What is Web 3.0 (Web3)?
Web 3.0 signifies the forthcoming phase of the World Wide Web, serving as the interface facilitating access to internet documents, applications, and multimedia.
The precise definition of Web 3.0 remains unsettled as it is still under development. Analyst firms such as Forrester, Gartner, and IDC alternate between terms like “Web3” and “Web 3.0.”
However, it is evident that Web 3.0 will prioritize decentralized applications and likely integrate blockchain-based technologies extensively. Moreover, it will leverage machine learning and AI to enable a smarter and more adaptable web.
Why is Web3 important?
If the decentralization of the web’s architecture delivers even a fraction of the promised benefits advocated by Web3 proponents, it could profoundly reshape online interactions and revenue streams for businesses.
Web2 giants such as Amazon, Google, and Meta (formerly Facebook) experienced rapid growth by accumulating vast amounts of customer data and centralizing it for monetization. In contrast, Web3’s global peer-to-peer network might challenge such growth strategies reliant on data hoarding. Individuals would gain greater control over their online content and the utilization of their personal data.
Contrastingly, Web3 business opportunities are likely to revolve around leveraging this newfound capability to personalize web products and services. For instance, Web3 marketing capabilities could enable companies to strike a better balance between privacy and personalization compared to current web practices. However, they may encounter challenges adapting to Web3’s robust privacy measures in their existing digital marketing strategies.
The enhanced transparency offered by immutable blockchain ledgers could enhance customer service, as both parties have access to transaction records. Decentralized applications could facilitate easier monitoring of supply chains, breaking down data silos and providing visibility into suppliers’ activities. Real-time information sharing among supply chain participants could mitigate shortages and expedite deliveries.
Furthermore, Web3 serves as the foundational infrastructure for the metaverse, a proposed 3D virtual world where digital avatars interact and conduct business. Like Web3, the metaverse is still in conceptual stages and is expected to rely on blockchain or similar decentralized technologies for data infrastructure and financial transactions, as well as AI to enhance user experiences.
Given their intertwined technical and conceptual nature, the metaverse and Web3 are likely to evolve concurrently. The realization of the metaverse may hinge on the establishment of robust Web3 foundations.
How will Web3 work?
In Web1 and 2, HTML served as the cornerstone for defining webpage layout and delivery. While it will remain fundamental in Web3, there will likely be notable differences in how it interacts with data sources and where these sources are situated.
Traditionally, many websites and most Web2 applications rely on centralized databases to deliver data and facilitate application functions. However, in Web3, applications are expected to transition to decentralized blockchains, eliminating the need for arbitrary central authorities. This shift towards a more democratic approach to creating and validating information aims to grant users greater control over the web and the use of their personal data.
Another significant contrast between Web2 and 3 lies in the role of AI and machine learning. While Web2 allows users to contribute to and occasionally collaborate on content, Web3 is anticipated to delegate these tasks to the Semantic Web and AI. Consequently, Web3 is envisioned to be more “intelligent” and responsive, with data structured in a manner akin to Berners-Lee’s original vision for the web’s Semantic Web, and AI becoming more proficient at interpreting it.
The emergence of decentralized autonomous organizations (DAOs) in contemporary blockchain and Web3 ecosystems could further revolutionize web governance by decentralizing control and empowering self-governing digital communities.
Moreover, since Web3 relies fundamentally on cryptocurrency rather than fiat currency, financial transactions are expected to occur on decentralized blockchains instead of traditional financial service platforms.
Both Web1 and Web2 predominantly operated within the IPv4 addressing space. However, given the web’s exponential expansion over the years, Web3 will necessitate a significantly larger number of internet addresses, a requirement met by IPv6.
