The internet has become a very vital part of our daily lives. It has undergone significant upgrades since inception. From the static read only internet service to the read/write internet version and now Web3 which is said to be the future of the internet.

Brief History of the Web

To fully comprehend what Web3 is about we need to consider the preceding internet version (the Web2 and Web1)

Web1

Web1 also know as the “static Web” or the “read-only Web” is the first stage of the internet that is characterized by limited user interaction, static websites and one-way communication. Users are consumers of content and cannot readily interact with other users or react to information. Examples include static HTML pages, simple informational websites, early online directories and the likes. Web1 was invented in 1994 and lasted till 2004.

Web2

This is the second generation of the World Wide Web and unlike the static read-only Web1, Web2 is characterized by interactive, users generated content and social networking. Examples of Web2 are Facebook, twitter and so on. Web2 encourages active participation, content sharing, collaboration and rich user experience. However, Web2 is centralized which makes it vulnerable to social manipulation, Identity theft, data breaches and lack of transparency in data collection.

These limitations have led to the development of Web3, which aims at creating a more decentralized, transparent and secure internet space.

What is Web3?

Web3 is the third generation of internet technology. It is a vision for a decentralized, secure and transparent internet services. It is built on blockchain which permits transactions without the need of intermediaries. It is part of the Web3 vision to create an inclusive, data and profile secured space, not organized around few major platforms or owned by a single entity.

Importance of Web3

The decentralized structure of the Web3 has made it more efficient in the following areas:

Transparency: Web3’s transparent and tamper-proof nature ensures that data is accurate and trustworthy.
Security: blockchain based security measures and decentralized architecture of Web3 provides a more secure and resilient internet space.
Inclusiveness: this structure promotes high level of interaction and engagements which can be monetized.
User control: Web3 gives users more control over their data, identity and interactions.
Business models and revenue streams: Web3’s decentralized architecture and token- based economics enable new business models and revenue streams.

Key Features of Web3

Now that we know what Web3 is, and its benefits. It is important to consider it’s key features:

Decentralization: Web3’s core principle is decentralization which means control and ownership are distributed among users and not held by a few entities, using technologies like blockchain to achieve this.
Blockchain: Blockchain is the technology that digital currency, crypto currency and bitcoin are built on. More specifically, it’s the underlying technology that constructs a decentralized digital ledger that enables exchanges among multiple parties in a secure, immutable manner.
Crypto currencies: A cryptocurrency is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank to uphold or maintain it. Examples are bitcoins, litecoin, namecoin, peercoin and so on.
Tokens( fungible and non-fungible tokens): In Web3, tokens are digital assets that enable the functioning of decentralized applications (dApps), digital transactions, and smart contracts, often representing ownership, utility, or governance within a specific ecosystem. Examples of tokens include chainlink’s LINK, filecoin’s FIL, and Arweave’s AR.
DAOs( decentralized autonomous organizations): Decentralized autonomous organizations sometimes referred to as decentralized autonomous corporations, is an organization managed in whole or in part by decentralized computer programs, with voting and finances handled through a decentralized ledger technology like a blockchain. Examples of operational DAOs includes DASH, a cryptocurrency managed by its users, makerDAO, a software that maintains a stable coin, and Augur, prediction market platform.
DEFi( decentralized finance): DEFi is a blockchain-based financial system that aims to disrupt traditional finance by providing financial services like lending, borrowing and trading without intermediaries like banks or brokers, using smart contracts and peer-to-peer transactions.

Limitations and of Web3

As exciting and promising Web3 is, here are some of the challenges and limitations to be considered:

Scalability: due to the decentralized architecture of the internet can make it difficult to meet the demand of the global user base. Handling a large volume of transactions quickly and efficiently might be difficult, potentially leading to slower speeds, higher fees, and hindering mass adoption.
Regulations: Web3’s decentralized nature raises regulatory challenges as institutions and government might struggle to understand and adapt to this new concept.
Accessibility or user adoption: Web3’s complex structure can it difficult for mainstream users to understand and adopt the new paradigm.

Conclusion

The Web3 vision is one with high potential of making a better internet service for users by decentralization of data storage, transparent transactions and user ownership. It is a vision for a better internet future.

What is Web3 and Why is it Important?