Your slice of the internet is entirely yours.
Is that even possible? Well, that’s what Web3.0 is bringing to you. A decentralised and permissionless internet space. However, to get a clear understanding of Web 3, you will have to take a look at what Web 1 and Web 2 got for us.
An Overview Of Web1 & Web2
Spanning between the mid-1980s to the early 2000s, Web1 was the dinosaur age of the internet. Many of these early web protocols, such as HTTP, SMTP and FTP, which stand for web, email and file transfer, respectively, are the foundation of the modern internet. However, this era did not support user interaction with the internet, i.e., users were passive receivers of information and couldn’t respond to what they discovered.
On the other hand, Web2 enables users to create, share and publish their creative content. Web2, or the current phase of the internet, allows users to become a crucial part of expanding the internet. Another game-changer is the introduction of e-commerce on Web2. This enabled users to make payments, review purchases, track packages, request refunds, etc. However, users’ dependence on specific platforms to enhance their experience on the internet has centralised how data is owned. This means that tech giants like Google, Amazon, Facebook, etc., form a roadblock when communicating directly with different groups of users. This is because they own all data posted on their platforms and reserve the right to delete or even block certain accounts if they deem fit.
Do you remember the time when Twitter suspended former US President Donald Trump’s account? It’s an excellent example of how tech giants have power and control over everything on the internet.
Data ownership and centralisation of data are the two main reasons why the ideology of blockchain and Web3 was born.
Understanding Web3 and Why Should You Care About It?
Web3 is the next generation of the internet that is expected to tackle the shortcomings of Web2. It is built on the concept of decentralisation, taking power away from the Tech companies and giving it to individual users. The fundamental principles of Web3 are:
- Decentralisation
- Trustless
- Permissionless
- Interoperable
Web3 is constructed on a blockchain network, enabling data to be stored across distributed devices from all over the world. These could be anything from laptops to other large servers. This allows storage, spread and preservation of data without third-party involvement.
Web3 promotes decentralisation, ownership of data and permissionless internet; nothing like Web1 or Web2 could imagine!
This ownership is categorised by a digital wallet that serves as your Web3 identity for your currency and data. Furthermore, the wallet is interoperable, i.e., it can be seamlessly integrated with various platforms and systems.
Web3 replaces the need for tech companies with blockchain, unlocking new business models and an abundance of opportunities for users to utilise the internet of the future. The perfect example of this is the rise in the popularity of NFTs or Non-Fungible Tokens.
Hop onto the next section of this blog to understand how Web3, NFTs and the Metaverse are connected.
What Does the Metaverse Mean to Web3?
More often than not, Web3 and the Metaverse are used interchangeably; but this is incorrect. While the Metaverse is the way of interacting using virtual and augmented reality technologies, Web3 is simply a decentralised internet.
- Several protocols of Web3, such as NFTs and direct crypto transactions, will help in an immersive Metaverse experience.
- Non-Fungible Tokens or NFTs provide a specific location in the Metaverse and are crucial to social communication in the future.
Understanding The Challenges of Web3
Still, in the developmental stage, Web3 is more challenging to achieve than previously thought. Here’s why:
- Web 3 is hard to develop: Several debugging and testing problems are plaguing the development of Web3. This is because the apps used to create the software are relatively new, hence unreliable.
- Web 3 is chaotic: Decentralisation at its core values consensus from the majority rather than decisions made by a single entity. Because of a lack of set rules, scammers look for more ways than one to breach and steal data.
- No profit for businesses: Mainstream businesses do not see the need to shift to a decentralised network, especially if they are well-established on the Web2 internet. It just doesn’t make sense for them to give up the data they are currently profiting from.
- The fragile crypto market can prove to be a problem.
While Web3 and the concept of decentralised internet may still have a long way to go, it is good to keep yourself updated with what’s in store for us and the future of the internet.
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Frequently Asked Questions
Q1) How to invest in Web3?
Ans) Here’s how you can invest in Web3:
- Study the difference between a passive or active investor and decide which one you want to be.
- Carefully select the companies and projects you want to invest in.
- Choose your asset allocation based on conviction or risk tolerance.
- Monitor and rebalance your portfolio on a regular basis.
Q2) Name a few Web3 coins?
- Helium
- Chainlink
- Filecoin (FIL)
- Audius
- Flux (FLUX)
- Theta (THETA)
- ZCash (ZEC)
- Livepeer
Q3) Is Web3 a metaverse?
Ans) Web3 is the third stage in the development of the World Wide Web. It is not the same as the Metaverse. Metaverse is a virtual reality-based parallel internet world where users can interact with each other and digital objects in 3D space.
