WEB 3.0 (or more commonly "Web3") is a relatively loose set of ideas about how the future web should look and operate. We are currently between the worlds of Web 2.0 and Web 3.0, and the exact shape of the future Web is not determined in any way. We'll explore what Web3 is and look at some examples of specific technologies that fit into the Web3 pattern.
The internet and the world wide web are different
Before we start any discussion on the web, an important fact you need to understand is that it is not the same as the internet. The internet is the physical network of devices and computers that keep the world connected, and the internet protocols that describe how all these devices communicate with each other.
Table of contents
The internet and the world wide web are different
The Evolution of the Web: Web 1.0 and Web 2.0 Explained
Tim Berners-Lee and the Old Web 3.0
3. Initial Coin Offerings (ICOs)
5. Decentralized applications (dApps)
7. Distributed Computing (Edge Computing)
8. Decentralized Autonomous Organization (DAO)
9. Machine Learning and Artificial Intelligence
The Web is a service (or group of services) that runs on the Internet. It's the most common user-facing portion of the Internet, but other services (such as FTP or BitTorrent ) are not part of the Web. They just share the same bandwidth.
The Evolution of the Web: Web 1.0 and Web 2.0 Explained
The World Wide Web first appeared in the mid-90s. This is what is now known as Web 1.0. Early websites were hosted in many places. Some are located on large servers in corporate IT departments, and others are hosted on people's home computers. Web content hadn't been centralized into the giant data centers we know today.
Web 1.0 content was primarily non-interactive "read-only" static web pages. In other words, you visit a website for information, but you do not return any data to it. This is the decisive difference between Web 1.0 and Web 2.0.
With Web 2.0, information begins to flow in both directions. This is the age of social media platforms and user-generated content. On this social network, end users put their photos, personal information, etc. on social networks like Facebook and LinkedIn, where everyone can see it.
Colocation services began to centralize into data centers owned by a handful of powerful technology companies. Web browsers have become so advanced that they can basically run web applications with complex 3D graphics.
User data is the most valuable commodity for these organizations, who use it to facilitate e-commerce or sell it to third-party players. Search engine giant Google is perhaps the most famous example. Still, companies like Microsoft and Amazon have invested in providing centralized web services that can ingest personal data and turn it into lucrative insights.
Values of Web3
Essentially, the idea of Web3 is a network that is not controlled by a few central authorities. It doesn't matter whether these are governments or corporations, Web3 (in theory) puts user data and web content in the hands of users. It also allows for a network where users can directly profit from their data and all the money that moves across the network every day.
The term "Web3" was coined in 2014 by the co-founder of the Ethereum blockchain, Gavin Wood , which we'll discuss later.
Web3 is designed to conform to certain values. On the one hand, it is decentralized and there is no central authority that owns and monetizes all the data. Web3 applications are open source. This means that everyone can transparently view the algorithms and software functions in the application without sneaking into the back door.
So, in summary, Web3 is a democratized web based on open source applications that give users full control over their data and a way to share the profits generated from content.
Tim Berners-Lee and the Old Web 3.0
There is some confusion because a completely different concept called Web 3.0 was coined by "Father of the Web" Tim Berners-Lee. The World Wide Web Consortium (W3C) outlines Web 3.0 ("Semantic Web") as an extension of Web technology standards.
The Semantic Web may be harder to understand than Web3. Nonetheless, it boils down to formal metadata standards that allow various machine-to-machine operations, which in turn allow semantic understanding of web content.
Photo by Time Berners-Lee, Uldis Bojars, CC BY-SA 2.0, via Wikimedia Commons
In practice, this Web 3.0 has not become a reality, although modern Web technologies can already do some of the things described by the Web 3.0 philosophy. We won't say much about the Semantic Web here, but keep in mind that some of the stuff you might read under the Web 3.0 label is nothing like Web3, and "Web3" just refers to what we're talking about here.
Now that we've figured out the difference between Web 3.0 and Web3, let's look at some Web technologies that are Web3 compliant.
1. Blockchain technology
Blockchain technology is probably the one that most sparks the idea of Web3, so it is the most immediate example. Many other Web3 technologies rely on blockchain to work, so it is the foundation of Web3.
A blockchain is a ledger or record of transactions. The blockchain exists intact on multiple computers spread across the Internet. Every time a new "block" of transactions is added to the chain, all copies of the database must agree and amend it. All transactions are open to the public and are permanent.
Any attempt to tamper with the record breaks the chain, and since verified copies of the database are spread across the network, no central authority can control it. Blockchain technology can be used in any application to record transactions, but most people associate it with cryptocurrencies, which we will address next.
2. Cryptocurrency
Cryptocurrencies (also known as "cryptocurrencies") are decentralized digital cash that are not controlled by any government or central authority such as a bank. Cryptocurrencies use blockchain technology to keep track of how much money is in existence and who holds how much.
The supply of cryptocurrencies is increased through "mining," which provides computing power to run the blockchain in exchange for new currencies. At least, that's how it works with "classic" cryptocurrencies like Bitcoin. For example, in the case of the Ethereum blockchain, end users pay a "gas fee," which is collected by Ethereum miners who process transactions.
3. Initial Coin Offerings (ICOs)
Initial coin offerings are about cryptocurrencies because the "coins" offered are cryptocurrencies. When you invent a new cryptocurrency (potentially an exciting innovation), you need initial capital to get things going.
People who put their money into ICOs are buying your cryptocurrency while it's not worth much, hoping that like bitcoin and ethereum, the value of the cryptocurrency will explode and make them rich overnight.
ICOs are sometimes more like shares in a company, although they don't confer ownership rights on the buyer. The value of the coin is then pegged to the value promised by the company or its products. This is why ICOs are so popular among startups looking for alternative funding that doesn't involve banks, angel investors or venture capital.
ICOs had a lot of hype, but scams also plagued them, and many people lost money. This is because ICOs are not yet regulated like IPOs (initial public offerings), and anyone can launch an ICO.
4. Non-fungible tokens (NFTs)
This is probably something you've heard, but NFTs are another cornerstone of Web3. NFTs are essentially a form of encryption, but each NFT is unique and cannot be exchanged for each other. This is what the irreplaceable part of the name means. NFTs are linked to digital or physical assets in the same way a paper title deed to a house represents ownership.
A big problem is that NFTs are not necessarily recognized by any legal authority, so in the end, all you are buying right now is control over a string of letters and numbers. However, this may change as NFT technology develops and may benefit from legislation.
If you're interested in learning more about NFTs, check out 5 Apps to Create NFTs on the iPhone and How to Sell Them .
5. Decentralized applications (dApps)
When you use cloud-based services like Google Docs, you're using a centralized application. Google has access to, reads and controls all information in your documents. The tradeoff is that we can store our information in the cloud, easily collaborate with others, and enjoy the convenience of a long list of other cloud applications.
But what if you could reap the benefits of these cloud services without submitting to a central authority? This is where decentralized applications or "dApps" come in. Most dApps use the Ethereum blockchain for online computation, and thus pay for computation using Ethereum "gas" fees.
However, dApps meet the requirements of Web3 to be open, open source, and protected through cryptography. Thus, dApp users are in control of their data and who can see it, while benefiting from cloud-based computing power to run whatever functions a particular dApp is designed to do. If you want to see what dApps are available, check out our State of dApps , which documents the most important dApps.
The Ethereum blockchain is designed to support Web3 technologies from the ground up, and even has a dedicated JavaScript library called Web3.js to help developers jumpstart their Web3 projects.
6. Smart Contract
If you're buying a car today and getting a loan from a bank to do it, there's a lot of paperwork involved. The bank signs a contract with you that describes the rights and obligations of both parties. By contract, if you default on payments, the bank must enforce certain actions under the agreement (such as repossessing the car).
Smart contracts can do the exact same job, but they don't require a central authority to execute or monitor anything. This all happens automatically according to the rules and logic of the contract.
Smart contracts make it possible to provide financial services or draft legal agreements between parties in a more affordable way than traditional contracts. They are also fairer and cannot be manipulated once activated.
Of course, like any contract, a smart contract is only as good as the terms and logic within it, but assuming the contract is fair, then the smart contract will be enforced fairly.
7. Distributed Computing (Edge Computing)
Edge computing is all about delivering online data and services as close as possible to where they are requested or generated. Almost the antithesis of "big data" computing in massive centralized computer centers, edge computing occurs at the actual edge of the network.
For example, data may be processed on your local PC before being sent to a central location for aggregation. This means you can combine the processing power of devices at the edge of your network into one giant distributed supercomputer. With billions of IoT ( Internet of Things ) devices collecting information in smart homes, factories and retail stores, having enough computing power to process this data is a real challenge. Edge computing provides a way to meet these demands, saving bandwidth and delivering data requests quickly.
8. Decentralized Autonomous Organization (DAO)
Organizations, such as businesses or charities, have a centralized structure. There is command and control at all levels of executive and management to coordinate all the different people who contribute to the work that must be done.
DAOs flatten the entire structure. No CEO, CFO or anything like that. Every member of the group has a say in deciding when and where money is spent from the treasury.
The organization's rules are encoded in a permissionless (also known as trustless) blockchain using innovative contract technology. Traditional organizations have developed complex and costly administrations to keep everything running. DAOs also make fraud nearly impossible, since every transaction and its history is subject to public scrutiny,
9. Machine Learning and Artificial Intelligence
In the past few years, we have witnessed the rapid rise of machine learning technology and other important fields of artificial intelligence. Our smartphones are equipped with these technologies, which is how apps like Apple's Siri work. Thanks to Natural Language Processing (NLP), you can talk to intelligent agents and they can parse your request.
Machine learning is also used to process large amounts of data in real-time to predict our needs and behaviors. Thanks to the Internet of Things (IoT), we have smart, connected devices everywhere. This creates many opportunities to collect data and get something of value out of it.
Let's look at a service like Wolfram Alpha , which uses artificial intelligence to generate knowledge from data. We experienced what it would be like to democratize the web with public data open to all.
10. Metaverse
The Metaverse is another poorly defined concept that looks like it will overlap and be related to the Web3 concept, or should.
Metaverse is our vision for the web interface of the future. It relies heavily on virtual reality (VR) and augmented reality (AR) to create a persistent and integrated user experience.
In the Metaverse, the digital things you own are integrated with the natural world, and you interact with the web in more concrete ways. It's kind of like the virtual world of Ready Player One, but hopefully a little less dystopian.
Web3 faces serious challenges
The projected third-generation network sounds exciting on paper, but practical challenges prevent it from becoming a reality, at least in its purely idealistic form. Web3 represents a level of connectivity never before seen on the internet. As complex as the modern web is, it's nothing compared to the sheer number of nodes involved in a Web3 scenario focused on the decentralized web.
However, the biggest problem with Web3 is not a technical one, but a political one. There are serious questions about privacy. What new methods of fraud and manipulation has it enabled despite public scrutiny? Can we get rid of some central government altogether? Web3 is so conceptually radical that it will be a while before we know the answers to these questions, and in some cases the risk of abandoning tried and tested systems may be too high to experiment with.