What Is Web 3 and How Does It Work?
Are you curious about Web 3, but not sure what it is and how it works? You’re not alone! Web 3 is quickly becoming a popular way of accessing loans, but it can be confusing for those who are unfamiliar with it. In this article, we’ll explain what Web 3 is, how it works and some of the different types of Web 3 loans available.
What Is Web 3?
Web 3 is the newest development in web technology. It uses blockchain and distributed ledger technology to create a secure and decentralized platform for data exchange. This means that data is stored and shared on a network of computers, rather than being stored in a central location. This eliminates the risk of data breaches and makes it easier for lenders to access and verify information.
How Does Web 3 Work?
Web 3 works by connecting users and lenders through a blockchain-powered platform. This platform allows lenders to verify data, such as income and credit history, more quickly and securely than ever before. It also makes it easier for lenders to assess a borrower’
The platform uses smart contracts to facilitate the lending process. Smart contracts are self-executing digital agreements that are stored on a blockchain. They can be used to automate loan repayment schedules and ensure that lenders and borrowers fulfil their obligations.