Web3 Unveiled: A Beginner’s Guide to the Next Evolution of the Internet - Part 2

Introduction

Welcome back to part 2 of this series. If you are here, it’s most likely because you did enjoy reading part 1. However, if you haven’t read that article, I believe you should, as it forms a strong background for this article. Now that you know how we got to web3 and what it stands for, the lurking question would be, “How can I be part of it?”

In this article, we will start by having an overview of the different blockchain networks and then look at the financial aspect of things, which I know is why most of you are here.

More About Blockchains

I know what I am about to tell you might feel like information overload, but it is a necessary thing to know in order to not make mistakes in the field. We both know that web3 is powered by blockchain technology; that is the face value difference between a web2 and a web3 product.

Now, you may ask, “It’s just one blockchain, right?” Well, it’s not. There are over 1,000 blockchains that exist as of 2024. Each of them has its unique provision and distinction. Some are niched, some are general purpose, some have better technology infrastructure powering them, etc.

Generally, blockchains are known as Layer 1s (L1s), but they come with an issue which is known as the blockchain trilemma. However, other blockchains exist that are built on top of existing blockchains (Layer 1s), which help solve the blockchain trilemma issue, and they are known as Layer 2 (L2s). More about it here. Now, hold that thought as we look at some examples of blockchain below.

Ethereum: This is the leading platform for innovative apps and blockchain networks and is second only to Bitcoin in its market capitalization. It is a Layer 1, and if you are looking to enter an ecosystem that has an incredible number of talents in it, this is the right pick for you. Also, there are a huge number of Layer 2s building on Ethereum because of how much economic security the blockchain possesses.

Base: This is a Layer 2 blockchain solution designed to enhance the Ethereum network by providing a scalable, efficient, and cost-effective environment for decentralized applications (dApps).

Polkadot: Polkadot is a blockchain network that connects different blockchains, called parachains, so they can: Transfer data and assets seamlessly, build on a platform that provides validation and security, interact with each other through bridges, and communicate securely. Technically, it is a Layer 0.

Stellar: This is a layer 1 blockchain that allows digital currency to fiat money low-cost transfers. It also allows cross-border financial transactions among any pair of currencies.

Solana: This is a blockchain platform designed to host decentralized, scalable applications.

Navigating Web3

You roughly have an idea of the blockchain that exists currently. The first step to interacting with any blockchain is having a wallet, no, not the one you put in your pocket. This wallet is basically your gateway to web3, and it will be in charge of holding the assets you have on any blockchain.

There are things to consider when picking a wallet, such as whether it is a self-custodial wallet or not, blockchain compatibility, etc. It can be a lot, but you should have this in mind, so before proceeding, I recommend you read this educational article on the subject.

Each blockchain has its native token, and this token is used to pay for transactions carried out on the blockchain. This is also known as gas fees. So, for you to carry out transactions on any blockchain, you have to hold its native token. Most Ethereum Layer 2s, like Base, Optimism, Arbirum, etc., make use of the native token of Ethereum, known as Ether, as the token for gas fees.

Earning Opportunities

The start of this series was inspired by a surge in questions about web3, which was motivated by the profit people were posting online. As you should know, not all that glitters online is actually gold. However, we would be discussing some earning opportunities someone can explore onchain.

Roles: The way roles like Software Engineer, Product Manager, Product Designer, etc. exist in web2, is the same way they exist in web3. The difference is the tools and requirements that come with such roles. However, there are new roles in web3 that exist, which were formerly not in web2 (more like not popular). Roles like Research Analyst, Protocol Engineer, Governance Analyst etc.

Bounties: Another earning opportunity onchain is through bounty systems. A good number of people thrive on the gig economy onchain. They offer skilled service in exchange for crypto. There are platforms that show you such opportunities, like OnlyDust and Superteam Earn. However, it is not just limited to them. Some projects list these opportunities on their forum, telegram, or discord, depending.

Grants: This is money offered to builders to incentivize them to build. Most protocols have a grant system for people who are building a project on their blockchain or protocol. As there are a ton of blockchains out there, it is a strategy used by most to attract quality people to build long-term with them. However, there is still a debate on how effective grant programs are actually, in the ecosystem. I recommend you read the State of Web3 Grants report.

Hackathons: A hackathon is a short period event where people are expected to build out a minimum viable product (MVP). Usually, protocols organize or support people who organize such activities as it serves as a way of onboarding talents into their ecosystem, and sometimes, those products end up becoming successful projects in the space.

Conclusion

It is pretty much evident that you need to have a skill that is valuable (in other words, add value to those who pay you) in order to earn a living or make money in the ecosystem. You will also need to do a lot of building in public, so you can get visibility and people can be aware of what you do. These life hacks are general hacks that work, even if you are on web 1, 2, or 3.

Also, the earning opportunity is not limited to only what I discussed above. There are other things possible that I may not have an idea about. You will just have to be very resourceful and make use of the internet to do a lot of research on what is possible. If you are thinking long-term, you should look at some job descriptions and acquire the skills there if you want to land a role or gig in it. I hope you got to enjoy both parts of the series, and good luck on your onchain journey.