Although the concept of Web3 has become one of the terms we begin to hear often, it is still far from being concrete. Web3 is the new version of the World Wide Web with a focus on decentralization, based on blockchain technology.
Currently, Web3 (aka ‘Semantic Web’) is an umbrella term that mostly covers blockchain projects related to cryptocurrencies.
This expansion plan is global. Web3 seeks to decentralize the power and profit of central authorities by creating more open, transparent and permissionless systems.
According to Tim Berners-Lee, the inventor of the World Wide Web, Web3 will allow computers to analyze all data and content. This is a step up from current Web 2.0 technology, which focuses more on people and the way we understand and interact with content. Web3 refers to a system in which machines and computers can understand and interpret human messages. It is a more ‘smart’ Internet that combines big data and artificial intelligence (AI).
The Rise of Web3
With growing concerns about data dominance by tech giants and the growing influence of Bitcoin and blockchain technology, the idea of a decentralized system has gradually attracted a new generation of Internet users to its side. In 2014, Ethereum co-founder Gavin Wood revamped the idea for Web3.
He believes there should be a low-threshold, uncensored, anti-monopoly distribution protocol to replace traditional technologies such as HTTP, AJAX and MySQL; It conveyed the expectation of a protocol that was strong and verifiable, able to protect the information flow of network users while remaining independent of any central entity.
It is believed that Web3 will evolve according to the following values:
- Verifiability
- not needing trust
- Self-management (high degree of autonomy)
- Permission (no central permission)
- Distributed structure (distributed computing)
While not the Semantic Web originally envisioned by Berners-Lee, the revamped Web3 concept in many ways brings us back to his original World Wide Web design, the place where you can share anything without getting permission from a central authority. Ideally, Web3 would not have a central control server, a single point of failure, and a kill switch.
Could Blockchain be the solution?
Powered by blockchain technology, Web 3.0 offers a potential solution to regain the privacy and reliability of the Internet and rebuild infrastructure around storage, data exchange and financial transactions. Such upgrades will enable secure peer-to-peer (P2P) interaction and reintroduce true ownership and verifiability.
The idea is that all data on the Internet is stored and shared in a decentralized way so that the Internet is smarter and more transparent and exists in a free and fair way, so that no individual or group can approve or reject data transmission.
In essence, the idea of decentralization is at the core of blockchain technology, so blockchain seems like the most promising solution to Berners-Lee’s vision. Theoretically, there may be a more centralized way to achieve this, perhaps even by law, but for now, blockchain is leading that vision.
There are many reasons for Web3 to be blockchain-based:
1. Blockchains do not have a single point of failure because they collectively manage data through uniquely connected datasets, also called the ‘universal state layer’. This makes them more vulnerable to attack.
2. Blockchains usually have built-in management rules encoded in the protocol and automatically eliminate censorship.
3. Blockchains allow users who do not know/trust each other to negotiate without intermediaries.
Which Blockchain Projects Are Using Web3?
A decentralized, blockchain-based Web3 system saves its data on distributed ledgers, so identities can be verified and data is censorship-proof. Users can protect and monitor their own data without having to hand it over to companies – they no longer need to rely on centralized giants with censorship rights over data and user information.
As a content creator, you can turn your work into digital assets. NFTs (immutable tokens), dApps (decentralized applications), DeFi (decentralized finance), and Tokenomics are all applications of Web3.
To some extent, most open source projects can be considered part of Web3. Still, there are a few crypto projects that have fully embraced the concept and are leading the way for others. We have briefly mentioned several such projects below:
Polkadot (DOT)
Polkadot was founded in 2016 by Ethereum co-founder Gavin Wood, one of the most prominent developers in the blockchain space. It is the flagship of the Swiss-based Web3 Foundation, founded with the goal of a fully functional and user-friendly decentralized network. Polkadot aims to revolutionize blockchain by creating true interoperability, higher transaction scalability, easier innovation, and a safer environment to protect every user.
Filecoin (FIL)
Filecoin is called the Airbnb of the data storage world. It is a cryptocurrency-focused storage network designed to provide a decentralized alternative to popular web services such as Cloudflare and Amazon Web Services. The project founder suggests it could be the fastest and cheapest way to store data on the internet if more people use it. Additionally, as there is no central authority in the Filecoin system, governments or other participants do not have the right to review or censor uploaded documents. Miners earn Filecoins by sharing their hard drive space, while users spend Filecoins to encrypt and store files in a decentralized way.
BitTorrent (BTT)
BitTorrent is a popular P2P (peer-to-peer) file sharing platform that dates back even before the birth of Bitcoin and Web3. The platform was launched in 2001 and has since become one of the most widely used decentralized applications. After launching on the Tron blockchain in 2021, it evolved into a tokenized blockchain project and issued its own cryptocurrency, BTT. It is currently among the 50 most popular cryptocurrencies.
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