What is web3- The next generation of the Internet has arrived.
There was a time when society imagined flying automobiles, robotic intelligence & automation, and artificial intelligence gadgets, the ones we envisioned in speculative fiction. Much we anticipated is becoming a reality and practicalized today.
Artificial intelligence is ready to disrupt the world with technological advancement to transform society. i.e Web3.
Why are so many people talking about web3 out of the blue?
There is already hype for web3; if you are unaware of the term or need clarification, don’t worry. This article will untangle each query. However, the first question that comes to mind is the limitation of web2 that we are currently using, which is why we need web3. The primary need for improvement is that only one or two big companies rule the internet. The latest report shows that Google accounts for more than 85% of the global market research and Chrome makes up 67% of the global browser market, building up 2.65 users worldwide. The talk of the town threads is Meta`s first app, which has already reached 100 million sign-ups in 5 days, which is extraordinary. All this data is used for advertisements; these ads are many times convenient, but privacy becomes a significant issue. Web3 is the answer to all these issues.
In simple words, web3 is nothing but the next phase of internet service, which uses a decentralized blockchain. It is the evolution of the entire internet service, which is always secure, private, and always on.
Web3 doesn’t allow any single entity or regulating authorities to control the platforms and apps. If we put it another way, businesses can’t gather, store, or monetize the data of those users who wish to use the web3 platform. Users can use these platforms via web3 service without exchanging their private data to access them.
To gain a better understanding of the current phase of the internet known as Web3, it is helpful to explore the developments that preceded it.
The early webs- reminding of web1, web2
Tim Berners-Lee developed the World Wide Web’s first stage, known as web1, in 1989. His idea centered on static content primarily and sought to create a decentralized network that supported knowledge sharing on a global scale. Reading, portals, web forms, and other such elements were the principal foci of the web when it first emerged. The bulk of consumers mostly consumed content that was already available, and content creation was scarce. Web 1.0 forbids the viewing of ads while browsing websites.
In the era 2004-2016, after the discovery of web2, it suddenly became a more participative social web. What came up with web2, the internet we use today refers to worldwide websites which highlight user-generated content, usability, and interoperability of end users. It does not use any modifications to technical specifications but to modify the way web pages are designed and used.
It is a centralized web, which gives central authority and governing bodies control to access users’ data and activities according to closed platforms owned by monopolistic corporations, such as Snapchat, Meta, and more.
Hence, Web2 has brought about several positive aspects, Consider the idea of not having Web2 and how it would impact our ability to keep streaks on apps like Snapchat or think about how we would entertain ourselves without the likes of TikTok or Instagram reels.
Interactivity, user interaction, rich multimedia content, personalization, e-commerce, global connectivity, and collaboration were all features that Web2 brought to the World Wide Web, making it a positive stage of the Internet.
What makes web3 unique
Web3, the revolutionary era of the internet, is built on three fundamental principles: decentralization, open source, and blockchain technology. Decentralization makes guarantee that power is shared among all users rather than being centralized in the hands of one authority. The software can be freely modified and tailored to suit particular requirements thanks to open source. Last but not least, blockchain, which is renowned for its high level of security, safeguards data by keeping it in immutable blocks, making it nearly impossible to hack. With the use of collaboration and coordination, Web3 wants to unite individuals.
5 Pros of Using Web3
Web3 allows users to make a single anonymous sign-in that may be used on numerous websites. Enhanced security and privacy are guaranteed by doing away with having to continually enter sensitive personal information while logging onto several sites.
Web3 reduces the possibility of censorship by allowing website users to make decisions and define rules collaboratively. Like Facebook, Twitter cannot unitarily ban accounts, seize usernames, or change their rules. The community has a say in how the platform runs thanks to the decentralized governance approach, which encourages inclusivity and openness.
Web3 seeks to improve search capabilities by enabling more natural and context-aware inquiries. Users may now ask queries in a more conversational way and yet get accurate answers, making search more user-friendly and effective than when they were only allowed to use certain terms.
Web3 enables websites to adjust their user interfaces to suit certain tastes. Websites can modify information and recommendations to the user’s taste by learning about their preferences, interests, and activity. This results in a more engaging and customized user experience.
Tokenization and Digital Assets:
Through tokenization, Web3 makes creating and managing digital assets possible. Due to this, assets like cryptocurrencies, non-fungible tokens (NFTs), and other digital representations of physical goods can be owned in small fractions and easily transferred. Thanks to tokenization, decentralized finance (DeFi), digital collectibles, supply chain management, and other fields get new opportunities.
Despite these seemingly many advantages of Web3 in its present state, there are still significant restrictions that the ecosystem needs to overcome in order to thrive.
Jack Dorsey, the former Chief Executive of Twitter, criticized, “You don’t own web 3, VCs and LPs do, it will never escape their incentives. It`s ultimately a centralized entity with a different label.”
While Web3 apps are built on decentralized protocols, the underlying infrastructure might still be centralized, such as hosting services or blockchain nodes. This reliance on centralized infrastructure might pose vulnerabilities and single points of failure. Scalability while retaining decentralization is a complex topic to solve. Due to the necessity for consensus processes and the maintenance of a distributed ledger, several Web3 technologies, such as blockchain, have scalability limits. This can affect transaction throughput and user experience.
Some experts have raised concerns about the potential regulatory challenges associated with decentralized systems. They claim that the sheer nature of decentralization makes effective tracking and regulation of cybercrime more difficult.
The current regulatory environment around crypto tokens, which are critical to many web 3 apps, poses a substantial difficulty. There needs to be more clarity about the classification of these tokens in the United States. Some authorities, including SEC Chairman Gary Gensler, contend that many tokens should be considered unregistered securities. This has prompted the question of whether platforms that provide these tokens should be subject to the same regulatory norms as corporations that issue traditional financial products such as stocks and bonds.
In the United States, there is an ongoing discussion over the classification of tokens, with crypto businesses contending that they should be considered as a new asset class. The outcome is unknown, but if tokens are declared securities, web3 startups may be forced to close, adapt their businesses, or relocate to other countries.
Furthermore, there is fear that because of the decentralized structure of data in Web3, unauthorized users may gain access to personal information. While this has not been proved, there is an acknowledgment that no system, no matter how secure, is fully immune to hacking or breaches.
Where will Web3 take us? A Journey into the Unknown
Although Web 3.0 is only a theoretical concept, it has gained widespread acceptance and sparked heated debate. The advent of live apps such as cryptocurrency and NFTs, as well as Facebook’s active efforts in establishing the metaverse, suggests that there are more opportunities to observe the practical implementation of these three applications within the framework of Web3 is just right around the corner.