The internet has come a long way since its inception. We’ve gone from simple text-based websites to highly complex applications and platforms that allow us to do everything from ordering a pizza to hailing a ride. But as our reliance on the internet has grown, so too have the concerns about data privacy and security. That’s where Web Three comes in. But what is Web Three? Here is everything you need to know about this exciting development.
What is Web Three?
To understand what is Web Three, let us first review what came before it.
The first version of the World Wide Web back in the ’90s was comprised of static web pages and links.
Websites were not interactive. You couldn’t do anything aside from reading things and publishing simple, basic information.
Web 2.0 was the next evolution of the internet, where users could both read and edit the websites they visited.
This version of the World Wide Web allowed for a much more active user experience, where consumers not only consumed content but created and published their own content on platforms like Tumblr and Craigslist.
This gave birth to social media networks such as Facebook, Twitter, and Instagram which revolutionized how information was shared with a much larger audience.
The growing public started to distrust the data collection by tech companies that were used for targeted marketing.
In 2019, the FTC fined Facebook $5 billion for violating data privacy laws.
With the rise of Web 2.0, people have become fed up with the “walled garden” that technology giants like Facebook, Google, and Twitter have set up. This has led to the creation of “Web 3” where users are given more control.
Instead of simply using free platforms to exchange data, Web Three gives people the opportunity to become investors and participants in the governance of the protocol.
This also means your customers can get involved with you more, not just as consumers and clients, but as partners and shareholders.
In Web 3, digital coins or cryptocurrencies represent ownership of decentralized networks known as blockchains. If you possess many of these crypto coins, you have voting rights over the network and can help influence its direction.
Why Should You Care About Web 3?
When people hear about blockchain, they usually associate this technology with cryptocurrencies like Bitcoin.
Blockchain technology is revolutionary, but many people are not aware of its ability to create a new type of ownership for digital assets, including art, music, and even artifacts.
The possibilities are virtually endless.
It is changing how we deal with money and all forms of property in a fundamental way.
What business owners need to be aware of is the development of the application layer, which will have a significant impact on many businesses in the future. Paying attention to this now will help you stay ahead of the competition and be prepared for whatever changes may come.
When phones started having applications, it was mainly just used for playing games, but they eventually opened up new ways to do things with your phone.
The Web 3 app layer is introducing new ways to use the internet.
When smartphone apps were introduced, they gave us new ways to use mobile phones. In the same way, web3 is an app layer for blockchains and is giving us new ways to use the blockchain.
First, let’s discuss what is Web 3 and how it works.
What is Web 3?
Web3 is a new paradigm for how the internet works. It is owned by the builders and users, orchestrated with tokens. This allows for a more decentralized internet where users are in control.
Or, put simply, you create a blockchain-based way of trading property without middlemen.
Many people categorize the history of the Internet as:
Web 1: The Information Economy (read-only)
– Dominated by news sites such as Yahoo!
Web 2: The Platform Economy (read and write)
– Dominated by social networks like Facebook, YouTube, and LinkedIn.
Web 3: The Token Economy (read, write, own, execute)
– Decentralized Finance (DeFi) and “the metaverse”
Over the last year, momentum has been growing for creative developers to build some truly impressive apps showing how powerful blockchain can be.
What are some examples of Web 3? What are tokenized properties? And why are they important?
We’re seeing some interesting developments with this technology, such as:
1. Decentralised Finance (DeFi)
– People from all over the world are coming together to pool their money and make loans.
– A growing number of funds are being collected for causes such as purchasing carbon offsets, acquiring art, or donating money towards the purchase of the U.S. Constitution.
2. In-Game Economies
– If you’re familiar with MMORPG, you’ve probably seen how these games have their own currency. Now, people are actually making money by playing video games.
3. Governance Experiments
– Tokens can also give you access to voting rights.
Organizations known as DAOs (Decentralized Autonomous Organizations) are being run by members voting on policy proposals on platforms like https://snapshot.org/ and the Ethereum name service just launched tokens and is holding a vote with their users on its constitution.
4. Power to Content Creators
– By representing ownership of art with NFTs (non-fungible tokens) artists can go directly to patrons with a smart contract and be able to have a clear, direct relationship with the people consuming their art.
The introduction of web 3.0 presents a new paradigm for the internet that blends economics and games theory with art and technological innovation.
This is just the beginning, but the impact will be huge. The impact on business will be much greater than how the internet or mobile phones changed the way we do things.
It’s an interesting space to play around with.
What You Can Do With Web 3
The advent of Web 3 makes it possible for decentralized organizations to proliferate. Tokenization allows anything to be represented, including memes, art, social media posts, and event tickets.
The gaming industry is a great example of an industry where consumers are constantly complaining about the bugs and glitches that the developers leave behind.
With Web 3, players will be able to invest directly in games, as well as vote on how the game should be managed. Big companies like UbiSoft and Meta are building their virtual game worlds using the power of the Web 3.
NFTs (non-fungible tokens) will reshape the gaming world by letting gamers become the sole owners of their in-game assets.
Where Web 3 Falls Short
Web 3.0 will not involve intermediaries, so user data won’t be controlled. This reduces the possibility of corporate censorship and the effectiveness of denial of service (DoS) attacks.
As more products are connected to the internet, more extensive datasets will be available to provide algorithms with more information to help them evaluate. This will enable them to provide more precise information that is tailored to each user’s needs.
It was difficult to find the best results on search engines before Web 3.0. However, they have improved their ability to find semantically relevant results based on search context and information. Web browsing is now more convenient and everyone can find the information they need with relative ease.
For a website or web application to be successful, customer service is essential. Many successful web companies cannot scale their customer support operations because of high costs. Intelligent chatbots can communicate with multiple consumers simultaneously and provide a better user experience. This is possible thanks to Web 3.0.
The issue with web 3 technology is its ownership. The ownership of the network is not distributed evenly but is concentrated in a few hands. This caused an issue when the CEO of Twitter got into an argument with a group of investors.
The critique is that “blockchain” projects are often marketed as being “decentralized” but are actually centralized. This can be seen with private “permissioned” blockchains, venture capital funding, and DeFi, where only a few people hold keys to millions of dollars.
Even though protocols are a community that lacks organization, there are identifiable leaders who hold significant power over the network. For example, even though Ethereum founder, Vitalik Buterin, is no longer directly involved in the development of the project, he still holds considerable sway over the network.
Vitalik is a hilarious and contradictory phenomenon in its own right. He is the spiritual leader of a decapitated, defacto, and largely unregulated financial system and has extraordinary influence within the system that he created and governs.
Creating decentralized financial applications is far from easy. They are plagued by poor voter turnout and rely on a centralized server for much of their functionality. This is because creating a blockchain seems like a mystical skill only possessed by the most skilled of programmers.
Web Three is a promising platform, despite its shortcomings. Everyday users will soon discover if it’s too ideological or practical.
Web 3 Is Not There Yet
Blockchain and cryptocurrencies are still very new and difficult to understand. To get involved, you must first educate yourself. This can be difficult, especially since there are privacy tools out there that can help you bypass this.
There are pros and cons to using blockchain technology for internet privacy. While it’s fine for some, others need complete and total privacy and this just isn’t possible with blockchains.
Although it may sound good in theory, in reality, the blocking of anyone from the internet would present its own set of problems. Since there is no way to control what information is spread, we run the risk of people spreading hateful and false information.
The biggest challenge facing Web 3 is the power that the likes of Google and Amazon have. This is a political and social issue that will not be solved with technology. The team behind Meta isn’t interested in a decentralized web. If legislators don’t act to disempower these corporations then there will be no real progress. The blockchain community needs to stop supporting ICOs and cryptocurrency schemes that have nothing to do with the technology.
So, what is Web Three? Web Three is the next generation of the internet, where users are in control of their data and applications. This new development promises greater security and privacy for users, as well as more transparency when it comes to how companies use our data. Exciting stuff!