Web3: Everything You Need To Know And Why You Have To
Web3 has been one of the internet’s hottest buzzwords for a while now. There’s so much hype and conversation around the term but what does it even mean? If you were wondering, well then, let’s talk about Web3! What is it all about and why should you care? We’ll start from the very beginning;
What is Web3?
For a lot of us, the internet is a vital part of our everyday lives. Whether it’s work, communication, or just regular relaxation, most of what we do is online. And that’s great, it’s fun and- again important, however, the platforms we spend a lot of time on are mostly controlled by a few large companies. These centralized entities get to decide what we can and cannot do on their platforms, and in the process, they collect a lot of data about us.
Web3 is out to change that. The term Web3 describes the next phase of the internet. A more user-friendly version of the web that has decentralization at its center. The first thing you need to know is that it exists mainly as a concept. We’ve seen bits and pieces of Web3 come alive through blockchain technology and its applications in crypto, NFTs, and DeFi.
Before we dive into all the things that make up the vision of a fully realized Web3 ecosystem, let’s go back a few decades;
Web 1.0
This was the first version of the internet, also known as the read-only web. Web 1.0 lasted from the early 90s to the mid-2000s and in this time, most websites were static and controlled by a couple of companies. This iteration of the internet lets you read information on websites, but you really couldn’t do much else.
Web 2.0
The second generation of the internet marked a significant shift in the evolution of the internet. Web 2.0 is the existing model which most of us are familiar with. This version brought with it social media platforms, allowing the web to transition from a read-only to a read-write space.
Lots of people can create and share their own content in the Web 2.0 internet model. Others who opt not to make content can like, comment, share, and interact in various ways. Plus it’s super accessible thanks to mobile phones, however, Web 2.0 does have its fair share of issues - majorly centralization.
A handful of top companies have control an unfairly large portion of the internet's traffic and the value generated. Web 2.0 changed the internet for the better, but also created new challenges, like who controls the content and who profits from it
Web 3.0
Ethereum co-founder Gavin Woods coined the term Web3 in 2014 not long after Ethereum went live. The infrastructure for Web3 revolves around components like blockchain technology, decentralized apps, cryptocurrencies, and non-fungible tokens. All of these come together to make up the read-write-own iteration of the web that puts the power back in the user’s hands.
Web3 aims to create a decentralized, permissionless, and trustless infrastructure. In simple terms, this means that instead of a few big companies controlling the internet, ownership is distributed amongst its users, and everyone has equal access to participate. Web3 uses cryptocurrencies for transactions and also employs incentives to encourage users to participate and secure the network without a central authority.
Additionally, web3 focuses on interoperability, which means different blockchain networks can communicate and seamlessly share data.
Why Does Web3 Matter?
You’ve probably already caught on. With web3, users can truly own their data and digital assets, and participate in decentralized decision-making processes. Web3 goes further to create fresh, exciting possibilities for innovation. Web3-based dApps could mean new business models, or markets and more creative ways for participants to generate revenue through their skillset.
We already witnessed NFTs completely revolutionize the digital art space and even begin to work in tandem with other industries. A fully decentralized and democratized internet would bring a full overhaul to just about every sector in terms of ownership, governance, and more, thanks to the blockchain.
Another thing to consider is how Web3 handles user data. With Web 2.0 platforms like Facebook, or Google, as participants, our data is part of the process if we wish to receive personalized content, adverts, and other services. Data such as browsing history, search queries, location data, and other personal information go into the mix.
Web 2 platforms generally have privacy policies in place but there have been cases where data has been leaked or misused. So a lot of people have concerns about privacy and security in Web2 structures. However, Web3’s approach to digital identity is decentralized, self-sovereign, and secure. You get to create and manage your own identity on the blockchain with zero third-party identity verification. This means greater control over personal data and privacy, as users can choose what information to share and with whom.
Finally, one of the most important features of web3 is its ability to resist censorship. Since web3 platforms are decentralized and operate on a peer-to-peer network, there is no central authority that can shut down or censor content. This means that users can communicate, transact, and share information without fear of censorship or retaliation.
Conclusion: Why You Should Know All This
The internet is still a Web2 space, however, the Web3 ecosystem is slowly being defined. People who believe in the vision of a decentralized future are working together to make it a reality. A proper understanding of Web3 and its potential allows you to take part in building the necessary frameworks, whether you’re a developer, entrepreneur, or simply a curious user. When it does finally take shape, you will be at the forefront of the Web3 revolution, poised to enjoy the benefits of this transformative technology.
