Personal Journey: From Web2 to Web3
Before getting into the Web3 world, I focused on learning about traditional stock markets, especially the technical analysis aspects. During mid-2021, there was a huge hype around the crypto space, with the whole world going crazy over Dogecoin (DOGE).
The terms ‘crypto,’ ‘Bitcoin,’ ‘Ethereum,’ ‘blockchain technology,’ and ‘memecoin’ were just fancy buzzwords to me at that time. As I was already involved in trading stocks, I became curious about buying and selling cryptocurrencies. The curiosity, fear of missing out (FOMO), and extra free time during the second lockdown pushed me to explore the exciting world of Web3.
My initial intention was to buy some crypto to experience the process. After getting help from various articles and YouTube tutorials, I found that the easiest way to start as a beginner was to buy cryptocurrencies through a centralized exchange (CEX). After creating an account and completing know your customer (KYC) verifications with a crypto exchange, I purchased my first three cryptos: Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
The eagerness to learn and understand more about the Web3 space grew from that first crypto experiment. CoinGecko’s ebook titled ‘How to DeFi (Beginner)’ also played a major role in my initial days of diving deep into decentralized finance (DeFi), one of the core aspects of Web3.
Along with self-paced learning, I began writing about Web3 topics that I found interesting, which eventually led to finding freelance writing projects and becoming a full-time writer.
Major Ethereum Onboarding Challenge
During my initial days, I relied on popular centralized exchanges, including Binance, to buy and store crypto assets. Then, one day, I read an article about Mt. Gox, a crypto exchange that declared bankruptcy following a massive hack in 2014. This article made me reconsider other methods of storing crypto assets without depending on an exchange that had access to my funds (this was a year before the infamous FTX collapse).
The answer to this concern was simple: non-custodial wallets. Non-custodial wallets are solely controlled by the user without the interference of a centralized entity like an exchange.
MetaMask and Trust Wallet were the most popular non-custodial wallets at that time, and I decided to create a wallet with MetaMask. However, from a beginner's perspective, the process of creating a new wallet, saving a new password, and storing the secret recovery phrase was a bit overwhelming. Most importantly, the fear of losing the recovery phrase haunted me.
After a few months, what I feared most happened: I forgot the wallet password and couldn’t find the recovery phrase that was stored offline. So, when people from the Web2 space raise concerns about losing their passwords or recovery phrases and the potential loss of their crypto assets forever, I understand their anxiety and frustration from my own initial wallet experience.
But there is good news for Web2 beginners who are yet to start their Ethereum journey!
Smart Wallets: A Solution for a Smooth Web3 Onboarding Experience
Smart wallets use smart contracts to simplify the wallet onboarding experience for crypto users. Beginners can create, monitor, and access their smart wallets without the need for passwords or seed phrases.
A smart wallet lives in your web browser, eliminating the need to install apps or extensions, as was the case with traditional crypto wallets. These wallets are also integrated with paymasters who sponsor users' transaction fees, enabling feeless transactions and encouraging new users to explore the Web3 space and its vast ecosystem of decentralized applications, NFTs, and DeFi services without the usual barriers.
Smart wallets also offer enhanced security features by allowing users to set up multi-factor authentication and customizable spending limits directly within the wallet. These features not only reduce the risk of unauthorized transactions but also give users more control over their funds.
As smart contracts continue to evolve, smart wallets can automatically execute functions like recurring payments, splitting funds, or even integrating with decentralized finance (DeFi) protocols, making them a powerful tool for beginners.
You can create a free smart wallet in just a few steps to enter the exciting world of Ethereum.
A Deep Dive into the Ethereum Ecosystem
Ethereum has a wide range of real-world applications. Here are some of the most prominent use cases:
Decentralized Finance (DeFi)
- Lending and Borrowing: Compound, MakerDAO, and Aave are widely used DeFi platforms that allow users to lend and borrow cryptocurrencies without intermediaries. Users can earn interest on their assets or take out loans against their crypto holdings.
- Decentralized Exchanges (DEXs): Popular DEXs such as PancakeSwap and Uniswap enable users to trade cryptocurrencies directly from their wallets without relying on a centralized exchange.
- Stablecoins: USDC and DAI are stablecoins built on Ethereum, providing a stable value that can be used in trading, lending, and as a medium of exchange.
Supply Chain Management
- Provenance Tracking: Companies like VeChain use Ethereum to track the provenance of goods, ensuring authenticity and transparency in supply chains. For example, well-established brands can verify the authenticity of their products using blockchain technology.
- Logistics and Shipping: IBM’s Food Trust blockchain, though initially built on Hyperledger, has seen integrations with Ethereum to enhance the traceability of food products from farm to table.
Non-Fungible Tokens (NFTs)
- Digital Art and Collectibles: NFT marketplaces like OpenSea allow artists to mint, sell, and trade unique digital art pieces as NFTs. One such famous example includes Beeple’s $69 million NFT artwork.
- Gaming: Games like Axie Infinity use NFTs to represent in-game assets, which players can trade or sell outside the game environment.
Real Estate
- Tokenization of Assets: Real estate properties can be tokenized on Ethereum, allowing fractional ownership. Platforms like RealT offer tokenized shares of rental properties, making real estate investment more accessible.
- Property Transactions: Ethereum smart contracts can automate the process of property sales, reducing the need for intermediaries and increasing efficiency.
Gaming
- Play-to-Earn (P2E): Games like Gods Unchained enable players to earn cryptocurrency and NFTs through gameplay. These digital assets can be traded, sold, or utilized within the game or on external marketplaces.
- Virtual Worlds: Projects such as Decentraland and The Sandbox offer decentralized virtual worlds where players can buy, sell, and develop land, create experiences, and monetize their content using tokens.
Wrapping Up: It’s Time for Your Ethereum Plunge
Looking back on my journey from Web2 to Web3, it's been a mix of challenges and exciting discoveries. What started as a simple curiosity during lockdown quickly turned into a deep dive into the world of cryptocurrencies and blockchain technology. Sure, there were some bumps along the way, like figuring out how to use non-custodial wallets and getting a grip on decentralized finance, but each of those hurdles was a chance to learn and grow.
With the introduction of smart wallets and the ever-expanding Ethereum ecosystem, stepping into Web3 has become easier, even for beginners. These innovations aren't just about new technology; they’re paving the way for a more decentralized and secure online world. My experience has taught me that staying adaptable and open to learning is key in this fast-changing Web3 space.
And the best part? This journey is just getting started. Every new development in Web3 brings fresh opportunities, and I'm excited to see where it leads next. If you're on the fence about diving in, I can tell you—it's worth it. Web3 is full of potential, and the adventure is only beginning.