An Insight into Web3 Technology

• Blockchain Council
• September 08, 2022

If you are still staying aloof from the Web3 craze, then let me tell you that you are unintentionally putting yourself behind the thousands of people already at the forefront of the modern Internet. Missing out on an opportunity that is something as huge as Web 3.0 is like giving away a gold treasure to others simply because you didn’t spare time for solving the code of the door lock protecting the treasure.

Even if you are not aware of cryptocurrencies or blockchain platforms, you must have read or heard about Web3 from your tech-savvy friends or colleagues. They must have talked for hours about how Web3 technology is the future of the Internet and how it will change the way we work, connect, and trade with each other. Unfortunately, the concept of Web3 is so diverse that it often puts new participants into a headlock situation. They often confuse it with crypto or the latest technological wonder ‘Metaverse’ or simply the Internet. Though they are not wrong in their understanding, limiting Web3 potential by associating it with a single ‘concept’ can be daunting. As Web3 is presently in its nascent stage of development, there is no particular definition for it yet.

So, let’s start exploring more about Web3 in this article so that you can understand the core concepts related to the technology.

What is Web3?

The premise of Web3 was first coined in 2014 by Gavin Wood, who is the proud co-founder of the leading cryptocurrency token, Ethereum. Gavin tried to give a resourceful solution for a problem that several crypto enthusiasts realized: the Web needed too much trust. With the Web 1.0 version, the world witnessed the first baby steps of technological innovation whereas, with Web 2.0, we moved toward a more user-friendly Internet. However, Web 2.0 vested the entire power to control data and information in the hands of a few capitalists. This increased dependence and restricted the potential of the Internet.

Gavin believed that Web 2.0 is widely controlled by the big fishes of the industrial world and people have to depend on them to act on their behalf and in their interests. Therefore, when he launched Ethereum, he emphasized the concept of Web3 technology as a robust catalyst for empowering the global tech ecosystem.

Web 3.0 seeks its foundation on the idea of a decentralized Internet where the power to control is not with a few leaders, organizations, or entities. The core infrastructure of Web3 works on blockchain technology that offers unprecedented security, transparency, and immutability to users. It is a network of multiple peer-to-peer nodes that work independently from across the globe. Technology experts believe that the decentralized web will revolutionize how the world operates. It will reshape organizations, money, the Internet, value, etc., and thus pave a liberal democratic infrastructure. One can learn blockchain concepts to understand Web 3 technology better.

At its core, Web 3.0 relies on blockchain platforms, cryptocurrencies, and Non-Fungible Tokens to restore ownership rights for people. Some reports suggest that Web1 involved read-only, Web2 was read and write, and now Web3 is about read, write, and own as well.

Salient Features of Web 3.0 Technology

As Web3 continues to be in the work-in-progress stage, it is hard to give a clear definition for it. However, some crucial features characterizing the technology are listed below, have a look:

Decentralized

One of the most enticing characteristics of Web 3.0 is decentralization. Unlike Web 2.0, the decentralized web infrastructure talks about distributing power to own and control amongst its creators and users. The technology aims to remove the centralization of power where the Internet is owned by large entities leading to monopoly in a system that is expected to be free and liberal for all.

Permissionless

Web3 facilitates permissionless linkage with technological tools and resources. It allows every person to gain access to participate in the innovative world of Web3 and unleash unprecedented opportunities. When using Web 3.0, no one gets excluded from sharing the benefits of the decentralized economy.

Crypto Use

Web3 supports crypto payments. It relies on virtual currencies for payment settlements, online money wires, and activities. The decentralized web cluster aims to reduce dependence on traditional banking and financial institutes. This, in turn, helps to make transactions fast, secure, and cost-effective.

Trustless

The core infrastructure of Web 3.0 uses incentivizing tools and transparent economic procedures. The system does not depend on third parties, which are an inevitable part of a centralized cluster. Thus, Web3 promotes a trustless interface for a decentralized ecosystem. Blockchain developers can create a trustless infrastructure for Web 3 users with the best blockchain certification course.

Secured and Reliable

As Web 3.0 is decentralized and works on blockchain technology, it offers high-end security and transparency within the whole system. Everything gets stored on the blockchain, which eliminates the risk of data theft, intrusions, and manipulations. Furthermore, the use of decentralization makes Web3 a reliable ground for development amongst users.

Why Build On Web3?

The Internet space is heavily dependent on user traffic and user data. In the Web 2.0 model, holding in users and securing their data is a critical source of competitive advantage for firms. Ironically, the existing Internet portals do not share information even in aggregate, making it difficult for customers to export their social data and other content quickly. So, even if they are not satisfied with the services of a particular platform, they do not find the courage to call it quits.

Interestingly, with Web3, this situation is likely to change as the new-age Internet strives to exploit customers for data to make money using a value-based system. Therefore, the technology caters to building open portals that directly share value with customers to create value for all the participants. Now, you must be wondering how Web3 is doing that? So, without much bragging, let’s understand the various perks Web 3.0 is willing to offer its users.

Unprecedented Ownership 

Where Web 1.0 and Web 2.0 never talked about ownership rights for people in general, Web 3.0 grounds its foundation on this notion. It helps creators, developers, and users enjoy ownership of their digital assets and content. For instance, suppose you are involved in a web2 game and purchase an in-game asset directly linked to your account. If the game developer deletes your account or you quit the game for any reason, you will lose your in-game asset and the value of your investment then and there.

However, this is not the case with Web 3.0, where everyone gets ownership rights. When you buy crypto or an NFT, you get exclusive ownership rights of the assets. Even the creator cannot take away your right. Also, if you plan to dispose of the in-game assets, you can trade them or sell them in the open market and recoup the investment.

Censorship Resistance

The dynamic of control between digital platforms and digital creators is highly disruptive and uneven. In the Web2 infrastructure, creators often have to limit their creativity based on the portals they are associated with. This crisis came to light when a popular user-created adult content website called OnlyFans decided to ban sexually explicit content on its ecosystem. The decision caused outrage amongst the one million+ content creators working on the platform. They felt that the firm is robbing them of their earning source. The developers protested, and the company took back its decision.

Though the creators won the fight, the entire situation highlighted the major fault existing within the Web2 cluster: the creators losing their goodwill and following once they leave their platform. Interestingly, this is not the case with Web 3.0, where data gets stored on the blockchain channel. When developers quit a platform, they can take their reputation with them. They can easily switch to another cluster and start working from they left earlier without experiencing any loss of value. Censorship resistance makes Web 3.0 a top-notch choice for digital content creators.

Independent Identity 

In a traditional setup, users need to create a separate account for every social platform they use. For example, they have a Twitter account, Facebook account, Instagram account, etc. Often users face the problem of censorship when accessing so many platforms. A single fault and these portals can completely throw you out of your social life. In addition, some portals require users to trust them with personal data for opening an account.

Web3 strives to resolve these issues by giving users complete control over their digital identities. This happens with the help of an Ethereum address and ENS profile. The Ethereum address facilitates a single login for all platforms and thus ensures security, censorship resistance, anonymity, transparency, and immutability.

Crypto Payments

As mentioned above, Web3 uses cryptocurrencies for payments, unlike Web2, which depended on banks and payment processing firms for the purpose. The decentralized cluster helps Web 3.0 bring the unbanked population into the pursuit of a digital crypto banking interface. In addition, it strives to leverage financial services for people living in countries with complicated dynamics, such as war-prone zones. Web3 uses cryptocurrencies like ETH to facilitate payments across the world directly in the browser without any third-party involvement.

Trusted Interface

Web 3.0 is considered the future of the Internet and technological innovation. The infrastructure layer offered by Web3 infers that the technology offers a cost-effective, trustless, and decentralized interface for optimum results. Managing virtual assets and digital content on distributed ledgers helps to define ownership on the web. For instance, if a digital creator makes a particular claim about his collection, then purchasers quickly verify his claim on the blockchain without any hassle. Furthermore, the use of smart contracts makes transactions auditable and immutable. As a result, the creators get complete freedom to launch their products in a trusted medium while the owners get full assurance about their purchase.

Conclusion

Web3 has immense potential to leverage a more valuable, immersive, and open Internet for all to grow and develop from. New firms can utilize the decentralized Web 3.0 infrastructure to develop communities centered around their brands and products, which was a hassle in the earlier web versions. The existing companies can use the technology to switch to blockchain-supported ecosystems where users gain full ownership over their assets and content. The next era of technological innovation is likely to unlock tremendous opportunities for industrial, financial, economical, and social growth and development.

If you are a tech enthusiast and plan to learn more about Web 3.0, the future of the Internet, then Blockchain Council can help you. The platform offers a dedicated blockchain course list where you can gain subjective and practical knowledge about the industry effectively.

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