What is Web3 and Why You Should Care

What is Web3?

Web3 is all about giving power back to the everyday people using the internet. In the current Web 2.0 world, critics argue, large platforms like Google, Amazon, Meta, and Twitter hold too much power. Web3 proposes to change this imbalance by creating a decentralized internet with no company overlords.

The term itself was conceptualized by Ethereum founder Gavin Wood back in 2014. Since 2021, the idea has begun to come to even more fruition thanks to investments by venture capitalists, tech firms, and the increasing popularity of cryptocurrencies.

How Web3 Works

Web3 is built entirely on blockchain and decentralized autonomous organizations (DAO) systems – which one may be familiar with from Bitcoin and other cryptocurrencies. The blockchain allows for numerous host computers, which in return allows for the system to be run by users instead of large corporations. Each user is given tokens in return for their participation, and these tokens can then be used for decision making or be converted into real value.

In short, blockchain and DAO systems in Web3 would allow for users to control their own data with all activity linked to a single personalized account. Think of it as a virtual democracy. While this kind of decentralized freedom could have its consequences (i.e. individuals or groups using the system to create violent content), the collective voting aspect of Web3 and the overall good in humanity would likely cancel these problems out.

Advantages of Web3

Besides creative freedom, Web3 boasts several advantages over Web 2.0.

• Since the servers in Web3 are made up a decentralized network of computers, they will never crash.
• No personal data would be required to make payments.
• Access is guaranteed for all. There are no overlords to block or deny users.

That being said, there are still areas where the concept needs further development. At the moment, scalability is limited making transactions slower as they first need to propagate through the network. UX is also inadequate, and further education and software development is needed to make Web3 truly user friendly.

Web3 and the Metaverse

Now one might be thinking, Web3 sounds similar to the Metaverse. Indeed, they are in ways related to one another, but they refer to different concepts. Where Web3 is decentralized internet, the Metaverse, on the other hand, indicates online spaces where users can interact in more immersive ways with one another. Think Ready Player One or The Matrix.

The two do have the potential to cross paths in the future. Cryptocurrencies are likely to become the currency of choice in the digital world of the Metaverse, and Web3 could very well be mirrored in it for this reason. NFTs, non-fungible tokens, play a big role in both worlds – allowing for unique objects unavailable in the real world to be purchased digitally.

VIDEO: What is the Difference Between Web3 and the Metaverse by Bernhard Marr

How Far Away is Web3?

Not as far as one might think. While a reinvention of the internet won’t happen overnight, investors, especially crypto backers, are already putting their money into the Web3 pot. NFTs, again, are also accelerating the discussion, showing the potential that a cryptocurrency operated world could have.

However, Web3 isn’t likely to replace Web 2.0, according to experts, but rather run supplementally alongside it. Companies like Twitter are already looking for ways to incorporate the two. What this research shows, is that Web3 is certainly more than just a buzzword, making it all the more reason you should care.