

Most often, an ID in Web3 apps is associated with a wallet address.

In previous versions of the platform, identity was based on the user's email address.

In contrast to Web2 methods of authentication like "OAuth" or "email + password," which almost always require users to divulge private information, Wallet addresses are entirely anonymous unless the user deliberately links their identity with it in public.

Further, suppose a person uses the same wallet for various dApps.

In that circumstance, their details and identity can be transferred seamlessly between them, creating a virtuous cycle in which their reputation can be built up.

In addition to traditional authentication and identity layers, developers may incorporate self-sovereign identification protocols and technologies such as Ceramic and IDX into their apps.

Additionally, the Ethereum Foundation is in the process of developing a specification for "Sign in with Ethereum ", which would simplify and document the process for Ethereum users in the future.

There is no doubt that Web3 holds great promise for the creation of applications that are truly open, permissionless, and trustless.

Web3's Functions

After reaping the benefits of the Web2 wave, we are now seeing the first signs of the next major paradigm shift in online applications, aptly dubbed Web3.

Semantic Web, called Web3 by Tim Berners-Lee, the creator of the Web, represents an even greater change.

tim

It is this shift to open, trustless, and permissionless networks that will ultimately eclipse all others.

Coordination and incentives are needed to motivate the long tail of workers, service providers, data providers, and content creators.

There are many challenges in the fields of health, food, finance, and sustainability. Networks that are open, trustless, and permissionless have led to instability.

As it happens, the arrival of mobile, social, and cloud drove Web2, whereas the arrival of edge computing, decentralized data networks, and artificial intelligence will drive Web3.

In Web2, data centers repurposed newly commoditized personal computer hardware, but in Web3, the data center is pushed out to the fringes and often close to end-users.

A plethora of sophisticated computing resources are being distributed across many devices including smartphones, laptops, appliances, sensors, and cars.

In 2025, this is expected to lead to 160 times more data being produced and consumed than before.

A decentralized data network allows various data generators such as the health and wellness data of individuals, the crop data of farmers, including car position and performance data, and virtually any other relevant data about a specific individual - enabling them to sell or trade their data without giving up ownership, privacy, or relying on third parties.

Thus, the long tail of data providers can be included in the developing "data economy" with decentralized data networks.

With Artificial Intelligence and Machine Learning algorithms, we have reached the point where we can generate useful and even life-saving predictions and actions.

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In areas like precise materials, medication creation, and climate modeling, the potential applications go far beyond targeted advertising when built on top of new decentralized data structures that provide access to the sort of data that would make IT giants jealous.

A future where people and machines can interact without intermediaries is possible thanks to Web3.

This capability is enabled by peer-to-peer networks, resulting in a computer fabric that is human-centric, privacy-preserving, and modular.

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Senior Integrations Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Senior Integration Backend Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Senior Fullstack Python Developer with React

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Senior Fullstack PHP Laravel Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

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Senior Fullstack Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

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Senior Frontend Developer (React)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

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Senior NET Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.
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Senior DevOps Engineer

Cloud Employee, is a UK owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

Our Client

A leading UK-company that specializes in providing foreign currencies solutions

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Robotics Software Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Summary

In your role as a Robotics Software Engineer, your expertise in Robotic Software Engineering will be the key to your success. Collaborating with our skilled team, you'll play a pivotal role in advancing our cutting-edge product development accelerator. Your responsibilities will involve crafting, programming, and evaluating top-notch software essential for ensuring the dependable and secure operations of commercial robots.

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Senior Python Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Python Developer (Senior Level)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

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Python Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Perl Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Mid-Senior Mechanical Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Summary

The position of Mechanical Engineer corresponds to a mid-level role. An ideal candidate for this position possesses robust practical expertise in various technical systems. The responsibilities encompass a combination of individual input within projects and actively leading teams towards achieving a remarkable standard of technical proficiency.

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Mid-Senior Industrial Design Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Summary

In the role of an Industrial Design Engineer with a focus on cobotics, you will assume a crucial position in envisioning, crafting, and honing both the tangible and operational facets of our collaborative robotic solutions. Your collaboration will extend to cross-functional groups, including mechanical engineers, software developers, and UX designers, in the pursuit of devising cobotic systems centered around users. These systems will redefine effectiveness and safety within industrial settings.

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Backend Python Developer

Cloud Employee, is a UK owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace continuously investing in staff development, engagement and well-being. We provide security, career paths, along with individual training programs and mentoring.

A top rated and state of the art cloud based video interviewing solutions company based in the UK catering to over 5000 prominent companies around the world such as Samsung, Uber, Boohoo, Coinbase, 7-Eleven and many more.

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CNC Machinist

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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CRM Data Specialist (MS Dynamics 365)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Electrical Engineer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

A completely integrated innovation studio within the corporate framework, with a primary emphasis on making the future of the food industry accessible to all. Their core objective is to discover, create, and expand tailored automation remedies, utilizing a team of proficient individuals covering domains like engineering, robotics, and artificial intelligence. Our central mission revolves around constructing automation technology solutions that empower individuals to achieve greater feats.

Position Overview

In the role of an Electrical Engineer, your expertise and proficiency in designing electrical-mechanical systems will be a key asset, enabling you to stand out. Collaborating with our skilled team, you will play a vital role in expediting product development processes.

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Front-End Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Front End React Developer

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking a passionate Front End React Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

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Frontend Developer (NextJS and React)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Frontend Developer (Senior)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Frontend React Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Full-Stack Developer

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking a passionate Full-Stack Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

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Full-Stack Laravel/Vue Developer (Jr to Mid)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Full Stack .Net Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Full-Stack Node/VueJS Developer (Mid - Senior)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring

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Full-Stack PHP Developer (Mid to Senior)

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking passionate mid to senior-level Fullstack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

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Full-Stack PHP Developer Tech Lead

Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

We are now seeking passionate Lead Full-Stack PHP Developer to join our team of skilled talents. This is an excellent opportunity to join a fun and dynamic work environment and to significantly advance your career.

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Full stack RoR/VueJS Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Fullstack Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set. We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.
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Fullstack .NET Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Lead/Senior Frontend Developer (UI/UX) - Brazil

Cloud Employee is a UK-owned business established eight years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

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Marketing Specialists

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set. We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring. ‍
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Backend Developer (Python)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Senior Full-Stack PHP Developer

Cloud Employee is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Web3 And Why Developers Should Learn It?

February 16, 2024

In just ten years, the internet has evolved dramatically!

Our daily lives have been impacted by the progression of the internet.

In our personal, professional, and educational lives, we use the internet almost every day.

It is impossible to overstate the importance of the internet in history.

Its possibilities are still being realized, despite the industry's exponential growth since its inception.

Today's internet is like the automobile industry of 1920, according to experts.

In the same way, the automobile of the time was a game-changing technology, the internet is an emerging technology that is still in its infancy and needs significant improvements.

The article will discuss the latest paradigm shift taking place on the internet: Web3.

Here, we'll explain what Web3 is, what it gets used for, and why aspiring developers need to know it.

Let’s Start!!

Web2 and Web3 differ in a few ways, but the essence of both is decentralization.

By adding a few new features to the internet as we know it today, Web3 enhances the internet as we know it. In more detail, Web3 is:

  • Participants can collaborate and communicate on the network publicly or privately without needing a trusted third party.

  • Participants can participate without permission from a governing body, including users and suppliers.

  • A community of developers creates apps using open-source software, and they are in the public domain.

In Web3, developers rarely create and deploy apps that run on a single server or store their data in a single database, often hosted and managed by a single cloud provider.

Alternatively, The Web3 app environment combines blockchains, peer-to-peer networks with many nodes (servers), or a hybrid of the two, called decentralized apps or dApps.

To establish a secure and stable decentralized network, developers are rewarded for providing the highest quality services to everyone using the service.

The topic of cryptocurrency also comes up when discussing Web 3.

As a result of their reliance on cryptocurrencies, many of these protocols have a financial incentive from tokens to develop, govern, contribute to, or improve them.

In addition to providing compute, storage, bandwidth, and identification, these protocols can provide web hosting and other online services previously provided by cloud providers.

In addition to technical skills, people can earn a living in a variety of ways by participating in the protocol.

Users of the protocol, however, usually pay a fee to use it, much as they would pay a cloud provider.

A typical network participant or developer receives the money directly from the network.

In this way, just as in other forms of decentralization, the need for unnecessary and often wasteful intermediaries is reduced.

Filecoin, Livepeer, Arweave, and The Graph, for example, have utility tokens that govern how the protocol works.

In native blockchain networks, like Ethereum, these tokens are given to participants at all levels of the network.

How Does Web3 Identify Users?

Most often, an ID in Web3 apps is associated with a wallet address.

In previous versions of the platform, identity was based on the user's email address.

In contrast to Web2 methods of authentication like "OAuth" or "email + password," which almost always require users to divulge private information, Wallet addresses are entirely anonymous unless the user deliberately links their identity with it in public.

Further, suppose a person uses the same wallet for various dApps.

In that circumstance, their details and identity can be transferred seamlessly between them, creating a virtuous cycle in which their reputation can be built up.

In addition to traditional authentication and identity layers, developers may incorporate self-sovereign identification protocols and technologies such as Ceramic and IDX into their apps.

Additionally, the Ethereum Foundation is in the process of developing a specification for "Sign in with Ethereum ", which would simplify and document the process for Ethereum users in the future.

There is no doubt that Web3 holds great promise for the creation of applications that are truly open, permissionless, and trustless.

Web3's Functions

After reaping the benefits of the Web2 wave, we are now seeing the first signs of the next major paradigm shift in online applications, aptly dubbed Web3.

Semantic Web, called Web3 by Tim Berners-Lee, the creator of the Web, represents an even greater change.

tim

It is this shift to open, trustless, and permissionless networks that will ultimately eclipse all others.

Coordination and incentives are needed to motivate the long tail of workers, service providers, data providers, and content creators.

There are many challenges in the fields of health, food, finance, and sustainability. Networks that are open, trustless, and permissionless have led to instability.

As it happens, the arrival of mobile, social, and cloud drove Web2, whereas the arrival of edge computing, decentralized data networks, and artificial intelligence will drive Web3.

In Web2, data centers repurposed newly commoditized personal computer hardware, but in Web3, the data center is pushed out to the fringes and often close to end-users.

A plethora of sophisticated computing resources are being distributed across many devices including smartphones, laptops, appliances, sensors, and cars.

In 2025, this is expected to lead to 160 times more data being produced and consumed than before.

A decentralized data network allows various data generators such as the health and wellness data of individuals, the crop data of farmers, including car position and performance data, and virtually any other relevant data about a specific individual - enabling them to sell or trade their data without giving up ownership, privacy, or relying on third parties.

Thus, the long tail of data providers can be included in the developing "data economy" with decentralized data networks.

With Artificial Intelligence and Machine Learning algorithms, we have reached the point where we can generate useful and even life-saving predictions and actions.

ai

In areas like precise materials, medication creation, and climate modeling, the potential applications go far beyond targeted advertising when built on top of new decentralized data structures that provide access to the sort of data that would make IT giants jealous.

A future where people and machines can interact without intermediaries is possible thanks to Web3.

This capability is enabled by peer-to-peer networks, resulting in a computer fabric that is human-centric, privacy-preserving, and modular.

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