Coined in 2014 by Ethereum co-founder Gavin Wood, Web3 is an idea that grew in popularity in 2021 among cryptocurrency enthusiasts, large technology companies, and venture capital firms.
Most recently known as Web 3.0, this iteration of the World Wide Web (WWW) is based on blockchain technology and is forecasted to become the future of the Internet as we know it.
Imagine a completely new kind of Internet that can not only interpret what you input accurately but also comprehends whatever you say, whether by text, voice, or other media. Plans include content that will be tailored to your preferences like never before.
The key attributes of Web3
While our current Web 2.0 version is driven by the emergence of mobile, social, and cloud, Web3 is focused on allowing open, permissionless, and trustless networks to flourish.
Web3 is predicted to be built by developers using open-source software. It will be open and accessible to the entire world and will be created in full view of the public.
Participants can interact publicly and privately without a trusted third party. Sending Bitcoin directly to another person is an example of trustless Web3 transactions – not via an online exchange or a wallet stored on a centralised server.
Any user or supplier can participate without authorisation from a governing body. But there are already some governments working on legislation that will provide them with some control over communications and interactions on the Web3. For example, the UK Government is considering regulating citizens’ ability to send end-to-end encrypted messages.
Machine Learning and Artificial Intelligence at the core of Web3. This version of the Internet will rely on computers that use, among others, Semantic Web technology and natural language processing to understand information similarly to humans. Based on the information they gather, they will be able to produce faster and more accurate results for users.
Information and content will be connected ubiquitously to allow access to multiple applications and devices, enabling unified experiences.
Key takeaways
Platforms like Google, Amazon, Facebook, and Twitter emerged with Web 2.0 as a way of connecting and transacting online. It is believed that these companies accumulated too much power, and Web3 aims to return some of that power to its users.
It is focused on providing the end-user with a personalised web experience by collecting information based on the end user’s web activity. The new social networks, search engines and marketplaces will not belong to any company, as they will be decentralised and built on blockchain. Users will be able to control their own data and access services by using their own accounts and by creating a public record of their activities on the blockchain.
The main disadvantage of Web3 is the fact that it will be difficult to understand for new joiners and restrictive to the less advanced devices and websites. Secondly, as it stands now, it will make it very easy to access users’ personal and financial details, which is likely to make it a security and privacy risk. Lastly, it will have an impact on societal norms – users are likely to be more absorbed in it, and reputation management will be more important than ever for companies everywhere.
Is Web3 the next big thing?
Business and social networks based on blockchain will continue to grow and prosper in the years to come. As the current search engines and social media networks are so embedded in cultural norms, experts predict that it will be challenging to exclude them from the conversation completely.
But it is believed that the transition to Web3 will be inevitable, and the IoT (Internet of Things) economy will play a central role in it: we will be able to interact with any individual or machine in the world without using intermediaries.
From seamless payments to enhanced information flows and secure data transfers, a vastly increased number of potential counterparties will be able to interact with one another, and machine learning algorithms will help build new types of online markets and associated business models.
Overall, Web 3.0 will make the internet fairer by enabling the individual to be sovereign. As a result, individuals will have access to an Internet where they can own and be properly compensated for their time and data, which will supplant the current exploitative and inequitable web, where giant, centralised repositories are the only ones who profit.
