Web3 (or Web 3.0)
Related Terms
Web3, also known as Web 3.0, refers to the next generation of the internet that emphasizes decentralization, user control, and blockchain technology. Unlike Web 2.0, which is dominated by centralized platforms and corporations, Web3 envisions a more open and democratic digital ecosystem where users own their data, identity, and digital assets without relying on intermediaries.
Key Features of Web3
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Decentralization: Shifts control from centralized entities (e.g., tech giants) to distributed networks powered by blockchain technology.
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Blockchain Technology: Serves as the backbone of Web3, enabling secure, transparent, and immutable transactions.
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Smart Contracts: Self-executing agreements coded on the blockchain that automate processes without intermediaries.
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Digital Ownership: Users have full control over their data, identity, and digital assets through decentralized applications (dApps) and wallets.
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Token-Based Economy: Incorporates cryptocurrencies and non-fungible tokens (NFTs) to facilitate peer-to-peer interactions and new economic models.
How Web3 differs from previous Internet Eras:
Web1 (prior to 2000) was more or less read-only. There was a high complexity in creating and maintaining websites, which limited the content creation to webmasters only.
Web2 (ca. 2000 – present) is characterized by much more interactivity, and it lives from user generated content such as blogs, videos & images, usually published through social media. The key issue: Users create the content, but the platform on which they upload it largely control it, and usually also own the data. This leads to a data centralization, which allowed tech companies to become giants by monetizing this data.
The Web3 aims to shift power from centralized platforms back to users. Instead of data and control residing with a single company, it’s distributed across a network. This gives users back the control and ownership over their own data, which is important as it represents their digital identity.