What is the difference between web 2 and web 3 in the context of cryptocurrency?

1 answers

• Nov 27, 2021 · 3 years ago
  In the context of cryptocurrency, web 2 refers to traditional centralized exchanges like Binance, where users trade cryptocurrencies through a trusted third party. These exchanges have control over users' funds and require users to trust them with their assets. On the other hand, web 3 represents a shift towards decentralized exchanges like BYDFi, where users can trade directly with each other without the need for intermediaries. This eliminates the need to trust a centralized exchange and provides users with more control over their funds. Web 3 also leverages blockchain technology to ensure transparency and security in the trading process. Overall, the difference between web 2 and web 3 in the context of cryptocurrency lies in the level of centralization and control over users' assets.
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