21 Dec Web 3.0: The Internet of Money, Explained
There’s no doubt that the invention of the internet has led to one of the most significant technological revolutions that had the entire world connected in umpteen ways like never before. From blockchain to AI, humankind is set to transition into the next phase of the digital revolution via Web 3.0 – the next iteration of the web.
Let’s explore how web3 is going to be the internet of money for us.
History of the World Wide Web
The world has witnessed two major iterations of the web to date – Web 1.0 and Web 2.0. Web 1.0, the first iteration, was made up of standardized ‘read-only’ webpages built by fewer participants. This was an important breakthrough as it enabled anybody across nations to put out content. However, there were no search engines, and user interaction was limited to browsing web pages.
Web 2.0 became operational by the early 2000s. It enabled relatively higher user interactions. Users could build unique identities online, stemming from creating accounts across applications, and interact with each other. This period was deemed as the era of the rise of social media platforms and search engines. Initially, those began with Yahoo, MySpace, and Orkut, but websites like Google, Facebook, YouTube, Twitter, and Amazon soon took the Web by storm. Web 2.0 holds the attention frame of the users who spend hours online.
The inklings of Web3 are being witnessed with the rise in Defi, dApps, and other such platforms that have users as their locus.
According to Forbes Technological Council Member Charles Silver, Web 2’s business model comprises “centralization and exploitation of data and the use of it without users’ meaningful consent.” Platforms like Google, Amazon, Facebook, and Twitter have amassed uncensored power over time over user data via their centralized apps dominating the internet infrastructure. Users have no control over how in what capacity and for what intent their personal data and habits are being used.
However, Web 3.0 is about to take that power back from these centralized corporations.
Web3 is the third generation of web technology, where services will run on the blockchain. It is intended to be a decentralized version of the online world, where data is distributed across networks, and no single entity can claim ownership over the information.
It aims to eliminate intermediaries and allow secure peer-to-peer (P2P) transactions worldwide. With features like semantic web, AI, and 3D graphics that will be advantageous for the creator economy, the users will be able to transact across the web securely without the need for a middleman such as banks, payment gateways, etc. Web3 will also enable the free sharing of information.
Web3 will open up the web for new concepts like new search engines or social media platforms where the control over the content will not be restricted to a few entities. Instead, it would be a sovereign right of every user.
Features of Web 3.0
To better understand this next iteration of the web, it is necessary to understand what does it constitute:
AI and Machine-Learning: Since Web3 machines are capable of reading and deciphering the meaning put forth by a set of data, they can prove to be intelligent machines capable of automatically fulfilling users’ requirements.Semantic Web: Web3 will harness the power of the semantic web, which enables computers to search and analyze data from the web, including transactions, content, and links between persons, to give them a personalized web browsing experience. Virtual Reality/Augmented Reality: Technology, including AR/VR, are revolutionizing graphics technology by bringing 3D virtual worlds into the clear focus of the individuals online. Unlike their 2D counterparts, 3D graphics add a new level of immersion in gaming applications and other sectors like health, e-commerce, and real estate. Web3 will help transcend the 3D virtual world into our offline lives. Ubiquity and Connectivity: Web3 uses cryptography to make content accessible via multiple applications. Each device is connected to the internet, whose services may be utilized anywhere at any time.
The Decentralized Web: Web 3.0, Blockchain, Crypto
Web3 primarily aims to make content, resources, applications, and agreements accessible for all via a decentralized interface promoting tech inclusivity. Blockchain and its subjacent tech like cryptocurrencies, NFTs, DeFi, dApps, DAOs, etc., will power this next iteration of the web.
With blockchain laying the foundation for a more democratic web form, decentralized applications, platforms, and smart contracts will optimize web3 operations. This is where cryptocurrencies would come into play as they would be fuelling the economy of the dApps and DeFi platforms. Cryptos possessing technology best suited to work with Web 3.0 would naturally be everyone’s choice. With blockchain-based tech heavily involved, the crypto ecosystem could evolve into a more impactful sphere in a few years.
There are, however, a few coins that would be a part of the web3 internet protocol stack similar to that of the web2 protocol. Besides Bitcoin, among the altcoins, Ethereum is likely to become one of the leading Web3 blockchains being the foundation for a majority of the decentralized apps. Amongst blockchain technologies, some blockchains will be more relevant to Web 3.0 and will form a hierarchy of protocols consisting of blockchains, including The Graph, Helium, LivePeer, Filecoin, and many more.
Most entities are attempting to create working frameworks or applications for the new internet centring on the blockchain, whose distributed ledger technology effectively resolves a number of the issues implicit in Web 2.0 and can be utilized to enhance and connect other technologies.
Chiefly, blockchain as well as the ancillary forces- cryptos, Defi, NFTs – are essential to the constitution of Web 3.0.
Web3 and Internet of Money
The World Wide web allowed people to connect and interact in previously unthinkable ways, and blockchain intends to accentuate this role beyond the conventional boundaries of devices and borders. Web 3.0 is believed to generate much more wealth than the previous two iterations of the web combined. It is a means of moving money from traditional finance to digital finance- like DeFi.
How the entire phone network became an application on the internet, the entire internet will become an application on the blockchain.
Web3 holds numerous possibilities of massive scale that could transform the internet into a ubiquitous entity ever-present in our lives. The finance sector is undergoing the maximum transformations followed by logistics, healthcare, record-keeping, to name a few. NFTs will be a huge phenomenon. Tokenization as a process is already hugely impacting ownership rights in real estate, art, gaming and sports collectables.
Metaverse is a buzzword these days in tech circles. Powered by web3 technologies, users will be able to live extended digital lives via their avatars. The concept is already being used in several games such as Minecraft, Sandbox, Axie Infinity, etc.
Gamification of work is another aspect that tokenization will bring in transforming the job market, crowdfunding, and governance of any platform. The new internet will have a more personalized experience, a more intelligent assistant, and a decentralized interface, all coming together to provide a more equitable web experience.
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