We all are well aware of how quickly the internet is expanding and changing. But the internet's underlying code is always changing, so it's not simply websites and platforms that are becoming popular or out of style.
Web3, a concept created by computer scientist Gavin Wood, has been cited by several tech futurists as a portent of things to come in recent years. The concept of Web3, or a new decentralized internet, is based on distributed ledgers known as blockchains that are collectively managed by users. But, exactly what is Web3.0, how will it look, and what changes will it bring to our lives? To answer such questions, read the full blog.
Web3, the next generation of the internet, reduces the dependency on giants of the internet like Netflix, YouTube, and Amazon.
Web3 and the metaverse are interconnected yet distinct concepts shaping the future of the digital landscape.
The initial version of the internet, known as Web1.
Before we get into Web3, let’s first understand what Web 1 and Web 2 are. The initial version of the internet, known as Web1, was widely used in the 1990s and early 2000s. A large portion of Web 1 was constructed with "open protocols," which are means of information exchange that are available to everyone, not just certain businesses or organizations. The primary uses of the internet back then were for web page reading and communication with friends and strangers. As Web 1 developed, more people and businesses started using the Internet for e-commerce, academic, and scientific research, soon becoming a basic need.
In the mid-2000s, a new wave of internet startups, including Wikipedia, Twitter (now X), Facebook, and others, gave users the ability to produce their content, giving rise to Web 2. However, as MIT research scientist Andrew McAfee put it in a 2009 McKinsey Quarterly interview, there was a price to these open-source "emergent social software platforms" that many users were unaware of. These businesses kept control over proprietary choices regarding functionality and governance while making money off of user engagement and data sales to marketers.
The third generation of technology that powers the World Wide Web is referred to as Web3.0. Multiple standards make up Web3.0, not just one. Instead, it includes a dominant range of practices and technology paradigms. For instance, Tim Berners-Lee, the guy behind the World Wide Web, first proposed the Semantic Web, one of the foundational elements of Web3.0, in 1989 as a means of creating and maintaining links between the material on websites.
Another popular association of network 3.0 is the idea of a decentralized network, in which interactions are managed by no single central authority. The utilization of distributed ledger and blockchain technologies is a fundamental component of the decentralized methodology.
Web3.0 also depends on associated blockchain-based technologies, particularly decentralized applications (dApps), which are cryptocurrency-based. The wider application and integration of artificial intelligence in web operations is another feature of Web3.0.
AI and Machine Learning
Web3, or a new decentralized internet based on distributed ledgers managed by community members, is made possible by blockchain technology, blockchain is a decentralised, digitally distributed ledger that is present throughout a computer network and makes transaction recording easier.
Smart Contracts: Smart contracts are computer programs that automatically take action when certain requirements are satisfied—such as terms agreed upon by a buyer and seller.
On a blockchain, smart contracts are created in unchangeable code. and digital assets, these are valuable objects that can only be found digitally. NFTs (non fungible tokens), stablecoins, cryptocurrencies, and central bank digital currencies (CBDCs) are a few examples of these. Web3 makes use of distributed apps, smart contracts, and decentralized computer networks.
Blockchain: Blockchain is a decentralized, digitally distributed ledger that runs across a computer network and makes transaction recording easier. Smart contracts can carry out particular tasks on their own and represent application logic. Digital assets can interact with smart contracts to become "productive" and can represent anything of value.
Web3 brings new models of community, ownership, and incentives, and employs blockchain technology to build trust in the system.
Web3 and the metaverse are interconnected yet distinct concepts shaping the future of the digital landscape. Web3 refers to the evolution of the internet, emphasizing decentralization, blockchain technology, and user empowerment. It envisions a more transparent, secure, and user-centric online experience where individuals have greater control over their data and transactions.
On the other hand, the metaverse is a broader concept, describing a collective virtual space that merges the physical and digital worlds. In the metaverse, users engage with computer-generated environments and interact with each other in real time. It goes beyond traditional online experiences, aiming to create immersive, shared, and persistent virtual realities.
While web3 technologies can contribute to the development of the metaverse by providing decentralized infrastructure and enabling secure transactions, they don't represent the metaverse in its entirety. The metaverse encompasses a broader scope, including virtual reality, augmented reality, and various interconnected digital spaces.
Web3 acts as a foundational layer, providing the decentralized structure that can support the development and interaction within the metaverse.
In summary, web3 and the metaverse are intertwined, with web3 serving as a crucial component facilitating the development of decentralized, user-centric aspects within the broader concept of the metaverse. Both contribute to reshaping how we perceive and engage with the digital world, offering new possibilities for connectivity, collaboration, and innovation.
If Web 1.0 was the era of black-and-white movies, Web 2.0 is the era of colour and rudimentary 3D, and Web3.0 would be immersive experiences in the metaverse, to use a film analogy. In the same way that Web 2.0 dominated the international economic and cultural scene in the 2010s.
Web3 adoption and development are still in their early phases, but no doubt developing technologies have the power to completely transform the economy. Given that Web3 may turn into the future of all things financial, responsible investors would be well to take into account the various possible effects of this technology. Slowly, it can be seen that Web3.0 is taking centre stage in the 2030s.
Written by- Manmeet Kaur