Is blockchain a type of DLT?

Yes it is! DLT stands for Distributed Ledger Technology. DLT refers to any system where data is distributed and synchronized between different servers. In DLT, there isn’t a single source of true data but instead there are numerous copies, with systems in place to keep the copies in sync.

Not every DLT is a blockchain. But every blockchain is a type of DLT, and it’s probably the most familiar type. Blockchain is one of the “systems” that can be used to keep the copies in a DLT system in sync – by using an immutable chain of “blocks” of data, along with some kind of secure consensus mechanism. There are lots of details about how the blocks are formed and how consensus is reached that can vary between different blockchains.

To read more about how consensus works on Cardano & Ethereum, see https://www.lidonation.com/en/posts/consensus-on-ethereum-cardano .

Is Web3 related to Blockchain?

Yes! Lots of people talk about Web3 and know that it broadly means the next phase of the World Wide Web as we know it, but not everyone realizes that blockchain concepts are inherent in what we mean by Web3.

To best answer this question, let’s back up to clarify the first two generations of the WWW.

Web1: We didn’t call it Web1 back then. At the time (late 90s - early 00s) it was the only web we knew. The first generation of the web was kind of like a vast terrain of newspapers and magazines. Websites were static pages of images and text. Links could help you “turn the page” to a different part of the site. User generated content was limited to comment sections and message boards, which were not very dynamic.

What was great:

Global access to information at a scale previously unknown to mankind.

What needed improvement:

Only people with technical skills could create content.

Web2 Is the internet we know and love today. Web2 is perhaps most characterized by user generated content, including YouTube, Wikipedia, and Social Media. The way these pages look, feel, and behave is much prettier and nicer than the static pages of Web1, thanks to evolving developer languages and tools. Users of Web 2 juggle hundreds of usernames and passwords, which lead them to personalized content, services, and interactions. This is a core feature of Web2. This also relates to the big driver of internet growth – monetization. The twin behemoths of targeted marketing and online shopping loom over all our internet experiences in Web2.

What is great:

Web 2 is like a whole world in itself, where users can virtually live, work, create, shop, go to school, fall in love. Actually creating a family will still require you to log off for a little while each day.

What needs improvement:

Remembering 100+ usernames and passwords is literally impossible. Not to mention the chaos you might experience if an important service provider has a data breach and your personal details spill onto the dark web. Getting targeted ads can be kind of fun (How did facebook KNOW I would love this dress?!) until you realize how much money is being generated by YOUR personal data – and none of it is flowing to you. Centralization of data and power is a huge issue: almost everything you see and use on the internet rolls up to a tiny handful of megacompanies (Google, Amazon, Meta…). All the data that you contribute, either by typing it in or simply by surfing around, is owned, filtered, and monetized by them.

Web3 is the potential future of the internet; it is defined by decentralization and individual sovereignty, enabled by blockchain technology.

What is great:

Decentralization means that instead of Google and Amazon warehousing all your data – nobody does. Decentralized data isn’t in any single warehouse at all, but is copied across many network nodes that all agree to hold the same data. Obviously, the question of security and trust then becomes quite important. We trust Google and Amazon with our data because they have offered us a pinky promise to protect it. Why or how will we trust decentralized data? Blockchain is the most popular technology that can add security and trust to decentralized data.

Self-Sovereignty means that instead of megacompanies controlling your data, you own it. You have the freedom to protect your privacy or share data with institutions that provide you value. When it comes to accessing, using, or transferring your data, you’re not dependent on anyone else’s permission. This concept of individual sovereignty also extends to financial transactions. Rather than being at the mercy of banks, which may deny you a loan or even refuse to open an account, Decentralized Finance (DeFi)—enabled by blockchain technology—ensures everyone has access to financial tools. The hefty fees charged by intermediaries like banks and brokers can be replaced by smart contracts that manage the logic and trust of financial transactions at a fraction of the cost.

What needs improvement

In a few more years we will have a better vantage point to know what the sticking points are in Web3. But we can already identify a few yellow flags. “With great power comes great responsibility.” That is to say – individual sovereignty also means individual responsibility. Instead of surrendering your life to the google data warehouse, each individual must keep custody of their own private keys to their data. Without getting in too deep, let’s just suffice to say that this can be tricky, and the way it’s done now probably needs to be improved. This fits into another issue at this point in the web3 journey, which is the steep learning curve. This article might be a stepping stone on your learning journey. There will need to be a landslide of other educational stepping stones to bring Earth’s billions of residents along on the Web3 journey.

What is the metaverse? Does it have something to do with blockchain?

Yes, the metaverse is deeply connected to blockchain, although this connection might not be immediately obvious. First, the metaverse refers to an immersive, virtual world where users can interact, socialize, work, play, and even trade. A simple experience like playing Pokemon Go on your phone can be seen as a basic introduction to the concept of the metaverse. However, a more advanced metaverse experience would involve wearing Virtual Reality (VR) goggles or Augmented Reality (AR) glasses to fully immerse yourself in a 3D environment. Now, where does blockchain come in? In a fully developed metaverse, blockchain is crucial for establishing ownership and enabling decentralized transactions. Unlike traditional games or apps, where items and currencies are controlled by the platform itself, blockchain technology allows you to truly own digital assets. These assets, which could be virtual real estate, digital clothing, or artwork, would exist as Non-Fungible Tokens (NFTs) on the blockchain, meaning they are unique and cannot be replicated or controlled by any central entity. Additionally, blockchain enables secure, peer-to-peer transactions in the metaverse through the use of cryptocurrencies, allowing users to buy, sell, or trade assets without relying on intermediaries. This decentralization empowers users by giving them control over their virtual belongings, identities, and interactions, ensuring that the metaverse is not just a virtual playground, but a space where digital assets have real-world value and permanence.

I came across the term “legacy world.” What does that mean?

This seems like a good finisher for this first installment of “No Dumb Questions.” Blockchain fans like to see themselves as the vanguard of humanity, marching toward a bright, decentralized future. In the context of blockchain community discussions, “legacy world” actually just means… the world. The current one that we are living in. Today.

In our own minds, blockchain believers have already turned the page, and are looking back at today, thinking “ah, what children we were!” with an indulgent smile. So when you hear the term “legacy world”, try just joining the fantasy… er, dream. Don your space helmet, fire up your rockets, and zoom away from the legacy world, into the metaverse!