Web3 is the hottest new buzzword everyone must have heard in recent times. It is nothing but a new update to the world wide web, or simply the internet. This new iteration promotes the shift of dependency from large tech companies to sole individuals. It may seem confusing for now, but later we will see how users can drive changes to large digital applications themselves by the blessings of Web3.0!
To burst your bubble at the start of this blog, Web3 or Web 3.0 is an idea that is not yet completely implemented in the digital world. It is more of a transforming process for now. Recently, the sister of Meta’s CEO, Randi Zuckerberg :
"The Web3 is a hypothetical, future version of the internet based on blockchain technology — an ideal utopia.”
The idea of Web3 was coined in 2014 by the founder of Ethereum. After which the initiative gained popularity mainly in 2021 when cryptocurrency enthusiasts and venture capital firms stood up for its inventiveness.
To completely understand the workings of Web3, we need to first understand the core pillars on which the phenomenon stands, these concepts are Decentralization, Blockchain Technologies, and Token based economics.
Decentralization
Decentralization is not a new term instead it is the concept of distribution of power from a centralized managing body to multiple decentralized entities. The political concept works in terms of technology too when the user has the power to run self-hosted digital services on the internet. A major example is decentralized applications or , which run on a peer-to-peer network rather than one single server. This phenomenon cuts down the central authority and lets the users perform transactions directly.
To understand decentralization let us consider an example of an online document-sharing system. When we send the link to different people, we distribute the file rather than making copies of it. As a result, a decentralized distribution network is set up, allowing everyone to simultaneously access the same document. Everyone has access to the document and can make changes without being locked out while all changes are transparently tracked and recorded in real-time.
Decentralization helps in several ways; it enhances data reconciliation by storing the information in decentralized repositories that can be accessed by every entity in real-time. Another major advantage of decentralized networks is the optimization of resources with improved performance and consistency, as well as a lower risk of tragic failures. Decentralization is one of the core pillars on which Web3.0 architecture stands.
Blockchain
After discussing Decentralization there comes Blockchain, which many refer to, as the technology that cannot be hacked. It is considered the safest system for transacting across networks. It is a distributed database or ledger system that collects and stores information in the form of blocks. These blocks have specific storage abilities, and when filled, they are sealed and connected to the block that was filled earlier to create the data chain known as the blockchain. The blocks are attached together via .
To use the example discussed in the earlier section I.e., an online document sharing system, in terms of blockchain, we must consider those distributed documents unchangeable and undestroyable as the original information and data cannot be changed after being written in the blockchain technology.
This proves the redundant and decentralized nature of Blockchain technology. Also, the reason is called Distributed Ledger Technology (DLT). Blockchain contributes to the building structure of Web3 initiatives.
Token Based Economics
A tokenization system refers to the substitution of a sensitive data component in a layer of information with a non-sensitive element, called a token. That token having no exploitable value just acts as a reference to the original data component in the tokenization system. This reduces the data security concerns of many firms across the globe.
Before made things easy for the Token-based economics system, it was difficult to create tokenized networks as it required complete evaluation of underlying blockchain protocols. Ethereum introduced a new and cost-effective solution for generating tokens with some lines of code, without having to build your own blockchain infrastructure. Tokens also called Cryptographic Tokens are issued using a smart contract that runs on a distributed ledger or Blockchain. Token-based economics lays down a fundamental core for Web3 by creating a much more secure network of interaction.
Now that we understand the core pillars of Web 3, let us quickly revise what came before to completely grasp the need and idea of a new, decentralized internet.
World Wide Web and Its Evolution Over the Years – Quick Recap
The Internet came to life with Web 1 in 1989, also called the first version of the internet. A created World Wide Web (WWW) generally for information sharing with other scientists around the world.
Web 1 consisted of a bunch of homepages and links. The websites were not very interactive, in fact, the interaction was extremely limited. Apart from reading stuff and posting simple content for others to read, there wasn't much else you could do. In simple terms, Web 1 was the read-only version of the internet.
Web2.0
After the introduction of the World Wide Web, Web2 made headlines in . This was a much-improved version that allowed people to not only read data but also create their very own content in the form of blogs and online discussion forums.
Web 2 allows user interaction, interoperability, and participatory culture among the networks. Users began to Read/Write on the internet with Web 2.0.
Web 3.0
Web 2 allows users to read and write data on the internet so what gave rise to the idea of Web 3.0? Well, the proposed Web 3 initiative takes a step further, allowing users to Read, Write, and “Own” data over the network. With Web 3, Users can take part in the governance and management of the protocols themselves rather than just using free tech platforms to exchange information. People can thus become shareholders and participants rather than just clients or commodities.
As discussed at the start of the blog, Web 3 follows a decentralized network structure that eliminates the central body, which governs the data of the consumer.
Blockchain technology makes data sharing across multiple networks much more efficient and reliable. The major examples of a blockchain protocol are transactions of digital assets such as and .
How does Web3 Help You?
With the idea of Web 3.0 users will be able to tokenize almost everything, call it a meme, social media post, or a piece of art. A considerable shift of power will be experienced in every industry once Web3 arrives commercially.
For example, in the gaming industry, the players will be able to contribute to the game and decide how things should be run with Web3. It is good news for gamers who complain nonstop about the glitches that developers failed to fix in their favorite video game or how their favorite weapon's balance has been thrown off by the most recent patch.
Virtual worlds powered in part by Web3 are being developed by major Web 2 businesses like Meta and Ubisoft. By enabling players to become the immutable owners of the items they acquire, non-fungible tokens (NFTs) will likewise play a significant part in altering the gaming industry.
Another important aspect of web3 is its permissionless nature, users can participate at an equal level without having a need for approval from any centralized organization.
Final Thoughts
Web3 packs a lot of new paradigms that totally revolutionize the way of interaction between people from all over the world. It aims to provide a decentralized future that is going to be ubiquitous, with complete freedom of owning content digitally.
Token-based protocols will also reshape the way data is shared across networks by utilizing blockchain technology. It will improve the overall integrity and security of information.
Web3 is quite promising, but this concept's complete utilization will be something for our kids to discover, as it might take over a decade to entirely implement it.
