The name “Web3” was first used in 2014. However, it has been around since 2014, thanks to Ethereum co-founder Gavin Wood. However, the term “new digital age” has grown increasingly commonplace.
Due to the lack of a universally accepted definition, the concept of Web3 has been subject to varied interpretations. Web3 is a distributed network that uses blockchain technology, digital currencies, and non-fungible tokens. It operates with no single administrator or authority figure. This means that users, rather than companies like Google and Facebook, have control.
Proponents of this concept envision it as the internet’s next evolutionary step. It will empower people by allowing them to keep and use their data.
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Some consider Web3 to be a rebranding of bitcoin, while others see it as an expansion of the cryptocurrency concept. The rationale is that while many individuals worldwide may not be familiar with crypto or have much knowledge of it, almost everyone uses the internet daily. Therefore, it makes more sense in this setting.
Critics argue that rebranding crypto as Web3 is an attempt to shed the bad associations with the business and convince the public that it is the natural progression of the internet.
Benefits of Web3
While definitions of Web3 may differ, some characteristics are generally accepted:
- Because of Web3’s decentralization, power and authority are no longer held by a single, monopolistic organization like Big Tech but rather by a broad and diverse group of people.
- The native payments system in Web3 employs cryptocurrencies for online purchases rather than the outdated banking network of the past.
- Because of its trustless nature, Web3 reduces reliance on and trust in financial intermediaries like banks and payment processors. This is made feasible by the incentive structure built into the blockchain, which incentivizes users to play by the rules.
- Regarding participating in Web3, no one is barred from participation because of their lack of permission.
If The Third Generation Of The World Wide Web Has Arrived, What Were Web1 And Web2?
Read-only Web 1.0: The first generation of the World Wide Web, from about 1990 to 2004
The first iteration of the World Wide Web was commonly referred to as “Web 1.0.” The term “read-only” refers to the fact that essentially little user engagement took place on the web at the time. Rarely did individuals create content, and almost nobody apart from businesses existed online. It was a read-only forum, meaning that users could only view the content and not make any changes or contributions.
To define Web 2.0 in the present tense, one needs only look back to 2004.
Web 2.0 was sparked by the emergence of social media platforms. Large corporations’ roles have shifted from being exclusive content creators online to developing and providing outlets that encourage user-generated content and interaction.
The focus shifted to the individual, the group, and the network. These features and the proliferation of social media made for a truly collaborative environment in which anybody could contribute.
In Web 2.0, people can make their material but don’t own it. As a real-world example, we may look at Russia, where the Kremlin has enacted a widespread crackdown on western social media firms, including the recent shutdown of Facebook and Instagram.
Making money through content production or “influencing” has become a mainstay for many people in the modern economy. As a result of this extreme law, many Russians have had their ability to monetize their content taken away with little to no warning. As a result of Web 2.0’s shared nature, users rarely have a complete say over their work.
Due to the architecture of Web 2.0, large corporations now hold not only user-generated content but also their personal information. Google, Facebook, and Amazon have all reaped substantial financial benefits from selling user data to marketers and third parties.
Definition of Web 3.0 – Read-Write-Own Websites
In Web3, transactions are conducted directly between users, bypassing centralized institutions like banks and tech giants. Users can connect safely in a decentralized manner, where platforms and apps are owned not by any entity but by the users themselves. When users’ data is encrypted and stored under the user’s control, no one else can access or modify the data without the owner’s permission. With Web3, the consumer is also the creator.
Perils of Web3
- There is still a long way to go before the widespread use
The widespread acceptance of Web3 and the world’s complete immersion in Web3 are still quite some time away, even though many have dabbled in it. Some estimate that it will take up to ten years for Web3 to be fully implemented worldwide. This is due to several factors, including a lack of widespread adoption, design flaws, and high prices.
- Systems without maintenance or updates
You may have found interacting on Web3 to be anything but simple if you’ve tried it. Unfortunately, there are several hoops to access Web3 due to the current Web 2.0 infrastructure’s lack of support for seamless interaction.
- The Web3 platform lacks a user-friendly interface.
Adding browser extensions and setting up several accounts using wallets such as MetaMask for Ethereum excludes a significant segment of society. Web3 processes are pretty sophisticated and contain many steps compared to Web 2.0 techniques that most internet users are accustomed to, such as looking for what they need on Google. Web3 needs less complicated entry points and more straightforward navigation to be widely adopted.
- Problems with Space-Based Education
In its current state, Web3 is mostly only available to people who try to learn the technology or have prior experience with it. More training and educational resources will be needed to ensure that people worldwide can find their niche in the internet’s next iteration.
Getting on Web3 and What to Expect
Many people, especially those who deal in virtual currencies or play online games, have probably interacted with Web3 without ever realizing it.
Users can connect to Web3 apps and retrieve their funds by creating a wallet, like MetaMask, from which they can access Web3.
Users can also participate in Web3 communities, such as those centered around Ethereum, where they can participate in meetups, work on community projects, and discuss the network in forums.
Decentralized apps (Dapps) provide users with access to Web3 through a different protocol that operates on P2P networks like blockchain and provides functionality similar to traditional apps.
The network is not centralized. It eliminates the need for an intermediary to process transactions. Alternatively, users can acquire access to Web3 by becoming a part of a Decentralized Autonomous Organization (DAO). DAO is a community owned by its members, governed by laws encoded in the organization’s code, and immune to the influence of a centralized authority.
The Social Impact of Web3
The average person who hasn’t heard of Web3 may wonder why they should invest the time and effort into learning about it. Web3 is not just the next generation of the internet and social networking; it’s also an entirely new financial ecosystem. Web3 is poised to alter how we handle money due to the proliferation of cryptocurrencies, NFTs, and digital goods.
Many people are skeptical about the blockchain technology used to create Web3. The levels of energy usage that contribute to global warming are included below. An extreme case in point is the Bitcoin network. It uses more energy just to function than entire Finland. Elon Musk and other prominent figures in the cryptocurrency industry have also criticized Web3 for being nothing more than a marketing term.
Web3’s Bright Future
Despite these challenges, there is widespread faith in Web3’s future. It will address the issues plaguing Web 2.0. For instance, widespread misuse of users’ personal information for commercial gain. Users will have greater control over their information and less risk of unauthorized access, thanks to Web3.
Web3 is still in its infancy, and its development is ongoing and rapid. There will be a continuing wave of innovation in the field.
