I’ve been researching various cryptocurrencies lately, and I found this fascinating and clarifying description of what cryptocurrencies are, and why even have a blockchain?

Here’s what I’ve learned:

What are Web 1.0, Web 2.0, and Web 3.0?

Web 1.0: We could see information on the web. (AOL, curated content)

Web 2.0: We could write content to the web. (blogs, Google, Facebook)

Web 3.0: Now we can own a portion of the network.

In Web 3.0:

If you do work and upkeep of the network (blockchain), as in Bitcoin mining (providing hardware for the decentralized network to operate, actually running the calculations to keep the blockchain going), you’re rewarded with a token. (Bitcoins, Ethereum, etc.)

If you like what the network is doing (running software for medical company, apps, calculations, etc.), and you think it’s got a bright future, you can invest in the network by buying tokens, the coin of the network.

Users investing in networks are stakeholders and make decisions, unlike in the case of a Google or Facebook.

The tokens represent the value of the network, like shares in a company.

And now you know! Cryptocurrencies are ways to invest in decentralized (owner-controlled) networks in which the token-holders/shareholders make the decisions. The value of the network comes from its assets and function, and that’s trillions of real dollars!