What is Web3?

In 2008, an anonymous group of technologists started a revolutionary system for a more open internet called Web3.

The web has evolved continuously since its inception in 1990, from a storage of information into a place to find answers, connect with others, and share knowledge. It is believed Web3 is the future of the internet. Web developers, content managers, legal analysts, and even crypto investors are exploring careers in this field.

Thanks to the newest version of the web, the internet is much smarter, the data is unified, banks are irrelevant, and users will manage their personal information themselves.

Table of Contents

Web3 is the new version of the World Wide Web with a better internet using blockchain technology, cryptocurrencies, and NFTs to give users the power of ownership. Web3 uses blockchain in new ways to new ends.

Blockchain stores tokens in wallets and secures them with smart contracts or decentralized apps code. They do not work all the same but they all process transactions with proof-of-work and proof-of-stake chains. Its data is public, and users are identified with cryptographical addresses. In the same way, Web3 is permissionless, with no central authority, and provides high security. Blockchain proponents based on the web are proclaiming a new era – Web3.

Chris Dixon – a Web3 advocate and investor, says Web3 is a big deal because it changes the dynamics of the web where companies squeeze users for all the possible data they can get. In his words, Dixon says:

“Web3 is the internet owned by the builders and users, orchestrated with tokens… the core problem of centralized networks, where the value is accumulated by one company, and the company ends up fighting its own users and partners.”

In 2014, Ethereum Wood commented about this new area, saying Web3 is a:

“Reimagination of the sorts of things we already use the web for, but with a fundamentally different model for the interactions between partie. Information that we assume to be public, we publish. Information that we assume to be agreed, we place on a consensus-ledger. Information that we assume to be private, we keep secret and never reveal. In short, we engineer the system to mathematically enforce our prior assumptions, since no government or organization can reasonably be trusted.”

The idea is continuously evolving, and new use cases are coming to light. For example, Sound.xyz promises better deals for artists, play-to-earn games on blockchain let users turn their in-game assets to real money, stablecoins are pegged to the value of fiat money, etc. around 18.000 developers are actively working on Web3 as it is still developing. A posted tweet best describes web as:

“Web1 was read-only, Web2 is read-write, Web3 will be read-write-own.”

Core ideas of Web3

Decentralized – Ownership is distributed among developers and users, and there is no centralized authority that has control over Web3.
Permissionless – Web3 is open for everyone at any time. No one is excluded.
Native payments – Web3 uses cryptocurrencies and online money for spending instead of payments through banks and payment processors.
Trustless – You do not need to trust other users to make transactions because Web3 uses incentives and economic mechanisms to make everyone eligible.

History – Web1, Web2, and Web3

The web is the pillar of modernization. However, ever since it was invented, it has upgraded continuously. The web we know today is entirely different from the original one. Hence, we will cover the history of the web through its three stages.

Web 1.0 – Read-Only (1990-2004)

In 1989, Tim /berners-lee had the idea to create an open, decentralized protocol that allows sharing information from anywhere in the world. At that time, he was developing protocols to establish the World Wide Web. First, the world had the internet with physical wires and servers that let users who owned computers talk to each other, but the idea of the web was put to work in 1990 and lasted until 2004.

Web 1.0 was mainly filled with websites owned by companies and had no interaction between users and content writers. Therefore it is called the read-only web. HTML and URLs made it possible for users to navigate through these websites.

Web 2.0 – Read-Write (2004-Present)

Web 2.0 emerged with the appearance of social media platforms in 2004. It evolved from a read-only to a read-write web. Companies started offering users platforms to share their content and interact among themselves. As many people began to join the web, companies started to control the traffic and generate value. Whereas even if the users created content, they did not own it or generate money.

Social media that define the experience of Web 2.0 are Facebook, Twitter, and Tumblr, whereas media that allow users to comment on their content are Youtube, Wikipedia, Google, etc. They expanded our ability to watch, learn, share, search, and connect with each other.

Web 2.0 has always been criticized for being centralized because network effects and economies of scale had clear winners. Those winners were companies who would generate wealth for themselves by using users’ data and selling ads to them. Web 2.0 offered jobs to users in exchange for money, some of those jobs included influencers and through the sharing economy.

Web 3.0 – Read-Write-Own

That led us to Web 3.0. It was coined by Gavin Wood – an Ethereum co-founder. He created it immediately after Ethereum launched in 2014. It provided a solution for a problem many users have regarding how much trust the web requires. Most crypto adopters and users, in general, know that until today the web relied on private companies to act in the public’s best interest.

Web 3.0 advocates are pitching it as an update with deep roots that would solve the problems and perverse its incentives. Users’ online identity is protected with encrypted wallets. At the same time, everything is stored immutably and transparently in a decentralized database that prevents moderators from swooping in to delete offending content. Web 3 is not centralized, it gives you a real say in what you want to spend time on, and you get a stake that is worth it. In other words, you are not a product but an owner.

How Does Web3 Work?

Web 3.0 combines the decentralization of Web 1.0 with the interaction of Web 2.0 for a more user-friendly interference. It gives more control to users over their online experience and increases security through the blockchain. HTML will continue its foundational presence in Web 3.0, but it will differ in the way it connects to data and where that data resides.

Almost all of the applications in Web 2.0 rely on some form of centralization to deliver data and enable functions. But Web 3.0 applications will be decentralized in a blockchain with no authority. It will be a more democratic way of creating and affirming info because it gives users control over the web, and how their personal information is used. In addition, Web 3.0 will provide users with Artificial Intelligence and machine learning important roles in delivering users the content they have chosen to see.

Web 3.0 will be more intelligent and responsive to data because it will be organized in the Semantic Web structure. The Semantic Web was envisioned by Berners-Lee when the first version of the web was released. But now it will come to life because Artificial Intelligence will be more adept at understanding it. Furthermore, Web 3.0 will continue to use Decentralized Autonomous Organizations because they have the ability to revolutionize web management by taking control from central authorities and turning it into a self-governing community.

Currencies issued by governments are less important in Web 3.0 because it relies fundamentally on cryptocurrencies. Hence, financial transactions will occur in a decentralized blockchain rather than the current financial system.

Advantages and Disadvantages of Web3

Most of the components of Web 3.0 are just an idea. Hence it is hard to tell between the advantages and disadvantages it might have. Furthermore, when the creators present ideas they tend to leave out the drawbacks. Nevertheless, here are some benefits and drawbacks to the new system called Web 3.0:

Benefits

Interaction – Users will have more opportunities to experience higher levels of engagement with each other and the content.
Ownership – Users are much more than content consumers; they are community owners, and they will receive incentives for participating in the platform.
Permissions and Transparency – Everyone, everywhere, at any time, can use Web 3.0 and access its data with better visibility into transactions and decisions.
Control and Privacy – Users will take back control of their identity and data from central authorities. With Web 3.0, their identity is not public and is attached to a digital wallet. Everyone can see what they do online but cannot find who they are.
Speed – The combination between Artificial Intelligence, smart contracts, and machine learning makes it easier to find more relevant data in less time.

Drawbacks

Cost – Web 3 operates in the blockchain. Blockchain technology requires a high amount of electric energy to work. Hence, it is expensive and costs a lot.
Hardware – Old machinery might not have enough capacity and memory to perform in Web 3.0. So, users will need new machinery to access the platform and its applications fully. These machines are expensive, and with their energy, they are costly.
Regulatory Concerns – The lack of central authority means the regulatory regimes that keep online commerce and the safety of websites do not exist. In contrast, all the responsibility is over users, which can create spaces for questionable content.
Scalability – Blockchain technology requires a significant amount of computational power that is not currently scalable in order to conduct transactions in a peer-to-peer network. Due to the expense and participation restrictions brought on by this lack of scale, centralization occurs by default.
Complexity – Web 3.0 comes with a learning curve. Hence, everyday web users might find it difficult to surf through decentralized networks and smart contracts.

Uses of Web3

Anticipated use cases for Web 3.0 involve leveraging extensive web development and AI-driven capabilities to understand users’ intentions and preferences, and customize the content they are presented with, all while ensuring that personal information remains under users’ control. With the ability to automatically filter and provide a significant portion of the material, companies are expected to save both time and money.

Web 3.0 will enable building new applications and services using blockchain technologies already in use, with blockchain at its core. These are a few of them:

NFTs – Non-fungible tokens are unique crypto assets that create ownership of digital assets. How value assets are created and exchanged on Web 3.0 will have an important role for NFTs.
DeFi – Decentralized finance will be the basis of Web 3.0 for its financial services.
Cryptocurrencies – Web 3.0 will use cryptocurrencies like Bitcoin, Ethereum, and Tether as coins of the realm.
dApps – Decentralized applications can be expanded upon by others, with a record of such changes registering on the blockchain’s distributed ledger. There are already thousands of dApps available for middleware, charitable giving, and social media sites.
Smart Contracts – Smart contracts are already the foundation for new blockchain apps and are anticipated to be a key component of Web 3.0. Smart contracts react to events to carry out business logic. In comparison to traditional contracts, they are more flexible to changing circumstances. These potent Web 3.0 capabilities will enable the interaction between blockchain users and apps.
DAOs – Decentralized autonomous organizations may serve as the organizing bodies that offer the governance and structure necessary to enable a decentralized approach to Web 3.0 services workable.

What Type of Jobs Does Web 3.0 Offer?

Below are some of the roles that Web 3.0 offers:

Beta Tester – A beta tester takes a new platform or application, tries it, and reports to the developer for any problems or the experience in general. This process helps the developer address the issues before they release their product for the public to see.
Community Manager – The success of the online communities is in the hands of the community manager, who makes sure the community meets the needs of members and developers. They are responsible for recruiting new members, maintaining and monitoring resources, keeping track of interactions, and solving problems.
Crypto or NFT researcher or analyst – This position requires research skills. Professionals in this field monitor the market performance and pricing of various varieties of cryptocurrencies, also known as NFTs. The information obtained assists investors in deciding how to invest in cryptocurrency.
Marketer – Because it stresses community, relationships, and engagement, Web3 has the potential to alter online marketing. Marketers sell products and services but may need more access to client data than Web 2.0 users. You should spend more time connecting with customers to understand their requirements fully.
Technical Writer – Technical writers can help the general public comprehend how Web3 works and how it can benefit them. They take complicated technical details and simplify them for the broader population. They also assist Web3 companies and their founders in generating new ideas and establishing themselves as specialist owners in acquiring fresh concepts and establishing themselves as authorities.
Web3 Developer – Their responsibility will be writing and testing codes, building contracts, and designing interfaces.

Takeaways

Web3 is the future of the internet, using blockchain technology, cryptocurrencies, and NFTs to give users the power of ownership and security.
Web3 is a decentralized, permissionless, and trustless system that uses incentives and economic mechanisms to make everyone eligible for transactions.
The web has evolved continuously since its inception, with Web1 being read-only, Web2 being read-write, and Web3 being read-write-own.
Web3 combines the decentralization of Web1 with the interaction of Web2, giving users control over their online experience and increasing security.
Web3 is a new system that relies on cryptocurrencies to conduct financial transactions.
It has advantages such as higher levels of engagement, permissions and transparency, control and privacy, ownership, and speed, and disadvantages such as high costs, hardware, regulatory concerns, scalability, and complexity.
It is expected to make extensive use of web development, AI-driven capacity to comprehend users’ intentions and preferences and customize the material it offers to them by personal information under the users’ control.