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Information Technology (IT)What is Web 3.0? A Beginner's Guide

What is Web 3.0? A Beginner’s Guide

Web 3.0 Introduction

Web 3.0 also known as web3 is an idea for a new version of the world wide web that contains notions like decentralization, token-based economics, and blockchain technologies. The term Web 3.0 was founded by Ethereum, the co-founder of Gavin Wood, and the idea acquired attraction from large tech companies, cryptocurrency enthusiasts, and venture capital firms.

Related: Web3 Examples

There isn’t a single, recognized definition of Web 3.0 since it is continually changing and being defined. However, it is certain that Web 3.0 will heavily emphasize decentralized apps and utilize blockchain-based technology. Web 3.0 will use AI (Artificial Intelligence) and Machine Learning to help better optimize intelligent applications.

Related: How to Invest in Web 3.0?

Web 3.0 Concept

According to Bloomberg, specific versions of web 3.0 differ as Bloomberg calls it “hazy”. Nonetheless, they center on the notion of decentralization and frequently make use of blockchain technology, including different cryptocurrencies and non-fungible tokens (NFT).

Web3 is a concept that “would incorporate financial assets, in the form of tokens, into the inner workings of nearly anything you do online,” according to Bloomberg.

Related: Web3 vs Web2

How Web 3.0 Works?

The Hypertext Markup Language (HTML) standard governs the design and delivery of webpages with Web 1.0 and Web 2.0 technologies. With Web 3.0, HTML will still be a foundational layer, but how it links to data sources and where those data sources are located may change from past web generations.

Related: Web3 Definition – Complete Guide

In the Web 2.0 age, the majority of websites and almost all apps rely on some type of centralized database to provide data and support functionality. With Web 3.0, services and apps employ a decentralized blockchain in place of a centralized database. The fundamental notion behind blockchain is that there is a type of distributed consensus rather than an arbitrary central authority.

More so than with fiat money, Web 3.0 also functions profoundly with cryptocurrencies. The use of cryptocurrencies, which all are constructed and enabled on top of blockchain technology, enables finance and the use of a decentralized form of payment throughout Web 3.0.

Web 3.0 Benefits

The design of Web 3.0 may take into account ubiquitous characteristics, semantic web, and AI. The idea for using AI comes from the need to give end consumers faster, more accurate data. An AI-powered website should be able to sort through the data and present the information it believes a particular user would find useful. Since the results include websites that people have voted on, social bookmarking as a search engine can produce better results than Google. These outcomes, however, are equally subject to human manipulation. AI might be used to distinguish between authentic and fake results, providing outcomes akin to social media and social bookmarking but without negative feedback.

The following are a few crucial aspects of Web 3.0 that help define what the third generation of the web is expected to be all about:

  • Decentralized. Web 3.0 will be decentralized in contrast to the past two generations of the web, which had heavily centralized governance and applications. A distributed method without a centralized authority will enable applications and services.
  • Blockchain-based. The development of decentralized apps and services is made possible by blockchain. In contrast to centralized database architecture, blockchain uses a distributed way to disseminate data and connections across services. In a decentralized environment, blockchain can also offer an immutable log of transactions and activities, assisting in the provision of verified authenticity.
  • Cryptocurrency-enabled. The use of cryptocurrencies, which primarily replaces the use of fiat money, is a crucial component of Web 3.0 services.
  • Autonomous and clever artificially. A key aspect of Web 3.0 is more automation overall, which AI will control it.

Web 3.0 Applications

Although Web3 technology is still in its infancy, it already has a variety of unique application cases. The current top 5 are as follows:

Metaverse

In 2022, the idea of the metaverse dominated news stories about technology. Facebook even changed its name to Meta and invested billions in research and development to claim this new virtual space before anybody else. Zuck, don’t move too quickly. Investors and customers are not very excited about Facebook’s aspirations for the metaverse, as seen by Meta’s Q3 2022 results and plummeting stock price.

The metaverse is essentially a virtual environment that may be like a 3D version of the Internet and a digital representation of the real world. Users may navigate via PCs, smartphones, or VR/AR headsets, offering a completely immersive experience that will gradually straddle the lines between reality and virtual reality.

Building all of this will be extremely expensive, which is why well-funded huge tech companies like Facebook and Google have made significant early investments in order to dominate the industry eventually.

The metaverse idea put forward by Web3 is radically different; it is totally open to everyone, decentralized, interoperable, and open-source, and it will appropriately compensate creators and security contributors.

Once more, this is where Web2.5 will probably play a role since both businesses will likely borrow ideas from one another and collaborate to make the metaverse a reality.

Blockchain Gaming

The play-to-earn craze, which promised gamers the chance to make money from playing games, began with the launch of Axie Infinity in 2021. Soon, tens of thousands of other imitative blockchain-powered games appeared, giving players substantial incentives in the form of native tokens that first surged in value before continuing to decline.

Even if the bear market has crushed the high-risk segment of bitcoin gaming, the game is far from over. While Web2 gaming behemoths like Epic Games are publishing Web3 games, a number of high-quality crypto games are still in development. When developers find out how to make blockchain gaming enjoyable and engaging for gamers, expect a significant revival.

Creator Economy

One of the main complaints about Web 2.0 behemoths like Facebook, YouTube, and Spotify is that they don’t fairly compensate artists and creators for the audience that their platforms attract.

With Web3, creative communities of authors, musicians, designers, and developers will finally be able to communicate with their fans and supporters without the need for middlemen.

Decentralized Autonomous Organizations (DAOs)

There has been much discussion on the potential of decentralized autonomous organizations (DAOs) to establish a fully democratic and self-governing organization that will be immune to outside interference and geographical constraints.

Decentralized Finance (Defi)

Midway through 2020, the value of decentralized finance (Defi) skyrocketed, giving cryptocurrency users the freedom to freely invest, borrow, lend, trade, and stake crypto assets.
In order to motivate its consumers, prominent Web3 protocols will surely leverage Defi goods and services.

Web 3.0 – Crypto Currency – Blockchain

We may anticipate a significant convergence between these three technologies and other relevant disciplines since Web3 networks will function using decentralized protocols, the building blocks of blockchain and cryptocurrency technology. Smart contracts will automate them, and they will be interoperable, easily integrated, and utilized to power anything from microtransactions to censorship-resistant P2P data file storage and sharing with applications to fundamentally altering how every organization conducts and operates its business. The existing array of Defi protocols is only the beginning.

Why is Web 3.0 Important?

There will soon be no geographical boundaries, the world will be entirely virtual. This is the main idea behind Web 3.0.

Web 1.0’s primary objective, as they said primarily, was to launch personal computers and the Internet. Social media and social networking websites dominated Web 2.0.

The Internet will eventually grow to the size of an entire universe when it reaches Web 3.0. Blockchain technology and decentralized apps are the hallmarks of the Web 3.0 era. The emergence of blockchain-based systems that can decentralize virtually every aspect of our lives will occur at this time.

Deloitte claims that Web 3.0 blurs the line between digital content and physical products by integrating digital information. Therefore, Web 3.0 will have an influence on organizations by making them more open and user-focused. There will be a dramatic overhaul to everything that went wrong with the corporate governance of user data.

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