The Evolution of the Web
Web3: The New Digital Epoch
Transition from Web 2.0’s dominance to Web3’s promise.
From the static pages of Web 1.0 to the interactive platforms of Web 2.0, the World Wide Web has constantly evolved. The internet has transformed from a mere repository of information, often compromising user privacy and control, to a dynamic, user-centric platform. As we stand at the brink of yet another transformation, two significant epochs stand out: Web 2.0 and Web3, also known as Web 3.0.
Imagine a world where the internet isn’t just a tool, but an extension of our very essence. A world where we aren’t just passive consumers but active participants in control of oneself — free from the unsuspecting hands of the globalists and puppeteers in power. This isn’t a distant dream. It’s the promise of Web3. It challenges the very foundations of Web 2.0, advocating for a decentralized, user-centric digital world enriched by blockchain and AI technologies.
But are we ready for the new digital epoch?
The 3 Technological Epochs 1.. 2.. 3..
Epoch 1 — Web 1.0
Global adoption of the internet began in the 1990s, marked greatly by the dot-com bubble of the late 90’s and early 2000s. This first epoch, known as Web 1.0 — the static web, was the very beginning of the internet of data which standardized the HTML, HTTP and TCP/IP protocols, as well as the Uniform Resource Identifier (URI) Schemes responsible for the proper identification of logical or physical resources used by web technologies.
Also known as the read-only web, most websites consisted of static pages, and the vast majority of users were consumers, not producers of content. The web was mainly a medium for transmitting information with no way to actively participate or interact, limited also by insufficient public infrastructure felt the time and the lack of users.
Epoch 2 — Web 2.0
Web 2.0, or the dynamic web, emerged in the early 2000s and brought an internet that was not only static, but interactive. Websites became more dynamic and user-friendly. The rise of social media platforms like Facebook and X (formerly known as Twitter), community forums like Reddit, streaming platforms like YouTube, and e-commerce platforms like Amazon and eBay, are clear examples of Web 2.0 based technologies.
Known for its wide adoption, ease of use, and maturity, Web 2.0 is about interactivity and users — more social and collaborative — but often compromises user privacy. It also lacks security, transparency, and interoperability.
Despite Web 2.0’s user-centric design and interactivity, it’s at the mercy of centralized control from a small group of individuals and companies sometimes referred to as “Big Tech”. In a world where data equates to power, the temptation to skew data for personal gain is immense — it’s part of our human nature, an inherent flaw of the technology we must address. Not only, expansive data collection is conducted in the most obscure and unimaginable ways near impossible to stop or account for.
If the service is free, you are the product.
Its shortcomings have also become ever so evident in the geopolitical and global health issues we face today, where trust has become something of the distant past, a taboo, a prohibited land in our memories. The ease of propagation of data at scale, be it with good or mal intent, has direct implications on human behavior, unfortunately frequently exploited to serve one’s agenda. More often than not these efforts lead to generalized public sentiment of distrust and perceived propaganda.
Also, despite recent efforts in global regulation to protect the privacy and data of its citizens, e.g. GDPR (EU), Data Protection Act (UK), CCPA (California, USA), … , data breaches are still very common and remain as the primary concern to both individuals and businesses.
The internet, in its current form, faces challenges that demand a radical reimagining. So what’s the solution?
Epoch 3 — Web3
Unlike the evolution of Web 1.0 to Web 2.0, the change to Web3 largely affects the back end and the foundational principles of how we interact and share data — a natural progression of the limitations and pitfalls of Web 2.0. Coined in 2014 by Ethereum co-founder Gavin Wood, Web3 refers to a “decentralized online ecosystem built on blockchain”, establishing a peer-to-peer community constructed upon a global network of users or nodes.
Web3, the next stage of Internet development — “the decentralized web”
Since 2021, the concept of Web3 has garnered interest from cryptocurrency enthusiasts, large technology companies, and venture capital firms alike. Web3 revolves around the idea of decentralization, often incorporating blockchain and AI technologies into the inner workings of almost anything one can do online.
The potential of decentralization to empower people, regardless of their status quo, ethnicity, nationality, beliefs and/or location, is a propelling concept. Resolving our privacy issues without compromising data integrity or the security of valued assets, be it in digital or a digital representation of a physical form, stands as a revolution on its own.
Allied to self-sovereign identity, the tokenization and transfer of value, as well as the inclusion of AI technologies, we have ourselves limitless potential for positive contribution to humanity and the planet yet to be fully explored.
What are the similarities of Web 1.0, Web 2.0, and Web3?
Upon careful examination of the three distinct epochs or versions of the web, it becomes apparent that they share only a handful of fundamental characteristics. These commonalities include their emphasis on the interaction between end-users and information, their provision of a version of the “read” function for users, and their reliance on the internet to fulfill their tasks.
Today, a developer could build a website or platform using Web 1.0, 2.0, or Web3 standards. A new version doesn’t mean the old way of doing things disappears. It just means a new set of Web standards became more popular and common.
Web 3.0 vs Web3
Web 3.0, sometimes mistakenly used interchangeably with Web3, is referred to as the semantic web, representing a centralized evolution from Web 2.0. It primarily focuses on efficiency and intelligence by reusing and linking data across various websites. On the other hand, the decentralized web, known as Web3, places a significant emphasis on security and empowerment, intending to return control of data and identity to users.
Notably, these two concepts employ distinct technologies to fulfill their objectives related to data security. Web3 leverages blockchain technology, whereas Web 3.0 utilizes data interchange technologies such as RDF, SPARQL, OWL, and SKOS.
The ‘internet of value’, ‘semantic web’, ‘decentralized web’, are all common terminologies found when referencing Web3.
Web3 builds upon the semantic web, transforming its underlying infrastructure into a decentralized and distributed system across a global network of nodes, making it challenging to modify or delete data due to its inherent immutability and increased security. Conversely, Web 3.0 allows for relatively easy modifications to data, which continues to be stored in interlinked centralized infrastructure.
The shared goal of both Web3 and Web 3.0 is to enhance the internet by ensuring users’ control over their data. The primary difference lies in their approaches to achieving this goal.
The 3 Fundamental Enablers of Web3
Three fundamental architectural enablers of Web3 can be identified as a combination of:
- Decentralization (blockchain)
- Self-custody asset ownership & transfer (tokenization)
- Self-sovereign identity (SSI)
Decentralization — the power shift
In the early days of the internet, few could have predicted the rise of tech giants that would come to dominate our online experiences, becoming the gatekeepers of the digital world. But with Web3, the tables are turning.
Web3’s core ethos is decentralization. This means no single entity or corporation has control over the entire network, ensuring a more democratic and transparent digital space. In Web3, trust is instilled on the immutable ledgers of blockchain, not on platform promises.
No longer are we at the mercy of a few.
Platforms like Facebook and Google, dictate today our digital experiences, more than most can imagine. Their algorithms decide what we see, how we interact, and even inflict influence into our emotions and day to day decision making, be it by advertising or in controlling what we see and how often. But Web3 challenges the status quo of centralized control. It brings to the table the decentralization of power, spread across nodes and users, instead of a minority few.
Tokenization and true ownership
The digital assets of Web3, be it cryptocurrencies or NFTs, signify true ownership. In the Web 2.0 era, purchasing a digital item didn’t grant you ownership; it merely gave you a license to use it.
Remember the last time you bought a digital item? Be it a song, an e-book, or a game? Did you ever stop to think if you truly owned it?
Web3 challenges this very notion. With its emphasis on tokenization, it promises true ownership, where digital assets are unequivocally yours, secured on the blockchain, free from the clutches of centralized entities.
Tokenization ensures that when you buy a digital asset, it’s not just a transaction; it’s an effective and final transfer of ownership rights. This shift profoundly impacts industries like art, music, and gaming, allowing digital assets to be owned, sold, or exchanged without the need for intermediaries.
Digital identities
Web3 reimagines digital identities. Instead of fragmented identities scattered across platforms, Web3 offers a unified, self-sovereign identity. This self-sovereign identity ensures that users have complete autonomy over their personal data, reducing the risk of breaches and unauthorized access.
Imagine a world where signing up for a new service doesn’t mean filling out lengthy forms or remembering another password. With a self-sovereign identity, your digital identity is as unique and immutable as your fingerprint. It’s a world where you control your data, decide who gets access, and for how long.
In Web 2.0, our digital identities are fragmented, scattered across platforms, and frequently exploited for profit. Web3 offers a fresh start to a nuance of possibilities once said impossible to achieve. A unified, self-sovereign identity where you control, manage, and authenticate your digital self — an identity that respects privacy, autonomy, and individuality.
The evolution of self-sovereign identity
The evolution of digital identity has gone through four key phases.
- Centralized Identity: Here, a single authority, like a corporation or government, controls your identity. They own, manage, and store your data.
- Federated Identity: This phase saw the rise of third-party identity providers. Think of logging into various services using your Google or Facebook account.
- User-centric Identity: Users gained more control over their data, but still relied on third-party intermediaries for authentication.
- Self-sovereign Identity: The current and most revolutionary phase. Individuals fully own, control, and share their identity without relying on any central authority.
The origins of self-sovereign identity can be traced back to the need for a more private, secure, and user-centric approach to digital identity. With increasing data breaches and growing concerns over privacy, the digital world has demanded a system where individuals, not corporations, hold the power.
A recent Consensys Report revealed that 83% of global respondents deem data privacy important, whereas only 43% express trust in current Web 2.0 platforms and services.
Leaving us to wonder: What other marvels does Web3 hold?
Web3 Technologies
The building blocks
The technologies that enable the existence of Web3 are not just tools; they are the very foundation upon which the new digital epoch will be built. They represent a shift from centralized servers where data can be manipulated or censored, to a decentralized world where data integrity is maintained by consensus. The building blocks of Web3 can be divided into the following technologies:
- Blockchain: A decentralized ledger that ensures immutability, transparency and security. See VagaChain.
- Smart Contracts: Self-executing contracts with the terms directly written into code, ensuring trust, efficiency, and automation.
- Decentralized Applications (dApps): Applications that run on peer-to-peer networks (e.g. blockchain), eliminating the need for intermediaries.
- Self-sovereign Identity (SSI): SSI empowers users with full control and ownership of their digital identities, eliminating reliance on centralized authorities and enhancing privacy and security in online interactions.
- Interoperability and P2P Interactivity: The ability for different systems and networks to work together seamlessly and foster peer-to-peer interactivity (e.g. Inter-Blockchain Communication Protocol — IBC).
- Tokenization: Tokenization in Web3 represents a transformative approach to asset ownership, allowing for secure, transparent, and fractional ownership of a wide array of assets on the blockchain.
- Artificial Intelligence (AI): Computers can understand and process information similarly to humans, through technologies based on Semantic Web concepts and natural language processing.
- Machine Learning: A branch of artificial intelligence (AI) that uses data and algorithms to imitate how humans learn, gradually improving its accuracy.
Web 2.0 vs. Web3: A deeper dive:
While Web 2.0 platforms democratize content creation and profit from user data, Web3 aims to democratize power by rewarding users for their contributions and participation in the network, creating a more equitable digital ecosystem.
Users are no longer just consumers; they’re contributors to the network’s value. It’s a shift from data being the product to data being the asset.
Some experts believe Web3 will replace Web 2.0, while others think they will coexist and complement each other. The coexistence of Web 2.0 and Web3 will ultimately lead to a hybrid model, where centralized platforms adopt decentralized features to meet user demands and expectations, and vice versa.
Web3 Utilities
Tangible application of the technology
Web3 represents an evolution in how we interact with the digital world, promising a future where our online lives are as tangible and controllable as our physical ones.
Consider the implications of a Digital Product Passport (DPP) within this framework, providing an immutable and transparent network of Data Provenance, empowering the circular economy.
Imagine applying for a job, and instead of a resume, your blockchain-backed achievements speak for you — immutable and indisputable.
Or consider accessing an event where, instead of a ticket, your self-sovereign identity — you — is sufficient, and the person at the gate doesn’t even need to know your name.
Non-Fungible Tokens (NFTs) can also serve as an alternative for identity management, through a process known as Token Gating, when self-sovereign identity is unavailable or of incompatible use.
Token Gating goes beyond identification and access rights. Holding a specific token, whether it’s a digital representation of a painting, a piece of music, or a certification, isn’t just about investment; it’s a ticket to a collective, a shared space where your stake is universally recognized and rewarded. It’s akin to being a shareholder in an exclusive club where your voice and vote matter.
When we talk about documentation and certification on the blockchain, we’re envisioning a world where your credentials — your digital passport — are as mobile and universal as you are. Gone are the days of lost certificates or credentials tied to one institution. Your accomplishments follow you, verifiable by anyone, anywhere, anytime.
See Credentify
Not only academia can benefit from this technology, but also others that range from: health care; food & beverage; automotive parts & accessories; insurance; fine arts; trade finance, and more.
The integration of fiat on and off ramps is a nod to pragmatism in the Web3 vision. It acknowledges that while the future is digital, the present is still very much analog. These ramps ensure a smooth transition to a tokenized economy, offering familiar user interfaces in a rapidly evolving ecosystem.
At the center of this is the Web3 wallet, the nexus of your digital persona. It’s a personal archive, a secure vault, and a gateway to the decentralized web, all rolled into one.
Tokenized markets and fractional ownership are perhaps the most vivid illustration of Web3’s potential. Ecosystems where every digital asset, from artwork to real estate, can be traded with the same ease as stocks on an exchange. It’s a redefinition of ownership, where the lines between the physical and digital overlap.
Decentralized finance, or DeFi, allow for various financial services, including lending, borrowing and trading; Supply Chain Management powered by platforms like Vagabond use blockchain and Web3 technologies to track products from their origin to their final destination; Metaverse, a term quickly popularized by Meta (Facebook), combines real time digital experiences in a universe depicted by fictional reality.
The full realization of Web3 utilities is still unfolding, the foundations are being laid today — we’re all pioneers — and the trajectory is ours to chart.
The future is unwritten.
The Adoption Curve
Web3’s rise
Recent data shows a significant uptick in the usage of Web3 technologies, both by early adopters as well as by some of the largest retail and B2B brands in the world. Users are not merely aware of technologies like blockchain or their speculative aspects but are actively using them as instruments to add new value propositions and efficiencies, or digitally transform processes.
More than half — 52% — of the Fortune 100 have pursued crypto, blockchain or
Web3 initiatives since the start of 2020.
We are clearly in the early stages of the adoption life cycle, indicating the potential for broader utilization in the future.
Web3 trends and markets
Non-Fungible Tokens (NFTs), once a fringe concept, now command mainstream attention, with transaction volumes for digital art alone crossing the $2 billion mark despite the recent bear market and reduced hype since early 2022 market highs. Similarly, Decentralized Finance (DeFi) has ascended, with over $50 billion total value locked (TVL), redefining ownership by eliminating intermediaries in banking, financial, and insurance service applications.
- The cryptocurrency total market cap is over 1.5 trillion USD with a vigorous rise of over 100% year to date of this publication.
The transition to Web3 is also evident in the corporate world. The exponential growth of Blockchain-as-a-Service (BaaS) is expected to expand at a compound annual growth rate (CAGR) of 35.2% until 2029. BaaS platforms provide accessible entry points for businesses to leverage blockchain as part of their overall digital transformation strategy and is quickly becoming as foundational as the internet was decades ago.
The rising integration involving the Internet of Things (IoT) and Artificial Intelligence (AI) is also a key trend in Web3 and the BaaS market. The integration of AI algorithms with blockchain and IoT data can provide valuable insights from the collected data and a plethora of new use cases still in discovery mode.
Web3’s challenges
Remember all of the businesses and startups launched during the dot-com boom in the 1990s? Of the many that were spawned, very few survived. Was there a lot of turmoil and change while we were finding our way to doing business on the internet? Yes. Did that rapid change make the internet a fleeting fad? No. Neither will be for the decentralized web.
Yet, the narrative of Web3 is not without its challenges. A low user retention rate of around 18%, coupled with friction in using dApps, steep learning curves, and overall lack of simplicity, hinder the adoption of Web3 by both individuals and businesses. Regulatory uncertainty and the technology’s general misunderstanding by lawmakers remain evident issues yet to be resolved with little to no global agreement or standardization in sight.
The interest of Web3 developers is also greatly influenced by fluctuations in the cryptocurrency market. The phrase ‘It’s only fun when you make money’ fittingly describes the adoption curve and talent capture in Web3.
In 2023, an estimated 21,300 monthly active developers contributed to open-source Web3 projects per month. However, there has been a decline of 22% in the number of developers since June 2022, in line with the current crypto bear market of 2022–23.
Blockchain wars and Crypto Twitter, or Crypto “X” as it should now be called, have not slowed down either. Web3 social communities heavily debate every blockchain technology variation, from decentralized to private — or “permissioned” — blockchains, but no one knows which one or ones will ultimately succeed.
Is it scalability, speed, security, decentralization, the size of the community/developer base, … , or is it a perfect balance of all of the above?
To add, a significant number of Web3 developers persist in creating solutions in search of problems, which often lead to further complications, sidelining the solving of real issues that we face today in our society and on our planet. Speculation around hypothetical use cases dominates the narrative, often lacking vision and practical application. Instead, it tends to follow trends that may guarantee short-term returns on investment (ROI).
Web3 is the largest global experiment to date, seeking a clear path of adoption through uncertain times.
Signs of maturation of the technology
Metamask’s prominence as the wallet of choice for over 35% of Web3 users is a nod to the ecosystem’s maturing infrastructure. It’s a sign of a community with people and businesses finding a common ground in tools that empower and enable.
Other signs of maturation include the surge of clear regulatory frameworks in regions like the UAE and Singapore, which have emerged as a model when it comes to adopting a balanced regulatory and legal framework for cryptocurrencies and businesses dealing with them — embracing the technology rather than offering resistance — opening a path to mainstream Web3 based products and adoption.
In parallel, the corporate world is recognizing the value of Web3 and blockchain technology, particularly in the sustainability and efficiency domains. Major B2B players are leveraging these technologies to create a foundational toolset for the circular economy. Blockchain’s inherent transparency and immutability prove beneficial in ensuring the integrity of supply chains, enhancing traceability, and combating issues like counterfeiting.
But this is not enough, most of the world is still facing hurdles. Take a look at the United States of America, where competing governmental entities fight for power with no consensus or focus on embracing the technology in sight.
What can be done for wider adoption?
Simplification of systems to a point where they are seamless to use is a must. For example, instead of asking everyone to remember a 24-word Mnemonic seed phrase to access their accounts, functionality like decentralized recovery and universally accepted self-sovereign identities will make Web3 much more accessible to a wider audience, especially to those not at the bleeding edge of technology.
Standardization of protocols, especially in light of interoperability between blockchains and Web3 applications, are a base requirement to open a clear path for developers to build upon. Despite claims from many blockchain technologies, true interoperability remains elusive. This situation echoes the early days of Web 1.0 when ISPs like CompuServe, AltaVista, and AOL offered a fragmented “world wide web” at best. While professing global data connectivity, they fell short of delivering a truly interoperable and interconnected user experience — only realized with the advent of the www and https standards.
A true contender to be the global Web3 standard for interoperability lies in the Interconnected Blockchain Consensus (IBC). One of the most promising projects providing a similar interoperability experience to the TCP/IP protocol of the internet, which gave birth to the www as we know today.
Regulation and universally accepted Web3 standards must coexist to lower the barrier of entry and reduce uncertainty. The current landscape is marked by a lack of a unified regulatory framework, leading to varied approaches across different jurisdictions. Clear, coherent regulations will not only provide a sense of security to users and businesses but will also encourage responsible innovation. The establishment of widely accepted standards in the Web3 space is necessary for a cohesive and interoperable ecosystem. Collaborative efforts from industry stakeholders, regulatory bodies, and technology developers are required to define these standards, ensuring a smoother and more secure path toward the widespread adoption of Web3 technologies.
Although progress is evident, we are still in the very early stages of transitioning into Web3 in any meaningful way. With the addition of AI technologies, machine learning, deep learning, and neural networks, we have in our hands a Pandora’s box of innovation and use cases of incomprehensible dimension.
Vagabond Solutions and the Web3 Promise
Our vision at Vagabond Solutions mirrors the larger transition from Web 2.0 to Web3. We recognize the potential of a decentralized web, and with initiatives like Credentify, we’re not just leveraging Web3’s potential; we’re actively shaping it. Our commitment is to a transparent, user-centric online ecosystem where every individual can truly harness the power of the Web3.
Businesses that recognize the opportunity presented by Web3 early are vastly more prepared for the culture shift and future of business than their counterparts who dismiss the decentralized web as untenable.
Web3’s promise is undeniable, but it’s not without challenges. Scalability, interoperability, and user adoption are friction points yet to be fully overcome. But with every challenge comes opportunity. As pioneers in this space, we have the chance to shape the future, to address these challenges head-on, and to pave the way for a truly decentralized web, one block at a time — that serves both individuals and businesses worldwide.
we’re just getting started…
Disclaimer
This article does not constitute any investment advice, financial advice, trading advice, or recommendation by Vagabond Solutions, its affiliates, or its respective officers, directors, managers, employees, agents, advisors, or consultants on the merits of purchasing the VGO, VGB, or VAGA coin. It should not be relied upon in connection with any other contract or purchasing decision.
Uncertainty in tax legislation relating to cryptocurrency tokens and digital assets may expose cryptocurrency token holders to tax consequences associated with the use or trading of the token.
Digital assets and related products and services carry significant risks. Potential purchasers should consider all of the above, along with any other applicable risk disclosures we provide and the advice they obtain. They should assess the nature of and their own appetite for relevant risks independently and consult their advisers before making any informed decisions.
About Vagabond Solutions
As a Blockchain-as-a-Service (BaaS) company, Vagabond Solutions FZCO utilizes blockchain and AI technologies to provide businesses with innovative solutions that accelerate processes, improve transparency, and enhance security. Our platform is designed to help businesses transition to next-generation technologies that are more efficient and sustainable.
What sets Vagabond apart is its unique approach to combining blockchain, Web3, and AI technologies to deliver cutting-edge solutions for businesses. Our Blockchain-as-a-Service platform provides an all-in-one solution for companies looking to leverage blockchain technology to improve their operations and stay ahead of the competition. Furthermore, our focus on sustainability and environmental responsibility distinguishes us from other blockchain companies, as we aim to create a positive impact on the planet while delivering top-notch technology solutions to our clients.
Founded in 2020, Vagabond has been dedicated to building a comprehensive suite of blockchain-based solutions that cater to businesses of all types and sizes. Our team of experts, including developers, designers, and business strategists, are committed to creating innovative and user-friendly solutions that meet the needs of our clients.
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