What is Web 3 and why should you care?

Coined by Ethereum co-founder Gavin Wood in 2014, the term Web3 has been around for some time. However what has been hailed as the new era of the internet has become an increasingly widespread buzzword in the past couple of years.

With no official definition, the notion of what Web3 actually is has been open to interpretation. At its core, Web3 is a decentralised ecosystem built using blockchains, cryptocurrencies and NFTs, with no central gatekeeper. This means that the power is in the hands of individuals that use it, rather than corporations such as Google and Facebook. Many advocates see it as the next generation and transformative advancement of the internet that will give control back to its users through ownership of their data.

Others see Web3 as an extension of, or a rebranding of cryptocurrency, viewing it as an accessible way for the masses to get involved with crypto. This stems from the idea that even though so many people around the world don’t understand or know a lot about crypto, the internet is something that most are familiar with and exposed to everyday. Therefore it is easier to understand in this context.

The naysayers believe that crypto rebranding to Web3 is an attempt to remove the negative connotations that the industry has frequently been associated with, to persuade people that it’s the next logical step of the internet.

Features of Web3

Although there are varying opinions of what Web3 is, there are a few attributes that are agreed upon:

• Web3 is decentralised so control and decision-making is no longer given to only one centralised entity, such as Big Tech but is instead given to a distributed network
• Web3 has native payments and instead of using the legacy infrastructure of traditional banks, it uses cryptocurrency for spending online
• Web3 is trustless, meaning it minimises the need to rely on or trust third parties such as banks and payment providers for transactions. This is possible because trust is distributed across many participants on the blockchain who are incentivised to cooperate with the rules of the network
• Web3 is permissionless meaning that there is an equal playing field where no one is excluded

If we are coming into Web3 — what was Web1 and Web2?

Web 1.0: Circa 1990–2004, defined as read-only

Web 1.0 was what the internet was known as in its earliest form. It is referred to as mostly read only as there were mainly only static websites with almost no interaction between users. Content was not something frequently produced by individuals and it was really only companies who had an online presence. It was a place to access information but not contribute, giving it the name of read-only.

Web 2.0: Circa 2004 — now, defined as read-write

The inception of social media platforms sparked the Web 2.0 period of the internet. The focus moved from only large companies creating all the content online in a one-sided way, to them also building and providing platforms that enable users to share their own content and engage in interactions.

It became more about user experience, collaboration and community. These aspects, paired with the rise of social media meant that everyone could contribute, creating a read-write ecosystem. Although users in Web 2.0 are able to create content, they still don’t own it. A real life example that we can refer to is in Russia, where Facebook and Instagram have recently been banned amid the Kremlin’s sweeping crackdown on western social media giants. For many in today’s world, content creation or ‘influencing’ is a primary source of income. This extremist law has meant that for many in Russia, the monetisation of their content was taken away from them without them having any say. Ultimately in Web 2.0, users don’t have full ownership or truly have control over what they create.

The way Web 2.0 is built means that the big companies not only have ownership to users’ content but also their data. Companies such as Google, Facebook, and Amazon have made significant financial gains through selling this data to third parties and advertisers.

Web 3.0: Defined as read-write-own

In Web3, all exchanges take place without the need for third parties such as big tech companies and banks. Users can interact in a secure, decentralised way where platforms and apps won’t be owned by a central gatekeeper but rather by the users themselves. Users’ data can be stored under the control of the individual that owns it which means that the data can never be changed without the specific encryption that proves ownership. Web3 makes the user the content owner.

The challenges of Web3

• There is a long way to go until we reach mass adoption

Although many have dipped their toes in Web3, we are still a long way off mass adoption and the world truly leaving Web 2.0 behind and immersing fully into Web3. Many believe that it could be up to ten years before we completely integrate with Web3, on a global scale. There are various reasons for this, including accessibility, the issues with the way the technology itself is built, and the cost associated with it.

• Unsupported infrastructure

Chances are, if you have tried to interact in Web3, it won’t have been a straightforward process. The existing Web 2.0 infrastructure doesn’t support seamless integration to Web3 and there are many steps involved to access it.

• Friendly user experience is lacking in Web3

The need to add browser extensions and set up multiple accounts with wallets such as MetaMask for Ethereum, means that it excludes a large portion of society. In comparison to what the majority of internet users are familiar with in Web 2.0, such as searching for what they need on Google, Web3 processes are very complicated and have a lot of steps. For mass adoption, Web3 needs to have easier points of access and be easier to navigate.

• Lack of Education in the space

Web3 in its current form is mostly only accessible to those who dedicate time to learn about the tech or who have already had some exposure to it. For global adoption, more educational content and training will be required so that everyone can understand how to get their place in the new era of the internet.

How to access Web3

It’s likely that a lot of people have had some sort of interaction with Web3 without realising, specifically those who trade cryptocurrency or game online. Users can access Web3 by creating a wallet, for example with MetaMask, where they will be able to access their funds and connect to Web3 apps. Users can also join Web3 communities, for example with Ethereum communities there are opportunities to attend events, contribute to projects and participate in forums related to the network. Another way users can access Web3 is through Decentralised Apps (Dapps) — applications that offer similar functions to normal apps but are run on Peer-To-Peer (P2P) networks, such as blockchain. No single person or entity has control over the network and it cuts out the middleman. Users can also gain access to Web3 by joining a Decentralised Autonomous Organisation (DAO) which are member-owned communities represented by rules embedded into the code of the organisation, with no control from centralised leadership.

How Web3 will affect society

If you’re someone who isn’t familiar with the concept of Web3, you may wonder why you should care about getting to know and learn about it. Web3 encompasses not only the internet and interacting with others but it is also a completely new financial ecosystem. With the rise of crypto, NFTs and digital goods, Web3 is set to change the way we manage our finances.

There has been a lot of scepticism around the blockchain technology used to develop Web3. This includes but is not limited to, the energy consumption levels that contribute to climate change. An example is the Bitcoin network, which consumes astronomical amounts of energy — by simply existing, it uses more electricity than the country of Finland! Web3 has also been criticised as being no more than a marketing buzzword by high profile people in the crypto space, such as Elon Musk.

The future of Web3

Putting the obstacles aside, there are also extremely high levels of optimism for the potential of Web3. With hopes that it will solve many of the problems faced with Web 2.0, such as the everyday internet user constantly having their personal data used and sold without their permission. With Web3, users will experience more privacy and freedom with their data.

We are still at a very early stage of the Web3 journey and it is constantly evolving. With the growing popularity and interest in cryptocurrency and everything that Web3 encompasses, there will continue to be a surge of innovation in the space with increasing improvements and advancements with what is possible for the future of the internet.

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