In this article, we’ll unpack all you need to know about Web 3.0, defining exactly what it is, how it differs from Web 1.0 and Web 2.0, examples of real world applications and more.
What Is Web 3.0?
Web 3.0 (or simply Web 3) can be understood as a connected stack of technologies that all work together within a unified network to provide a more personalized and immersive web experience.
This iteration of the web incorporates technologies such as decentralisation, token-based economics, blockchain and artificial intelligence to enable machines to understand and respond to human requests.
Web 1.0 Versus Web 2.0 Versus Web 3.0
Web 1.0, the “Read-Only” web, was the first iteration of the internet. It was primarily static and consisted of basic HTML pages that users could only view and not interact with.
Web 2.0, the “Read-&-Write” web, was the second iteration of the internet. It marked a significant shift towards user-generated content, interactivity and the birth of social media. It introduced the ability for users to interact with web pages, post their content and engage with others.
Web 3.0, the “Read-Write-Execute” web, is the third iteration of the internet. It promises a more seamless and integrated online experience where data is linked, shared and collaborated on across various platforms and services.
Additionally, in Web 2.0, you log in to an account that is centralized and owned by the platform. However, in Web 3.0, you connect your wallet to an account that is decentralized and owned by the user.
Networks
Network design determines outcomes. Until recently, networks came in two competing types.
The first type of network is a protocol network. Protocol networks are open systems controlled and governed by network participants. They are therefore decentralised and permissionless. In protocol networks, money and power flow outwards to those that contribute to the network. An example of a protocol network is thus email. Advantages of a protocol network include decentralisation, increased innovation and increased privacy. Disadvantages of a protocol network include decreased scalability, fragmentation and decreased user experience.
The second type of network is a corporate network. Corporate networks are closed systems which are controlled and governed by network owners. They are therefore centralised and permissioned. In corporate networks, money and power flow inwards to those that own the network. An example of a corporate network is thus Google. Advantages of a corporate network include increased scalability, consolidation and increased user experience. Disadvantages of a corporate network include centralisation, decreased innovation and decreased privacy.
Real-World Applications
Real-world application for Web 3.0 include:
- Decentralized Finance (DeFi) Platforms: These are platforms that use blockchain technology to recreate traditional financial systems in a decentralised manner. This therefore ensures it is more secure, transparent and tamper-proof.
- Decentralized Social Networks: These are platforms that use blockchain technology to create social media networks in a decentralised manner. This therefore ensures users have more control over their data and content.
- Non-Fungible Token (NFT) Marketplaces: These are marketplaces that allow users to buy, sell and trade unique digital assets and therefore build wealth through fractional ownership of assets that appreciate with time.
Summary (TL;DR)
Web 3.0 can be thought of as a connected stack of technologies that all work together within a unified network.
Web 3 leverages technologies such as decentralisation, token-based economics, blockchain and AI to provide a more personalized and immersive internet experience.
Real-world applications include decentralised finance platforms, decentralised social networks and finally non-fungible token marketplaces.
