What Is Web3: Meaning, History, Importance, and Use Cases
Web3, another World Wide Web major phase, is also known under the names of Web 3.0, Linked Data Web, the Enterprise Information Web, the Web of Data, or the Giant Global Graph. Simply put, it is the latest Internet generation with two core focuses: decentralization and proprietorship by a user.
In this module, we’ll help you better apprehend Web3 through its philosophy and history. We’ll analyze the use cases and benefits circling around Web 3.0. Prepare to dive in.
1990 - 2023: From the Early Web to Read-Write-Own
The original idea to create open protocols for data and record sharing was incepted by Tim Bernes-Lee back in 1990 and existed for another 14 years. The world became familiar with Web 1.0 through static web pages owned by different businesses or individuals that aimed to become public online. These Internet pages were described as read-only pages since they entailed no inter-user communication.
The year 2004 was marked by the first social media software that had already moved from the read-only pattern to a read-write one. This step made firms and individuals used to generate texts decide on additional interactions to not only attract users but also make them ac., engage, and give feedback. That was the era of Web 2.0.
Some other ten years and technology evolution gave us Ethereum alongside Web 3.0. The platform’s co-founder Gavin Wood wanted to solve an issue faced by most crypto traders of that time: confidence and trust. And the era of read-write-own began.
Web 3 vs. Web 2 vs. Web 1
Web 1: The first reliable WWW with limited data with static information but no user engagement that led to a rise of the world of user pages and commenting. However, there was no chance to place data online. Any scanning algorithms were also absent.
Web 2: The second version was developed after CSS3, JS, and HTML5 became popular, leading to a higher level of user engagement, where user-generated content became a usual business. Thanks to Web 2, there was a rise in the growth of data distribution and exchange.
Web 3: This is the third version of the Internet and the major breakthrough (mainly thanks to social media). It is characterized by a high level of user engagement, the emergence of ML, AI, blockchain, smart algorithms, and safe online spaces, including rational data creation and its further distribution across users.
Note: And though a comparison table above can be extended to dozens of extra points, an unquestionably defining Web3 attribute is decentralization. It has not only totally altered the experience of users during scanning through the web but also enhanced their network statuses.
Web 3.0 and Its Fundamentals
Web 3.0 is another name for the 3rd stage of the Internet that differs from the former two stages by creating a decentralized network and incorporating blockchain technology and cryptocurrency. It is due to decentralization and blockchain that Web 3.0 offers the Internet that is open and safe.
There are three key fundamentals setting out the design and functionality of Web 3.0. Let’s have a closer look at each of them:
Decentralization: In the decentralized network architecture, the tasks aren’t dependent on a single central server. They are scattered among several computers. Web 3.0 guarantees a decentralized online experience where no single authority can control user’s access to information, basic services, or any behavioral information that users exchange for or learn.
Ownership: Web3 data privacy focuses on ensuring that no third platform has access to user data or is allowed to share any data without user permission. Thus, users have full control and complete ownership over the data they either collect or produce.
Privacy: The levels of privacy and security are higher than those typical for centralized systems. This includes 2-factor authentication, strong passwords, updated software, zero-knowledge proof technology, multiparty computation, encrypted communication and messaging, consent management, and more.
Transparency: Web3 key principle is the strategy of trust and transparency, according to which organizations are open in their processes like operations, data handling, and decision-making.
Pros of Web 3.0
Safety, reliability, trust: Unified systems and databases are too vulnerable. With Web3, blockchain ascertains information integrity and cybersecurity, safeguards sensitive data, and eliminates risks of info manipulation.
Data ownership: The mechanics allow customers and users to enjoy their privacy options and stay confident whenever personal or financial information is shared.
Fundraising opportunities: This can be done via tokenization. ITOs and ICOs facilitate international investment and decentralized fundraising, thus reforming how companies secure their assets.
Cost decrease: Within transactions, there are no mediators since the system can streamline processes automatically. No middlemen or third party means no overhead costs for businesses and individuals.
Use Cases
With Web3, a diversity of brand-new services as well as apps is immense. Below, we’ll be focusing on the main ones.
Web 3.0 and DeFi. Decentralized finance has been making use of the chain technology and the Linked Data Web for quite a while now. The new phase of WWW allows the delivery of diverse financial assistance with no restraints typical to a traditional banking ecosystem.
Web 3.0 and NFTs. Unique tokens (drawings, music, etc., downloaded and turned into an AI) are stored in a chain with the assistance of Web3 and possess a cryptographic hash— a special function adequate for being used in the cryptocurrency world.
Web 3.0 and chain-cross bridges. With the Enterprise Information Web, it is easy to develop systems enabling the drift of funds and data throughout chain networks.
Web 3.0 and DApps. These apps are designed on the blockchain’s top, are logged in a ledger, and stimulate services via smart contracts.
Web 3.0 and DAOs. These systems of hard-coded rules are referred to as controlling bodies when it comes to Web3 since they combine decentralized administration and bits of structure.
Closing Thoughts
Web 3.0 was designed to leave the centralized power in the past and enter the world of true decentralization and asset ownership. After the Web3 introduction, all data- or assets-related transfers are validated and safeguarded. The latter characteristic is possible thanks to irreversible cryptography, thus allowing users to store assets safely and preserve their ownership. The possibilities of the 3.0 version are vast. Those who start embracing them sooner than others have higher chances to secure larger market shares.