If you have been reading our POW Series lately, you’ve probably heard about Web3 more than a couple times by now.
But what exactly is Web3?
Why are people calling it “the future of the internet”?
Well, if you’re that curious, I suggest you keep reading, as we will answer all those questions in this article.
What is Web3?
Web3, also known as Web3.0, is said to be the future of the internet. It is built on blockchain technology, which solves problems that exist with the current version of the internet, such as data privacy and security.
“Web3 will revolutionize the way we interact with the internet. It will give users more control over their data and create a more trustworthy and transparent internet.” – Vitalik Buterin, Co-founder of Ethereum
The Evolution of The Internet
The internet has gone through several stages of development, each with its own features and limitations.
The first version of the internet, Web1.0, was purely informational. It was a one-way street where users could only consume information.
The second version, Web 2.0, is the current version of the internet today. Unlike the previous version, Web 2.0 allowed two-way communication between web users and web applications.
In this version of the internet, we all learn about social media and how to talk to each other online. However, Web 2.0 is still centralized, meaning that data is owned and controlled by a select few companies.
How Web3 Works?
Web3 uses blockchain technology to create an infrastructure for the internet that is not controlled by a single organization.
Therefore, blockchain technology is the backbone of Web3.
It is a distributed ledger that keeps track of transactions and stores data across a network of computers.
The information stored on the blockchain can’t be changed and is safe and transparent.
Decentralized applications, or dApps, are also a key part of Web3. These are applications that run on a blockchain and are made to work without a central authority.
dApps offer a variety of services, ranging from financial transactions to social media platforms.
Besides that, interoperability is another very important part of Web3. It means that different blockchains can share information with each other.
This is important because it makes it possible for different dApps to work together smoothly.
Web3 is also important in terms of digital identity. It means being able to prove who you are on the Internet.
Web3 has a decentralized system for digital identities that lets users keep their privacy while still proving who they are.
Real Life Examples of How Web3 Works
One of the most well-known real-world examples of Web3 technology is cryptocurrencies, like Bitcoin and Ethereum.
Unlike traditional currencies, which are controlled by central banks, cryptocurrencies are decentralized and operate on a peer-to-peer network.
This means that transactions can be made directly between individuals without the need for intermediaries like banks or payment processors.
Another example of Web3 is decentralized finance (DeFi), which is a range of financial services that operate on a decentralized network.
These services include lending, borrowing, and trading, and are designed to be transparent and accessible to anyone with an internet connection.
This allows people to access financial services without relying on traditional financial institutions like banks.
Moreover, social media platforms that operate on a decentralized network are also part of Web3.
These platforms give users more control over their data and privacy, as they are not owned or controlled by a single entity.
This allows users to communicate and share information with each other without relying on a centralized platform.
Last but not the least, non-fungible tokens or NFTs also plays a big role in Web3. They are digital assets that represent ownership of unique items in Web3.
Moreover, NFTs provide a means for creators to monetize their work directly without relying on intermediaries. Besides that, they allow for the creation of new types of digital experiences and interactions.
Overall, Web3 technology is designed to create a more transparent and decentralized internet, where users have more control over their data and the services they use.
Why Web3 Matters?
Web3 is significant because it provides a more secure, transparent, and decentralized internet that is not governed by a centralized authority.
Users have more control over their data with Web3, and they can interact with one another directly without the use of intermediaries.
Besides that, Web3 has the potential to create new business models and revenue streams. It is also significant because it promotes a more equitable and decentralized society.
Individuals and communities have more control over their data with Web3 and can participate in the creation and distribution of value.
The Future of Web3
As Web3 continues to evolve, we can expect to see more innovative applications and use cases emerge.
After all, Web3 has the potential to transform the way we interact with the internet and create a more equitable and decentralized society.
In the meantime, what do you think will happen with Web3 developments emerging from left to right in the next 5 years?