The first website in history was created in 1991. You can still view it online today. The Internet has grown dramatically since those early days and now has more than 5 billion regular users — about 63% of the world's population. Some people believe that a new paradigm for the Internet is about to emerge, called Web 3.0 (Web3). They claim that this next generation technology could be as disruptive as Web 1.0 did in the 1990s. However, despite these claims, the concept of Web 3.0 is both confusing and difficult to grasp. Let's take a closer look at the claims and criticisms of Web 3.0 to better understand it.

Web 1.0: Static Web

The first version of the Internet is sometimes called the “static web.” It is made up of read-only websites and generally lacks many interactive features.

Web 1.0 offered very few features beyond browsing static web pages. Content creation is handled by a select few, and information is difficult to find.

Web 2.0: Dynamic Web

In October 2004, O'Reilly Media and MediaLive hosted the first Web 2.0 conference to highlight a range of new software applications built on the web.

At the end of 2005, YouTube launched. Video sharing sites are an important part of the Web 2.0 revolution, marking the Internet's departure into the era of dynamic content. Users can now interact with websites, communicate with each other, and create content.

For many people, the biggest symbol of this era is the emergence of social media. Smartphones quickly took off with the first iPhone being launched in 2007.

Soon, we're all creating, sharing, and commenting on content instantly from the palm of our hands. If Web 1.0 was a read-only version, then Web 2.0 can be thought of as a read/write upgrade or what we call the Internet today.

What is Web 3.0?

Think of Web 3.0 as a “read/write/own” upgrade to the Internet. Coming up with a precise definition of Web 3.0 is a challenge. For developers and cryptocurrency enthusiasts, Web 3.0 combines the core technologies and concepts of cryptocurrency: decentralization, token-based economy, and blockchain.

This vision of Web3 tends to be a more democratic version of today's online world. It focuses on the idea of ​​ownership, removing dominant control from big data companies and other agencies. It gives control to the masses. This is the meaning of decentralization.

Decentralization means internet users can transact business peer-to-peer, eliminating intermediaries and removing power from controlling entities, with a greater focus on privacy, transparency and user ownership. This is where blockchain technology and cryptocurrencies come in. Cryptocurrencies and token economies facilitate this decentralized model, allowing information to be stored on a distributed ledger outside of the hands of any controlling entity.

Despite the claims of democratization made by some cryptocurrency projects, with token holders able to participate in governance, a widespread criticism of Web 3.0 is its lack of control. Centralized control among venture capitalists and early entrants.

Web 3.0 technology

There are many different paths that future Web 3.0 development could take. Here are some of the Web3 technologies that have been deployed:

DeFi: Decentralized Finance

One of the hottest sectors is DeFi, short for decentralized finance. DeFi aims to revolutionize the financial sector, eliminating the need for banks, payment processors, and other intermediaries. Instead, it will be a peer-to-peer financial system operating on blockchain.

Proponents say this approach will reduce fees, increase transaction speeds and allocate capital more efficiently.

Like most Web3 applications, transparency will also be enhanced, as all loan amounts, collateral, and other data are available for anyone to view on publicly accessible blockchains. declare.

Importantly for certain jurisdictions, accessibility is also enhanced. Anyone with an internet connection can access DeFi without paperwork or third-party verification.

Its advocates argue that most of what banks and other financial intermediaries offer can be achieved through DeFi. This includes bank deposits, lending and borrowing, property transactions and insurance, among others.

Some examples of popular DeFi protocols include Uniswap (UNI), Aave (AAVE), and Chainlink (LINK), which are designed to conduct financial transactions.

NFT: Non-fungible token

Non-fungible tokens (NFTs) are a type of digital asset that exists on the blockchain.

Each NFT is unique (non-fungible) and no two NFTs are identical. This is in contrast to dollars, which are fungible – one dollar is exactly the same as any other 

any other dollar.

Advocates see many potential use cases for NFTs, but so far the only widespread use has been for digital works of art. As the cryptocurrency market accelerates in 2021, sales of digital art NFTs worth millions of dollars are the norm.

But as crypto winter began in 2020, the NFT market collapsed. Professional investors and art world critics consider NFTs to be nothing more than a speculative bubble.

The crypto world hasn't given up on NFTs, and Web3 proponents see them as useful in verifying intellectual property rights, authenticating documents, and other crypto gaming features.

“NFTs can change many different aspects of our daily lives, such as tamper-proof identification, ticketing,” said Giorgi Khazaradze, CEO of crypto exchange Aurox. concert…

“For now, however, NFTs remain extremely speculative.”

Many trading cryptocurrencies support NFTs on their blockchain. A few examples include Ethereum (ETH), Solana (SOL), and Avalanche (AVAX).

DAO: Decentralized Autonomous Organization

Decentralized autonomous organizations (DAOs) may sound complicated, but the basic concept is simple. A DAO is a group formed for a common purpose, with its rules, plans, and goals all encoded on the blockchain.

DAOs are controlled by their members. Proponents claim that DAO has no hierarchy and no bureaucracy. Most commonly, they operate based on a democratic structure, where votes are taken in relation to the number of cryptocurrency tokens held by the user.

“What makes the DAO so attractive to many users is that all financial transactions are recorded on the blockchain, which eliminates any third-party involvement,” said Felice Gorordo, CEO of eMerge Americas. Tuesday".

“Transactions are performed through transparent and uneditable smart contracts. Breaking away from the traditional corporate structure, DAO allows all members to participate and vote if any changes need to be made,” said Gorordo.

How to invest in Web 3.0

Futurists believe that Web 3.0 will become an essential part of the ever-expanding development of the Internet. If this vision comes to fruition, it could open up speculative potential for investors and developers.

If you believe in the vision of the future, buying cryptocurrency is an easy way to access Web3. You can buy cryptocurrencies that support the DAO and DeFi protocols, or buy digital art in the form of NFTs. Remember that Web 3.0 is in its infancy. Investments are highly speculative and should be discussed with a financial advisor.

Source: Forbes Advisor