Hello, the Future of the Internet
Chances are that in the last few weeks, you have heard of Web3, blockchain, NFTs, and decentralization. But what do all these terms imply? What has that got to do with you?
In this blog, we will look into what Web3 is, why Web3 differs with the current internet (Web2), and how technologies such as blockchain and NFTs are creating a new, open, user-powered digital world.
So, let us simplify it.
Web1–3: The Evolution of the Internet
Web1 (1990s to early 2000s): This was the web of “read-only.” Websites used to be passive, and the audience remained the consumers of information. No social networkings were around, only simple HTML pages.
Web2 (2005 to present): The internet that we use today is interactive, social, and app-oriented. It provided us with Facebook, YouTube, Twitter, and Instagram. Along with this interactivity, there was centralization. Some major tech players have taken control over the internet, along with your personal information.
Web3 (emerging now): Web3 is the next step forward — decentralized internet using the blockchain. It is all about putting the users in control of their data, content, and identity on the internet. You communicate directly rather than with the help of large platforms by using trustless systems.
In short:
Web1 = Read
Web2 = Read + Write
Web3 = Read + Write + Own = Web + Open
What Then Is Web3?
Web3 is not one technology. It gives us a new template of developing and utilizing the internet. It includes:
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Distributed networks (areas of authority)
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Blockchain (see-through & safe record-keeping)
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Crypto tokens and other cryptocurrencies (value transfer)
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NFTs (ownership of digital things)
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Decentralized applications (dApps)
The point is to eliminate the broker. In Web2, to get your content or service running, you require a company (such as Google or Amazon) to host your content or service. These systems are instead substituted with decentralized protocols which are operated over the blockchain in Web3.
Blockchain – The Force of Web3
A blockchain is an online ledger with records of transactions on the network of computers. When the information is stored, it cannot be modified, which makes it secure and tamper-proof.
Important characteristics of blockchain:
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Decentralized: It is not under the control of one particular company or government.
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Transparent: No classified information; the information is accessible by everyone.
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Non-volatile: Added data cannot be modified.
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Secure: Transactions are checked using cryptography.
You might know something about Bitcoin or Ethereum — they are both created on blockchain. However, blockchain is not the world of cryptocurrency only. It is also possible to store files, handle identities, and fuel smart contracts.
Blockchain is the technology behind cryptocurrencies, NFTs, and a great number of other decentralized applications. We have elaborated these in greater details in this full guide on Web3 and decentralization.
NFTs: Digital Assets Ownership You Can Enjoy
Web3 is mostly associated with NFTs or Non-Fungible Tokens.
NFTs are unique online tokens which are on the blockchain. It is evidence of ownership of a digital asset — such as art, music, video clips, or even virtual land. The term “non-fungible” describes that the item cannot be traded like-to-like (as currency); every NFT is unique.
Examples of NFT:
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A non-fungible token art used to sell a digital painting
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An album of music having small duplicates in digital forms
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A land in metaverse
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A special sword within a blockchain-based game
The reasons why they are important:
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Provenance owning: NFTs are publicly proved.
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Royalties: Creators will be able to gain a fraction with each resell of the NFT.
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Digital scarcity: Identical to those in the physical world, but existing in a digital and safe form.
NFTs give creators, artists, and even gamers the ability to earn money on their content as they never could in the Web3 era.
Indeed: What Is So Great About Decentralization?
Decentralization of authority: The value of the decentralization, to describe one of the main principles of Web3, is to replace the centralized corporation with ordinary people and their communities.
With Web2, your content and business are controlled by Meta, Google, and Amazon, among others, who own the infrastructure and most of your personal data. Their platform can eliminate accounts, block publication, and make money off your internet usage — over which you will get no share.
As opposed to that, Web3 employs decentralized protocols in the following sense:
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Through a crypto wallet, you own your identity
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It all depends on you when it comes to your data and its sharing
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You may get crypto or token rewards for your participation
I envision some kind of a social media site where you gain tokens for your content creation, and your followers are in your own personal wallet — not controlled by the app. That is the Web3 paradigm.
In Practice: Insights Into Web3 in Use
Web3 is not only theoretical. It is already in usage:
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Brave Browser: Answers users with Basic Attention Token (BAT) on seeing advertisements
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Decentraland: A virtual land where you can purchase, trade, and develop virtual real estate
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Uniswap: A crypto trade exchange — no intermediary
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OpenSea: An NFT marketplace — additionally, a marketplace-oriented substitute to buy and sell NFTs
These platforms are evidence of how Web3 can make the internet more community- centered.
Web3 Challenges
Web3 is not perfect, as of yet. There are still some challenges to be met:
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Scalability: Blockchain might be more costly and slow in comparison with traditional systems
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User experience: Wallets and dApp usage upon initialization are ambiguous to newcomers
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Regulation: Governments are yet to work out how to deal with decentralized technologies
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Security: Hacks and scams still exist in the Web3 realm
However, these are teething pains as it pertains to any new technology. Solutions to the problem have already been actively developed by some of the most brilliant brains in tech.
Why Web3 Matters to You
However, Web3 will leave an impression on you even when you are neither a developer, artist, nor crypto investor.
It is a matter of gaining back control in the digital world.
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Artists are able to receive more money on their work
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Users have a chance to have a say in governance of the platform (through tokens)
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Communities can develop platforms which they indeed own and manage
Web3 provides a more open, more balanced alternative to the current situation as more aspects of our lives become based online.
Final Thoughts
Web3 is not a hype after all. It is a change of power — a change of power from big tech into the hands of people.
As much as we are at the start of this journey, building blocks are being established for a digital ecosystem where the power is in the hands of the users, creators are remunerated fairly, and communities can exist without the need of centralized control gatekeepers.
In case you are interested and want to learn more, you can read our complete article covering Web3, blockchain, NFTs, and decentralization.
The internet is being constructed into the future. And it is available to everyone.
Your Opinion?
Did you ever use some Web3 apps or purchase an NFT? Do you find this new digital era to be exciting or Skeptical? We would like to know in the comments!
