If you're a regular user of the internet, you'll be familiar with lingos such as Crypto, NFT, Blockchain and so on. Thanks to the drastic evolution of technology which has birthed a vast depth in tech advancement. We can say it’s limitless. From Decentralized financing to web3 to blockchain to cryptocurrencies, tech evolution has proven that its advancement will only be more solution-driven than ever before. As a newbie, I took out time to find out what some of these new tech advancements are and I'll be starting with web3.
So, what is web3?
Web3 is a decentralized web which represents the next level in the evolution of the internet. For us to understand Web3, we must trace the history through the lens of the previous levels of web development. That is; Web1 and Web2.
Web1: The Static Web
The era of Web1 spanned the ‘90s and early 2000s. Let’s call it the first level (or Phase) of the internet. This phase was mainly a read-only-based internet experience. As a user, you could only access information on static web pages with very little or zero interaction with the content. Let’s say we have an online library where we can access different contents for reading purposes only. However, we can neither interact nor collaborate within the web.
Web2: The Interactive Web
The emergence of Web2 began in the mid-2000s. Its major features were user-interactivity and user-generated content. This gave rise to social networks like YouTube, Twitter and Facebook where users could not only post content on the internet, but other users could equally interact with the content shared through likes shares and comments. This phase however, places users’ data in the hands of large corporations which collects, analyze and eventually monetize these data. Hence, Web2 was a centralized control system which gave users more access but had little control over ownership of their own digital footprints.
Web3: The Decentralized Web
This phase seeks to correct the limitations of Web2 by making it more liberal and decentralized giving total control and ownership to users. Web3 is built on a technology known as “Blockchain”, which allows data to be stored across a network of computers rather than being concentrated in a central server. With this move, users are assured of more transparency, adequate security, and a fierce resistance to censorship.
Some of the key principles of Web3 are:
• Users are given control instead centralized control entities. This is the goal of Decentralization.
• Data and digital assets ownership are exclusive to users through blockchain accounts and cryptographic keys.
• Transactions and interactions occur without relying on intermediaries, thanks to smart contracts and blockchain validation.
Some of the effects of Web3 are already in play. Some of them are:
• Cryptocurrencies such as Bitcoin and Etherhaeum embody Web3's decentralized ethos by enabling p2p (peer-to-peer) financial transactions without banks.
• Decentralized Applications (dApps): Applications such as Uniswap (a decentralized exchange) and OpenSea (an NFT marketplace) showcase how services can operate without centralized oversight.
• Decentralized Finance (DeFi): Platforms such as Aave and Compound let users lend, borrow, and earn interest on digital assets without traditional financial institutions.
• Users can choose to trade in unique digital assets known as Non-Fungible Tokens (NFTs) which can be a physical or virtual item.
You may be wondering “So, why Web3 is important?”
Well, Web3 isn’t just about technology. Rather, it's about taking control back, especially putting into the hands of users. Dominant concerns in Web2 which include data breaches, censorship, and monopolistic practices had often reoccurrences. However, Web3 enables individuals to safeguard their digital identities and engage in p2p (peer-to-peer) systems which limits reliance on intermediaries.
With all its prospects and promises, Web3 isn’t immune to challenges. Some of which are;
- The problem of Scalability is abounding with Blockchain networks like Ethereum which struggle with high transaction costs and slow processing speeds during periods of high demand.
- Due to the technical complexities of the blockchain technology users that lack the technical know-how of this technology can be alienated from its usage.
- Environmental Concerns are raised in areas such as PoW (Proof-of-Work) blockchains which make use of significant energy. However, mechanisms like Proof-of-Stake (PoS) systems looks to solve this.
The future of Web3 is very bright. Though, still in its infancy, its potential to liberalize the internet is profound. As blockchain technology grows into maturation, Web3 will redefine how we interact online, bringing the promise of a fairer, more inclusive digital ecosystem.
So, Are you enthusiastic about the future of Web3?
Do you think non-tech users will find it adaptable?