The rise of Web3 and its importance
The buzzword “Web3” has been popping up all over the internet lately and as more consumers start investing in crypto and using blockchain technology, more companies will have to adopt Web3 to stay ahead of the game and incorporate advanced technology into their systems. Big tech companies like Microsoft, Meta, and Twitter have all adopted Web3 strategies to provide more scalability, use open-source software, and innovate their products. Why is Web3 a big deal and will it fill in the gaps of Web 2.0 that are missing?
The reason why I believe Web3 is so valuable is that it gives ownership of data to consumers and not corporations.
It’s also helpful to note the other internet phases that preceded Web3.
Web 1.0 (Read-Only): This was the internet at its minimum. Websites were owned by companies and no interaction between users or any social media emergence just yet.
Web 2.0 (Read-Write): This is the internet phase we’re currently in, where users can connect on social media platforms like Facebook and Instagram, for example. This web is data-driven and predictive, making consumer data privacy concerns a huge topic because our data is constantly being used for marketing. The other day, I was talking to my friend about jewelry and after our conversation ended, I opened up Instagram and saw a ton of jewelry ads. Consumers are recognizing that this violates their space and privacy, especially because Big Tech companies store consumer data based on our following, conversations, and what we search on. Web 2.0 is also centralized which means more control and censorship. Web3 will take a different approach to user data and censorship [1].
Web3 (Read-Write-Own): The most advanced phase of the web, it uses decentralization and gives users autonomy over their data because it’s stored on the blockchain. The blockchain is like your gatekeeper in the sense that you own information and instead of it being stored on the cloud in a company server, it’s stored on the blockchain meaning it can’t be hacked. The core features of Web3 are that it’s decentralized and uses crypto for transactions, users have control over their own data, and it’s more secure [1].
Why is Web3 important to consumers?
I think Web3 will provide a better platform for consumers and content creators because they’ll have more freedom in terms of growing a platform. For example, if you have a Tik Tok account, you need to follow a certain algorithm in order to monetize or grow your account. I think this can take power away from users because it’s limiting since they have to follow a trend for more likes, views, etc. There’s been talk about users being censored or demonetized on social media for speaking about political events happening all over the world. Web3 will change this by providing an equal platform and more censorship resistance.
Another pro is that Web3 provides more security and better identity protection by using the Ethereum address. As this article states, Using an Ethereum address provides a single login across platforms that is secure, censorship-resistant, and anonymous [1].
Why is Web3 important to companies?
There are many reasons why companies are adopting Web3, to stay on top of data privacy and cybersecurity concerns or simply to expand their blockchain footprint. Blockchain technology can keep consumer data secure and prevents hacking. As this article from Entrepreneur states, “giants like Apple, Google, and Facebook are already using blockchain for security” [2].
Facebook was one of the first companies to get into Web3, Zuckerberg rebranded the name to Meta to initiate Web3 presence. He’s looking to incorporate crypto tokens and NFTs into Facebook and Instagram. Meta plans to use the Polygon blockchain due to its sustainability efforts and initiative to help with climate change [3].
Spotify wants to get into the Web3 space by integrating NFTs and blockchain technology into its streaming services. Artists like The Chainsmokers and Snoop Dogg have been selling music NFTs and rewarding collectors with receiving a streaming royalty for life. The incentive is that collectors and artists can earn passive income, without the record label getting a commission [4].
Citations:
[1]: Ethereum.org. https://ethereum.org/en/web3/#web1
[2]: Anastasia Chernikov. https://www.entrepreneur.com/article/397262
[3]: James Ellis. https://nftevening.com/meta-facebook-chooses-polygon-blockchain-to-expand-into-web3/
[4]: Illu. https://weraveyou.com/2022/03/is-spotify-finally-joining-the-web3-space/
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