What is web 3.0 technology & how does it work? An introduction to the decentralized internet
Recently, control of the World Wide Web and users’ personal data has shifted almost entirely into the hands of many large corporations; however, with the introduction of Web 3.0, which includes a new concept of decentralization of the Web, this situation will be corrected, bringing sweeping changes to the entire field; furthermore, this idea already has supporters among Internet creators.
Web3 technology will be a new version of the Internet that operates without the use of a centralized Internet exchange such as IXP “Internet Exchange Point“, allowing transactions to be completed faster and more effectively, significantly improving daily global trade.
Web3 will bring in a brand-new future in which identification and consent will rule, in which each individual will be in charge of their own information, will have the ability to forget and repatriate each individual, will not lose their right to privacy, and will not endanger their freedom or safety.
Web3 symbolizes a paradigm shift not just for society and the economy, but also for business and the environment. This suggests that in the following decades, business will experience a profound transformation in character. As a result, decision-makers in industry and government must radically alter how they see the Internet’s future.
Web development steps
The World Wide Web is the primary tool used by billions of individuals on the Internet to share, read, write, and connect with others.
The Internet has evolved considerably over the years, and understanding what’s new in web3 may be helpful in understanding where we started.
During the early years of the World Wide Web, known as Web 1.0, “Web 1.0 existed roughly from 1991 to 2004.” The majority of websites have read-only web pages.
Data and content were sent via a fixed file system rather than a database, and web pages featured limited interaction.
This suggested that the pages should only be read.
The difficulty with the initial edition of the web was that it required a lot of technical knowledge to create your own web page and contribute to that version of the online.
The majority of us have only seen the web in its present form, known as Web 2.0, which also includes reading, interactive writing, and the social web.
The Web 2.0 era began in 2004 when users introduced writing and reading capability.
Owners of web pages may get statistics on how popular their postings are by looking at clicks and comments. Additionally, it opened the way for the development of social media and made content creation accessible to
people who did not have the technical knowledge during the Web 1.0 phase.
In the world of Web 2.0, you don’t have to be a developer to take part in the development process. Many applications are created so that anybody may be a creator.
Users are creators as well as consumers in this iteration of the web.
In Web 2.0, you may publish a video and make it viewable, interactable, and commentable for millions of people. Web 2.0 apps include, but are not limited to, YouTube, Facebook, Instagram, Twitter, and other social networking platforms.
These platforms enable the creation of content, but they also utilize our data to determine what we would be interested in consuming.
Businesses earn from the sale of this data to advertisers.
For many Web 2.0 companies like Google, Facebook, Twitter, and others, more data equates to more targeted advertising.
The use and centralization of user data are critical to the operation of the web as we know and use it today.
As a result, data breaches in Web 2.0 apps are widespread. There are other websites that track data breaches and warn you when your personal information has been hacked.
In Web 2.0, you have no control over how your data is saved. In truth, firms frequently track and keep consumer data without their knowledge. All of this data is then owned and managed by the corporations responsible for
Furthermore, when governments perceive that someone is expressing a viewpoint that opposes their propaganda, they frequently shut down servers or confiscate bank accounts. Using centralized servers, governments may quickly interfere, control, or shut down programs.
What is web 3.0 technology?
Web3 is billed as the Internet’s future. This new blockchain-based network’s concept encompasses cryptocurrencies, NFTs, DAOs, decentralized finance, and more. It provides a read-write, proprietary copy of the web to which users have a financial stake and more control over the web communities to which they belong.
Web3 is the next evolution of the web and is a new blockchain layer that supports the Ethereum network. This is the new Internet that we are building, and it is currently under development.
It’s difficult to even begin to comprehend the significance of moving to Web 3.0; it will fundamentally change how we perform jobs online and how we connect to the Internet, just as computers and smartphones have done.
Blockchain technology was developed to solve issues with privacy, centralization, and financial exclusion, but it has also given rise to new difficulties. Before investing in something, companies need to balance the advantages and the dangers.
As a result, many people are wary about how quickly it will arrive. In contrast to what we saw with web 2.0, this has resulted in an entirely new set of concerns.
How Does Web3 Work?
Gavin Wood, “one of the co-founders of Ethereum cryptocurrency,” created the phrase Web 3.0 in 2014. It has since become a general term for anything related to the future generation of the Internet being a decentralized digital infrastructure.
Wood and others who support the concept of Web3 believe that Web 2.0 is controlled by large technology companies, who owe it to regulators who may or may not be effective at maintaining public faith in the Internet or data security. Wood stated in a 2021 interview that “the existing web requires faith in entities that we can’t hold accountable.”
The network must review everything before accepting it, similar to how cryptocurrency works. Online apps, in theory, allow users to exchange information or currency without the need for an intermediary.
Web3 will also be permission-free, which implies that anyone can use it without creating access credentials or obtaining permission from a provider.
The data that makes up the Internet will be stored on the network rather than on servers, as it is now. Any modifications or movement of that data will be recorded on the blockchain’s digital ledger, creating a record that
will be confirmed by the whole network.
A blockchain-focused Internet would, in theory, make it more difficult to modify and control data, similar to how cryptocurrency blockchain was created. They cannot prohibit anyone’s access to the Internet since the data will be decentralized.
A peer-to-peer payment application operating on the blockchain is an illustration of a Web3 application. People can pay for goods or services without needing a bank by using a decentralized app (Dapp) devoted to payments.
The network must first verify the transaction before it can be finalized. After that, it must be encoded in the blockchain’s digital record.
People who cannot open bank accounts, do not have access to them, or are restricted
from offering certain services by large payment providers may benefit from such a payment system.
The difference between Web2 and Web3
Although there are some significant distinctions between Web 2.0 and Web 3.0, decentralization is at the heart of both.
The information and data that Web 2.0 users exchange is kept in a single database that is tied to a cloud service provider that is subject to centralized companies such as Amazon, Google, and Microsoft.
In the case of Web3, data is shared across networks and is not owned by a single company.
Web 3.0 apps are developed on blockchains, which are decentralized networks of multiple peer-to-peer nodes (servers). These programs are known as decentralized apps (DApps), and you’ll hear this word a lot in the Web 3.0 ecosystem.
With the use of machine learning (ML) and artificial intelligence (AI), Web 3.0 enables computers to evaluate data in a manner similar to that of humans, enabling the intelligent creation and dissemination of valuable content in accordance with user demands.
What is Web3 used for?
It’s simple to imagine a near future without network providers that keep records of our data, where crypto-based phones, VPNs, decentralized storage, and cryptocurrency wallets are widely used. We can start by looking at various web3 development-related topics:
There is no single point of control
since blockchain technologies like Ethereum offer unbreakable rules and fully encrypted data, eliminating the need for a third party. No government or other organization will be able to shut down websites and services, and companies like Google and Apple’s Alphabet will no longer be able to manage user data.
When you use a platform like Facebook or Youtube, these companies gather, own, and recoup your data. Your data is stored on your cryptocurrency wallet in web3.
On web3, you’ll use your purse to engage with apps and forums, and you can sign out and take your data with you.
The information can then be provided on a case-by-case basis and based on the authorization granted by the data owner. Users will reclaim complete control of the data and have encrypted security.
Privacy is a part of your pocketbook, just as data ownership. On web3, your wallet serves as your identity, making it difficult to connect it to your real identity. So even if someone can observe wallet activity, they won’t recognize that it belongs to you.
According to Neuroth, “My personal information is hidden, but my activities are public.”
Since there is no single point that stops the entire system from functioning when any issue happens, service disruptions will be minimized.
Account suspension and distributed denial of service has been considerably reduced. Additionally, the data will be kept on distributed nodes for security and several backups to prevent server errors or takeover.
what is web3 in crypto?
You’ll see that cryptocurrency is regularly brought up while discussing Web 3.0. This is due to the fact that a lot of Web 3.0 protocols largely rely on cryptocurrency.
Additionally, non-fungible tokens (NFTs), cryptocurrencies, and other blockchain components will be critical elements of Web 3.0.
Anyone who wants to assist with the creation, management, contribution, or improvement of a project will be given a cash incentive (reward).
Web 3.0 codes are digital assets related to the notion of a decentralized Internet. These protocols may offer a variety of
services, including account, bandwidth, storage, identity, hosting, and other internet services previously offered by cloud providers such as Amazon Web Services.
Is Web3 just crypto?
A number of services that were previously offered by cloud providers, including account services, bandwidth, storage, identity, and hosting, may now be delivered by the cryptocurrency linked to Web3.
Developers are attempting to make both Web3 and cryptocurrencies better by enhancing their scalability, security, and efficiency.
Because they both adhere to the fundamental ideals of decentralization and equitable access, Web3 and cryptocurrency are frequently cited together.
How is web3 related to the metaverse
Metaverse is the term we use these days for immersive digital worlds where users can socialize, play games, attend meetings, and do other activities together.
It’s the idea stated by Mark Zuckerberg when he announced Facebook’s name change to Meta.
Some cryptography supporters feel that Web3 is a crucial component of the metaverse because it will enable the construction of metaverses that are not regulated or governed by a single set of laws.
Many metaverse objects may also be encrypted symbols. Your avatar in the metaverse may also be an NFT.
Recognizing that Web3 and decentralization are just building blocks built on the metaverse creates the opportunity for different sorts of contributors rather than antagonizing them.
Why is Web3 important?
Moving toward Web3 is for a variety of reasons, but the following are the most crucial ones:
Users now create a lot of data when they search, purchase, or submit videos. The servers of the businesses that consumers interact with hold this data. As a result, intermediaries become the guardians of user information and profit from it through advertising.
For many firms, advertising serves as their primary revenue source. With or without their permission, users’ data is exchanged for monetization.
Platforms and creators have a very unbalanced power relationship. In Web3, the blockchain is where your data is saved. When you make the decision to leave a platform, you have the option of taking your reputation with you and guiding it in a different direction that better reflects your beliefs.
Resistance to censorship is a built-in element of Web3, but Web 2.0 demands producers to trust platforms to keep the rules the same.
Decentralized autonomous organizations (DAOs)
In addition to owning your data in Web3, you can also use tokens that function like stocks to collectively own the platform.
DAOs provide you the ability to organize the platform’s decentralized ownership and make decisions regarding its future.
Technically, DAOs are understood to be agreed-upon smart contracts that complete decentralized decision-making for a collection of resources.
Users who have codes can vote on how resources are allocated, and the code will automatically carry out the results of the vote.
Right now, it’s incredibly simple to replicate the original material and gain followers on social media. The content thief may make more money than the original creator.
Because of this, it is challenging for creators to achieve a living wage that is proportional to their work.
This issue could be resolved by Web 3.0 because Blockchain’s transparency makes it simpler to identify the creator of the material.
Do you have a Reddit, a YouTube, and a Twitter account? You must update each account if you wish to modify your display name or profile image.
In some circumstances, social logins are an option, however, Censorship is a well-known issue. Many platforms additionally demand that you contribute personally identifiable information in order to create an account, demonstrating your faith in them.
By enabling you to manage your digital identity using your Ethereum address and ENS profile, Web3 addresses these problems. A single login across safe, censorship-resistant, and anonymous networks is made possible by using an Ethereum address.
Banks and payment processors are the foundation of Web2’s payment system, with the exception of individuals without bank accounts or those who reside abroad.
Web3 eliminates the need for any trusted third party by using tokens like ETH to deliver money straight into the browser.
Limitations of Web3
- Despite Web3’s numerous advantages in its current state, it still has several restrictions that must be solved in order for it to survive.
- Former Twitter CEO Jack Dorsey says that, contrary to common opinion, regular people will not be the owners of Web 3.0 enterprises, but instead the owners of money and financiers. As a result, control may stay centralized.
- Logging in with Ethereum is currently free for everyone to use, but the relative cost of transactions is still prohibitive for many.
- According to some analysts, decentralization may make Web 3.0 harder to monitor and control, which might result in a rise in online abuse and crimes.
- Before the widespread adoption of Web3 can occur, the technical barrier to entry is now quite high. Users must comprehend security issues, comprehend complicated technical documentation, and navigate between unintuitive user interfaces.
- Web3 presents new models that call for acquiring mental models distinct from those employed in Web3. Although Web 3.0 is not challenging, it is unique.
- Faster CPUs are necessary for Web 3.0. Because Web3 won’t work with earlier devices, you’ll need a device with above-average specs if you want to use the next version of the Internet.
Web3 supporters envision an Internet in which we do not have to provide personal information to companies like Facebook and Google in order to use their services.
The web will be powered by blockchain technology and artificial intelligence, with all information published in the blockchain.
Instead of concentrating power – the data – in the hands of companies with questionable motives, the only controller of this data will be the users themselves.