How is Web3 changing the internet?
Table of Contents
You might’ve been hearing a lot about Web3 recently. This is the latest internet technology but, do you know what Web3 is exactly? Or how does it relate to cryptocurrency? And what changes is it bringing about? In this article, we’ll cover everything you need and want to know about Web3. Let ‘s dive in!
What is Web3?
Before we dive into Web3 (or web 3.0), let’s take a look at its predecessors: web 1.0 and web 2.0. Our first encounter with the world wide web was Web 1.0. It’s a creation of scientist Tim Berners-Lee in 1989. Within it, it provided one-way information from websites to users. Back then, more websites were static web pages connected through hyperlinks. This got the name of “read- only internet”. As 2004 rolled along, so did Web 2.0, driven by mobile technology, social media and cloud computing. Its most significant breakout was the interaction. In this stage, information started to flow both ways. Thus, users were able to interact with sites and, also, with other users. As a consequence, Web 2.0 received the name of “read-write internet”.
Web 3.0, or Web3, is the next stage of the evolution of the web, also known as the “read-write-interact web”. While reporter John Markoff coined the term back in 2006, it is only now starting to take shape. The idea behind Web3 is to decentralize and interconnect data. This will lead to more personalized experiences. Web3 leverages a vast amount of recently released technologies. These include the metaverse, edge computing, blockchain, AI, and IoT to function. We know this explanation may leave you with even more questions. But, don’t worry! We’re sure you’ll find the answers to these below.
How Does Web3 Work?
In previous articles, we’ve discussed blockchains relating to cryptocurrencies and NFTs. In summary, a blockchain is a public ledger or global registry. It’s often used to verify and confirm transactions through digital signatures. This is the same technology that founded Web3. Instead of on limited servers, data is in decentralized storages. Further, it gets spread through the internet.
Let’s take a closer look. With Web 2.0 apps, users interact with websites’ Front-End. In turn, it communicates with the Back-End. and the latter contacts the sites’ database. Inhere, all code is in centralized servers and makes its way to users through browsers. Meanwhile, with Web 3.0 there are no centralized databases or servers to hold all this Back-End logic. Here, blockchain builds apps on decentralized state machines. As a result, apps are then maintained by anonymous nodes on the web.
When it comes to user access, people need a seed to use the decentralized web. Also, web browsers are still needed to access the internet. Yet, instead of Chrome, Web3 has Brave. Web 3.0 apps, or “decentralized apps”, are already running on the Ethereum blockchain. Some of these include Dark Forest and Uniswap. We’ll take a closer look at some real-life examples of dApps in this article.
Is Web3 secure?
Users in Web3 use private keys managed by wallets to sign transactions. The fact that there are no intermediaries in Web3 has a lot of advantages. But, it also means there is no one to provide help in the event of attacks or compromised private keys. So, is Web3 secure? The short answer is: not yet. There have been various hacks over the last few months. These resulted in the robbing of hundreds of millions of dollars in cryptocurrencies. Some of the affected companies were Ethereum and Solana. Although there are clear security issues, this was also the case for Web 1.0 and Web 2.0 when they first came about. Over time, their existing vulnerabilities were overcome. That will most likely happen with Web 3.0 as well. As for now, security companies like Forta and Securify are focusing on these problems. It might be worthwhile to wait and see how things progress.
Is Web3 a cryptocurrency?
As we’ve mentioned, Web3 and Crypto connect through blockchain. So, any confusion is more than understandable. Web3 apps may have associated tokens, usable as currency to pay for services. But, also, users can use these tokens as voting power to make decisions over the app’s development. These tokens are like cryptocurrencies, such as Bitcoin. So, they can be subject to appreciation and inflation. To sum up, Web3 is not a cryptocurrency, but it’s connected to it, as it does depend on a blockchain and entails tokens.
What are Web3's Features?
Web3 has four main features. First, it’s an open-source software. It’s developed by an open community, and accessible to everyone. It’s trustless. Users can interact in public or private ways, without any intermediaries. This guarantees less exposure to risks. Also, it’s ubiquitous, as it will make the internet accessible to everyone. This will apply at any time and everywhere. Smart phones and computers will no longer be the only devices connected to the internet. Rather, the Internet of Things (IoT) will ease the creation of many intelligent gadgets. Last but not least, Web3 is permissionless. This means that users and providers won’t require permission to access it. With a clear picture of what Web3 is and how it works, we can dive into the pros and cons of this new technology.
No matter what blockchain users may choose. They’re able to track their data and inspect the code behind platforms.
There are no middlemen charging fees for services. That’s because, with decentralization, providers and end-users get first-hand connection.
Data Privacy and Control
Data encryption gives end-users more control over their data and ensures their privacy. This means users have complete ownership of their information. Further, it’s only shared with their permission and on a case-by-case basis. As a consequence, access to users’ data won’t be possible. Companies like Facebook or Amazon will no longer be able to use and resell it to advertisers.
Decentralization also means that data is accessible in any circumstance. To assure this, data gets distributed over various nodes, to ensure redundancy. This type of backup solves any service-interruption issue related to Web 2.0. Moreover, account suspension and denial of distribution services will become less likely.
With Web3, users will be able to use a single profile on all platforms. This means no time wasted each time you sign up for a new platform.
Requires Advanced Devices
To reap the benefits of Web3, computers will need to meet specific criteria. As a result, less advanced devices won’t be able to make use of it. This also means that it is not ready for widespread adoption yet.
Web 1.0 Sites will Become Obsolete
Web 1.0 technology won’t be able to adapt and will become obsolete.
Web 3.0 won’t be easy for new users to understand, which means they might be hesitant to use it at first. Besides its need for advanced devices, its popularity will most likely grow at a slow pace.
What Is Web3 Used For?
You may have not seen Web3 in action yet, but it's already present in a variety of areas. These include education, virtual help, exchange services and social networking. Let’s take a look at some examples!
This is the most well-known example of Web3 in action. As you might know, Siri is Apple’s virtual assistant. It uses voice recognition software to communicate with users.
Everledger offers technology solutions aimed at increasing transparency and accountability in supply chains. The company takes advantage of Web3’s data encryption feature to protect data and cut the risk of fraud.
Decentraland is an online virtual world or metaverse. Its platform allows users to socialize, play games and attend events. Further, it has its own cryptocurrency called MANA. As you can see, dApps are already covering a wide variety of fields.
If you are wondering how the development side of Web3 apps looks, next we’ll see a framework used to create dApps.
web3-react is a Web3 framework. Nowadays, it’s used to build decentralized apps on the Ethereum blockchain network. Like React itself, the framework is simple, easy to use, and extensible. It supports providers such as MetaMask, Frame and WalletConnect. Further, it can work with other wallets as well. web3-react uses React architecture to help you build the Front-End of a dApp. Yet, web3-react within itself does not have a traditional data architecture. One of its main benefits is to programmatically write plugins to blockchain. Also, it’s perfect for building powerful, extensible and systematic dApps. web3-react is also quite easy to install.
Why does Web3 matter?
The short answer to this question is that Web3 is an opportunity to share value across an open network. It means that private monopolies such as Facebook and Airbnb will no longer dominate. As a result, this will give the way for many profit centers.
But this is only one aspect of Web3. We’ve already mentioned a few noteworthy reasons that showcase its importance. With Web3, users have ownership and control over their data. Also, sociological or demographic factors won’t be a barrier in accesses or interactions. Aligned with the latter, service interruptions will reduce in a drastic way.
As a consequence, Web3 will increase the scale of human and machine interactions. Users will be able to interact with any person or machine in the world, without needing middlemen. This, in turn, will open new possibilities when it comes to businesses and business models. Further into the future, Web3 has an amazing potential. For instance, it could make more efficient societies and more resilient organizations.
Web3 is full of incredible possibilities, but does come with some risks. It has many advantages with the potential to improve the way we interact with the web. What’s more, it gives us independence from big-tech companies, broadening our horizons.
Yet’ we’re looking forward to seeing the outcomes of its possible risks or disadvantages. We hope this article has helped you understand what Web3 is, how Web3 works and why Web3 matters. Now, are you ready to dive into the next stage of the internet?
The next wave of the web is coming! Web3 will definitely define the methods and ways in which we interact. This does not only apply with sites or apps, but also with each other. Are you ready to be a pioneer of this stage? Get in touch! Our amazing team is ready to push boundaries. Expand your business’ universe with edge computing, AI, and IoT!