What is Web3? Well, most people would not be able to tell you the answer. It all started with the birth of the web 3. 0, blockchain, and decentralized finance. All these words are very new to the general public and are relatively undefined concepts that most people just can’t wrap their heads around.
We can call the current state of the internet, from social media to mobile apps, “Web 2. 0.” This popular state of the internet is currently going through a transformation commonly referred to as WEB 3.0″. In the world of WEB 3, people are being introduced to decentralized applications (dApps) instead of centralized platforms like Facebook, but, this does not change the fact that it will still function similarly. The main difference is, rather than corporations being in total control, individuals are empowered in this iteration of the internet.
In the world of Web3, you can use cryptocurrencies as a means of value exchange, vote on things that affect you within the ecosystems you’re a part of, live in a virtual world, and so much more. Here’s all you need to know about Web3 and how it will affect your life.
What exactly is Web3?
Web 3.0, coined as “the final web” by futurist Salle de Bolfras, is envisioned as a holistic ecosystem where the virtual and physical worlds are interlinked and digital identities are backed by real-world credentials.
The exact Web3 meaning is simply a new generation of the World Wide Web, based on decentralization, blockchain technology, and peer-to-peer networking. It is a set of libraries and protocols that enable a decentralized web, where users are in control of their own data.
Web3 also enables developers to build decentralized applications (dApps) that can interact with the decentralized web. It is being built by a community of developers, entrepreneurs, and users who are committed to creating an open, accessible, and censorship-resistant internet.
The goal of this new internet technology is to create a more decentralized and equitable internet, where users, rather than corporations, are in control of their data and applications.
Web3 is still in its early stages, but there are already a number of projects and initiatives working on building the infrastructure and applications for the new web.
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What are examples of Web3?
Web3 can be explained better through examples. Some of the most popular include decentralized applications (dApps), decentralized exchanges (DEXes), and blockchain-based browsers.
Decentralized applications (dApps)
DApps are applications that are built on top of a blockchain. Instead of running on a corporation’s centralized servers, it lives on the blockchain, and can be used by anyone. dApps have the potential to disrupt a number of industries by providing a more secure, transparent, and efficient way of doing things.
Decentralized exchanges (DEXes)
DEXes are also a great use case of web3 technology because they enable users to trade directly with each other without the need for a centralized authority. Users of the platform are the liquidity providers and are rewarded for their contribution to the platform. This decentralized approach to trading is not only more efficient but also allows users to remain in control of their own data and assets.
Blockchain Based Browsers
Another of the most exciting aspects of web3 is the possibility of blockchain-based browsers which would offer a number of advantages over traditional browsers, including increased security, privacy, and lower risk of attacks and censorship.
From Web 1.0 to Where We Are Now:
The development of the internet has been a long and complicated process, with many different technologies coming together to create the web as we know it today. So let’s go back to where it all started!
Web 1.0: Read-Only (1990-2004)
The Web 1.0 read-only generation of the internet was limited to sites that provided static HTML pages that could be viewed,but not changed by users. Some examples of this include web directories, encyclopedias, and online libraries. While these resources were useful, they did not allow for user interaction or customization.
Encyclopedia Britannica (which went online in 1994) is a great example of Web 1.0. Wikipedia, as we know it now, on the other hand, is a representation of Web 2.0, since users can contribute to it.
Web 2.0: Read-Write (2004-now)
Web 2.0 was a term first coined by Darcy DiNucci in 1999, and it referred to the second generation of the World Wide Web. It was a time when the internet became more user-friendly and interactive, thanks to the introduction of new technologies such as social media, blogs, and wikis. Web 2.0 introduced the ability for users to create and share content, with websites and apps featuring content that could be edited by users.
Web 2.0 also saw the meteoric growth of the online advertising industry. Growing beyond simple banner and pop-up ads, online advertising began incorporating more and more user data in an attempt to become more efficient. Slowly but surely, user data became the primary currency of Web 2.0 platforms, and spawned the behemoth that is today’s big data industry.
Growing user frustration with the unbalanced state of Web 2.0, where the majority of value and control sat in the hands of a few central corporations, is what spurred the creation of Web 3.0.
However, the surge of web 3.0 doesn’t mean we don’t use web 2.0 anymore. Web 2.0 is the platform from which web 3.0 is built, so we still need to use it to access the new features and capabilities that web 3.0 offers.
Web2 vs Web3
There is no clear consensus on what web3 is yet, but it is generally agreed that it is the next stage of the internet, where users are in control of their data and there is a greater focus on ownership. Web2, on the other hand, is the current stage of the internet, where centralized platforms like Facebook and Google control and profit from user data.
Decentralization is a core concept of web3, let’s help you understand it better.
What is decentralization and some examples of it?
Decentralization is the process of distributing control + authority amongst many instead of a few.The concept has been around for quite some time now but has recently gained a lot of traction with the advent of Blockchain technology. This is an important aspect of blockchain to understand because it can be applied to many aspects of life on and offline.
A better decentralization definition would be that it is the dispersal of power or authority away from a central location or group. For example, there is no central authority in a decentralized blockchain or web3 system. Instead, each node in the network is responsible for maintaining the ledger and verifying transactions. This allows for a more secure and efficient system, as there is no single point of failure..
Some examples of decentralization are:
- Decentralized finance (DeFi) which is a kind of financial application that use blockchain technology to enable peer-to-peer transactions without the need for third parties.
- Decentralized autonomous organizations (DAOs) function without a single leader or any intermediary organization. They are managed by a software program, like a smart contract. The power lies with the users of the system and there is no single point of failure.
The concept of ownership is important in a decentralized system, as each participant has a say in how the system is run. This includes decisions about what data is stored on the network, who has access to it, and how it is used. Users can choose to share their data and assets with others or keep it private. By giving users control over their data, web3 enables a more democratic internet where everyone has a voice.
In the context of web3 and decentralization, programmability refers to the ability of decentralized applications (dApps) to be programmed to carry out specific tasks on a decentralized network. This enables dApps to be more flexible and adaptable than traditional applications, which are limited by the centralized nature of the network on which they run.
Composability refers to the ability of different components to work together in a system. In the context of web3, this means that different decentralized applications (dApps) can interact with each other, and layer together to create new services and applications. This allows for a much more flexible and powerful decentralized ecosystem.
Why is Web3 important?
The web has come a long way since the early days of the internet when all we had was text and static images. The introduction of dynamic content, video, and social media has changed the way we interact with the web, and with each other. However, there is still a lot of room for improvement.
Web3 is the next generation of the web that promises to revolutionize the way we interact with the internet. It is based on the principles of the decentralized web and aims to give users more control over their assets, data and privacy. Web3 also promises to make the web more accessible and inclusive by providing equal access to the underprivileged and marginalized.
Web3 will build on a foundation of blockchain technology and provides a platform for developers to create decentralized applications (dApps). These dApps will run on a decentralized network of computers, making them more resistant to censorship and fraud.
The potential of Web3 is huge and it will change the way we experience the internet forever. It is important to keep an eye on this emerging technology and see how it develops in the coming years.
Potential and Pitfalls of Web 3.0
Web 3.0 is the latest iteration of the internet and is touted to be its biggest update yet. This new, decentralized Web will reduce centralized players in the market, enabling a more fluid and accessible global market. Many Web 3.0 applications and platforms are still under development, but they promise to be a way for people to trade goods, products, and services without the need for a third-party company. However, the Blockchain economy is fraught with potential pitfalls, so it’s important to do your research before getting involved.
Web 3.0 Potential
The potential of web 3.0 is immense. Some believe that it has the potential to change the way we interact with the internet and make it more secure. Another key feature is the ability to better protect users’ privacy and security. With web 3.0, users would have more control over their personal data and how it is used. Finally, web 3.0 has the potential to make the internet more accessible to everyone.
There are a few limitations to web3 that should be noted:
- The data model is limited to a key/value store, which can make it difficult to represent more complex data structures.
- It can be difficult to query data stored in web3 since there is no built-in query language.
- Web3 is not well suited for applications that require real-time data, since it can take some time for data to propagate across the network.
- There is still a chance of security breaches when using web3 if data is stored on a platform that is poorly engineered.
- Lack of standardization: There is no one agreed-upon standard for web3, which can lead to compatibility issues between different web3-based applications.
- Scalability: The current scalability of web3 is limited, meaning that it may not be able to handle large numbers of users or transactions. However, the issue is being tackled continuously and there is a great chance of it being solved in the near future.
How to invest in web 3.0
Investing in web 3.0 seems to be a hot topic right now. The technology revolution has begun, and those interested in entrepreneurship will see the benefits. However, the following web 3. 0 investment tips may be helpful in making an informed decision before any action is taken.
Non-fungible tokens NFTs
NFTs are non-fungible tokens, which means they are unique digital assets that cannot be replaced or exchanged for other assets. NFTs are often used to represent items in video games or digital art collections.
To invest in NFTs, you can buy them directly from an exchange or marketplace that supports them or buy them from someone who is selling their NFTs.
Once you have bought your NFTs, you can hold onto them or trade them. To trade NFTs, you will need to find a platform or marketplace that supports NFT trading, list your NFTs for sale, and set your own prices.
If you are looking to invest in NFTs, it is important to do your research and only buy from reputable sources. NFTs can be a volatile investment, so it is important to understand the risks before investing.
Investing in Metaverses
The metaverse is a virtual world that is created by the collective imagination of its users. It is a place where people can come together to create and share ideas, experiences, and stories. The metaverse is constantly evolving and expanding as new users bring their own creativity and ideas to the table.
As more people become aware of the metaverse and its potential, investment in the metaverse will become more popular. The best way to invest in the metaverse will vary depending on your individual goals and objectives. However, some general tips on how to get started include:
1. Do your research: The metaverse is a complex and ever-evolving space, so it’s important to do your homework before investing any money. This means reading up on the latest trends and developments and getting a good understanding of the different platforms and players involved.
2. Start small: It’s often best to dip your toe in the water before committing too much capital. This way you can get a feel for the metaverse and how it works before making any major investment decisions.
3. Consider your risks: As with any investment, there are always risks involved. Be sure to weigh the potential rewards against the risks before deciding whether or not to invest in the metaverse.
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Investing in cryptocurrencies is a speculative game, much like investing in early-stage startups. Those who invest in cryptocurrencies should be prepared to lose all of their investment. However, there are also potential rewards for those who are willing to take on the risk.
To get started investing in cryptocurrencies, you will need to set up a digital wallet to store your tokens. You can then purchase cryptocurrencies using traditional fiat currencies or other cryptocurrencies. Once you have purchased some tokens, you can store them in your wallet or trade them on cryptocurrency exchanges.
As you can see, Web 3.0 is a complicated topic with a lot of moving parts. However, it is clear that this is the future of the internet and we need to start preparing for it now. If you want to learn more about Web 3.0, be sure to check out our other resources. Thanks for reading!