Disclaimer: This text was contributed by CEO PointPay Vladimir Kardapoltsev. The views, thoughts, and opinions expressed in the article are the author's own and do not reflect the opinion of the editorial.

A new frontier in the evolution of the Internet promises a decentralized, open-source alternative to Web 2.0 that will transform computing, data storage, and peer-to-peer transactions. It is assumed that Web 3.0 will be based on three fundamental technologies: blockchain, artificial intelligence, and the Internet of Things.

It's important to note that Web 3.0 is just a concept. Although several components such as cryptocurrencies, DeFi, DApps, DEXs, and DAOs, which are based on decentralized principles and built using blockchain technology, enable the evolution of the global internet by making it more secure, reliable, and robust.

Blockchain is considered one of the main technological layers of Web 3.0, responsible for providing trust in an untrusted virtual environment. This means that users can trust online data as a consensus mechanism filters it through a decentralized publishing system based on the blockchain of the future Internet. Ethereum, in its own way, has become the basis for numerous decentralized applications that are hosted on blockchain nodes and managed by users.

Blockchain, as one of the key elements of Web 3.0, formed the basis for the creation of cryptocurrency exchanges. This technology offers a way to secure and verify encrypted data, such as financial information, without the need for a central authority or trusted third party. This means that Dapp developers do not need centralized institutions, as the network can be used to perform functions that were previously conducted by financial service providers.

At the moment, several hundred marketplaces have integrated blockchain into their operations to various degrees. This allowed providers to significantly reduce costs and increase transparency, security, and efficiency. However, the lack of a sufficiently reliable infrastructure for the full implementation of a decentralized financial system, such as an order execution system for large transactions, is a significant barrier to realizing this vision.

Although the centralized model of exchanges in a certain way contradicts the idea of decentralization, I am sure that CEXs attract institutional investors necessary for the development of the entire industry. On the one hand, centralized exchanges implement KYC policies and AML procedures. On the other hand, CEXs are able to provide the infrastructure necessary to fulfill large orders with almost zero impact on the price and other services required by the industry's “whales.”

Therefore, while decentralized finance facilitates the emergence of new technologies for the development of Web 3.0, centralized cryptocurrency exchanges are in some way necessary for the maturity of the cryptocurrency sphere.