Web3 came on the scene with the promise of being the new Internet. Since its inception, several projects have been initiated. In fact, many of them have turned into real platforms or applications. The rapid growth of the sector suggests that Web3 crypto solutions are here to stay. Indeed, they are finding applications in even more areas than before. 

What is Web3?

Web3 was devised as the solution to a problem that many early cryptocurrency adopters faced. Generally speaking, the web is based on trust in a group of private companies that control their users’ resources. Web3 crypto introduces the possibility of breaking free from this system and owning one's own resources directly. It makes use of blockchain to enable decentralization, trust, resistance to censorship, identity and ownership and native payments.

What are Web3 crypto projects?

In reality, Web3 crypto projects are decentralized applications based on the fundamental principles of blockchain technology. Moreover, all pure Web3 applications are designed to encourage participation in the ecosystem through some form of reward incentive.

The main Web3 project domains are DeFi (Decentralized Finance), GameFi (Gaming Finance), NFTs (Non-Fungible Tokens) and DAOs (Decentralized Autonomous Organizations). Of course, the metaverse is another domain for Web3 crypto projects that must not be forgotten.

Some innovative Web3 crypto projects

Here are some descriptions of innovative Web3 crypto projects in different domains.

Polkadot 

The Polkadot protocol is, namely, a cross-chain interoperable platform that allows seamless transfer of data between two unrelated blockchain networks. DOT is the native token of the platform, which can be used for buying, selling and staking. The token also allows holders to take part in the governance of the Polkadot platform.

Polkadot operates on multiple parallel blockchains, or parachains, and scalability and speed are two of its key features. Polkadot allows not only for transactions of digitized tokens but other types of data as well.

The founder of this Web3 crypto project is Gavin Wood. He is an Ethereum co-founder who undertook this initiative with the aim of building the next-generation version of Ethereum.

Basic Attention Token (BAT) 

To summarize, this Web3 crypto project proposes an innovative approach to advertising.

Basic Attention Token connects publishers and advertisers. It eliminates mediators and intermediaries. What’s more, publishers can send BATs directly to the advertiser’s wallet via the Brave browser.

BAT is the native token of the Brave Ads ecosystem that tokenizes user attention.

In essence, users can monetize their attention and earn BAT rewards for viewing ads. Ad creators and publishers earn revenues. Advertisers also get relevant attention from their target audiences. Users maintain their privacy while, at the same time, giving their attention to the ads. 

Ocean Protocol 

The innovation of this Web3 crypto project lies in the fact that it is a data marketplace.

In fact, Ocean Protocol connects data providers and data consumers in a blockchain-based marketplace. Its ground-breaking model involves tokenizing datasets and data services, thereby allowing data providers to easily and efficiently monetize their data. As a result, consumers have access to an ecosystem of valuable data in one place. Data providers create ERC-20 tokens called Datatokens and these provide access to data that can be purchased with OCEAN tokens. Ocean Protocol’s medium of exchange is also used to provide staking rewards.

As this Web3 crypto project is based on the Ethereum blockchain, users therefore enjoy enhanced security and provenance. These are just two benefits associated with blockchain technology. 

Data-intensive industries such as artificial intelligence can derive particular advantages from using this platform.

Decentraland 

Decentraland leverages Web3 protocols to offer participants a metaverse ecosystem where virtual real estate can be built, traded and purchased. Notably, it is built on the Ethereum blockchain. This Web3 crypto project offers LAND. Essentially, LAND is an NFT minted as an ERC 721 smart contract representing a digital land parcel. Over 90,000 unique LAND pieces in the ecosystem can be bought, sold and traded. Another NFT on the game is Estate, which is an ERC 721 smart contract comprising multiple LAND pieces.

Of course, these NFTs can be traded via MANA. MANA is the Decentraland governance token that is also used to govern the platform on the MANA DAO. Players can stake MANA and participate in community-wide voting to maintain and secure the network. 

Axie Infinity

Axie Infinity was the most innovative Web3 crypto game at the time of its release. Now, however, it is the biggest blockchain game ever. It allows users to earn tokens by playing and contributing to the Axie Infinity ecosystem.

From a gameplay perspective, players can expect to participate in battles. Additionally, players can collect and raise digital pets (known as Axies) and buy/develop digital plots of land to earn rewards. As a non-fungible asset, each Axie is unique, and its value cannot be replicated.

This Web3 crypto project has two metaverse tokens: Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). AXS is a governance token that can also be staked for users to earn rewards. SLP, on the other hand, is earned through gameplay and by participating in events within the Axie Infinity ecosystem.

Axie Infinity is currently by far the top Web3 crypto game in terms of user numbers and market capitalization. 

Winechain

The Winechain project is being implemented in 2022. Significantly, it is the first independent NFT platform for fine wine estates. It tackles the problem of counterfeit wines that are costing the industry several billion dollars in direct sales.

In essence, this Web3 crypto project applies Web3’s immutable traceability, transparency and accessibility to the wine world. 

Winechain customers will have access to rare wines on the platform. The platform will provide solid guarantees regarding wine authenticity and traceability as well. Furthermore, customers will know that, until they are shipped, the wines will only be stored in Winechain's dedicated warehouses. A clear benefit of this Web3 crypto project is that customers will be able to manage their own cellar. For example, customers can resell some of their wiNeFT on Winechain and actively participate in the life of the community.

On the other hand, winemakers will be able to decide on the wines they wish to offer for sale. With access to all customer data, winemakers can create a new direct distribution channel to reach end consumers.

Conclusions

Web3 technologies are being used to develop many new solutions and products, thereby enhancing the market potential across numerous industries. While some Web3 crypto projects are well established, other projects are still being developed. Many of these new projects have significant potential due to the level of innovation they are bringing to the market.

For investment purposes, it is worth keeping an eye on innovative ideas that also have good management and financial support.

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