Over the past few years the term web 3.0 has garnered international attention. Promising an open and democratic internet with incredible technological innovation it is hard to not be excited.
But you may be asking. What exactly is web 3.0?
Don’t worry. In this article, I will be answering that question and much more. So without further ado, let’s jump right in.
What is web 3.0?
Web 3.0 is the 3rd generation of the internet. It leverages blockchain technology and cryptocurrencies to create a secure system that is decentralized, trustless, and permissionless. Moreover, this system is built using Artificial Intelligence while also utilizing the internet of things.
How does web 3.0 work?
Web 3.0 works similarly to the conventional internet except it has implemented 4 key technologies, these include the following:
Simply put, blockchain technology is a distributed database that is completely transparent and open. It is secured by a decentralized network of computers known as nodes.
In essence, this creates a system that is not controlled by a centralized authority rather the power is distributed among a large network of participants.
Not to mention, the code for blockchain tech is open source. This provides an honest and transparent system. Moreover, a key tenant of web 3.0 and blockchain is the trustless and permissionless nature.
Anyone can participate and the trust is placed in the smart contracts rather than an intermediary. Therefore, communication is done peer to peer.
As a result, web 3.0 is censorship resistant and does not have a single point of failure. Moreover, it provides a more democratic solution when compared to web 2.0 as the power is given to the community.
Cryptocurrencies are decentralized digital currencies that use blockchain technology. They are important as they provide self-custody of digital assets.
Ultimately, in the web 3.0 world, the community has control of its data and assets rather than big tech.
One notable cryptocurrency technology is NFTs. These are unique contracts that provide scarcity in the digital world.
NFTs provide full ownership of assets. For instance, if a web 3.0 game implements collectible NFTs the player could then trade them on the open market and they would not be lost if the game ceases development.
AI & the internet of things
In web 3.0 artificial intelligence (A.I) is a key component. Essentially, A.I are computers that mimic human intelligence.
Often machine learning is used whereby various algorithms allow them to learn and develop based on the data they consume.
Ultimately, the use of A.I allows web 3.0 applications to be developed at unprecedented speed and complexity while being able to dynamically change based on various inputs.
Now when it comes to the internet of things. This provides increased connectivity across all devices. Essentially, this term refers to the aggregate of network-enabled devices excluding computers.
This includes smart devices. For example, smart fridges and heating, etc. Consequently, the overall network effect and data of the internet are increased.
This has several use cases. For instance, a business can monitor the energy expenditure of various devices as well as their total inventory.
This information can then be strategically used to improve efficiency and reduce overall costs.
Web 3.0 use cases
Metaverse – unless you have been living under a rock then you have probably heard of the Metaverse. Simply put, the Metaverse is the visual layer of the internet.
It is a limitless virtual world where people can interact. Thanks to web 3.0 technology it will be community governed, open, and permissionless.
This creates a world that is free with individual sovereignty.
DeFi – DeFi is an abbreviation for decentralized finance. In a nutshell, DeFi provides financial services without the interference of a middleman. This reduces fees and creates financial products that can be accessed by anyone.
Decentralized Autonomous Organizations (DAOs) – DAOs are community-governed and operated platforms. They are a way of organizing people across geographical locations and demographics to vote on a share mission. This creates a more democratic solution to the development of the internet.
Is web 3.0 the Metaverse?
Web 3.0 is a broad term that encompasses the Metaverse. Ultimately, the Metaverse will utilize many of the same technologies including blockchain and NFTs.
This will create an open decentralized world with digital scarcity and self-custody of assets.
Can web 3.0 be hacked?
Unfortunately, like most software applications, web 3.0 can also be hacked. You only have to look so far in the cryptocurrency industry to see this.
Hackers exploit smart contract code and steal hundreds of millions of dollars per year and as web 3.0 continues to develop it will only become more attractive to malicious actors.
When was web 3.0 created?
Although web 3.0 is simply the continued development of web 2.0. The term itself was coined by computer scientist and co-founder of Ethereum Gavin Wood in 2014. However, it did not get mainstream attention until 2021.
If you want to view this article in video format then check my video below:
As you can see, web 3.0 is an extension of the internet as we know it. Utilizing blockchain technology and A.I it aims to create a more democratic ecosystem with individual sovereignty.
Although the technology is in its infancy it has continued to gain traction as evidenced by cryptocurrencies. But where it will end up is anyone’s guess. I hope you found this article useful and thanks for reading it.
Want to learn about 12 pros and cons of web 3.0? Click here to read my previous article.