It is hard to miss the buzz around ” Web 3.0” these days, it's everywhere. Even friends who are not involved in crypto have been inquiring about this “Web 3.0”. Explaining this concept can be a daunting task, as it lacks a definitive description and often gets tangled in jargon and complex terms. Let's simplify it and delve into what Web 3.0 is, how it functions, and how it distinguishes itself from Web 1.0 and 2.0.
Video Explainer
Video Explainer: Web 3.0: The Future of the Internet
Video Explanation: Web 3.0: The Future of the Internet – for those who prefer visual learning.
Understanding Web3
In complex terms:
Web3 envisions a new version of the World Wide Web, powered by blockchains, integrating decentralization and token-based economics.
But let's bring this down to the basics.
To unravel Web 3.0 — known as the “new internet,” let’s first trace back to its predecessors – Web 1.0 and 2.0.
Web 1.0
Think of Web 1.0 as the internet's infancy. It spanned from the 1980s to the early 2000s. This version allowed users only to consume information without any means to personalize their experience. It was akin to a “Read-Only” Internet, where users were mere consumers of data.
It was a revolutionary leap from the traditional means of accessing information through newspapers and books. Web 1.0 offered static web pages for users to read about topics of interest, yet limited any personalization. Users were directed to access the available information, lacking any personal touch. It was a slow, one-sided experience where patience was a prerequisite for information exchange.
Web 2.0
With the rise in internet popularity, came Web 2.0. It transformed the internet into an interactive platform and birthed the social media revolution, creating the modern internet we know today.
Web 2.0 was about interaction, not just consumption. The ability to craft personalized profiles and participate in social-centric activities shifted the internet towards a more personalized experience. It's all about individual connections and social engagement being the driving force behind the web. From static content, it evolved into dynamic, instantly accessible data with features like live streaming, video sharing, and instant messaging.
Facebook and Google are prime examples of data collection and personalization giants. They have mastered the art of understanding user preferences, arguably better than users know themselves!
These platforms collect and analyze colossal amounts of user data, enabling them to cater personalized content and targeted advertisements. The level of personalization is so intricate that the platform seemingly understands your preferences before you do.
Good day!
Undoubtedly, there’s no “black magic” going on. However, such comedic examples vividly demonstrate the extent to which we share personal information and the remarkable advancements in these processes over the years.
It's clear that user data privacy is the primary concern for Web 2.0. While we willingly provide our personal information to these large data aggregators, people have started to seek different ways to access the internet – routes that don’t rely on centralized institutions controlling our online experiences.
This is where the comparison of Web 2.0 VS Web 3.0 becomes relevant.
Web 3.0
The simplest way to define Web 3.0 is as a “decentralized internet”. It’s an internet form that permits users to remain anonymous while using it, sharing only the data they feel comfortable with. Furthermore, this form of the internet would also be faster and utilize data analysis. The internet will become smarter due to quantum computers and self-learning algorithms or AI.
The experience of the Web 3.0 internet will be revolutionized. We will begin hearing more about the Metaverse, Virtual or Augmented Realities as a data medium. Data types will increasingly shift from dynamic to live data, often changing and being produced instantly on the go.
Web 3.0 will not be ruled by any of the previously mentioned centralized institutions. Instead, it will be entirely decentralized – devoid of any dominant central companies or brands. No presidents or CEOs!
How is this achievable? Currently, Web 3.0 is being explored through the lens of crypto technology. For instance, Bloomberg has also portrayed Web3 as a concept that “would embed financial assets, in the form of tokens, into the very core of almost anything you do online”.
Cryptocurrencies aren’t inherently connected to Web 3.0. Nonetheless, it is entirely feasible to create a decentralized version of the internet without any existing crypto assets. However, cryptocurrencies and the underlying technology considerably facilitate the conceptualization of this goal.
Cryptocurrencies operate on blockchains – let’s think of them as special databases that are predominantly decentralized. To earn cryptocurrencies, individuals often need to engage in a process known as “mining” – essentially plugging their computer into the network and dedicating its resources to perform calculations that help validate the transactions occurring on the cryptocurrency's blockchain.
This way, individuals actively contribute to the network and aid in maintaining its decentralized nature.
Finally, to send and receive cryptocurrencies, one requires a wallet – an application where crypto assets can be securely stored. Each wallet has two codes – a public address for conducting cryptocurrency transactions and a private key, the secret key needed to access the wallet in the first place!
I vowed not to delve too deeply into technical complexities, so I'll pause here. However, why am I telling you all of this?
Simply put, all of these terms and concepts are pertinent to Web 3.0!
Within Web 3.0, individuals would likely employ their cryptocurrency wallets in lieu of social profiles. These wallets would be utilized to verify profiles, log onto specific websites, and approve actions performed on the internet – such as liking a friend’s profile picture, purchasing a digital artwork, or participating in a pop star’s event in a Metaverse. Blockchain technology would facilitate anonymous execution of all these processes.
Naturally, a decentralized internet would bring various challenges. One of the advantages of our current web is the rigorous moderation and swift removal of illegal content from major websites.
Without a central authority, who would moderate such websites? This is where the concept of “DAOs” comes into play.
A “DAO” stands for “Decentralized Autonomous Organization”. The term may sound elaborate, but the concept is quite straightforward at its core.
Picture this – in Web 3.0, each website would have its own dedicated cryptocurrency (referred to as Web 3.0 coins). If you own some of that cryptocurrency, you could participate in the decision-making processes of that website – determining what content stays, what gets removed, the site's color scheme, whether there should be a paywall for users to access, and so on.
With other holders of the cryptocurrency, you could collectively vote on crucial issues regarding that website. This forms the aforementioned DAO – a decentralized organization that shapes a website's fundamental operational decisions.
Before we proceed, let’s briefly recap what we've discussed so far.
Web 3.0 is a decentralized version of the internet. It’s envisioned as the evolutionary progression from Web 2.0, the present form of the internet that we are accustomed to. Web 3.0 aims to address issues such as data privacy, the dominance of large corporate entities in determining our online experiences, and most importantly, user privacy. Additionally, it will lead us to new avenues of data experience through Metaverses, VRs, and real-time data aggregation.
While Web 3.0 does not depend on cryptocurrencies to function, understanding how blockchains and crypto wallets operate enriches our comprehension of the concept. This helps us envisage how cryptocurrency wallets could replace online profiles and how DAOs could uphold legality and civility.
One more crucial aspect to be aware of is “the Web 3.0 Foundation”. It might sound like the core body governing Web 3.0, right?
Not quite. The Web 3.0 Foundation is a group that strives to “support various projects aiming to enhance decentralization on the internet”.
An altruistic cause, without a doubt! However, the organization often faces criticism for being biased. It provides grants to developers, but only to those utilizing the popular cryptocurrency Polkadot’s blockchain to develop their projects. The entire foundation revolves around this blockchain, which explains why some people are less enthused about this organization.
This brings me to my final point and something to ponder. As I've hinted throughout, Web 3.0 is currently a conceptual idea. While there are theories about what this internet version should look like and ideas on its development, it is still very much in its early stage!
Consequently, many companies and organizations might try to exploit this and influence people’s perceptions of the concept. Don’t be swayed! While the prospect of a decentralized web is indeed thrilling, numerous questions need to be answered and challenges addressed before this concept becomes remotely viable. For example, what if the majority of DAO’s votes are concentrated in one person's hands? Could this lead back to a centralized internet? How can we prevent this?
And there you have it! If you're interested in delving deeper into the world of crypto, take a look at the section – “What are NFTs?”
