The Internet is one of mankind’s most important and influential inventions and is constantly evolving and changing. Since its introduction at the end of the 20th century, we have witnessed several stages of its evolution. These stages are called Web 1.0, 2.0 and 3.0. Each of these stages is characterized by certain features, technologies and opportunities for users and developers. We are currently on the threshold of a new era of the internet called Web3 or the decentralized internet.
What does this mean and how will it work? What advantages, prospects and limitations does Web 3.0 have? What projects and examples of using Web3 exist in various areas of life and business? We will try to answer these and other questions in this article.
What is Web 3.0
Web 3.0 (sometimes spelled Web3) is an idea for the next generation of the World Wide Web, which includes concepts such as decentralization, blockchain technology, and tokenization of the economy. Some contrast it with Web 2.0, in which data and content are centralized in the hands of a small group of corporate tech giants.
The term “Web 3.0” was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea has gained widespread prominence in 2021 due to the interest of cryptocurrency enthusiasts, large technology companies and venture capitalists.
Web3 envisions users having more control over their data, their digital identities, and their online assets. To do this, they will use special applications that operate on the basis of smart contracts – self-executing program codes.
Smart contracts are stored on a distributed network of nodes that ensure the security and transparency of transactions. Such applications are called decentralized applications (DApps) or Web 3.0 protocols. They allow users to exchange information, value and services without intermediaries such as social networks, search engines or payment systems.
Web3 also has potential applications in areas such as education, healthcare, energy, finance, social networking, gaming and many others. However, Web 3.0 also faces a number of problems and challenges, such as the complexity of developing and using DApps, low speed and scalability of blockchain networks, high transaction costs and energy consumption, lack of regulation and standardization, and security and fraud risks.
Web3 combines the benefits of blockchain and artificial intelligence to create a new type of internet that respects the rights and interests of users and promotes innovation and collaboration. Overall, Web 3.0 is the Internet of value, knowledge and creativity.
What is Web 1.0 and Web 2.0
Web 1.0
From the early 90s until about the mid-2000s, we lived in the era of Web 1.0. It was a reading internet, where users could only look at static web pages created by a small number of authors and linked by hyperlinks. This Internet was simple, but boring and limited.
Examples of Web 1.0 sites are Yahoo , AltaVista , Geocities
Web 2.0
Since the mid-2000s, we have moved into the Web 2.0 era. It was an Internet for content creation, where users became active participants in the development of the World Wide Web. They could upload their photos, videos, texts and other content to various services, such as social networks, blogs, video hosting and so on. In the early years, Web 2.0 was dynamic, but also insecure and uncontrollable.
Examples of Web 2.0 sites are Facebook , YouTube , Twitter , Wikipedia and so on.
Web 1.0 and Web 2.0 differed from each other in architecture, content, services, design and security:
- In Web 1.0, the server was responsible for storing and processing data, and the browser was responsible for displaying the data. The content was static and one-sided. The services provided were simple and limited, such as searching for information, browsing the web, sending email, etc. The design was simple and boring, consisting of text on a plain background, images, tables, and prominent advertising banners. Security was low as data could easily be intercepted, copied or modified.
- In Web 2.0, the server and browser actively interacted with each other using new technologies such as AJAX and JavaScript. Content has become dynamic and two-way. More complex and diverse services were provided, such as social networks, blogs, video hosting, thematic encyclopedias (Wiki), RSS channels and many others. etc. The design has become more modern and attractive, using vector graphics, animation, icons and fonts. Security has also improved significantly – data is protected with cryptography, passwords and protocols.
Web 2.5
Since the late 2000s, we began to see the emergence of Web 2.5. It was a transitional stage between Web 2.0 and Web 3.0. This stage was characterized by the Internet becoming more convenient and relevant.
Users began to use smartphones, tablets and other devices to access the Internet anywhere and anytime. It is now possible to store your data and applications in the cloud rather than on local computers. Users also began to receive more accurate and relevant search results through the use of semantic technologies that made it possible to understand the meaning and context of the data.
Examples of Web 2.5 sites are Google , Amazon , Netflix and so on.
How Web 3.0 differs from previous versions
Web 3.0 not only continues the trends of Web 2.0, but also introduces significant changes and improvements to them. The Internet is becoming decentralized, user-driven, and secure.
Let’s look at what this means and how it works:
- Decentralized. Web 3.0 is based on decentralized networks, such as blockchain or IPFS, which consist of many nodes or computers. They store and process data without intermediaries or central servers. This makes the data impossible to censor, manipulate or hack. Web 3.0 gives users more control over their data and information. The latter are not transferred to centralized organizations such as governments or corporations.
- Custom. Web 3.0 allows the creation of digital identities that are linked to real or anonymous user identities. They can control their identities using cryptographic keys. These keys are stored in special applications called wallets. Users can use their identities to authenticate, authorize, and communicate with various Web3 applications.
- Safe. Web 3.0 uses cryptography to protect data and transactions from unauthorized access or modification. Cryptography also allows for the creation of digital signatures that guarantee the authenticity and integrity of data. In addition, Web3 uses smart contracts – self-executing programs recorded on the blockchain.
These are the main features of Web 3.0 that distinguish it from previous versions of the Internet. The new level of Internet development brings new opportunities and benefits for users and developers. Web 3 is the Internet of value, knowledge and creativity.
How Web3 applications work
Web3 applications run on decentralized networks such as blockchain or IPFS. These networks consist of many nodes or computers that store and process data without intermediaries or central servers. Each node has a copy of all data and verifies its authenticity using cryptographic algorithms.
All this makes the data inaccessible to censorship, manipulation or hacking.
Identification and smart contracts
Web3 applications use smart contracts – self-executing programs recorded on the blockchain. Smart contracts automate and simplify financial transactions, user identification, property rights management, and other tasks.
Smart contracts do not require personal trust in the parties or external execution mechanisms.
Tokens
Web3 applications also use tokens, which are digital assets that represent a specific value or right. Tokens are created based on blockchain standards like ERC-20 or ERC-721.
Tokens can be used to pay for services, reward participation, prove ownership or membership, and so on. Tokens can also be non-fungible (NFT), meaning they are unique and non-fungible. NFTs can represent different types of digital content, such as images, videos, music, games, and so on.
Examples of Web3 applications:
- Metamask is a wallet and browser plugin for connecting to various blockchain networks and Web3 applications.
- Uniswap is a decentralized exchange for exchanging tokens without intermediaries or commissions.
- OpenSea is a decentralized platform for buying and selling NFTs.
- Filecoin is a decentralized data storage and transmission network that rewards nodes for providing their power.
These are just a few of the many Web3 applications that demonstrate the potential and capabilities of this new type of Internet.
Promising projects in Web 3.0
Web 3.0 not only offers new technologies and opportunities for developers, but also solves various problems and needs for users in different areas of life and business. Web3 applications can bring benefits and risks to areas such as education, healthcare, finance, social networks and so on.
Let’s look at some examples of how Web 3.0 can be used in these areas.
Web 3.0 in education
Web3 can provide access to quality, personalized training to any user, regardless of location, financial situation or skill level. Web 3.0 can also issue decentralized diplomas and certificates. They confirm the user’s qualifications and skills, and also protect documents from forgery or loss.
Examples of Web3 applications in education are:
- BitDegree is an online learning platform that uses blockchain and tokens to incentivize and reward students and teachers.
- Learning Machine is a platform for issuing and verifying digital diplomas and certificates that are stored on the blockchain and can be easily shared or verified.
- ODEM is a platform for creating and delivering educational programs and courses, using smart contracts to manage pricing, registration and certification.
Web 3.0 in healthcare
Web3 can provide security and control over the user’s medical data, as well as improve diagnosis and treatment using artificial intelligence. In addition, it is possible to reduce costs and increase the efficiency of healthcare through decentralization and automation of various processes.
Examples of Web3 applications in healthcare include:
- MedRec is a medical records management system that uses blockchain to store, transfer and verify data between patients, doctors and insurance companies.
- Iryo is a platform for creating decentralized healthcare networks, providing the ability to share your medical data with various participants such as doctors, clinics, researchers, etc.
- Nebula Genomics is a blockchain-based genomic analysis platform that allows you to receive personalized reports on your health and ancestry, and earn money from your genetic data.
Web 3.0 in finance
Web 3.0 can provide access to financial products and services without intermediaries or central authorities, and increase the efficiency and transparency of financial transactions. In addition, it reduces the risks and costs associated with fraud, corruption or inflation.
Examples of Web3 applications in finance are:
- Augur is a platform for creating and participating in decentralized prediction markets that allow you to bet on the outcome of any event using tokens.
- MakerDAO is a platform for creating and managing the stable cryptocurrency DAI, which maintains its value against the US dollar using smart contracts and collateral.
- Compound is a protocol for decentralized lending and borrowing of cryptocurrencies, allowing you to earn interest on your assets or borrow assets against collateral.
Web 3.0 in social networks
Web3 can protect users’ identity and privacy, and reward them for creating and sharing content. In the new internet era, we expect higher quality and more relevant content, as well as more democratic and fair moderation and reputation mechanisms.
Examples of Web3 social media applications are:
- Steemit is a content creation and distribution platform that uses blockchain and tokens to reward creators and content curators.
- Minds is a platform for sharing information, opinions and creativity, using blockchain and tokens to protect the freedom of speech, privacy and digital rights of users.
- Akasha is a content creation and distribution platform that uses Ethereum and IPFS for data storage and transmission.
These are just some of the possible examples of the use of Web 3.0 in various areas of life and business. Web3 can solve many problems and needs, as well as bring benefits and risks to users and developers.
Web3 Limitations and Disadvantages
Web3 is not the perfect solution for all Internet problems and needs. It has a number of limitations and disadvantages that may hinder its development and application:
- Complexity. Web 3.0 requires users and developers to have a higher level of technical knowledge and skills than previous versions of the Internet. It uses complex technologies such as blockchain, smart contracts, cryptography and artificial intelligence. They may be unclear or confusing to general users. Web3 also requires users to become more involved and accountable for their identities, data, and transactions, which may be unfamiliar or undesirable to many users.
- Scalability. Web 3.0 faces the challenge of scalability, which is the ability to process large amounts of data and transactions in a short time and at low cost. Some decentralized networks, such as blockchain, have limitations in the speed, volume, and cost of data processing, which can reduce the performance and efficiency of Web3 applications. For example, the Ethereum network can process about 15 transactions per second, which is significantly less than traditional payment systems such as Visa or PayPal.
- Compatibility. The various protocols, algorithms and architectures of decentralized networks may be incompatible with each other or with traditional Internet services. For example, users may need special wallets or browsers to connect to various blockchain networks. It can also be difficult to share data and functionality between different decentralized applications.
- Regulation. Blockchain and other decentralized networks are often anonymous or pseudonymous in nature. It can be used for illegal or illegal purposes: money laundering, tax evasion and even terrorism. Some decentralized applications, such as financial services or prediction markets, may violate existing financial or gambling regulations. And social media or content platforms may violate existing human rights or data protection laws.
These are the main limitations and disadvantages of Web 3 that can hinder its development and use. The new Internet era may require greater levels of technical knowledge and skills, as well as increased participation and responsibility, from users and developers. Web 3.0 also requires society and government to take a more flexible and progressive approach to regulation and cooperation.
Conclusion
Web3 is a new era of the Internet that envisions a decentralized, user-driven, and secure Internet of value, knowledge, and creativity. Blockchain, smart contracts, tokens and artificial intelligence are being used to create new opportunities and benefits for users as well as developers in various areas of life and business. Web 3.0 also addresses various problems and needs related to decentralization, privacy, security and quality of data and information on the Internet.
However, Web3 is not the perfect solution for all Internet problems and needs. It requires a higher level of technical skills, as well as greater participation and responsibility, including from government agencies.
Web 3.0 is the Internet of the future, which has already begun to take shape in the present. It brings new opportunities and benefits for users and developers, and also solves various problems and needs for society and the state. Web3 is an Internet of values, knowledge and creativity, but also an Internet of complexity, risks and challenges.
