You might have heard the phrase “Web3” or “Web 3.0” recently. The next generation of the Internet supports decentralized protocols and reduces dependence on colossal tech corporations like Youtube, Netflix, and Amazon. Why is everyone talking about it?
Understanding Web3 requires understanding its predecessors. Web 1, a group of links and homepages, debuted in the late 1990s. The websites were non-interactive. You may only read post-primary material for others.
In December 2021, Bitfury CEO Brian Brooks said:
“When consumers first signed up for AOL, they were given access to a controlled “walled garden” of content that was not designed for interaction, but was nevertheless shown on AOL, similar to how Time Magazine displayed its articles within the magazine.”
Web 2 followed. The “read/write” Internet refers to a computer code that allows you to access and change files rather than merely see them.
This era of Internet enabled users both consume and generate information on blogs like Tumblr, forums, and markets like Craigslist. Later, Facebook, Twitter, and Instagram elevated content sharing.
After a time, people realized internet companies were using their personal data to target ads and marketing activities.
Facebook was penalized $5 billion by the Federal Trade Commission in 2019 for violating data privacy regulations, the most significant penalty ever given (FTC.)
Web 2 has provided fantastic free services, but many consumers are bored of the “walled gardens” established by big internet corporations and want more access to their information and content. That’s where Web3 helps.
Web3 is the “read/write/own” Internet. Users may help run protocols instead of merely utilizing free tech services in return for data. Participants and stockholders are possible.
Tokens or cryptocurrencies reflect blockchain ownership in Web3. With enough tokens, you can control the network. Governance token holders may vote on the future of a decentralized lending system.
“The fundamental lesson here is that what occurs on the decentralized internet is chosen by the investors vs what happens on the mainstream internet by Twitter, Facebook, Google, and a limited number of other companies,” says Brooks.
What are some of Web3’s capabilities?
Web3 enables cooperative governance models for centralized goods. Memes, art, social media, and even Gary Vee seminars may all be tokenized.
Gaming illustrates the paradigm change. Gamers complain about flaws in their favorite games and how the newest patch messed up their weapon’s balance.
Web3 lets players invest in and vote on the game. Meta and Ubisoft are building Web3-powered virtual worlds. Players’ immutable ownership of NFTs will also change the gaming business.
Web3: a booming technology
Web3 is expected to come in a variety of shapes, including decentralized social networks, “play-to-earn” video games that provide users cryptocurrency tokens for their participation, and NFT marketplaces that let users purchase and sell bits of digital culture.
According to the more optimistic, web3 will revolutionize the internet as we know it, displacing current gatekeepers and bringing about a brand-new, middleman-free digital economy.
A lot of money, talent, and passion are going into crypto start-ups as a result of a long-running bull market in cryptocurrencies.
More money than in the previous ten years combined has been spent on crypto-related initiatives in just 2021, many of which are web3-related.
Some major tech firms, including Twitter and Reddit, are also experimenting with Web3 initiatives. Web3 has attracted a lot of significant IT company personnel who left comfortable, secure professions to work in the field.
Web3 offers the chance to increase value for everyone online. Users own whatever content they generate and any digital goods they buy, and those assets are typically transferable.
Thus platforms do not have ownership over the data which explains the phenomenal success of Web3! Follow Wintop’s blog if you want to stay up to date with the blockchain industry’s trends.