What is Web3?
Web3 refers to the next evolution of the World Wide Web, which grants access to resources like multimedia, documents, and other applications. It incorporates concepts like blockchain technology and decentralization. It shifts from centralized web services, as seen in the previous versions of the internet. Instead, it embraces a transparent, user-centric web infrastructure. Web3 is in its infancy but is rapidly evolving.
Blockchain as a service providers give companies a hosted blockchain platform to build and develop applications, including tools for payments and identity management. Organizations use these tools for application development without spending money on servers or hiring staff to manage many physical resources.
What's the history behind Web3?
The history of the web and its various iterations provides context behind the ideas and concepts of Web3.
The first iteration of the Internet, known as Web 1.0, dates back to the early 1990s (approximately from 1989 to 2004). On Web 1.0, most websites consisted of static, read-only web pages coded in HTML. These websites were relatively basic and consisted of text and images. Users could search for information through web browsers like Internet Explorer. Users primarily consumed content on Web 1.0 rather than contributing.
Following Web 1.0, Web 2.0 emerged in the mid-2000s. It brought a significant shift away from read-only content to a more social and interactive web experience. Websites became complex and began allowing users to contribute content.
It also enabled users to comment, share, and interact with it. Web 2.0 revolutionized the internet through crowdsourcing, social sharing, and user participation. Additionally, the rise of popular social media sites like Facebook, X (earlier known as Twitter), and Instagram gave big technology companies a lot of power.
In 2014, Ethereum co-founder Gavin Wood coined the term “Web3” to define the next iteration of the internet. This version combines decentralization and blockchain technologies, giving users more control over their online experience. The primary idea behind Web3 lies in shifting the control of the internet away from big technology companies and into the hands of individual users.
Features of Web3
Despite being in its early stages, Web3 has some defining features that set it apart from previous versions of the internet. Key features of Web3 include:
- Decentralization: Web3 decentralizes control, authority, and data across a network to reduce dependence on a few controlling, centralized entities. Additionally, Web3 operates through decentralized applications (dApps) that run on distributed blockchain networks. This further enhances resistance to censorship and downtime.
- Blockchain technologies: A blockchain is a distributed ledger of records or blocks linked using cryptographic hashes. Blockchains are decentralized, distributed, and often public. They form a core component of Web3.
- Natural language process (NLP) and machine learning (ML): Web3 leverages NLP and ML to imitate human learning and interactions to understand the context behind content. This enhanced understanding of information helps improve accuracy.
- Permissionless and trustless: Web3 is based on open-source software. A single entity will not control it. Thus, anyone can participate and contribute. It is permissionless because anyone can participate, and trustless because participants will be able to interact directly with the network.
Potential benefits of Web3
Web3 provides several potential benefits intended to address the current web infrastructure. Some of the primary benefits of Web3 include:
- Data ownership and privacy: Compared to Web 2.0, Web3 gives users greater control over their personal data and digital identities. Decentralized identity solutions improve privacy and security, which grants users more autonomy over online interactions and usage.
- Interoperability: Web3 promotes interoperability among blockchain networks and protocols. This fosters better ecosystem interactions and communication. Web3 interoperability would create an interconnected digital ecosystem.
- Enhanced security measures: Core elements of Web3 aim to provide better security than traditional centralized web infrastructures. Decentralization distributes control and data across a network of nodes, improving security and privacy. Blockchains provide immutable ledgers and cryptographic techniques to secure data and transactions further. Additionally, decentralized identity (DID) systems mitigate the risk of identity theft and data breaches.
Potential pitfalls of Web3
Like any emerging technology, Web3 has some potential pitfalls to consider, including:
- Scalability challenges: The decentralized nature of Web3 limits its scalability opportunities. Many blockchain networks offer only a limited number of transactions per second. This can lead to network congestion, slow processing, high fees, and a poor user experience.
- Regulatory uncertainties: The regulatory landscape around Web3 is evolving, and its decentralized nature adds complexities. Regulatory uncertainty can prevent progress as developers and users have unanswered questions and fears around their involvement and usage.
- Steep learning curve: Beginners may find Web3 complicated due to its complex nature. There may be potential adoption challenges as users adjust to the new infrastructure. Ongoing education and seamless user experiences are crucial to facilitate widespread adoption.
Learn about blockchain assets like cryptocurrency, utility tokens, non-fungible tokens (NFTs), and stablecoins.
