What is Web3? Why People Curious About It?
The third generation of the web technologies is known as Web3 and it is the new evolution of internet service that is developed using decentralized blockchains. The web (World Wide Web) is the foundation layer of how the internet is used by offering website and application services. It is evolving according to the needs of global users and now it has arrived in the era of decentralized applications with the extensive utilization of blockchain-oriented technologies. In this blog, we are going to discuss about the evolutions of web, web3 features, how does web3 works, applications of web3, and limitations of web3 along with why web3 is the sudden talk of people.
Why Web3 is the sudden talk of people?
As Machine Learning and Artificial Intelligence are helping in empowering intelligent and adaptive applications, tech talents have become magnet for global industries. Web3 is important for today’s tech world as it fully transforming websites by enabling people interact with them. It is also known as Web 3.0 is not only managing our data but also it provides a way for redistributing ownership of the internet. In simple terms, Web3 is getting decision-making and ownership from small group of people and transferred them to the hands of large community and it became very democratic as per the words of Josh Neuroth, the head of Ankr that is a web3 infrastructure company.
The importance of web3 is that is gives us ownership of our digital assets extraordinarily. For instance, when we play any online game and if we have to purchase some game items, they will be tied to account directly for our usage. If the game creator deletes our account, or if we stop playing the game, we might lose the value that are invested into your purchased items. But web3 allows direct ownership through NFTs (Non-Fungible Tokens) that means you can trade the in-game items and not even a game creator has the power to take away your ownership once you have decided to stop playing.
Censorship resistance is the need of the hour as it is powering up dynamic between platforms and content creators. OnlyFans has over 1 million content creator and it is the primary source for their income. It has encountered a problem that their income was getting robbed through the content they have created on this particular platform. Even though, the issue has been resolved quickly, the creators have lost their reputations and contents. But Web3 allows our data live on the blockchain and when we decide to leave the platform, we can take our reputation and contents with us and we can even plug them into another interface with the aligned value.
DAOs (Decentralized Autonomous Organizations that allows owning the platform as well as we own the data on Web3. They enable us to coordinate decentralized ownership of a platform to make decisions for the future. DAOs are automating the decentralized decision-making among the pool of resources or tokens. The users of DAOs allowed to vote on how the tokens can be spent and the code performs the voting outcome automatically.
Today it is common that we have an account on various platforms like LinkedIn, Facebook, Reddit, YouTube, Twitter, and so on. But these platforms require personally identifiable information for creating accounts. If we want to change our details, we have to do it on every account. Unexpectedly, it leads to censorship problem that may end up with profile locking issue by the platforms. Web3 resolves these problems by enabling us to control our digital identity using Ethereum Address and ENS profile. Ethereum Address offers a single login for accessing all the accounts of various platforms with the secured, censored, resisted, and anonymous environment.
Surprisingly, Web3 payment infrastructure is based on banks and payment processors. It uses tokens like ETH for sending money in the browser directly. Web3 requires no trusted third party for payment processing. It even excludes the people who don’t have bank accounts and it helps avoiding the usage of illegal immigrants.
Evolution of Web3
Web is considered as the pillar of modern life that depends on the internet for everything. It is better to know the invention of web and evolution of web.
Web1.0 – 1990 – 2004 – Read-Only
When Tim Berners Lee was developing the protocols, he has invented the World Wide Web. It was invented at CERN, Geneva in the year 1989 and his core idea was to create open and decentralized protocols that makes information-sharing possible from anywhere on earth. This first inception is known as Web1.0 and it was loaded with static websites owned by many companies. These static websites have zero interaction with viewers as they contain read-only contents.
Web2.0 – 2004 to Present – Read-Write
Web2.0 has evolved with social media platforms that allows read-write information sharing. Instead of providing content to users, companies have started sharing platforms for users to generate contents and interactions. Slowly, web2 has become advertising-driven revenue model as companies have to control the unreasonable traffic and value-generation. However, users can’t own the content they are creating or gain benefit from its monetization.
Web3 – Read-Write-Own
Web3 is expected as future evolution of web that was coined by Gavin Wood, co-founder of Ethereum. He presents the solutions for ownership problem as many crypto adopters felt like the web needs too much trust. Web3 provides the way for relying and trusting on private companies to serve the best interests of public by using blockchains, NFTs, and cryptocurrencies. The core ideas of Web3 are decentralized, permissionless, native payments, and economic mechanism.
Features of Web3
Artificial Intelligence is the foundation of Web3 which is constructed with ubiquitous properties and semantic web. As AI provides faster and relevant data to users and provides the ability to users to filter information based on their usage, many websites are implementing AI features to them. The semantic web is used to categorize and store information to help a system about specific data and it enables users to generate and share better content over the internet with an ownership.
Following are the key features of Web3 that helps in defining what the third generation of web in store for the users around the world.
- Decentralized: Applications and services have distributed approach where they have no centralized authority.
- Blockchain-Based: As the enabler of decentralization, blockchain breaks the centralized database infrastructure. It also enables an immutable ledger of transactions and activities that help users by providing verifiable authenticity for the decentralized world.
- Cryptocurrency-Enable: The usage of cryptocurrency services overtakes the usage of fiat currencies and it is the main feature of web3.
- Autonomous with AI-Powered: Automation and Autonomous have been largely powered with Artificial Intelligence technologies.
How does Web3 work?
Web3 is basically works with cryptocurrency that empowers users with an ability of paying for goods and services with the decentralized payment using cryptocurrencies. It is also built on blockchain technology for decentralization. As it is the concept of DAO (Decentralized Autonomous Organization), it allows self-governing the operations of a platform through decentralization. Web1 and Web2 is built on IPv4 addressing space, Web3 requires more internet addresses by IPv6 services for managing the massive growth of web usage.
Applications of Web3
Web3 enables a growth for the following types of applications and services that are already exist in the internet world.
- NFT (Non-Fungible Tokens) that enables storage in blockchain with a cryptographic feature.
- DeFi (Decentralized Finance) that is an emerging fin-tech application where decentralized blockchain is used for enabling modernized financial services.
- Cryptocurrency that creates a new world of currency transactions with an aim of separating the world from fiat currencies.
- dApp – Decentralized Applications that are built on blockchain and smart contracts for enabling services in a programmatic approach and logged in an immutable ledger.
- Cross-Chain Bridges that enable a degree of interoperability over the domains.
- DAOs that are organizing entities for web3 services to provide some structure and governance in a decentralized manner.
- Many upcoming applications that utilize decentralized approach
Limitations of Web3
Even though web3 has numerous benefits, there are some limitations that to be addressed in its ecosystem for global wide usage.
- Accessibility: Web3 can be used in wealthy and developing countries as it has high transaction fees. This challenge can be resolved by upgrading the ecosystem with network upgrade and layer2 scaling solutions.
- User Experience: Web3 is currently too high and it is one of the primary barriers for global usage. Users must go through hard with the security concerns, tough technical documentations, and unintuitive user interface navigations. It could be resolved with more technical-based progressed that can be easily adopted by non-technical users.
- Education: Web3 has a lot of new paradigms that need various learning models. However, Web3 is not difficult but different. Educational initiatives about web3 through television broadcasts will be helpful for global reach.
- Centralized Infrastructure: Web3 is evolving quickly as it is very young. Currently it depends on the platforms like GitHub, Discord, Twitter, and so on. To be filled this gap, it requires high-quality and reliable infrastructure dedicated for Web3 usage.
Web3 is the beginning of creating a better web and it should be continued to evolve with the reliable infrastructure and dedicated support. Undoubtedly, Web3 provides the promising future for World Wide Web. Learn Artificial Intelligence Course in Chennai at Softlogic Institute to understand the Web3 concepts more clearly through best practices.