You’ve probably heard the phrase “Web3” even if you’re not acquainted with or new to the blockchain sector. The phrase is rapidly being used in mainstream media, which indicates that Web3 is entering the common person’s language. Even so, not all people are aware of what Web3 includes despite the concept’s growing popularity. As this may be the situation, we’re going to delve further into the decentralised internet in this post and give a clear explanation of why Web3 is significant.
In the beginning, we’ll provide a summary of Web3 and contrast it with the far more well-known ideas of Web1 as well as Web2. The reason Web3 has suddenly received more attention will next be discussed in greater detail. We’ll wrap everything up by outlining Web3’s present predicament and its relationship towards the metaverse.
What is Web3?
We must define the term first before attempting to comprehend the significance of Web3. Given the confusion about what Web3 actually involves and the variety of definitions that exist, this is harder than it looks. Simply said, this third wave of the net is the future online world, built on decentralised distributed ledger technology.
The decentralised internet’s core component, blockchain, utilizes the same technologies that underpin a number of the most well-known cryptocurrencies, like Ether and Bitcoin. So what is a blockchain, exactly?
A database that is distributed and shared by a vast collection of nodes is known as a blockchain. The nodes are crucial to the network because they preserve an unalterable record of all the chain transactions and other events, ensuring the protection of the chain. As a result, a key component of this new network is the increased degree of decentralisation made possible by blockchain technology. Additionally, because all data is accessible to the public, this approach makes the data stream visible. Thus, it restricts abuse and illicit practices, thereby rendering it more difficult to game the system.
Nevertheless, to better comprehend the situation and highlight the significance of Web3, it is useful to contrast Web3 with Web1 as well as Web2.
How Does Web3 Compare to Web1 and Web2?
Generally speaking, Web1, Web2, and Web3 can be used to categorize the development of the internet. Although you probably aren’t acquainted with any of these words, you have undoubtedly engaged with the internet’s first two iterations.
Web1 describes the initial stage of the web, as the names imply. The primary goal of the web at this time was to make it easier for people to supply and consume information. Because Web1 lacked innovative features that allowed interaction, the internet was essentially static as a result. As a result, people didn’t have a method to contribute and instead largely consumed internet content.
The internet grew to become increasingly collaborative, though, with the advent of popular platform firms. At this time, the internet entered its second stage, known as Web2. Web2 improved the fluid behaviour of the internet experience. This implied that anybody may engage and offer their personal material as a contribution.
Many of the best-known companies in the world, including Twitter, and Facebook, were born from Web2. These businesses ultimately distributed and made money from the majority of online activity, centralizing power and profit for themselves.
Benefits of the Decentralized Web
Decentralisation and the problems with the existing regulatory web were discussed in the chapter before this one. What advantages do decentralised webs offer, though?
The first benefit of using Web3 service platforms is that they give users more ways to monetise their online activities and add value to other platforms. Super platforms now don’t actually permit or have the capacity to assist this, thus it isn’t something they can accomplish.
An illustration would be the enormous collection of data that Facebook, for instance, makes money off. User data is gathered in order to offer tailored adverts, which is a very successful business strategy. Users might be able to make money by monetizing their own information instead with a decentralised substitute for Facebook
The second advantage of Web3 is that networks can be freely run, which is not always the case in Web2. Twitter and other social networking monopolies like Meta are essentially an autocracy. This indicates that the administrators may, for example, block accounts and alter the rules at any time. Modern alternatives might distribute this authority and hand these choices down to users. In response, people would have the ability to vote on crucial issues and no single person or organization would have the final say.
Last but not least, a decentralised internet could probably depend very little on commercial business models. Users benefit from greater privacy because they are subjected to fewer sensors and tailored advertisements. These are but a few instances of the advantages illuminating the significance of Web3.
Why is Web3 Important, and Why are People Discussing Web3?
Some people assert that the frenzy surrounding Web3 is a result of advertising and fear of losing out, but that isn’t the whole picture. The talent, money, and energy invested in the blockchain and cryptocurrency firms have also had an impact on the rising interest in the decentralised internet.
Upwards of $27 billion has been invested in cryptocurrency projects by asset managers in 2021 only, with a large portion of the funds going toward financing Web3 initiatives. In order to participate in the excitement, a few of the biggest social media companies, such as Twitter as well as Reddit, are also testing out Web3.
At the present, the larger Web3 sector is absorbing a lot of IT expertise. Particularly, workers from a number of the largest technology companies are quitting their secure, comfy professions in search of fresh experiences on the decentralised internet.
Why is Web3 Important? — A Summary
Many people will quickly be familiar with the phrase “Web3,” which is growing in popularity. Decentralization describes it as the next phase of the web. It is also a blockchain environment, which utilizes the same technology that underpins cryptocurrency.
Then what makes Web3 significant? Well, almost $30 billion was invested in cryptocurrency projects by investment firms in 2021 only, much of which is connected to the decentralised web. The industry draws funding and technological expertise from a number of the biggest companies. Web3 will undoubtedly advance even more in 2022 as a result. This means that you need to maintain a careful check on it going forward.