Contact us anytime to know more — Abhishek P., Founder & CFO CISIN
Web 3.0 does not require "permission," meaning central authorities do not get to decide which users can access certain services.
It also doesn't need "trust," meaning an intermediary isn't required for virtual transactions between two or more people. Web 3.0 protects users' privacy more effectively because these agencies and intermediaries do most of the data gathering.
Decentralized Finance, also known as DeFi, is an important component of Web 3.0. Decentralized Finance involves executing real-world transactions on the Blockchain without the assistance of banks or governments.
Many major corporations and venture-capital firms are investing money in Web 3.0. It's hard to imagine that this will not result in a centralized form of power.
This post will explain how the web evolved, why people are talking about Web 3.0 and what it is, as well as what Web 3.0 means in terms of cryptography, where Web 3.0's next steps are, and why all this is important.
Evolution of the Web
The World Wide Web, or WWW, is the main tool that billions of users use to read and write content and communicate over the Internet.
Over the years, the web has evolved dramatically. Its current applications are almost unrecognizable compared to its early days. Web 1.0, Web 2. 0 and Web 3.0 are often used to describe the web's evolution.
What is Web 1.0?
Web 1.0 is the earliest version of the Internet. Web 1.0 is the read-only or Syntactic Web. The majority of participants were content consumers.
Web developers were the main makers who created websites that primarily delivered the material in text or graphics format. Web 1.0 was around from 1991 to 2004.
Instead of dynamic hypertext markup language (HTML), Web 1.0 websites supplied static material. The data and content were provided from a file system, not a database.
There was also little interaction between the pages.
What is Web 2.0?
The majority of us only know the Web 2.0 version. It is also called the interactive read-write web and the social web.
In the Web 2.0 world, you don't need to be a programmer to take part in the creation process. Apps are often designed so that anyone can become a creator. You can share your thoughts with the world. In Web 2.0, you can post a video for millions to view, interact with, and comment on.
Web technologies such as HTML5 and CSS3 and Javascript frameworks such as ReactJs, AngularJs, VueJs, and others enable companies to develop innovative ideas that encourage users to participate more in the Social Web.
Web 2.0 was built to engage and empower users. Developers only have to create a way to do this.
Imagine how Instagram, Twitter and YouTube, which are all popular apps, were when they first started compared to what they are today.
These companies typically go through the same process:
- The company has launched an app.
- The goal is to enroll as many people as possible.
- It then makes money from its user base.
The user experience of a popular app is often incredibly smooth, especially when the popularity of the app grows.
It's because of this that they gained traction so quickly. Many software companies are not initially concerned about monetization. They are primarily focused on acquiring and retaining customers, but eventually, they will need to start making money.
The limits of venture funding can often damage the life cycle of applications and, ultimately, the user experience.
When a company raises venture funding to develop an app, investors expect a return of tens of thousands of times what they invested. In order to achieve sustainable organic growth, companies are often pushed towards either marketing or data sales.
For many Web 2.0 companies, like Google, Facebook and Twitter, more data means better-targeted ads. The result is more clicks and, therefore, more advertising money.
The centralization and exploitation of user data are fundamental to the functioning and usage of the Internet as we know it today. Data breaches are a frequent occurrence with Web 2.0 applications. Even websites are dedicated to tracking data breaches and notifying you when your personal details have been compromised.
Web 2.0 gives you no control over the data that is stored or by whom. Businesses often track and store user data without the users' permission.
These platforms are then owned and managed by the companies that run them. When governments suspect that someone is expressing a contrary opinion to their propaganda and program, they often shut down servers and seize bank accounts.
Centralized authority servers allow governments to easily control, interfere with or shut down applications.
Since banks are also digital and centralized, governments often intervene. During periods of high volatility or excessive inflation or during other times of political instability, the government can restrict or close bank accounts.
Web 3.0 will address many of these problems as it attempts to fundamentally rethink the way we build and interact with apps.
What is Web 3.0?
Future of the web is Web 3.0, also referred to as Semantic Web and read-write-execute. Artificial Intelligence and Machine Learning (ML), which enable computers to analyze information in the same manner as humans, aid in intelligently generating and distributing valuable content according to a user's specific needs.
Web 2.0 and Web 3 are fundamentally different, but both are based on decentralization. Web 3.0 developers seldom create or deploy apps that are hosted by a single server and store data in a database.
Web 3.0 applications are based on decentralized networks with numerous peer-to-peer servers (or blockchains) or hybrids of both.
You'll often hear the term "decentralized apps" when referring to these applications. The network participants (blockchain developers) are rewarded when they deliver the best services in order to create a secure and stable decentralized network.
You'll often hear cryptocurrency mentioned when discussing Web 3.0. Many of the Web 3.0 protocols rely heavily upon cryptocurrencies.
It offers an incentive in the form of tokens to anyone who wants to create, govern, improve or contribute to one of these projects. Web 3.0 tokens represent digital assets associated with the vision to create a decentralized Internet. These protocols can provide a variety of services such as computations, bandwidth, storage and identification, hosting, and other online services previously provided by cloud providers.
The protocol can be used to earn money in many ways. Both technical and non-technical. The protocol is typically paid for by the users, just like a cloud service provider such as Amazon Web Services.
As with many other forms of decentralization, unnecessary and often wasteful intermediaries can be eliminated.
Web 3.0 will also heavily rely on non fungible (NFT) tokens as well as digital currencies and other entities of the Blockchain.
These points are essentially voting shares that allow users to make significant contributions and have a bigger say in decisions that affect the community. These points can be tracked, and their owners are in control because they're stored on the Blockchain. This is only one application of a Web 3.0 concept known as Decentralized Autonomous Organizations, which uses tokens to distribute ownership decision-making authority more evenly.
Want More Information About Our Services? Talk to Our Consultants!
What are the Characteristics of Web 3.0?
Web 3.0 is a gradual transition that has been largely unnoticed. Web 3.0 applications look and feel the same as 2.0 applications but have a fundamentally different back-end.
Web 3.0 will lead to universal applications which can be read by a variety of devices and software types. This will make our leisure and commercial activities easier.
The rise of technologies like distributed ledgers, Blockchain technology storage and other similar tools will enable data decentralization as well as the creation of a transparent, secure and safe environment.
These will combat Web 2.0's centralization of information, surveillance, and exploitative advertising.
Decentralized platforms and infrastructure will allow individuals to control their own data in a decentralized internet.
We will examine the four properties that Web 3.0 has to help us better understand its complexities.
Semantic Web
Web 3.0 is not complete without the "semantic Web". Tim Berners Lee coined the phrase to describe a network of data that computers can analyze.
What does this mean in plain English? What does "semantics", in its most basic sense, mean?
The semantics are the same, despite the differences in syntax. In the example above, both sentences express the same emotion.
Semantics is the study of the meaning and emotion that facts can convey. The semantic web and AI are two of the cornerstones of Web 3.0. The semantic web helps AI understand the meaning of data and will help teach the computer how to use it.
Search and analysis will be used to create a spider web of knowledge that will help users understand the meanings of words and generate, share and connect content.
Web 3.0 facilitates more data exchange thanks to semantic metadata. The user experience will be improved as a result of a new level of connectivity, which takes advantage of the data available.
3D Graphics
Web 3.0 will change the Internet's future as it transitions from a two-dimensional web to a three-dimensional cyberspace.
Three-dimensional designs are widely used in Web 3.0 services and internet pages, including e-commerce, online games, and the real estate industry. It may sound strange, but thousands of people are currently interacting on this site.
Artificial Intelligence
Artificial intelligence will allow a wide range of websites to filter out irrelevant information and present the most relevant facts to their users.
In the Web 2.0 age, companies have started to ask for customer feedback in order to understand the quality and value of a product. Films that have a high grade are usually referred to as "good films." These lists allow us to bypass the "poor" data and go straight to the good data.
Peer reviews are a major contribution of Web 2.0, as we have already stated. Human recommendations, however, are not always unbiased, as we know.
A group may decide to give an undeservedly positive review to a film to boost their ratings. Artificial intelligence is able to differentiate between reliable and unreliable data.
Ubiquitous
Ubiquitous is the idea of being or existing in many places at once, i.e. omnipresence. Web 2.0 already has this feature.
Consider social media platforms like Instagram. Users take pictures with their smartphones and post them to the Internet, where they then become their intellectual property.
The image is available to everyone once it's posted.
Web 3.0 will be available anywhere, anytime, with the advent of mobile devices. Internet access will not be restricted to desktop computers, like it was in Web 1.0 or smartphones, as with Web 2.0.
It will be powerful. Web 3.0, because most of the things you see around you are online (Internet of Things), could be called "the web of everything".
How can You Get Ready for the Web 3.0 Revolution with Your Brand?
Web 3.0, or the Spatial Web, is already in its early stages. It's not as futuristic as it may sound. It is time for executives in the business to grasp the concept of the next computer age, its impact on enterprises and the new value it will create as it evolves.
People should also be prepared to understand how Web 3.0's more established and innovative business models can add value in the future by looking at existing and practical Web 3.0 businesses.
The sections below list some of these approaches.
Issue of a Native Asset
The native assets are needed for the entire network to operate, and their value comes from the security that they provide.
By providing an incentive high enough for honest miners, the cost to malicious actors of carrying out an attack increases in tandem with the native asset price, and the increased blockchain security drives further demand, which then drives up the price and value. The value of these native assets was thoroughly measured and examined.
Building a Network with the Native Asset
Some of the early crypto network companies were driven by a single objective: making their networks more lucrative and profitable.
The business model can be summarized as "grow the native asset treasury, build the ecosystem." Blockstream is one of the biggest Bitcoin Core maintainers and relies on its BTC balance to generate value.
Payment Tokens
Payment tokens in networks have served as the foundation for a new wave of blockchain enterprises' business models.
These initiatives often form two-sided markets and require the use of native tokens for all payments. According to assumptions, the value of the token will increase as the network grows.
Burn Tokens
It is possible that corporations or initiatives using a token for community building may not be able to pass on earnings directly to token holders.
The native tokens are purchased from the public and then burned to generate revenue for the project.
Taxation of Speculation
Next-generation business models focused on the establishment of financial infrastructure, such as exchanges, custodians, and derivatives providers.
All of them were created to serve users who wanted services for speculating on these risky assets. As the networks are open, Coinbase cannot lock itself into a monopolistic situation by offering "exclusive access." Nevertheless, the brands and liquidity of such companies provide a moat that can be defended over time.
Read More: What is the Future of Blockchain Technology?
What are the Advantages that Web 3.0 has Over its Predecessors?
Web 3.0 is a platform where intermediaries no longer exist, so user data can no longer be controlled. This reduces the possibility of government or corporate censorship as well as denial-of-service (DoS) attacks.
As more products are connected to the Internet, algorithms have more information to evaluate. They will be able to provide more accurate and tailored information to each user.
Prior to Web 3.0, it was difficult to find the most refined search engine result. Over time, they have improved their ability to discover semantically relevant search results.
Web browsing is made easier, and everyone can find the information they need with relative ease.
Customer service is essential for a positive experience with websites and web apps. Many successful web companies are unable to scale their customer service operations because of the high costs.
Intelligent chatbots can help users have better interaction with support personnel. They can speak to multiple consumers at once, thanks to Web 3.0.
Web 3.0: Key Features
Web 3.0 is not defined in a formal way, but it has several distinct characteristics:
- Decentralization is a Key Component of Web 3.0: In Web 2.0, computers utilize HTTP to look for information that is kept in a particular place, typically on a single web server. Web 3.0 allows information to be stored in multiple locations at the same time. It is also decentralized, as it will be searched based on content and not a specific location. It would empower individuals by destroying the huge databases that internet giants like Meta or Google currently maintain.
- Web 3.0 will Allow Users to Sell their Data via Decentralized Networks: This ensures that the user retains ownership. This data will be produced by a wide range of computing tools, including mobile devices, desktop and home appliances, cars, and sensors.
- Web 3.0 will be Trustless: It is based on open-source software and decentralization, will also be permission-less and trustless. Apps for the Web 3.0 platform, commonly referred to as "dApps," will run on Blockchain, decentralized peer-to-peer networks, or a hybrid of the two.
- Machine Learning and Artificial Intelligence (AI): Web 3.0, with the Semantic Web's natural language processing and Semantic Web technologies, will allow machines to understand information in a similar way to humans. Web 3.0 also uses machine learning, a branch of artificial intelligence (AI) that uses algorithms and data to simulate human learning. These capabilities will allow for faster and more accurate results in fields such as medical development and new material.
- Connectivity and Ubiquity: Web 3.0 improves access to material and information across all apps, and an increasing number of devices are now online. One example is the Internet of Things.
Web 3.0 Layers
Four layers of innovative technological innovation underpin Web 3.0:
- Edge Computing: While Web 2.0 has changed the current commoditized technology of personal computers in data centers, web 3.0 is pushing the data center to the edge. Edge computing is now in our hands.
- Decentralized Data Network: Users will be the owners of their data in Web 3.0 since data is now decentralized. Decentralized data networks allow different data generators to sell or share data without losing control or having to rely on intermediaries.
- Artificial Intelligence & Machine Learning: Artificial Intelligence and machine learning algorithms are now capable of making useful and sometimes life-saving predictions.
- Blockchain - A Decentralized Technology: Blockchain uses smart contracts for transaction execution. These smart contracts define a web 3.0 app's semantics. Everyone who wants to create a blockchain-based application will have to use the shared state machines.
What will Web 3.0 Mean for our Lives?
Web 3.0's decentralized applications nature, enabled by smart contracts and distributed blockchain ledger technology, is designed to deliver sustainable results.
Web 3.0 also reduces costs through the elimination of middlemen, manual arbitration, and mediation.
Web 3.0 is a more personalized surfing experience for everyone. Web 3.0 will allow websites to adjust automatically to the device we are using, our location and any accessibility requirements.
And web apps will adapt to our usage habits. We think that Web 3.0 is going to improve our lives, and we have three good reasons for this belief.
Browse with More Customization
It is easy to click on an advertisement for something that you need or want and would otherwise have missed, no matter how intrusive they may feel.
Search Engine Improved
Using a search engine that uses natural language has been proven to be highly effective. Benefits go beyond consumers, as the learning curve is virtually eliminated.
Businesses can now optimize their website for search engines using organic methods rather than complicated keyword techniques.
The Latest App Interfaces
With its multidimensionality, Web 3.0 will be more than simply a website and enable web apps to provide users with a more engaging experience.
Google Maps, for example, can include features like route planning, accommodation suggestions, and traffic updates in addition to its basic location search. In the Web 2.0 era, this wasn't possible.
Since Bitcoin and cryptocurrency, it's been several years since we heard about the birth of Web 3.0. Although some of these concepts may seem similar, they aren't.
Web 1.0 was the name we gave the first version of the Internet that we were familiar with. Content Distribution Network, a static, access-free network that was instant and read-only. Users were limited to consuming the content of a few publishers on a client/server architecture.
HTML code, web forms, banners and other HTML-based content flooded this not-so-easy-to-read network.
Web 2.0 was born ten years later, with blogging, social media and ecommerce, which revolutionized social interaction.
Read & Write was a reality. Dynamic content and web applications, cloud-based services, XML and RSS, and a brand new Internet that enabled users to collaborate and create together: this is Web 2.0.
Web 2.0 was replaced ten years back by a semantic internet, which improves web technologies for creating, sharing and connecting content.
Data analysis is based on understanding the meaning of words instead of keywords or numbers. New Internet with an omnichannel strategy, interconnected devices and applications, 3D graphics and live streaming, mobile apps, Blockchain 3.0 and digital currency.
Welcome to Web 3.0, an Internet that allows us to create content, share and execute agreements. Welcome to the read, write & execute universe.
Blockchain as the Cornerstone of Web 3.0
Blockchain technology is an organized record of information and transactions in a peer-to-peer network. By using a cryptographic hash, the blocks are linked in a list called a "chain", making it impossible to alter transaction records.
The Blockchain network is maintained by all parties involved in verifying the transaction, as well as many third parties. This creates a robust, distributed network.
A Trusted Machine
Blockchain technology became popular seventeen years later with the Bitcoin cryptocurrency. As Blockchain is the technology that underlies Bitcoin and was the first application we heard about, many people mistakenly called it "Bitcoin", causing confusion.
The Blockchain platform is very valuable for increasing trust between network participants, as it provides cryptographic proof about a series of financial transactions.
Due to the fact that these cryptographic proofs are expensive to create but easily verifiable by other network members, any attempt to tamper is obvious. This feature eliminates the need for an external body to oversee and regulate the flow of information. The blockchain protocol ensures the integrity of information and conformance with predefined business requirements.
Want More Information About Our Services? Talk to Our Consultants!
Conclusion
Blockchain technology is capable of many other blockchain applications than cryptocurrencies. It allows for the digital wallet representation (aka tokenization) of financial instruments like bonds, stocks or derivatives.
It also allows for the traceability and notarization of documents, as well as the tracking of goods along a value chain.
Two industries have emerged in the brief but dynamic history of this new technology. These are cryptocurrencies and the Blockchain industry.
Blockchain is changing the way people and businesses set up new business rules and how they exchange crypto assets.
