LeoGlossary: Web 3.0

5 mo (edited)
LeoFinance
5 Min Read
1011 words

How to get a Hive Account


What Is Web 3.0?

Web 3.0 is considered to be the next generation of the Internet. It is discussed heavily in the cryptocurrency world since many feel that blockchain will be at the core of it.

A key concept is the idea of decentralization. As compared to Web 2.0 which uses servers controlled by the associated companies, Web 3.0 is designed to have nodes that are run by individuals all over the world. These networks are permissionless meaning that anyone can build upon them.

The true evolution of this can only be seen in hindsight. Monetization, for example, will go through many experiments. That said, we are likely to see cryptocurrency as a major part of this transition. It already operates in the digital realm and showed the ability to expand as the Internet does.

Another basic concept, according to proponents, is the ability to have immutable data storage along with true account ownership. Most of the present web applications require a sign in that the platforms control. Web 3.0 offers the potential where individuals cannot have their accounts cancelled.

The underlying belief is Web 2.0 became siloed. A major promise of the next generation is creating layers that are not controlled by major technology companies.

Web 2.0 allows people to read and write to the Internet. Web 3.0 is going to allow people to own the Internet.

Internet Phases

This applies to the different phases of the Internet.

Web 1.0: Roughly 1991-2004. It was an era where the webpages were static. Most users were consumers of content, not producers. The information flow was one-way.

Web 2.0: Started in 2004 and goes to the present. The Internet became a communication system. Information flowed in two directions as users were not only consumers of content, they were also the creators of it. The comment is the most basic level. Web 2.0 is known for forums, blogs, wikis, and social media.

Web 3.0: The next phase of this evolutionary process.

The Design

The infrastructure of Web 3.0 is being constructed. Many look to the development around blockchain as evidence of this transition. This uses Distributed Ledger Technology (DLT) to have all transactions and other information stored in a decentralized manner.

It is impossible to know what Web 3.0 will look like until we view it in from the future. There will certainly be some technological developments that most are not expecting.

An example of a Web 3.0 application is Metamask. This wallet requires no 3rd party involvement. At the same time, transactions are not processed by a company. There is no verification process on the individual.

Most, if not all, industries will be affected. At the head of the list is the gaming industry. We see this sector filled with the use of in-game assets and tokens. The present challenge is all value is locked in the game. It disappears the second the game is turned off.

With Web 3.0, all digital assets reside on a blockchain and are accessed via a wallet housed outside the game. This radically alters the ownership model of anything tied to gaming.

Social media is another industry that will see a paradigm shift due to the emergence of Web 3.0. Since these are going to be built upon decentralized databases, the data is available to any application that integrates with it. Here we again see a shift in the value, from the company to the data written to the network.

Ethereum Co-Founder Gavin Wood called Web 3.0 a decentralized online ecosystem based on blockchain. This all stems from the data being stored in a manner different than the present iteration.

Overall Concept

The idea is to have tokens tied to anything one does online. This is erecting a completely new financial system based primarily in the digital realm. A number of financial applications are already being built, making up the early formation of decentralized finance (DeFi).

Some believe Web 3.0 will be dominated by Decentralized Autonomous Organizations (DAOs). These are a new business structure where "automated entities" have no ownership. Individual token holders have stake but nobody is in control. Some government organizations took steps to recognize this as a legal business entity.

Raoul Pal discusses the idea of how companies are going to have another added to them. At present, there is the equity and debt layers. With cryptocurrency, companies are going to be able to add a social layer, which might have near the value of the other ones. He uses Disney as an example of a company that has a huge customer base. This could be leveraged in terms of token value.

Skeptics

Many are skeptical that Web 3.0 is anything more than a buzzword. Along the same lines, there are accusation of companies using this as a marketing tactic. This comes from both within and outside of the cryptocurrency industry.

Proponents of Web 3.0 believe that many Web 2.0 companies are trying to assert they are Web 3.0, when it is really the same centralized system as before. This is where people like Jack Dorsey are running into the hardcore cryptocurrency supporters.

Others believe the technology cannot scale to meet the needs of the Internet. After all, there are trillions globally in financial transactions alone. If we add in social media, the numbers get even more insane. Blockchains, thus far, are rather limited in what they can handle. This is a problem facing the industry that much be solved if it is going to take over a significant portion of Internet traffic.

The bank traffic alone is more than what the entire blockchain system can handle at this point, let alone the rest of Wall Street.

Other Articles about Web 3.0

Main LeoGlossary Menu

General:

Posted Using LeoFinance Beta