What Is Web3 and What Does It Mean for the End-User?
Web3 is inextricably linked to the blockchain, but there is more to it than that. and we now have mounting evidence that Web3 is so much more than just a buzzword, contrary to what Tech Giants will have us believe.
Web3 is often spoken about in the context of blockchain technology and decentralized applications (dApps). And while it is true that Web3 is inextricably linked to these technologies, we now have tangible evidence that Web3 is so much more than just a buzzword, contrary to what Tech Giants will have us believe. Web3’s key principles include privacy, security, decentralization, and machine learning.
The Evolution of the Internet: from Web1 to Web3
Web1 was ground-breaking, but from today’s perspective, simplistic and lacked the interactive component. Web2, the read/write version of the Internet, took things to another level, and allowed users’ creative juices to flow, which peaked with the arrival of social media and led to hyperactivity. The potential for abuse was abundant: in addition to the endless supply of misinformation, our personal data is used by tech giants to create tailored marketing campaigns through sophisticated, impossible-to-fool algorithms.
To say that Web3 is an upgrade of Web2 would be an understatement because it gives users an opportunity of ownership, and the possibility to become participants and shareholders, both of which have been unimaginable until now. You may feel skeptical now, but the full scope of Web3’s real-life applications is yet to be seen. No wonder many are looking for the best web 3.0 stocks to buy.
In its simplest form, Web3 can be thought of as a set of protocols and technologies that allow for a decentralized Internet. This includes everything from decentralized storage and communication to decentralized finance (DeFi) and non-fungible tokens (NFTs). Web3 users are capable of taking an active part in the governance and operation of these protocols.
In other words, Web3 is the infrastructure that enables the decentralized web to exist. Decentralization, blockchain technology, and reliance on tokens are all part of the equation. And while it’s still in its early stages of development, there’s a growing community of builders and developers working to bring the decentralized web to life.
What Is Centralized Web?
Before diving too deep into Web3, it’s important to understand the centralized web we presently use: Web 2.0. The centralized web is the internet as we know it today. It’s a network of interconnected computers that are controlled by central authorities.
For example, when you use Google to search for something, your data is stored on Google’s servers. And when you use Facebook to connect with friends, your data is again stored on Facebook’s servers.
On the one hand, Web 2.0 is best represented by the following phenomena:
- User-generated content
- User-friendly interface
- Interactions between end-users
But on the other hand, the centralized model has a number of downsides. For one, it’s vulnerable to attack. If a hacker were to gain access to Google’s servers, however unlikely this may seem, they could potentially access the data of millions of people.
Another downside is that centralization gives major tech companies a lot of power. They can censor content, track our movements, sell our data without our consent, and target us through their algorithms that keep getting better and better. Some of these companies are especially notorious for their track record in breaching data privacy laws.
Lastly, the centralized web is siloed. This means that our data is locked into these central platforms, and it isn’t easy to move it from one platform to another.
What Is Decentralized Web?
The decentralized web is the opposite of the centralized web. Instead of having our data stored on central servers, the decentralized web uses a distributed network of computers. This means that there is no central point of control or failure.
If one computer goes down, the rest of the network can still function normally. And if a hacker were to gain access to one computer, they would only have access to that one computer and not the entire network.
One of the key benefits of a decentralized web is obvious: it is much more open and transparent. Because there is no central authority, anyone can build on the decentralized web. Ideally, this creates a level playing field where the best ideas can rise to the top, regardless of who is behind them.
How Does Web 3 give you more control over your finances and identity
- You can purchase goods and services directly from sellers on Web3. This either eliminates the need for a middleman, such as a marketplace, entirely or creates a more competitive environment. In both cases, transactions are more efficient and cost-effective.
- You can earn interest on your savings by lending them to others on Web3. This is possible because no central authority, such as a bank, takes a cut of the interest you earn.
- On Web3, you can create and manage your own digital identity. This gives you more control over your personal data and allows you to interact anonymously with others on the web.
What Are The Benefits Of The Decentralized Web?
There are several benefits to the decentralized web:
- Making the Internet more secure. This is because there is no central point of control or failure. If one computer goes down, the rest of the network can still function normally. And if a hacker were to gain access to one computer, they would only have access to that one computer and not the entire network.
- More resilient to censorship. Because there is no central authority, it’s much more difficult for someone to censor content on the decentralized web.
- A higher level of privacy. The decentralized web is also much more private. Because there is no central authority, companies can’t track our movements or sell our data without our consent.
- Giving users more control. Users have complete control over their data on the decentralized web. They can choose to share or keep it private and move it from one platform to another easily.
- More inclusivity. The decentralized web is open to anyone, regardless of location or resources. This allows for a level playing field where the best ideas can rise to the top.
- Better accessibility. The decentralized web is also much more accessible. Because there is no central authority, anyone can build on the decentralized web. This makes it possible for people to access the web even in countries where the internet is censored or blocked.
- Enhanced efficiency. The decentralized web is more efficient. Because there is no need for a central authority, no middlemen are taking a cut within our transactions, and things are running faster and more smoothly.
- Being more sustainable. The decentralized web features higher sustainability. Because it is more efficient, it uses less energy and resources than the centralized web.
What Can You Do On Web3?
The possibilities of Web3 are truly limitless. It makes cooperative governance structures possible. Anything can be tokenized, which is of special importance to the gaming industry.
The main idea of the next generation of the internet is to bring about a power shift from major tech companies to individual users. The following are just a few examples of what you can do on Web3:
- Create your decentralized website or application. When you build your website or application with a decentralized platform like Ethereum, it means that you will be in control of your data, and no one will be able to censor your content.
- Tokenize your creations.
- Send and receive payments without a middleman. Because there is no central authority on Web3, you can send and receive payments without having to go through a bank or rely on other intermediaries.
You can also invest in Web3 stock:
- Twitter (TWTR)
- Apple Inc. (AAPL)
- Coinbase Global, Inc. (COIN)
- Advanced Micro Devices (NASDAQ: AMD)
- Nvidia (NASDAQ: NVDA)
- International Business Machines Corporation (IBM)
- Unity Software Inc. (U)
- Block (NYSE: SQ)
- Fastly (NYSE: FSLY)
- TE Connectivity (NYSE: TEL)
Web3 is the future of the internet. It’s a more secure, private, and inclusive web that democratizes the Internet and gives users more control over their data and assets. There are endless possibilities of what you can do on Web3, from creating your decentralized website to sending and receiving payments without a middleman. With Web3, we are now in a unique position to build a better Internet for everyone, for the first time ever.