Centralization has facilitated the onboarding of billions of users to the Web as well as the creation of a solid, reliable infrastructure that supports it. Simultaneously, a few centralized companies control significant swaths of the Internet, selecting what should and therefore should not be permitted arbitrarily.
Web3 is the solution to this problem. Web3 emphasizes decentralization and is produced, operated, and controlled by its users, rather than being monopolized by the big techs. Individuals, rather than businesses, wield power in Web3.
Web 2 i.e. the Internet as we see it today gave us the ability to read and write on the go. Dominated by businesses that offer services in return for your personal information. The decentralized program that operates on the blockchain is referred to as Web3 in the context of Ethereum. These are applications that allow anybody to join without their personal information being sold. Although defining Web3 is difficult, there are a few guiding concepts that govern its development.
Web 3 is different because it removes the middleman. There is no centralized database for storing application state, and no single web server for hosting backend logic. Instead, you may use blockchain to create apps that run on a decentralized state machine maintained by anonymous internet nodes. When it comes to web3, you’ll find that bitcoin is frequently mentioned. This is because many of these systems rely heavily on cryptocurrencies. It offers a monetary incentive to anyone who wishes to help create, control, contribute to, or improve one of the projects itself.
Instead of significant portions of the internet being managed and owned by centralized companies, Web3 distributes ownership among its creators and users. Web3 is permission less, which means that anybody may join and no one is barred.
Web3 offers native payments: instead of depending on the outmoded network of conventional banks and payment processors, it spends and sends money online using cryptocurrencies.
Web3 is decentralized: instead of relying on trusted third parties, it runs through incentives and economic systems. Your data is stored on the blockchain in Web3. You may take your reputation with you when you leave a platform, plugging it into some kind of interface that more clearly matches your ideals.
Web 3 has the potential to significantly change the way we engage with the Internet, and platforms, you cannot block or censored someone on a web 3 based social media, and financial transactions cannot be traced, tracked, or blocked which has posed challenges for law enforcement
Identity and data are owned by a third party in Web2, but now your identity travels freely between sites without personal data being acquired and sold by service providers. While Web2 applications are centralized, Web3 tokens provide consumers the ability to help manage the companies they use, thereby giving them ownership of the platforms.
Web 3.0 in cryptocurrencies, refers to the third-generation internet, in which apps and websites process data in a more human-like manner. Web 3.0 will thrive thanks to innovations like big data, machine learning, and decentralized ledgers. “If the pre-internet/web1 era favored publishers, and the web2 era favored platforms, the next decades of advancements — known collectively as web3 — is all about tilting the scales of power and ownership back toward creators and users,” wrote cryptocurrency investor Li Jin and writer Katie Parrott. Helium was an outstanding demonstration of a web3 program that illustrated how it differs from previous technology.
Helium is a crowdsourced, crypto-powered wireless network. People can join the Helium network to share capacity from their household or office Wi-Fi networks by plugging a specific device into their laptop or router. When adjacent devices use their bandwidth, they are compensated with Helium tokens. The more frequently their hot patches occur.
From a technical standpoint, several skeptics feel that Web3 makes no sense. They point out that blockchains are much slower and less capable than traditional databases, and that even the most popular blockchains today couldn’t handle the amount of data that Uber, Facebook, and YouTube generate daily. They claim that for Web3 services to work as well as users expect, centralized services must be built on top of them, defeating the objective.