What is Web3 and how will it change the Internet?

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If you feel like you are just beginning to understand the concept of cryptocurrency, get ready to expand your program. A whole new internet is coming your way, and it’s based on blockchain technology, just like Bitcoin and Ethereum.

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If you read about web3, also known as web 3.0, you’ll notice people using words and phrases like “decentralization”, “digital self-sovereignty” and “user-specific” to describe it – but what is does all this mean?

The third iteration of the internet is slowly but surely becoming a reality, so GOBankingRates asked the experts to make sense of web3 – and predict what the future holds.

Own a small slice of the internet, instead of renting it to Big Tech

Today, a small group of giant tech companies own virtually every inch of the internet and let the public use it in exchange for their money, their data, or both. The architects of Web3 envision an internet where Mark Zuckerberg rules over his own little piece of the web – and only his little piece – just like you.

Discover: How to invest in Web 3.0

“The ownership element is the key difference between Web 2.0, the current iteration of the Internet, and Web3,” said Shaun Heng, vice president and chief of staff of CoinMarketCap. “Today, we are limited to reading and writing within centralized networks, i.e. Google, Facebook, Twitter, etc. These companies own their share of the Internet and we use their websites to read and write on the Internet.

He continued, “With web3, we will be able to build and manage our own decentralized networks on the Internet. This allows for the possibility of autonomous, self-governing networks that will be completely democratized, without leaders. In fact, we are already seeing the first iteration of such networks in DAOs, or Decentralized Autonomous Organizations. »

Blockchain Tech Who Built Bitcoin, Repurposed

The concept of web3 will be familiar to anyone who understands the ABCs of cryptocurrency. “It’s based on the idea of ​​a completely decentralized system of interconnected networks that allows us to read, write and own parts of those networks,” Heng said.

Most people associate these concepts with digital tokens, but the power of blockchain goes beyond Bitcoin.

“Most references place blockchain squarely in currency or finance, but the applicability is much broader,” said Adam Perella, head of global security and privacy assessor. Schellman. “When the World Wide Web first appeared, most websites were run by individuals or groups hosting their own systems and data. This format will eventually become known as Web 1.0. As community services, social networks and hosting services – Google Cloud, Azure, AWS – become the main backdrop of the Internet, we have moved to Web 2.0.

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Perella added, “It conceptually shifted the web from a series of discrete endpoints to a large amount of aggregated data held by fewer organizations. The idea behind Web 3.0 is the evolution of the web where the biggest contributors are individual users on mobile phones or other IoT devices.

Patrick Parker, Founder and CEO of SaaS partnerssummed it up with an interesting analogy that will be familiar to anyone working on Drive.

“Think of the evolution of the World Wide Web like permissions on a Google document,” Parker said. “Web 1.0 was read-only — users can see information and content that providers publish. Web 2.0 is a read-write, interoperable and social space that takes user input into account. Web3 will allow users to go beyond “writing” – beyond the kinds of interactions our platforms are programmed for. In fact, users can create their own platforms, profit from them and recover their data. »

How your online experience will change

Several experts interviewed by GOBankingRates envision a web3 where AI and machine learning blur the lines between the online and physical worlds. At first, however, the most visible change will be the removal of powerful intermediaries from the Internet.

“With Web 3.0, websites will be able to interact directly with each other, without the need for intermediaries like Google or Facebook,” said Sam Campbell, who runs the digital marketing blog. Reddiquette. “It will create a more decentralized internet where users will have more control over their data and can interact directly with each other.”

So how do you have social media without social media?

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“It might be easier to think about what it would look like in practice using a new Web 3.0-based social network,” Perella said. “A user takes photos and wants to share them with friends, followers and the public. This data is shared, added to the blockchain and distributed. Even the application used is not centralized, it is written and distributed between the nodes in the same way.

That’s a far cry from today’s social media, 100% of which takes place on space leased from big tech.

“Right now, when we use Instagram or Facebook, our personal data doesn’t technically belong to us and is actually housed in a data center somewhere in Arizona,” said Stefan Ateljevic, cryptopreneur and founder of BitcoinPlay. “The characters, items, and earnings of the video games we play online and offline are wholly owned by Electronic Arts, Ubisoft, or the company that owns the game.”

He explained, “In Web 3.0, metaverses will replace traditional games in that every coin or item you collect, or time spent in game, is measurable in real money through the use of crypto. -change. The same will happen to social media, where you will now have full ownership of your content, including photos and posts.

Read: Understanding the metaverse and its connection to cryptocurrency

Gateway to the global economy

In terms of global human connectivity, web3 has the potential to bring distant populations together with the promise of something far more appealing than likes or shares – entry into the global economy.

“As the world moves towards a seamless, borderless internet and economy, this fosters greater participation by those who have traditionally been excluded from global commerce,” said Filip Victor, CEO and Founder of the trust and confidence company. digital identity. MetaMap. “However, there are 1 billion people without some form of digital identification — like FICO credit scores or social security numbers — and another 3.4 billion who have some form of identification but struggle to share it digitally Half of the world’s population is excluded from the digital economy.

Victor continued, “It leaves billions of people out of countless apps and services — think gig work, short and long term rentals, crypto exchanges — because these companies can’t verify the individual. . Participation in highly trusted services like crypto has the potential to add billions of dollars to regional economic growth, bringing us one step closer to the true potential of Web 3.0.

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About the Author

Andrew Lisa has been writing professionally since 2001. An award-winning writer, Andrew was previously one of the youngest nationally distributed columnists for the nation’s largest newspaper syndicate, the Gannett News Service. He worked as a business editor for amNewYork, the most widely distributed newspaper in Manhattan, and worked as an editor for TheStreet.com, a financial publication at the heart of New York’s Wall Street investment community. .

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