In 1991, the very first webpage ever made was launched. It's still accessible online today.
With over 5 billion active users today—roughly 63% of the global population—the internet has come a long way since its inception.
Some individuals think that Web 3.0, or Web3, as it's commonly known, is a new paradigm for the internet. They contend that a new wave of technologies has the potential to upend society in the same way as Web 1.0 did in the 1990s.
In spite of these grandiose assertions, Web 3.0 can be a vague and perplexing idea. To get a better understanding of Web 3.0, let's examine its proponents and detractors in more detail.
Web 01: The Static Web
The term "static web" refers to the initial iteration of the internet. It was composed primarily of read-only webpages with few interactive elements overall.
All that Web 1.0 offered was the ability to browse static pages. Only a few people were in charge of creating the content, and it was difficult to locate information.
Web 02: The Dynamic Web
The first Web 2.0 conference was held in October 2004 by O'Reilly Media and MediaLive to showcase a variety of newly developed web-based software products.
Late in 2005, YouTube made its debut. The website that shared videos had a significant role in the Web 2.0 revolution, which signalled the transition of the internet to a dynamic content era. Now, users could engage with web pages, exchange messages with one another, and produce content.
For a lot of people, the rise of social media networks represents this era's biggest emblem. Smartphones quickly followed, with the 2007 release of the first iPhone.
Soon, everyone was using the palms of their hands to instantly create, share, and comment on content. Web 2.0, or the modern internet, might be viewed as the read/write upgrade to Web 1.0, which was the read-only version.
What is Web 3.0?
We now arrive at Web 3.0. Consider it the internet's "read/write/own" upgrade.
Determining an exact definition of Web 3.0 is difficult because it is still just a collection of ideas. Web 3.0 includes the technologies and ideas that are fundamental to cryptocurrencies for developers and enthusiasts: blockchain, token-based economies, and decentralisation.
This Web3 idea resembles the online environment of today more democratically. Its core premise is ownership—transferring power from the powerful big data businesses and other central authorities to the general public. This is what decentralisation entails.
Through peer-to-peer online commerce, decentralisation eliminates middlemen and takes authority away from centralised organisations. The privacy, transparency, and ownership of users are given more consideration.
This is where cryptocurrencies and blockchain technology enter the picture. This decentralised paradigm is made possible by cryptocurrencies and the token economy, which let data to be recorded on a distributed ledger without being under the control of a single institution.
Although some cryptocurrency initiatives claim to be democratising, allowing token holders to take part in governance, a common critique of Web 3.0 is that power is concentrated among early adopters and venture capitalists.
Web 3.0 Technologies
There are numerous directions Web 3.0 development could go in the future. A handful of the Web3 technologies that are beginning to be used now are as follows:
DeFi: Decentralised Finance
Decentralised finance, or DeFi, is one of the most interesting industries.
By eliminating the need for centralised entities like banks, payment processors, and other middlemen, DeFi seeks to transform the financial industry. A peer-to-peer blockchain-based financial system would take their place.
Proponents contend that this strategy would improve capital allocation, lower fees, and speed up transactions.
Increased transparency would also be possible, as with most Web3 apps, because publicly accessible blockchains make all loan amounts, collateral, and other data visible to everybody.
Additionally, accessibility is improved, which is significant for some countries. Without documentation or third-party authentication, DeFi would be available to everyone with an internet connection.
NFTs: Non-Fungible Tokens
On the blockchain, there exists a class of digital assets called non-fungible tokens (NFTs).
Since NFTs are not fungible, each one is distinct from the others. In comparison, one dollar is exactly the same as any other dollar because they are fungible.
Although proponents see many possible applications for NFTs, digital artworks have been the only widely used application up to this point. In 2021, multimillion-dollar purchases of digital art NFTs were typical as the cryptocurrency sector took off.
However, the NFT market imploded in 2020 as the crypto winter descended. Expert financiers and observers of the art industry dismissed NFTs as little more than a bubble in speculation.
NFTs are still being supported by the crypto community, and Web3 proponents believe they can be helpful for confirming intellectual property, certifying documents, and offering a variety of crypto gaming features.
Giorgi Khazaradze, CEO of cryptocurrency trading platform Aurox, claims that NFTs "could change multiple different aspects of our daily lives, such as tamper-proof identification, concert ticket sales, and much more." "But for the time being, NFTs are still very speculative."
NFTs are supported by a wide variety of traded cryptocurrencies on their blockchains. Avalanche (AVAX), Solana (SOL), and Ethereum (ETH) are a few instances.
DAOs: Decentralised Autonomous Organization
Although the term "decentralised autonomous organisations" (DAOs) may seem technical, the idea behind them is straightforward. A DAO is an organisation that was established with a shared goal, and its plans, goals, and regulations are all recorded on the blockchain.
DAOs are run by their constituents. A DAO, according to its supporters, lacks red tape, bureaucracy, and hierarchy. They typically function using a democratic framework in which voting are conducted based on the quantity of cryptocurrency tokens that a user possesses.
According to Felice Gorordo, CEO of eMerge Americas, "the fact that all financial transactions are recorded on a blockchain, which eliminates any third-party involvement, makes a DAO attractive to many users."
Rather, the transactions are handled via transparent, editable smart contracts. A DAO, which deviates from the conventional vertical corporate structure comprising investors, executives, and a board of directors, permits all members to participate and vote on any necessary modifications, according to Gorordo.
How to invest in Web3
According to futurists, Web3 will play a crucial role in the internet's ongoing development. If this vision is realised, developers and investors may be able to take advantage of speculative opportunities.
If you think that Web3 is the way of the future, purchasing cryptocurrencies is a simple method to learn about it. NFTs allow you to purchase digital art or cryptocurrency that support DeFi protocols and DAOs.
Recall that Web3 is still in its early stages. These kinds of investments should be explored with a financial advisor as they are very speculative.
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