What is Web3 — Annex to Alex’s Word of Web3 Monthly Update

Imagine that “blockchain” can be simply understood as an enabling technology, just as the internet has been an enabling technology. Simply put, a blockchain is a database ledger that records transactions, and is open for everyone to see.

Now, with technology often comes power. Here that’s no different. With blockchain technology, in principle, no one has arbitrary power within the system: you can look at the code and see if all is right.

A community governs the workings of the technology through the blockchain’s governance model. Now you may grasp that, this new sort of power dynamic is entirely different from today’s internet.

Today’s functioning of the internet has a business model dependent on proprietary, closed protocols on top of the internet’s open protocols. Big companies that we use for free, may sell user data and use opaque business models and code. People working in tech also call today’s internet ‘Web2’.

Importantly, Web2 was built on Web1. Web1 was the internet how it was once designed when it came into existence. Web1 consisted of open source internet protocols designed for inclusiveness. Anyone could build on top of the open source protocols without permission.

Web3 goes back to the open-source protocols (of Web1), but it is collectively owned through crypto-economics with corresponding blockchains and digital assets like cryptocurrencies.

Web3 is characterised through open source software, user agency over data, and access without permission. It provides its users and those building it with a shared sense of identity and collaboration.

The key to remember is that blockchain and the pre-determined nature of smart contracts that govern many blockchains help preserve trust and may even be seen as trustless (code is law). See these articles of mine for a quick introduction into Bitcoin and on the economic impact of cryptocurrencies and blockchain technology.

Dr Gavin Wood, one of the creators of the Ethereum blockchain, famously defined Web3 as ‘less trust, more truth’. He implied that trust in the intentions of others and the centralisation of power of big data companies may be replaced with transparency and irrevocability as built into blockchain technology.

You may grasp that some understand blockchain and crypto assets as a social construct toward a better future. Some see web3 as a sociopolitical movement towards a more rational, liberal model.

One thing is sure: crypo, blockchain and web3 are arguably a way forward to pivot away from today’s institutional decay.

More about the author*

Alexandra is a Web3 advocate and blockchain enthusiast and is currently building her company, Thrilld Labs, backed by the Blockchain Founders Group. She is a Brand Ambassador to Radom Network, the blockchain company where she worked as a Business Development Strategist until recently.

Alexandra is active in various (academic) initiatives, including as a Mentor in the NFT and DLT Talents programs operated by the Frankfurt School Blockchain Center. Alexandra holds academic degrees in various disciplines, including law and political science and is passionate about bringing individuals together to ‘mint’ new synergies. In her free time, she trades and writes for the Cointelegraph.

• The article is written in the author’s personal capicity and does not necessarily represent the view of her employer or any previous employer. The author declares no competing interests and received no financial support for the research, authorship, and/or publication of this article. The author explicity expresses that are no affiliated links in this article.

The information provided is only for educational purposes and should not be construed as a recommendation to buy or sell any security, cryptocurrency or cryptotoken. Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated, therefore anyone considering it should be prepared to lose their entire investment.