iSportConnect speaks with Tezos, the energy-efficient blockchain, to get answers to some of the most common questions they receive when it comes to the subject of blockchain and web3.
Over the last year Tezos has seen booming growth in user activity, with smart contract calls increasing per month from 100,000 in January 2021 to over 6.2 million in January 2022. Tezos continues to see adoption and momentum grow, with landmark technical integrations by leading sports franchises and global brands such as Red Bull Racing, Manchester United, McLaren Racing, The Gap, Kia and more.
What is Web3?
Web3 isn’t a single type of technology, but a blanket term for a myriad of applications that have emerged from the invention of blockchain. A blockchain is a database, to which information can be added, but not necessarily changed or removed.
Blockchains aren’t hosted in a single place or administered by a single authority, but instead, they are decentralized: Every computer on the network hosts a complete copy of the ledger.
Aren’t blockchains bad for the planet?
The short answer is that some are, and some aren’t. Blockchains are secured using one of two systems, Proof of Work or the newer technology, Proof of Stake. Proof of Work blockchains like Bitcoin and Ethereum use a huge amount of processing power to secure their ledgers.
“Tezos was designed from the beginning to be more efficient than other blockchains, and to avoid some of the issues that are associated with earlier Proof of Work platforms.”
But newer Proof of Stake blockchains, like Tezos, consume only a tiny amount of energy, without sacrificing security. This makes them more appealing to consumers and brands that are conscious of their carbon footprint.
What makes Tezos different from other blockchains?
Tezos was designed from the beginning to be more efficient than other blockchains, and to avoid some of the issues that are associated with earlier Proof of Work platforms, such as high energy consumption. In addition to its efficiency, Tezos is also inexpensive to use, with very low transaction fees compared to other chains.
Another important advantage of Tezos is its on-chain governance system, which enables it to evolve and upgrade seamlessly, over time, without disruption to users or developers.
What’s the point of NFTs?
NFTs get a lot of negative media coverage, but if you cut through the hype, the technology has a huge number of potential applications beyond just buying and selling artwork. An NFT is simply a token, proving ownership of a digital asset. That asset might be an artwork, but it might also be a ticket to an event, or an avatar in a video game.
“Web3 is in its infancy, but its potential to unlock new experiences, and provide real value to creators and consumers is vast.”
Even physical assets can be tokenized, allowing real-world transactions to happen on a blockchain, without the need for traditional intermediaries. One of the most exciting applications of NFTs for brands and consumers alike is experiences, where a digital ‘ticket’ can be used to provide access to events and spaces in the real as well as virtual worlds.
Why should my company / brand invest in Web3 technology?
Web3 is in its infancy, but its potential to unlock new experiences, and provide real value to creators and consumers is vast. In an ever more connected digital world, Web3 technology allows for a fairer exchange of value between creators and fans, and opens the door to the Metaverse – a fully virtual space for entertainment and commerce.
In addition, blockchains provide an immutable, transparent and virtually unhackable platform for data, away from the control of big tech companies. This makes Web3 solutions ideal for data verification, asset tracking, and supply chain management, among many other applications.