Web3 is a new, more open, and transparent network that uses blockchain and AI to democratize the Internet and the economy.
The way we use and interact with the Internet has changed significantly. The arrival of a new era that offers more data security and transparency will shape the technology and economy we know today.
Web3 is the third phase of the Internet, now managed through blockchains.
Blockchains are publicly accessible platforms that store users’ data and transactions.
Thus, Web3 promises to decentralize the network and limit the influence of large technology companies because we choose the data center we store our data.
In short, the goal of Web3 developers is to make the Internet’s protocol open and decentralized.
The revolution proposed by the Web3
In the early days of the World Wide Web, there was no interaction, and, information was centralized.
In other words, people had access but did not produce content.
With the web 2.0 revolution, user interaction emerged from blogs, chats, and social networks.
Despite the innovation, a problem arises: users provide their personal information to personalize user experiences, but they become susceptible to their data releases or sale.
The revolution proposed by Web3 has the potential to change our daily lives.
For example, the metaverse expansion will influence how we entertain and interact online, and companies have already started to take advantage of this, notably the fashion market.
Fiance is another sector that should be heavily impacted by Web3.
Web3 and the Decentralization
The third-generation web or read-write-execute web has decentralization at its core, so data is not stored on servers but on the web itself.
Users can share information directly with other users instead of a traditional user-server-user path.
The data is based on blockchain technology and AI. Therefore, access or movement is recorded on the blockchain, making the internet more transparent and preventing data misuse.
Web3 is an “open” network because it’s built from open-source software and by a community of developers. Another critical feature is that no institution mediates interactions between users but the users themselves. And finally, everyone can participate without authorization from a governing third party.
What are the key concepts of Web 3.0?
Web3 is inevitably linked to a number of other concepts, such as cryptocurrency, NFTs, metaverse, Dapps, and more.
One of the fundamental concepts of Web3 is tokenization, which is the digital recording of data on a blockchain network.
That is, information is encrypted and stored in a database that can be publicly verified but cannot be changed without a new record.
From this process have emerged new ways of doing business and acquiring goods and services.
For example, NFTs (non-fungible tokens), which represent specific, individual ownership of works of art and rare objects traded using cryptocurrencies – is another fundamental aspect of Web3.
The crypto market, like the new phase of the Internet, is based on the public registration of mutually exchangeable data between users.
Another example is DAOs – Decentralized Autonomous Organizations.
How do DAOs work?
- the founders create a cryptocurrency, called a Governance Token;
- these digital assets are distributed among the users, supporters, and other stakeholders of the organization;
- each token corresponds to a defined amount of voting power within the DAO and can be bought or sold at the will of the owner.
All of these examples are premised on freeing up intermediary figures in the economy, such as banks and other financial organizations.
This type of transaction, also known as “peer-to-peer” (P2P), is based on the exchange of resources and information between users on an equal basis.
What’s Web3 up to?
The changes brought about by the new phase of the web should consolidate slowly. The transition from Web 1.0 to Web 2.0, for example, took years to happen. We are still in the process of building it, but the popularization of cryptocurrencies and NFTs already indicates a fertile ground for the growth of Web3.
It is clear that the changes brought about by decentralization are here to stay.
Knowing this, big techs have created working groups and invested millions in resources to prepare for the coming scenario – which can be exemplified by Facebook’s name change to ‘Meta’, alluding to the group’s new phase focusing on the metaverse.
Find out more about ChatGPT!
