WEB 3.0
Blockchain Technology, Cryptocurrency and Decentralization
August 31, 2022 | 5 min read
WEB 3.0
The concept of Web3 is a new iteration of the Web that combines concepts such as blockchain technology and decentralization. Journalists and technologists have criticized Web 2.0, which they say is a centralized system that houses data and content in a small group of companies. Gavin Wood, the co-founder of Ethereum, coined the term Web3 in 2014 to describe a new type of internet that is focused on bringing transparency and efficiency to the world. It gained interest in 2021 from various investors and cryptocurrency enthusiasts.
Some believe that Web3 will provide users with more privacy and security, as well as help combat the influence of large tech companies. Others, however, are concerned about its potential to create a decentralized web that could lead to the centralization of wealth and harmful content. Some, such as Jack Dorsey and Elon Musk, claim that the term Web3 is a marketing term that only serves to hype.
Web 3 Background
The terms Web 2.0 and Web 1.0 refer to the different technological changes that occurred during the course of the World Wide Web's evolution. During the 1990s, most sites were static pages, and the majority of users were consumers. Web 2.0 is based on the idea of the web as a platform, which refers to the creation of user-generated content through various social networking sites and blogs. It is believed that Web 2.0 started around 2004 and continues to this day.
Terminology
Although the term Web3 is commonly used to refer to a new type of internet, it is different from the concept of a semantic web. In 2006, Tim Berners-Lee referred to the concept of Web 3.0 as a component of the Web.
Gavin Wood referred to Web3 as a decentralized online ecosystem that is based on blockchain technology. In 2021, the concept gained widespread attention due to the growing interest from various investors and companies. In October that year, executives from venture capital firm, Andreessen Horowitz, traveled to Washington D.C. to discuss the potential of Web3. The group's executives discussed the potential of Web3 to address the various issues that policymakers have been grappling with.
Web 3 Concept
Although the concept is commonly used to refer to a new type of internet, it is different from the concept of a semantic web. Instead, it focuses on the idea of decentralization. According to Bloomberg, Web3 is an idea that could allow financial assets to be built into the inner workings of various web activities.
A policy brief released by the Bennett Institute, a public policy organization based at Cambridge, identified three key architectural enablers of Web3. These include blockchain technology, smart contracts, and cryptocurrencies.
The goal of Web3 is to provide a secure and decentralized environment that is designed to allow people to interact with each other. It is also designed to allow organizations to manage their distributed ledger technology.
Some of the key architectural enablers of Web3 are related to the idea of decentralization. One of the most popular concepts is the concept of decentralized finance, which allows people to exchange currency without the involvement of the government or bank. In this type of system, users can easily identify themselves using a self-sovereign identity.
Scholars believe that Web3 could eventually run alongside the existing web 2.0 platforms. These sites, in turn, would adopt Web3 technologies to keep their services relevant.
Decentralized
Journalists and technologists have also noted that Web3 could be a solution to the over-centralization issues that are currently affecting the web in some "Big Tech" companies. They believe that it could improve the privacy and security of the data collected and stored on the web.
Despite the various advantages of Web3, skeptics believe that it is still too early to tell if it could be used in mainstream applications. The New York Times also noted that investors are betting that Web3 could be the future of the internet.
Some of the leading web 2.0 companies, such as Reddit and Discord, have started exploring the possibility of using Web3 technologies in their platforms. In November 2021, Jason Citron, the CEO of Discord, posted a photo on Twitter suggesting that the company might be exploring the possibility of integrating cryptocurrencies into its platform. However, two days later, the company announced that it had no plans to implement such a feature.
According to The Conversation, some legal scholars have expressed their concerns about the potential impact of decentralization on the regulation of the web. They noted that it could make it harder to prevent certain types of crimes, such as online harassment and child abuse images. However, the news website noted that the views expressed by the scholars are those of the cyber-libertarian community.
Some of the critics of Web3 believe that the concept is a part of a cryptocurrency bubble that is related to the over-regulation of cryptocurrencies. They also believe that the development of new technologies such as various cryptocurrencies and non-fungible tokens (NFTs) is harmful. Despite the various advantages of Web3, skeptics believe that it is still too early to tell if it could be used in mainstream applications.
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