What is Web3 and Why Does it Matter?
I am running a one week Web3 beginner project where I will share insights on some basic concepts of Web3. This is for a little personal project I'm working on.
For today, we will discuss what Web3 is and why it matters.
Web3 is fast becoming a household term among many young and old people. For most people, it is Telegram bots Airdops that made them cross paths with this term. One interesting thing I have noticed is that most people who get a taste of Web3 always return for more. Just the other day on X, someone asked: What even is this Web3 and how do you guys make money from it?? The audience and user base is growing at a fast pace which shows that is it a system that has come to stay. Still unsaturated and highly promising. This is why you need a good understanding of this concept and its connection to the digital Financial System.
Understanding Web3
You have probably wondered - Why Web3? Why not Web 1&2? Well, that is because we have been there and are now currently evolving to the third wave of the internet and data. To fully grasp Web3, it would be helpful to understand where we’ve come from.
Web1 (The Static Web): This was the early simple internet space that emerged in the 1990s. It was a read-only phase of the internet where you could only access information but there was no way for you contribute any content. No comment section, or chat forums. It was more like a digital library with limited interactivity, limited access and social resources. There was nothing like Ads or sponsored content.
Web2 (The Social Web): Using the WWW structure of Web 1, there came an evolution into the world of Web2, where the internet became more dynamic and more interactive. Especially with the rise of different social media platforms like Facebook, Twitter, YouTube, etc. Web2 is characterized by user-generated content and social networks. However, these platforms are controlled by tech corporations, which means they own every data generated by the users. And with the use of the algorithm, they run their sponsored targeted ads.
Web3 (The Decentralized Web): When you hear Web3, the first thing that should come to your mind is DECENTRALIZATION. This means that there is no single authority controlling operations or data. Users are empowered to own their data, control their identities, and engage in a peer-to-peer network without necessarily any third party. It’s often referred to as the "next generation of the internet" because of its potential to utilize decentralized technologies like the blockchain to give users actual rights to own and control their data.
In Web2, companies use your data to make billions by targeting you with tailored ads or selling it to third parties. But Web3 puts you in control. If anyone wants to use your data, they must obtain your consent and often compensate you.
Key Features of Web3
They are some key features of Web3 you must know:
Decentralization: This is simply the distribution of power and functions to eliminate the existence of a single point of control. In Web3, there is no such thing as the central entity in charge, instead, control is spread across multiple nodes, participants, or users. There is also the use of a voting system to involve users in making decisions that affect the blockchain or network. This is a key feature that differentiates Web3 from Web2.
Ownership of Data: In Web3, users retain ownership of their data. This is made possible by blockchain technology, which ensures that data is securely stored and can be accessed only by those authorized. Web3 has a unique way of offering privacy control. For instance, you can sign up to any Web3 project without your full information like your email address or social media accounts like X or Discord. Or You can simply sign up using an anonymous wallet.
Blockchain and Cryptocurrencies: Blockchain is a distributed ledger that records transactions in a transparent and immutable way. Web3 uses blockchain as its foundational technology. Cryptocurrencies like Bitcoin and Ethereum run on these blockchains and are a key component of Web3's financial economy. Web3 takes user-centric to another level through its reward system. For being a part, contributing your time and resources, you earn stakes on that project and you get rewarded with the native or secondary token of that blockchain.
Smart Contracts: Smart contracts are the backbone of Web3, enabling trustless, automated, and transparent interactions in decentralized ecosystems. Smart contracts automatically execute agreements when certain conditions are met, without the need for intermediaries. This is especially useful in Decentralized Finance (DeFi). We will shed more light on this in the coming posts.
Interoperability: One of the many exciting features of Web3 is how seamless it is to interact with other different Web3 platforms and applications. For example, you can use your Web3 wallet to access decentralized apps (dApps) across various blockchains without needing to create separate accounts. Your EVM wallet can be imported across many other supported chains for easy access and transactions.
Why Web3 Matters
From the insights above, you can already imagine why the world needs Web3. Well, for one it prioritizes decentralization, user ownership, and trustless
financial systems. Unlike Web2, where corporations control data and dictate your every move, Web3 empowers individuals to own their data, assets, and online identities through blockchain technology. This creates a fairer digital economy where users are rewarded for their contributions, transactions are transparent, and reliance on third parties is reduced. It is also big on privacy and censorship, making the internet more inclusive, and democratic.
Additionally, the use of innovative technologies like smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs) is so next level. These tools unlock new possibilities for creators, businesses, and communities, enabling peer-to-peer collaboration, fair value distribution, and global participation. Despite little challenges like user adoption, Web3 still represents a shift towards an internet that prioritizes equity, security, and freedom. Making the idea of a better digital word a real possibility. I am fascinated. The more I learn the deeper I wish to explore it. Luckily, there is so much you can do with it.
Conclusion
If you made it this far, Thank you for staying with me through this journey. I hope you found it worth your time. I did not intend to make this article this long. If you are new to Web3 my advice would be, keep doing your research and dabbling with different ideas. It is not as complicated or technical as it sounds. And what better place to learn than on Hive Blockchain.
Thank you for stopping by. ❤️
Follow me on my blog atyourservice
Posted Using InLeo Alpha