Ever wondered why Web3 is the word on everyone’s lips? The web as we know it today is evolving into something distinctive and it’s all thanks to web3, the latest version of the internet. How we create, interact and communicate has changed over the years following innovation and a major change is happening through Web3. This article aims to explore how the web has evolved, what Web3 is and how it’s changing the digital landscape as we know it today.
How it all began
Web1 was the first generation of the internet. It was in operation between the years 1989 to 2005. This version of the internet gave people access to information and resources giving it the name “Read-only” web. There was little or no interaction between users at that time. Come online, and get information on what you need was the trend.
Web 2 is the second generation of the internet. With the new upgrade, people were able to create content and contribute to the information available on the internet. This version of the internet also led to the rise of platforms like Facebook and Google. Web2 aims to foster interaction and connectivity with individuals all around the world. The tagline for Web2 is the “Read-write” web because we can search for resources and share our ideas with everyone.
However, there's a problem. The information created is not entirely yours in Web2 as you are using their server. These companies can choose to delete your account or information because they are in control of it.
Web 3 is the third and latest generation of the internet. It solves the “ownership” problem faced in Web2 and allows users to read, write and own content. This is possible using a technology known as the blockchain; a digital ledger that stores information and transactions in blocks across a set of computers making sure no single entity has control over the network.
Using this new technology permits some features unique to Web3 which are outlined below:
Transparency: Every data stored on the blockchain is verified by nodes; humans behind the computer networks in a blockchain. This allows for a transparent workflow and ensures no hidden information finds its way into the network.
Decentralization: This is the separation of decision-making power amongst groups rather than concentrated in a single entity. For example, in a blockchain, every node has a say in which information should be stored in the blockchain. No head node decides what to do.
Immutability: This means to be unchangeable. Information stored on the blockchain cannot be changed. This is due to the chronological order of data entry. New information is always linked to the previous entry forming a chain.
Consensus: is a set of rules that is used to achieve trust and agreement. Every blockchain has a consensus which is used to determine the authenticity of an information or transaction.
How Web3 is changing the Digital Landscape
Various industries including finance and media are operating in a new light because of the application of Web3 principles. In this section, we will dive into the details of these changes and how they change the paradigm of operations.
- Finance
Decentralized Finance, popularly known as DeFi is the Web3 version of the finance industry as we know it. It opens up a new kind of accessibility and ownership of money in such a way that traditional banks can’t afford to. DeFi is simply an umbrella term for everything financial services - lending, borrowing, insurance, asset management and investments in a decentralized way. It can be accessed through a Web3 wallet, phone and internet connection. No stringent restrictions in DeFi. Everyone is welcome to participate and join in. DeFi also offers a new stream of income like staking; where you lock your assets for some time and earn interest monthly or yearly.
- Media
Social Media offers access to information and people across the globe. Businesses and organizations also make use of the media by creating content and showcasing products/services. Keep in mind that these platforms are not truly ours. We are only using a borrowed platform to communicate and it can be taken down at any time the management decides to. For example, Facebook can decide to delete your account without concrete reasons and everything you have built there would be gone. However, with Web3, it is not possible as it operates in a decentralized manner.
- Gaming Industry
Web3 is taking gaming to another level. Playing traditional games has proven to have no real value outside the games but with web3 it’s different. A popular example is Axie Infinity, a game about kitties called axies who battle and hunt for treasures. In-game items and artefacts have value and can be traded for money. This and many more possibilities are available with web3 games, unlike traditional games where players invest time and get nothing in return.
Conclusion
Web3 is not just the next upgrade of the internet. It has come with numerous benefits and is transforming various industries in the world. Changing the status quo by making life easier and better for everyone. Companies like Nike are already incorporating Web3 into their operations. Statistics have also shown that the industry is set to grow to $65.78 billion by 2032. By that time everyone would be in on it. To be a part of the people leading the frontiers of web3, you need to stay updated. Follow me to get notified of the latest information on web3 and opportunities you can maximize in this space.