Web3: Basics and the Bright Future Ahead

As blockchain technology continues to develop, Web3 is mentioned more and more frequently in blockchain circles. But what is Web3 exactly? And how does it contribute to the future of blockchain?

We set out to answer these questions while also explaining to those new to the topic the basics. So, whether you are new to Web3, or an old pro, keep reading as we show you a whole new side of blockchain technology.

What is Web3?

Web3 is used to indicate the third iteration, or upgrade, to what is known as the World Wide Web. The first iteration was created in 1989 and relied heavily on HTML and HTTP protocols. Of course, while it was functional, it wasn’t very user friendly.

Around the year 2000, what we began to think of the internet today was created. This was also known as Web2, and while it was built on the foundations of Web1, it was infinitely more interactive and easier for the end user to enjoy.

Now, around the year 2024, the world is starting to discuss the rise of Web3 because, thanks to the advent of cryptocurrency and blockchain, we now have the tools to make another upgrade to the internet world, making it better for everyone—that’s Web3.

How is Web3 Different?

For a lot of daily internet users, it’s hard to imagine a purpose for the internet beyond what is available now. But there is a very dark side to the Web2, one which most people don’t see or consider.

Web2 is run heavily by large corporations who pay for the capabilities of Web2 for their users in return for the users allowing these companies to data-mine them. That’s right, the internet as you know it isn’t free; someone else is paying for it on your behalf in exchange for you granting them access to your data. Plus, with the Web2 model, it is possible for certain conglomerates, such as Google, Amazon, and Meta (Facebook), to own certain parts of the internet.

If this doesn’t sound pretty, that’s because it’s not—and that is where Web3 comes in.

Web3 is a pay-per-use internet system, but instead of using dollars to pay for the portions of the internet you use, you will pay in various cryptocurrencies for access to certain platforms. While this may sound bad (We see some of you saying, “I refuse to pay for internet!”) there will still likely be companies who pay for the Web3 on behalf of their customers in exchange for data.

The point is that customers will be offered a choice as to whether they want to pay for their internet access with their data or with a cryptocurrency of their choice. Web3 will be truly decentralized, meaning no one government or individual can own any part of it, thus giving the power of the internet back to the people, where it belongs.

Additionally, Web3 will offer capabilities that aren’t currently possible with Web2, such as access to the metaverse and the option to make money even as a small creator or company—something that is nearly impossible with the current model.

Web3 would also create transparency between big businesses and their customers. Something which businesses are currently fighting—as they aren’t ready to reveal their true motives and give up their portion of the digital marketing pie.

Related: From Arcade Games to the Metaverse

Are There Downsides to Web3?

Of course, for as great as Web3 sounds, there are some downsides. The main one being that AI would take a prominent role in monitoring and contributing to Web3 content. While we aren’t a huge fan of AI, this technology would take the positions away from the large businesses which currently fill these roles, making the internet overall more democratic.

For example, instead of using Google to find information and allowing them to use cookies when they present you the results of your search query, and AI algorithm would fill this roll.

Future Uses for Web3

Although we aren’t looking forward to the AI role in Web3, it is an important steppingstone in the age of society. Web3 moves away from the Web2 social media era, and into the technological future which can benefit society as a whole. Below are some of the specific benefits of Web3 technology.

Expanding Decentralized Finance Options

Currently, if you don’t have a bank in your country of residence, you likely have a hard time going through life. You struggle to get credit, or to pay in a location that doesn’t accept fiat currency.

Web3 would expand on current DeFi opportunities, allowing individuals without access to banking or in a country with weaker fiat opportunities to receive credit, loan money, invest, and more.

Related: Investing in Metaverse ETFs

Leveling the Economic World Playing Field

As it is, the country you are born into plays a huge role in who you become because of government policies and restrictions. Web3 would be a bridge around these, allowing individuals opportunities to rise above their current social and economic class.

Plus, Web3 takes away some of the control from large governments that currently block certain internet content. This could go a long way in some countries.

More Privacy and Security For All

In today’s age, you are likely worried that your data could be stolen at any given time—after all, you’ve given it to so many large companies. With Web3, your digital data will stay in your control, increasing your privacy and reducing your exposure to identity theft.

Of course, much of this benefit hinges on how governments move forward with establishing digital identity for their citizens, and we hope that they make the write choices.

Overall, Web3 is a better future for the average individual, but the businesses will do anything to convince their customer that this isn’t the case—likely slowing the growth of Web3. But we believe that, over time, the people will prevail and that Web3 is truly the larger and brighter future for every individual on this Earth.

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