Computer scientist Gavin Wood coined the initial concept of Web3 back in 2014, offering a glimpse into the future of the internet, changing it from what we recognize today. The idea is that the internet will be completely decentralized, with the assistance of artificial intelligence, and not be powered or manipulated by the big tech brands that dominate the space, running on a blockchain. Web3 represents the next big evolutionary leap forward of the Internet – a leap driven by blockchain, NFTs, and cryptocurrency.
But perhaps the biggest defining feature of web3 is decentralization, which brings us to our first reason why you should care about web3.
The Difference Between Web 1.0, Web 2.0, Web 3.0
|Before, there was no such thing as user pages or just commenting on articles.||Social networks and user-generated content production have flourished because data can now be distributed and shared.||It will use AI technology, Machine Learning, and Blockchain to provide users with smart applications.|
|Consumers struggled to locate valuable information in Online 1.0 since there were no algorithms to scan through websites.||Many web inventors, including the above-mentioned Jeffrey Zeldman, pioneered the set of technologies used in this internet era.||This will enable the intelligent creation and distribution of highly tailored content to every internet user|
Background: The need for Web3
The need for Web3 is imminent, yet few of us are aware of it. blockchain technology can clean up environmental issues, eradicate human trafficking, reduce violence in the developing world, and create a fairer system of economics. However, it needs to be adopted first. It’s challenging to find an application on the internet that doesn’t store or share your data with third parties. Web3 is made up of everything related to blockchain, cryptocurrencies, and various other web3 applications.
Web3 apps have been gaining popularity but there’s still a long way to go. For now, the most robust interations are through Web3 browsers or even browser extensions such as metamask. There is a lot of Web3 Infrastructure that is yet to be built.
How does Web3 work?
Web3 works by combining the decentralization of W 1.0 with the interactiveness of W 2.0 in a user-friendly interface. Ideally, it gives individual users more control over their online experience and increased security through blockchain technology (the decentralized transaction ledger that stores data in blocks that all users can see). W 2.0 forces you to rely on the technology and security of big tech companies. Web3 puts the control in your hands—and the hands of all other users. Users contributing to Web3 can receive tokens in exchange for participating in the development.
Potential uses for Web3
|Decentralized applications (DApps)||DApps are applications that run on a blockchain network and are not controlled by any single entity. This makes them more secure and transparent than traditional web applications.|
|Non-fungible tokens (NFTs)||NFTs are digital assets that are unique and cannot be replaced. They can be used to represent ownership of a wide range of items, such as artwork, collectibles, and even virtual real estate.|
|Metaverse||The metaverse is a shared virtual world where people can interact with each other and with digital objects. Web 3 technologies will play a major role in the development and growth of the metaverse.|
|Decentralized finance (DeFi)||DeFi is a financial system that is built on blockchain technology. It allows users to access financial services without the need for intermediaries, such as banks.|
|Web3 identity||Web3 identity is a new way to authenticate and identify yourself online. It is based on blockchain technology and gives you more control over your personal data.|
|Data ownership||In Web 3, users will have more control over their own data. They will be able to choose who they share it with and how it is used.|
|New economic opportunities||Web 3 is creating new economic opportunities for people all over the world. For example, people can now earn money by creating and selling NFTs, providing liquidity to DeFi protocols, and building DApps.|
Layers of Web 3.0
3.0 is propelled by four new layers of technological innovation:
Edge Computing While web 2.0 changed currently commoditized personal computer technology in data centers, web 3.0 pushes the data center out to the edge (i.e. edge computing) and into our hands.
Decentralized Data Network
Users will own their data on web 3.0 since data is decentralized. Different data generators can sell or share their data without losing ownership or relying on intermediaries using decentralized data networks.
Artificial Intelligence and Machine Learning –
Artificial intelligence and machine learning algorithms have advanced to the level that they can now make useful and occasionally life-saving predictions and acts.
Blockchain is a decentralized technology that uses smart contracts to execute transactions. These smart contracts define the semantics of a web 3.0 application. As a result, everyone who wants to develop a blockchain application must use the shared state machine.
Biggest Challenges Web3 is Facing
Here is a table of 7 challenges facing Web 3
|Scalability||Web3 networks are still struggling to handle the same level of traffic as centralized web systems. This can lead to slow transaction times and high gas fees.|
|Interoperability||Different Web3 networks and protocols often have different standards and specifications. This can make it difficult for them to communicate with each other and for users to move assets between different platforms.|
|Security||Web3 is still a relatively new technology and there have been a number of high-profile security breaches. This can deter users from adopting Web 3 and businesses from building on Web3 platforms.|
|Regulation||The regulatory landscape for Web 3 is still evolving and there is uncertainty about how governments will regulate Web3 activities. This can create challenges for businesses operating in the Web3 space.|
|User experience||The user experience for Web3 applications is often complex and not very user-friendly. This difficulty can make it challenging for new users to get started with Web3.|
|Awareness||Many people are still not aware of Web 3 or what it means. This lack of awareness can hinder the adoption of Web 3 technologies.|
|Education||There is a need for more educational resources to help people learn about Web 3 and how to use it. This will help to increase adoption and reduce the risk of fraud.|
These are just some of the challenges facing Web 3 today. However, the Web3 community is working hard to address these challenges and make Web 3 more accessible and user-friendly.
Disadvantages of Web3
Web3 has both positive and negative factors to keep in mind, which include the following:
- Cost: Blockchain technology is expensive and requires considerable amounts of energy to operate. This carries over to Web3 since it operates on this technology.
- Hardware: Users may need to invest in newer equipment to access the full benefits of Web3 platforms and applications. Older devices may not have sufficient memory or capability.
- Regulation: Decentralization turns the responsibility of regulating content and user actions over to the public. This can create spaces for questionable content to appear online, leaving users of autonomous organizations to govern themselves.
- Scalability: Using blockchain to process transactions in a peer-to-peer network requires considerable computing power that currently needs to be more scalable. This lack of scale increases costs and restricts who can participate, which leads to centralization by default.
Changes Expected From Web3
Web3 will store data in a decentralized network outside the authority of big tech companies like Google or Amazon.
This shift could undermine the leaders of 2.0. and upend the status quo.
Let’s look at Facebook as an example. Right now, Facebook makes money by selling your aggregated data to advertisers, who then use it to target you with subscription razor kits and period underwear (no, just me?).
Under Web3, users could potentially own and monetize their own data, or receive payment for contributing to the platform.
Web3 could also see some current trends, like cryptocurrency and non-fungible tokens (NFTs), become parts of our daily life. For example, you might start buying concert tickets with Bitcoin and receiving an NFT, stored on the blockchain, that confirms you’re the owner.
Since all of this will be taking place on a decentralized network that updates in real time across all touch points, Web3 proponents argue that these transactions will be next to impossible to hack.
Key Applications of Web 3.0
With blockchain at its core, 3.0 makes it possible for an expanding range of new apps and services, such as the following:
- NFT: Non-fungible Tokens (NFTs) are tokens that are individually unique and are kept in a blockchain with a cryptographic hash.
- DeFi: Decentralized blockchain technology is being utilized as the foundation for decentralized finance (DeFi), a new use case for 3.0 that allows for the provision of financial services beyond the constraints of conventional centralized banking infrastructure.
- Cryptocurrency: A new universe of money that strives to be distinct from the traditional world of fiat cash is being created through apps like cryptocurrencies like Bitcoin.
- dApp: Decentralized applications (dApps) are programmes that run programmatically and are logged in an immutable ledger. They are built on top of the blockchain and use smart contracts to facilitate service delivery.
- Chain-crossing bridges: In the 3.0 age, there are numerous blockchains, and cross-chain bridges provide some kind of connectivity between them.
- DAOs: DAOs are poised to potentially take on the role of W 3.0’s governing bodies, offering some structure and decentralized governance.
The demand for Web3 applications is driving the digital economy to revamp all fibers of society to race towards modernization in every aspect of our lives. Cybersecurity, coupled with current industry standard’s regulatory compliance is a must and pragmatic. pic.twitter.com/CghsrmFzAc
— NAVRAS Tech (@NavrasTech) November 2, 2023
Q1. What is Web3?
Ans. It is a system that gives users more control over their data and privacy by utilising technologies such as blockchain encryption.
Q2. Is it better than Web2?
Ans. Web 3 guarantees that you own your data, assets, and digital identities while also combining the advantages of data policy. The present web 2, especially when the government has authority over users’ data, cannot ensure comprehensive data privacy.
Q3. How is Web3 going to be a profitable venture?
Ans. According to experts, the market for web 3.0 blockchain technology valued at more than $6 trillion by 2023. Between 2023 and 2030, W3.0 will experience a CAGR of 44.6% growth.
Q4. Is Web 3.0 the future of the internet?
Ans. The Web 3.0 leverages AI, Machine Learning and blockchain technology. It is expected to achieve real-world communication. Individuals will own the data, and they will be compensated for the time they spend on the internet. This sounds futuristic, and the data and privacy of the users will increase with the blockchain technology. Thus if all goes well, 3.0 will be the future of the internet.
Q5. How do I create a Web 3.0 website?
Ans. First, you need to buy an NFT domain name. Next, you can make a website. The website made in one of the three ways: –
- Use existing templates on website builders.
- Host the website on an InterPlanetary File System Protocol or IPFS.
- Redirect to an existing 3.0 Website.
Just like Web 1.0 that we did know and 2.0 we recognise today, Web3 if it successfully emerges will have its good and bad points. What we know right now is that millions of people using the internet are unhappy with how it operates. We’re monitored and coerced into giving away our data and privacy whenever we access a web page, without much of a say in the matter. The major tech companies control what we see when we want information and this is a major concern. W 3.0 certainly offers a potential escape from the clutches and could give ownership of data and a greater sense of privacy back to the user.