From Web1 To Web3
To understand the concept of Web3, it is important to first understand the evolution of the internet. The first phase, Web1, consisted of static HTML pages that allowed for simple, one-way experiences such as reading information forums. Users were not able to change online data or upload their own content to the websites they were interacting with.
The second phase, Web2, saw the emergence of a more interactive internet where users were more involved in generating their own content. Social media platforms facilitated these modes of online interaction and led to the rise of new types of centralized tech giants. However, as the limitations of the Web2 ecosystem become more apparent, the Web2 ecosystem began changing.
Users have become more concerned about data tracking and ownership, as well as censorship issues, and the power of centralized companies has become a cause for concern. These companies use the collected data to keep users on their websites and create targeted ads for third-party benefit, which can lead to actions that are not in the best interest of users.
Web3 is the next step towards a better internet. It promises to make online platforms decentralized, trustless, and permissionless, and bring about digital ownership, digital-native payments, and censorship-resistance as a new standard of web products and services. Blockchain and crypto are perfectly positioned to become essential technologies of Web3 because they are inherently decentralized, allowing for anyone to record information on-chain, tokenize assets, and create digital identities.
How Can Blockchain Technology Help Web3?
Decentralization: The distribution of power and control among many individuals or groups rather than a central authority. In the context of Web3, decentralization aims to distribute power and data away from a small group of major players, utilizing blockchain and crypto technologies to achieve greater transparency and decentralization.
Permissionlessness: The ability to access and interact with an application or system without any restrictions. In the context of Web3, blockchain-based projects use openly available code (known as open source), replacing proprietary systems of traditional companies and allowing anyone worldwide to access and interact with them without the need for permission.
Trustlessness: The absence of the need to trust a third party intermediary in order to complete a transaction or interaction._ In the context of Web3, blockchain and crypto eliminate the need for trust in any entity but the network itself, allowing users to transact without relying on banks or individual intermediaries.
Censorship resistance: The ability of a system to resist censorship or the alteration of its records. In the context of Web3, blockchains are designed to be censorship-resistant, meaning that once a record has been added, it is nearly impossible to remove it, providing a way to preserve speech from government and corporate censorship.
Ownership: The state of having control over an item or asset. In the context of Web3, crypto already offers tools such as self-custodial wallets that allow users to store their funds without intermediaries, connect wallets to decentralized apps, and use their funds in a variety of ways. Anyone can verify ownership of these funds and items using a transparent public ledger.
Payment Rails: The infrastructure used to facilitate digital payments. In the context of Web3, cryptocurrencies could serve as the digital native payment infrastructure, improving upon the expensive and bulky infrastructure of Web2 as they are borderless and don't require intermediaries.
What Could That Look Like In Practice?
Blockchain technology is poised to be a key component of Web3, but users may not even be aware of its presence. If the applications built on blockchains are user-friendly and intuitive, people will not give the underlying infrastructure a second thought - much like how we rarely think about the data servers and internet protocols that power the social media platforms we use on a daily basis.
NFTs, or non-fungible tokens, have the potential to change the way users interact with digital assets. They can be used to display unique digital collectibles to other users, helping to create and maintain unique digital identities. NFTs also have other functional uses, such as serving as the foundation for many key processes in online gaming.
Decentralized autonomous organizations, or DAOs, can transform the way Web3 users coordinate and enforce collective action. DAOs empower people to organize around a shared interest without the need for a central decision-making authority. Instead, token holders vote to determine the best course of action together.
Additionally, all activity and votes are visible on a blockchain. This can help to make Web3 more decentralized, transparent, and community-centered.
To fully understand the potential of Web3, it is important to recognize that it is still in its early stages of development. While the vision for Web3 includes decentralization, permissionlessness and trustlessness, it is not yet fully realized. However, the technologies that will likely drive the Web3 revolution, such as blockchain and crypto, are already in development.
Blockchain and crypto are seen as key technologies for Web3 as they are designed to facilitate decentralized, permissionless, and trustless interactions. They provide solutions to the central problems of Web2, such as concentration of power and data at the hands of a few major players. Additionally, blockchain and crypto can help to ensure digital ownership, digital-native payments, and censorship-resistance as a new standard of Web products and services.
Furthermore, it's important to note that blockchain and crypto are not mutually exclusive from other technological advancements. They can be integrated with other technologies such as augmented reality (AR), virtual reality (VR), and the internet of things (IOT) to yield even more promising solutions.
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