What if I told you that there is a new way of building and using the internet that is more secure, transparent, and fair than the current one? That instead of relying on centralized servers and platforms, you can connect directly with other users and access services that are powered by blockchain, cryptocurrency, and smart contracts? This is what web3 is all about.
IntroductionThe Internet, a global network of connected computer systems, first appeared in 1969 and has experienced many changes in technology and infrastructure since then. The Internet was originally created to exchange information, but it has become an essential part of modern life.
Tim Berners-Lee’s creation of the World Wide Web was a key factor in turning the Internet into a platform for accessing and sharing a huge amount of information, such as web pages, digital images, videos, and audio. Then the boom of social media brought a new way of using the web: users could interact with each other and play a more active role by creating content on these new platforms.
All this new inventions have caused the Internet populaton to surge: as reported by Hootsuite, in October 2022, 5.48 billion people were using the Internet, making up 68.6% of the world’s population. This number continues to grow by around 4% each year. While the Internet provides convenience, it also takes away our privacy and control over our personal data, in fact a handful of Internet companies have gained a monopoly on the market, dictating how we access information.
The entire evolution of the Internet has created the need for a decentralized solution that gives users more power and control over the Internet: Web3. To better understand what Web3 is, we should first take a look at the evolution of the Internet: from Web1 to Web2, and finally to Web3.
Web 1.0: Read-Only (1990–2004)Read-only modelTim Berners-Lee, affiliated with the European Organization for Nuclear Research (CERN), pioneered the World Wide Web in 1989, now identified as Web1.0. This system comprises interconnected hypertexts accessible via the Internet. Commonly referred to as the “Read-Only Web,” it was characterized by limited interactivity and functionality. Websites of this era primarily offered static content and just provided informations to the users, lacking interactive features or design elements. Interaction was restricted to hyperlinking and text-based email communication, with no possibility of uploading images or attachments.
The World Wide Web became publicly available in 1991, and since then, it has become an indispensable tool for searching for information. Web 1.0 predominantly facilitated one-way transmission of information by professionals or companies through static web pages. During this period, Internet users mainly browsed web pages for information, with minimal engagement in commentary or content creation.Web 1.0 spanned approximately from 1990 to 2004, serving primarily as a content delivery network (CDN), where users consumed materials passively without offering feedback in the form of comments or reviews.
Representative entities of this period include Netscape and Yahoo.
Web 2.0: Read-Write (2004 — now)Read-write modelThe first Web 2.0 conference, initiated by Tim O’Reilly, was held in 2004. In conjunction with the rise of social media platforms, it marked the beginning of Web 2.0. Referred to as the second generation of the World Wide Web, Web 2.0 has evolved to dominate the digital landscape. This phase of the Web is characterized by increased user interaction, fostering the creation of user-generated content and enhancing interactivity and usability for end-users.
The advent of Web 2.0 has spurred the proliferation of various social media platforms, including Facebook, Twitter, and YouTube, enabling users to publish content and receive feedback from their peers. The widespread adoption of mobile devices such as iPhones and Android smartphones has further catalyzed the popularity of Web 2.0, facilitated by apps like WhatsApp, Instagram, Uber, and Paytm.
The surge in user numbers and the proliferation of user-generated content have catalyzed a paradigm shift in the Web’s function, transitioning from a mere conduit for communication and information retrieval to a dynamic platform for software applications and e-commerce. Consequently, Web 2.0 has earned the moniker “web as a platform.”
It is the Internet we are experiencing today where users started to move to centralized service platforms that could provide free services. In the era of Web 2.0, companies can own and share user-generated content and they empower users to interact with each other by posting, liking, commenting and other actions. Users have become both creators and consumers of content and instead of being read-only, the web has evolved to be read-write.Web 3.0: Read-Write-OwnRead-write-own modelIn 2008 first appeard the concept of blockchain in a whitepaper published by Satoshi Nakamoto. This groundbreaking proposal outlined a system where value could be transmitted directly between peers, circumventing the need for uncontrollable trusted third parties. Prior to Bitcoin’s emergence, such a concept remained unrealized due to the absence of a central authority to supervise transactions effectively, leaving no feasible means to counteract malicious actions such as unauthorized spending, insufficient balance, and double-spending. Bitcoin, alongside blockchain technology, paved the way for the inception of Ethereum, which introduced smart contracts, further revolutionizing decentralized transactions and digital agreements.
The concept of ‘Web 3’ was introduced by Ethereum co-founder Gavin Wood shortly after Ethereum’s launch in 2014. Gavin articulated a solution to a concern shared by many early cryptocurrency adopters: the Web demanded excessive trust. Essentially, the majority of today’s familiar and utilized web infrastructure depends on placing trust in a select few private companies to prioritize the public’s interests. His proposal endorsed the utilization of blockchain technology to record public information, protect personal privacy and eliminate the need for trusted third parties with smart contracts. This pioneering concept marks the initial integration of blockchain with the Internet, constituting the recognized definition of Web 3 within the cryptocurrency industry.
Web3 endeavors to transfer control of personal data from Web 2.0 corporations to users via decentralized storage, blockchain technology, cryptocurrencies, NFTs, and community-based self-sovreign identity. The user will have the ultimate authority on who has access to their data. It is the beginning of the read-write-own modelThe realization of Web3’s vision, aimed at empowering users with data ownership, has been facilitated by the adoption of cryptocurrency wallets like MetaMask. These wallets serve as secure repositories for keys and digital identities. Users exercise full control over data access by logging into various blockchain applications through their crypto wallet, distinguishing Web3 from the centralized control model of Web 2.0 giants. This approach to accessing and managing data is comparable to using a Facebook account, but with a crucial distinction: users retain absolute ownership and control over their information.
Characteristics of Web3 TechnologyDuring the Web 2.0 era, users have renounced numerous rights in favor of convenience. Companies employ algorithms to exploit personal data, generating profits via targeted advertising and content, and users are left without a share in the profits and a loss of privacy. Content creators face similar risks, with the potential for their works to be deleted or blocked, impeding their ability to profit. Additionally, the centralization of servers renders them susceptible to attacks. Let’s explore the following the benefits of adopting Web3.
DecentralizationTokenization involves representing real assets, rights, or utilities as digital tokens on a blockchain. Tokens can represent ownership, access rights, voting power, loyalty points, or any other form of value. Tokenization enables fractional ownership, liquidity, programmability, and interoperability of assets in digital form.
Real-world assets such as real estate, art, commodities, stocks, watches, jewelry, cars, boats, or securities can be tokenized and represented as digital tokens on a blockchain.
Tracking of information.Can we be sure that the Mona Lisa is the original and not a copy? In reality, it’s not possible to know for sure.
However, today an artist can associate an NFT with their artwork, and the moment it is uploaded to the blockchain, we have certainty about its creator.
Furthermore, since the blockchain is a transparent and immutable ledger, we can be sure that we have purchased the original artwork because we will be able to trace the history of the artwork’s movements from the moment it was created.
Risks and limitations of Web3I trust that this article has provided clarity on the concept of Web3, which emphasizes the necessity for a paradigm shift towards a more decentralized and user-centric internet making it more secure, transparent and fair. Despite the challenges that lie ahead, the potential for innovation and empowerment within the Web3 ecosystem is substantial. Ongoing endeavors to tackle issues related to scalability, usability, high costs and improve user experience will be pivotal in unlocking the full capabilities of Web3 and shaping the future of the internet.
ResourcesWhat is Web3 and Why Should You Care was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.