The internet has seen rapid progress from the early days of Web 1.0 to the current Web 2.0 version. Web 3.0 is the future version that keeps creating a buzz online. Its definition continues to evolve as the community updates its concepts.
The online excitement concerns the benefits of Web2 vs. Web3. Notable companies like Coindesk and Reddit plan to develop Web 3.0 platforms.
But, what is Web3? Read on to find the answers to all the questions mentioned.
Web3 as a Concept
As the name suggests, Web 3 is the third generation in the evolution of Web technologies. The concept differs from the third iteration of the Web, which comprises various technologies and design principles.
Since the evolution is still in progress, a canonical and universally accepted definition of Web 3 isn’t available.
Besides, more information will arise as the technology evolves, and any new data discovered will be updated. The technologies extensively used in Web 3 include blockchain, AI, and machine learning.
Web 1.0 and Web 2.0
Web 1.0 was designed to help people better find information. First, some people created Web pages and content for a larger group of readers. Then, the readers access the information and facts from the sources.
Web 1.0 is sometimes referred to as the read-only web because of the lack of interactivity, visuals, and controls we enjoy on today’s internet.
Features that characterize Web1 are:
- HTML elements like tables and frames.
- Static pages connected to a system through hyperlinks.
- Graphics and gif buttons.
- The service file system that stored the content.
Web 2.0 focused on more people who created content for an even larger audience. Contrary to Web 1.0, which focused on enabling the audience to read, Web 2.0 focused on the audience to participate and contribute.
In addition, Web 2.0 emphasized user-generated content, interactivity, ease of use, and improved compatibility with other systems and devices.
A breakdown of typical Web 2.0 characteristics is as follows:
- Easy retrieval and classification of data.
- Dynamic content that responds to users’ input.
- Self-usage and forms of interaction like social media, comments, and podcasts.
- Used by the entire society and not limited to specific communities.
Web3? What Is It?
Previous technologies use a centralized database that enables functionality and data delivery. However, Web 3 eliminates the need for an obituary central authority. Instead, a centralized blockchain with applications and services replaces the centralized database.
Web 3.0 is better than its predecessors due to a change in the network architecture. Besides, Web 3.0’s architecture doesn’t follow third-party protocols and regulations. As a result, digital users don’t have to worry about privacy invasion by tech firms.
Other differences between Web 3.0 and previous versions include:
- Content ownership. Previous versions let the network control information storage. Web 3.0 allows data exchange in different locations simultaneously.
- Currency. Previous technologies make payments in fiat money. However, Web 3.0 works more with cryptocurrency than fiat currency.
- Applications. Previous versions include apps such as RSS feeds, video sites, and podcasts. But, Web 3.0 incorporates virtual worlds, 3D portals, AI, etc.
- Speed. Previous technologies are quicker because the information resides on one server. On the flip side, Web 3.0 assigns ownership to many servers.
The features that characterize Web 3.0 are as follows:
- Connectivity. Semantic metadata lets users leverage all available information. Also, Web 3.0 is based on IoT sensors, making the internet available to everyone, anywhere, anytime.
- Artificial intelligence. Web 3.0 allows computers to understand data in a human-like nature for relevant results.
- Semantic Web. The semantic Web improves the abilities of Web technologies to search and share content by word meaning rather than keywords.
- Edge computing. While earlier versions modify information in data centers, Web 3.0 pushes the data to the edge. Web 3.0 relies on apps and the data processed at the network’s age on devices like phones and laptops.
- 3D Graphics. A new level of immersion in Websites and services like real estate and tourism is made possible with 3D graphics. Web 3.0 ensures a realistic, 3D world compared to a simple 2D Web.
What Are the Component Concepts of Web 3.0?
The component concepts of Web 3.0 work together to shape the future of online activities. Web 3.0 offers the services below and new applications.
In simple terms, the metaverse is the new way that people use to transform the internet from 2D to 3D. Instead of the usual click and flip to interact with the Web, metaverse allows you to convert the content to 3D objects.
Web 3.0 and the metaverse are different but not competing entities. So, the two can complement each other in the future to create a seamless experience.
The future of Web 3.0 and metaverse combined is unknown, but investors can benefit from the concept. For instance, investors can invest in the cryptocurrencies used in metaverse to buy and sell.
The metaverse merges the virtual and physical worlds. So, an interoperable and open-source public chain is ideal for interlinking different virtual worlds. With a proper plan of the various entities, each world’s assets will overlap seamlessly.
Meanwhile, some companies have announced plans to develop metaverse services and experience. Such companies include Microsoft, Nvidia, and Unity Software, which have plans to develop hardware and software for the metaverse.
Other organizations also plan to expand metaverse spaces to businesses to facilitate virtual meetings.
The onset of bitcoin was one of the initial points that drew the outlines for Web 3.0. Bitcoin blockchain protocols created networks that facilitated data storage in various copies of the P2P network.
The protocols came from the guidance on data security through majority consensus from all network participants.
Blockchain supported the development of the governance layer that runs on the current internet so that unknown people can reach agreements over the internet today.
That’s because blockchain offers an immutable ledger of activity and transactions used to verify the authenticity of transactions.
Blockchain is also a significant core that opens up the possibilities for the internet with improved decentralization. The development of Web 3.0 creates a new social infrastructure that must fulfill the core precedents of the internet.
As a result, the need for a network that collectively remembers user interactions gets eliminated.
The top advantages of blockchain are its security, transparency, data reconciliation, and immutability.
The benefits are what the new Web 3.0 wants to serve customers. For instance, with enhanced data reconciliation comes the development of reliable data management systems.
Web 3.0 and cryptocurrencies share the core principles of decentralization and equal access. Cryptocurrencies combine smart contracts and blockchain to allow you to control your data and transact without third parties.
In addition, Web crypto may provide services initially offered by cloud providers, e.g., identification, bandwidth, computation, and storage.
Web 3.0 can cryptographically connect data of different levels, e.g., corporations, machines, and individuals. Web 3.0 also opens the door to a peer-to-peer network where machines and people interact with values, data, and other partners.
With the new shape of human-machine interactions comes an interconnected future.
The rise of cryptocurrencies is inevitable with the advent of Web 3.0. Both creators and audiences can earn revenue from Web 3.0. For instance, creators can launch cryptocurrencies with a follow-up reward to boost the audience’s interest.
Examples of Web 3.0 cryptocurrencies expected to build the next generation of the Web are:
- Thet: dispersed video streaming network that allows users to share computing power and bandwidth in a peer-to-peer format.
- Helium: provides a decentralized peer-to-peer network.
- File coin: decentralized storage where you can rent out your extra hard drive space in exchange for Filecoin Tokens.
- Chain link: allows smart contracts to access crucial off-chain resources like data feeds and API.
Decentralized finance (DeFi) consists of financial applications built on blockchain. The component entails executing real-world financial transactions without help from intermediaries like the government or banks.
DeFi’s basic premise aims to eliminate the cost of presence or access and instead use peer-to-peer interaction.
Many current DeFi applications have the Ethereum network. Innovation has resulted in emergent networks with better speeds, more security, and scalability.
So, DeFi innovators started considering more affordable and low-energy usage options. The end is energy conservation and better financial use, hence increased profitability.
Finances are a sensitive sector, so DeFi offers top-notch security measures. First, DeFi apps are inherent, so sensitive user information gets a high protection level.
Then, DeFi also takes advantage of blockchain to distribute data across different devices worldwide. So, anyone who wants to steal confidential data fails to get hold of the distributed information.
As mentioned earlier, Web 3.0 decentralizes control and ownership. Non-fungible tokens (NFTs) come in to help builders, users, and developers own pieces of the internet. As a result, the owner gets digital assets like collectibles, credentials, and 3D models.
In light of decentralization, NFTs offer membership passes to a digital community. NFTs’ profile picture collections like crypto punks provide access to online communities and in-person events.
Since NFTs provide proof of ownership on the blockchain, the technology solves security issues like forgery and digital theft.
Another typical application of NFTs is in productive and exchangeable game assets. NFTs enable ownership of purchased in-game assets to provide utility for players. You can also send the NFTs on quests to earn in-game items, which you can exchange for cryptocurrency.
The many applications of NFT uplift the digital economy in magnificent ways. For instance, NFTs trigger crypto users and act as a financial ledger. Besides, you can scrutinize the performance of NFTs in sectors like arts, music, and memes.
Decentralized autonomous organizations (DAOs) are smart contracts that allow you to own the Web 3.0 platform as a collective. The funds are stored in a treasury and governed by smart contracts.
So, DAOs don’t rely on banks to keep track of finances. Instead, you use tokens as shares in a company to coordinate the decentralized ownership of the collaborative platform.
DAOs are built on a smart contract that runs on blockchain and gets executed upon meeting a predetermined condition. The preset rules in the smart contract govern the whole entity. So, a third party isn’t needed to facilitate trust and make decisions.
Web 3’s foundation combines with the network design of DAOs to fuel a creator economy. DAOs remove complex processes to enhance the faster movement of assets into a future-orientated digital interaction.
Businesses use DAOs to assess how to use technology for business innovation. Besides, the DAO rationale enables organizations to function without a management hierarchy.
Finally, companies don’t need human intervention to run machines since all processes are pre-written into code.
Decentralized applications (dApps) allow users to perform financial operations. For example, you can lend, borrow, mortgage, save or handle money matters with dApps.
dApps operate based on stablecoins and cryptocurrencies. Examples of Web 3.0 decentralized applications are MakerDAO, Sushiswap, and PancakeSwap.
With decentralization comes zero risk of user data theft. Web 3.0 dApps’ architecture ensures a distributed system that protects users from any nefarious activities that interfere with service.
Not even a single business has complete control over its users. So, even a centralized government can’t invade user privacy.
Web 3 replaces the need for a centralized Web server with blockchain in the dApp architecture. The blockchain platforms for dApp include Ethereum, EOS, and Hyperledger Sawtooth. In addition, an intelligent contract runs on blockchain to define the logic of a dApp.
Decentralized applications have a more significant role in Web 3.0 than decentralization. The dApps have caused visible changes in traditional digital services like multimedia streaming platforms and cloud storage.
Businesses, too, are safe from the losses that stem from downtimes because, with dApps, the apps never go offline.
So, what is Web3? Web 3.0 anticipates allowing more people control over their data. The technology is also set to be more user-specific to reduce the risk of hacks.
As a result, individuals and organizations who take advantage of the technology will likely gain an edge over their competitors.
Technology changes every time, and the best businesses can get ready to change or be impacted by the change. Organizations can assess, research, build capability, and revise digital strategy roadmaps in preparation for Web 3.0.
Otherwise, the disruption will likely occur in critical areas and may throw unprepared companies off balance.