When the world transitioned from Web 1.0 to Web 2.0, the internet experienced a paradigm shift that enabled online services and applications to centralise and boost their capabilities with the use of closed protocols. As we are beginning to witness the transition from Web 2.0 to Web 3.0, we are going to experience and see a similarly huge evolution in how we interact with the internet and what the internet is capable of doing.
Web 3.0 is still in its infancy stages, and there is, unsurprisingly, a fair amount of scepticism as to whether Web 3.0 is the right way forward, or merely just a fad. However, there are already a number of use cases that Web3 is being used for already, as its decentralised nature makes it perfect for certain use applications. In this article, we’ll be going through its current applications, which can then help you gain a better understanding and appreciation for Web3 and the benefits that it brings. Keep reading to find out more if you’re interested in learning about the future of technology!
What Web3 actually means
Web3 is an often discussed topic but rarely do people talk about what specifically Web3 actually means as a concept. Web3 aims to facilitate decentralised networking in order to provide seamless user experiences and customisation. This is achieved through new technologies such as artificial intelligence and machine learning, and of course, the biggest improvement from Web 2.0 is security enhancements.
Web3 networks are open-source, meaning that there is increased accessibility while also ensuring freedom online. Web3 networks do not require any permissions from centralised controlling organisations, meaning that users can freely access parts of the internet. With this openness, you also gain security and privacy when using the internet through Web3, as Web3 provides cryptographic security which will protect the user from any monitoring. All of these means that Web3 will make the internet more available for everyone regardless of geographic location or device, or even time.
What Web3 is already being used for
As mentioned previously, Web3 is already being used in many use cases. Here are some of the best use cases for Web3 that are currently being used:
Decentralised Autonomous Organisations
One of the biggest contributions that Web3 is currently providing to the internet is the establishment of Decentralised Autonomous Organisations or DAOs. DAOs are communities that are owned not by any large corporate entity, but rather by the users of the community itself. This means that how the DAO is run and what permissions he DAO gets are reliant on the consensus and agreement of the members themselves.
This means that not only are DAOs free from the ownership of one entity but that no single member of the community can change the rules and protocols of the DAO. DAOs facilitate this autonomy through the usage of smart contracts that help facilitate decision-making among members, eliminating human processes from the tallying of votes. These make DAOs a great example of on-chain governance, and the principles that DAOs run on are also widely applicable to many other use cases, be it on the management of assets or even within organisations.
Also commonly known as Defi, decentralised finance aims to conduct and facilitate financial services through the use of decentralised applications, which implement the usage of smart contracts that are kept on the blockchain. This means that the blockchain will facilitate, track and keep any transactions that happen on its blockchain for as long the blockchain remains in operation.
The blockchain also allows any computer connected to the network to participate in transactions within it, removing middlemen and other entities from the transaction, making DeFi a pure peer-to-peer digital transaction service. This is a great alternative to traditional financial exchanges and services, while still allowing people to participate in crypto lending and borrowing against their cryptocurrency assets.
The best part of all of this is that using Defi to conduct your transactions will mean that you will have access to low-cost transactions that are not restricted by borders or banks, which also happen almost instantly. Defi is also resistant to fraud or abuse, as every transaction is easily readable on the blockchain, allowing security while also being anonymous.
Already, traditional financial services are leveraging Web3 technologies and decentralised finance to conduct their transactions, as it streamlines and simplifies their processes while also being cost-effective.
Security and anonymity
Web3 and blockchains also revolutionise the way privacy and security are handled online. There are new developments that leverage the blockchain’s ability to conduct zero-knowledge proofs, which helps to verify your identity while also not requiring you to share any information, all with the use of formulas and algorithms.
This is a huge breakthrough in a world where there are constant data leaks and attacks on the databases of large, centralised entities online, where data security is becoming a larger concern. Using zero-knowledge proof means that a site or application can verify your identity without having to store passwords on its database, meaning that your accounts and information are kept safe from attacks and leaks.
This technology can also be used to better enforce an application’s compliance with regulations regarding data security and privacy. Users can thus feel assured that their data is kept safe online, meaning that they can provide sensitive information without fear of it being compromised.
With that, we’ve finally come to the end of this article about the uses of Web3 and how it can benefit you. Web3 has the capability to change the way the internet works, and it has already made fundamentally ground-breaking changes to how we perceive security and data management. With the increased integration of Web3 technologies into our existing online services, we can experience a faster, more streamlined and safer online space. Ownership of the internet will also shift away from large corporate entities and organisations, meaning the democratisation of the internet and a shift in ownership to the community that actually uses it, rather than entities that aim to make a profit off of the data of its users.