Episode Summary:

In this episode, I compare Web 3 vs Web 2 and look at the main differences using two popular games Roblox ( Web 2) and Sandbox (web3)

Also see: (RBLX), Decentraland - United States Dollar (CRYPTO:$MANA) - 12 Key Differences Between Web 2.0 and Web 3.0: Virtual Worlds, Play To Earn Games, Digital Tokens, NFTs And More | Benzinga

Hosts:

Joe Dewitt Follow at: https://twitter.com/metabitz

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Unedited Transcript:

My name is Joe Dewitt, and this is the crypto breakdown today. I'm going to discuss some differences between web two and the development of web three and what those might entail. So for this example, it's important to understand the difference between virtual worlds and a metaverse.

So a virtual world would essentially be a virtual ecosystem or a virtual environment where people are able to go and communicate with one another. And are able to complete tasks Metta versus on the other hand, actually reward users for spending time on the platform, whether it be some sort of yield earning or earning a crypto itself.

 The metaverse is essentially where digital assets can be stored in. Ecosystems. So for this example is I explained some of the differences we're going to use roadblocks as the virtual world, because it is a very popular video game that is currently out right now. And for the metaverse example, we are going to use the sandbox as it is very popular and growing in popularity with kids nowadays.

So the organizational structure of these games. Are completely different because roadblocks be in a web to company. It is centrally owned. So it is owned by a company and the decisions are based completely on adding shareholder value. While on the other hand, something like sandbox that is a metaphor is completely governance owned, which means it is owned by its users.

Community vote on different decisions and updates. And there are things called dowse, D a O, which means decentralized anonymous organization. And those dollars are groups of people that actually are essentially active community voters. And they are the decision makers moving forward. So as far as the organizational structure the web to site.

More centrally owned. It is owned by a company that makes the decisions. Now on the web three side, it is the community owning the projects and making the decisions moving forward. Now, as far as data storage goes, something like roadblocks that is centralized in web two, it is completely centralized the data.

It is. And it is for their personal use and their personal gain. Only now web three, it storage for metaverse projects will be completely decentralized, which means all data on these networks will be open source. Anyone will be able to receive the data and look at it which makes a completely open source network.

Now the platform of these games are actually no different. You were able to play most web two games on PCs, counsels, and different virtual reality devices, as well as your mobile phone. Now what three games are available on your PC and virtual reality environments, as well as mobile apps. So there is not much difference between the platforms that these two are offered on.

I guess the main question here would be if you had the choice to play a game on your phone and you could either earn rewards for it or just absolutely do nothing and essentially wasted. On it. Which one would you choose? I think most people would prefer to earn some sort of crypto as they play their games.

Now the digital asset ownership of these two different ecosystems is very interesting because the web to side was something like roadblocks that as a game that you're paying to play for you are essentially leasing your character from the environment. The company still owns it. And there's not really any added value to it, but you are just essentially using it for the time being to play your game.

Or on the other hand, with something like sandbox that is web three, all the assets are actually owned by its users as non fungible tokens known as NFTs. These NFTs allow proof of ownership for you. In order to distinguish the difference between different NFTs, as well as give a really unique aspect to these games and ecosystems, as people get to feel more personal and to feel more personal and they get to hold their identity based on different NFTs that they see fit.

Now, people are able to reinvent themselves, whether that be for the good or for the worse, but it allows people to do something that they've never been able to do. Now with these asset ownership. Another really important aspect of these assets is that the web to side is on a game to game basis. Meaning that you go to one game, you're playing a completely different champion and a different game.

And the next game, these avatars aren't staying the same amongst all the games that you're playing. Not one of the goals for one of three is to have interoperative. Identity, which means having each avatar play and all the games. So you can pick the person that represents you the most in play them in all of the games you want to play.

This just allows for a lot more expression and allows for people to really just  design the way that they want to look moving forward into the metaverse. Now the last part I want to look at about web two and web three, and I truly think is the most important part is the content revenues. So something like roadblocks.

Built in the web two era, let's say for this example, when someone makes a purchase on the app, 30% of everything purchased, goes to the app store. 70% goes to the developers. Now there is no middle ground for anyone else. It goes to the developers because it is a centralized company and it goes to the app store because they have the leasing agreement to have their device on the app store and they have to pay a certain amount to apple or whoever it is, whether it be Samsung or Google.

Now with web. Instead of putting those 70% profits in the hands of the developers, what developers do is they say, Hey, you know what, we're going to make this a peer to peer reward system. So now developers can earn revenue based on royalties, but they don't earn all of the profit. Now, instead of the 70%, let's say that developers earn 20.

And now the other 50 goes to the peers and the actual validators of the community. Now this is a good way to keep your retention rate high as it rewards new players and rewards players for staying active in the community. If you have a game that is rewarding people for staying present and rewarding, wanting another for validating the.

That seems a lot more beneficial than just everyone signing in their credit card and sending it straight to the centralized company. These are just a few important aspects of the differences between web two and web three. But if you have any more questions on the topic, feel free to go over to my Twitter and side.

My DMS asked me a few questions. Also check out the bending as Twitter as we will be hosting some Twitter spaces weekly. So you can tune in there. Any questions you want answered and that's all the time you have for today, guys. Thank you so much for tuning in once again, if you have questions, the Twitter links will be down below.

Have a great Monday

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