What exactly is Web3 and how can it transform the internet?

• Web3 is envisioned to be a “decentralized web ecosystem,” in which users can retain ownership of their data.
• Its blockchain-based infrastructure would usher in the era of the “token economy”, say experts.
• Web3 and Web 3.0 – in which a collection of websites would be linked together at the data level – are often mixed up, explains The Conversation.

The rapid growth of cryptocurrencies and virtual non-fungible tokens have dominated news headlines in recent years. But not many may see how these modish applications connect together in a wider idea being touted by some as the next iteration of the internet — Web3.

There are many misconceptions surrounding the conflation of Web3 with Web 3.0. Here’s what you need to know about these terms.

What is Web3?

Since Web3 is still a recent trend, there isn’t a consensus among experts on what it means. Web3 is intended to be a “decentralized web ecosystem” that will enable users to evade internet gatekeepers and maintain control over their data.

With blockchain, Web3 would operate off of public ledgers where data is stored on networked computer systems rather than depending on solitary servers and centralized databases.

The way the internet functions will be profoundly altered by a decentralized Web3 because financial institutions and IT firms would no longer be required to act as middlemen for our online experience

According to a business reporter:

“In a Web3 world, users control their own data and use a single personalized account to move between social media, email, and shopping, producing a public record of all of that activity on the blockchain.”

By ushering in the “token economy,” Web3’s blockchain-based architecture would open up enticing possibilities. The token economy would give users tokens in exchange for their online interactions, allowing users to make money off of their data. Users may receive perks or benefits from these tokens, like as ownership stakes in content platforms or voting privileges in online communities.

It is helpful to take a step back and consider how the internet evolved to become what it is today in order to comprehend Web3.

The “read-only” web in Web 1.0

Berners-Lee, a computer scientist, was looking on more effective ways for researchers at other institutions to exchange information. He created the first website in history that allowed users to link static content on websites in 1991.

Unlike Web3, Web 3.0 is based on the original idea of the internet as a network of websites connecting everything at the data level.

Webmasters were in charge of maintaining the information and updating users on these simple “read-only” websites. There were 3,000 websites online by 1994, from 10 in 1992.

Two million websites existed when Google first launched in 1996. There were nearly 1.2 billion websites last year, but only 17% of them are thought to be active now.

Web 2.0: A social network

The next significant change for the internet was its transition from a “read-only web” to what it is today: a “read-write web.” Websites become more interactive and dynamic. Via hosted sites like Wikipedia, Blogger, Flickr, and Tumblr, people became widespread contributors to the creation of content.

Tim O’Reilly, a technology publisher, coined the term “Web 2.0” in 2004 and it quickly gained popularity.

Later on, unprecedented connectivity was made possible through several platforms thanks to social media sites like Facebook, YouTube, Twitter, and Instagram as well as the expansion of mobile apps. Due to strict user restrictions and the lack of information sharing between competing services, these platforms are referred to as “walled gardens” by their parent businesses.

Amazon, Google, and other tech like Apple are deeply embedded into every facet of our lives, from how we store and pay for our content to the personal data we offer (sometimes without our knowledge) to use their wares.

Web3

The internet is entering a new phase where many want to regain control from dominant entities. The terms Web3 and Web 3.0 are sometimes used interchangeably, but they have different meanings. Web3 refers to a decentralized internet built on blockchain, while Web 3.0 goes back to the original vision of a collection of linked websites at the data level. In a Web 3.0 world, computers would understand human requests better, allowing for more efficient content discovery, data sharing, and analysis. Berners-Lee envisions a Web 3.0 world where information is stored in Solid Pods owned by individual users, enabling quick data changes across social media platforms. The next era of the internet will likely combine elements from both movements, but there are logistical and legal challenges to address. Web3’s critics argue that it will not democratize the internet, but the future of the internet is uncertain.