Today, almost every industry is on the verge of adopting blockchain technology. The internet is growing at an exponential rate since its inception in 1989. It was started for academic purposes with the intent to share research and data. However, it has grown into a massive global phenomenon with continuous changes.
Web 3.0 Will Change the World
Web 3.0 is the next stage of the internet’s growth. It aims to make the internet a smart place with a serverless and decentralized environment. In the age of cybercrimes and privacy invasion, Web3 will help users to gain control of their data, identity, and destiny. It follows decentralized and cryptographic approaches to ensure security and make the ecosystem more reliable.
Three Major Things That Define Web3
The Web3 is built from 3 critical components:
- Decentralized Web
- Linked Data
1. Decentralized Web
The future internet won’t be relying on centralized servers because the data will be stored in copies and multiple locations via a peer-to-peer connection. Distributed protocols such as IPFS are used to ensure diversely resilient networks and enable constant availability. Whereas in Web 2.0, the entire service goes down if a server goes offline.
Blockchain is going to be another backbone of Web3.0 with its ability to verifiability, the economic profits to the right owner of the content. Blockchain technology uses smart contracts to save ownership and transaction data. This makes it a very secure and reliable technology. All of this is not possible in Web2.
3. Linked Data
The concept of Linked Data could enable the creation of global information with linked documents. We are already very dependent on data and the web in our daily lives. Thus, there’s a huge desire to directly access raw data which is not present on Web2. Linked Data would enable global data space with open standards.
The Versions of the Web in a Quick Glance
The internet has evolved massively over the years with iterations in the web version. Now, we are finally ready for another evolution and adoption of Web3.
Web 1.0 (1989)
Web 1.0 was created during the inception of the internet with the intent to provide read-only content to users. It had applications such as news portals, search engines, informative sites, etc.
Web 2.0 (2004)
Web 2.0 enabled users to start interacting with the content on the internet. Now, the users could also input their data to the web. It has applications such as social networks, communication apps, etc.
Web 3.0 (Yet to be Implemented)
The term Web 3.0 was coined to signify trust and verifiability on the internet. In theory, it allows the users to take full control over their privacy, and verify data and content to earn incentives. The integration becomes more open, private, and secure with this iteration of the web.
Let’s Have a Detailed Comparison Between Web 1.0, 2.0, and 3.0 to understand better
|Web 1.0||Web 2.0||Web 3.0|
|Function||Earliest form of the internet. Ready-only web||Evolving with demands. Read-write web||Decentralized approach on the internet. Read-write-execute internet|
|Stages||First iteration of the internet||Second iteration of the internet
|Third iteration of the internet
|Use Case||Sharing data and research||Enabling interaction between internet users||Evoling the internet for full immersion|
|Ownership||The content was owned by organizations||Regular users could also share content on the internet||The content can have shared ownership|
|Utility||A simple and passive form of the web||A socially interactive form of the web||A semantic form of web that can be processed by machines|
|Prime Focus||Focuses on providing information around the world||It focuses on socially connecting people in the world||Focuses on decentralizing and connecting knowledge|
|Access Through||Only static websites could be used||Fully-interactive web applications||Intelligence web-based and application functionalities|
|Interaction Levels||Almost negligible interaction between the websites and users||Improved interaction between the users and the server||Completely personalized web experience and interaction for users|
|Target Audience||It was company focused||It is driven by community focused ideology||It will be individual-focused|
|Type of Advertising||Banner advertising was used.||Interactive advertising is common in web2||Behavioral advertising will be used in
Key Features of Web 3
The origins and features of the Web3 can be found in a paper written by Tim Berners-Lee, the inventor of the Web back in 1991. In the paper, he had imagined an idea of the web which was very different from today’s iteration of the internet. These are some of the key features of the web:
Web3 Will be Fully Centralized
Web 2.0 is known for storing huge piles of data in centralized repositories. This approach has many drawbacks, it gives the power of market control to a few powerful and influential owners. Thus, anything could be manipulated on the internet by these few powerful individuals. Plus, the user data is also at a high risk of getting stolen or misused. Web3.0 stores data by using blockchain technology, “blocks” and “nodes” are created to spread the data across a huge number of linked computers. The decentralized access is given by not storing the data on a single computer or a server. This makes the data decentralized and creates multiple failure points.
Web3 is Permissionless
You might that global services like Instagram, WhatsApp, Reddit, Twitter, Facebook, and other internet services are completely free for users. However, the global giants have created an illusion of free services by taking our personal sensitive information. Web3.0 would be a major revolution for online privacy and security. Users would be able to join any network without requesting permission. They won’t need to share their personal details or location data.
Web3 is Very Secure
The centralized characteristic of Web2 makes it an unsafe place with lots of cyber criminals and imposters. Web3’s decentralized infrastructure will make it harder to conduct malicious activities and gain unauthorized access to data. Greater control over data is given back to the users and they can now decide to share information about themselves or remain completely anonymous.
What is the Web3 Architecture?
Now that you know about the key features of Web3, it is important to understand how platforms and protocols will work together for building Web3-ready dApps.
When we talk about a web app, we generally think about an architecture consisting of the following;
In order to build a Web3 application, the front-end part can remain exactly the same. However, things are quite different when we take a look at the back-end side of the application.
Now, if we draw a comparison between the back-end part of Web2 and Web3 apps, then the Blockchain Node is the main component in a Web3 app. In fact, it has the duty of managing the data, which is spread in a decentralized network of Blockchain nodes. Moreover, we are also dependent on off-chain file storage and a P2P database since it is quite expensive to directly store the data on the chain. Lastly, to ensure maximum security, we have also implemented a private key-based authentication to reverify the users’ identities.
However, it is very important to note that this is just a basic representation of Web3 architecture. In reality, there could be highly complex applications with millions of different possibilities.
Technical Stack of Web3
Although Web3 is still a concept in the IT industry but it can provide us with remarkable benefits over the current Web2.0 protocol. These are some of the most critical technical stacks of Web3;
Blockchain will be the central component of Web3 because it is a decentralized and innovative technology. As a beginner, you can start with the Ethereum Virtual Machine (EVM) with Solidity. Learning this language is very important for creating smart contracts in a Blockchain network. Moreover, you also need to get familiar with Solana, Layer 2’s, and Application chains.
– Blockchain Nodes
Blockchain nodes are like network stakeholders responsible for running Blockchain software seamlessly. Therefore, these nodes are authorized to keep track of the distributed ledgers and provide a communication channel for the network tasks. Using a Peer-2-Peer protocol helps users to effectively communicate within the network and transmit information effectively.
– P2P Database
Talking about Peer-2-Peer connections, we need a database that can easily store off-chain data. It might be quite expensive and slow to store huge piles of data on a Blockchain network. To make the data storage decentralized, we depend on a Peer-to-Peer database for storing and hosting the data. Thus, we are not dependent on Blockchains, local storage, and database servers.
– Decentralized File Storage
The Web 3.0 will be completely powered by decentralization. Thus, we will need a dedicated file storage system just like Amazon S3 for supporting Web2 apps. This file storage system has to be very reliable and robust with complete decentralization for better transparency and security.
– Prominent Web3 Libraries and Frameworks
The Web3 frameworks and libraries help the developers to implement decentralized technologies like smart contracts and dApps. Together these technologies can open up new space for businesses and developers to explore, exploit, or enhance an existing Blockchain’s features. These are some of the most prominent Web3 libraries and frameworks that you can consider;
Web3.js is a very effective library for connecting with public and private Ethereum nodes. Furthermore, the developers are able to get a Blockchain explorer, interact with transactions, debug issues, and work with smart contracts with ease.
The Ether.js provides us with a complete library to interact with the popular Ethereum Blockchain. It was originally intended for either.io but now it is used as a general-purpose library. This library makes it possible to effectively keep your private keys and secure data.
It is a very popular development environment and testing framework for Web3 developers. Thus, the developers prefer this framework for making Etherium development much easier. They can just focus on the smart contracts with solidity support. Moreover, Truffle also provides the ability to use the Ethereum Virtual Machine. The developers have plenty of ready-made tools and starter materials to make development faster and easier.
It is an open-source library for providing the best predictable and standard interfaces for ERC20 support. Furthermore, OpenZeppelin focuses on making the development of decentralized applications a lot easier.
It is another open-source shared ledger and data layer for blockchain applications running on the Web3. The developers are able to get a secure and mutually distrustful network of nodes that can together build a decentralized application. Moreover, it also facilitates private messaging, and peer-to-peer communication.
How do Businesses Will Take Advantage of Web3.0?
So far, we have learned that Web3.0 will be powered by blockchain technology. It is also the primary technology behind cryptocurrencies (ex-Bitcoin), NFTs (Non-Fungible Tokens), decentralized applications, smart contracts, and more. Here’s how businesses will employ these technologies and take advantage of Web3.0;
1. Become Interoperable
There are so many applications that are natively developed for a particular OS (operating system). For example; some of Apple’s native applications cannot function on Google’s Android OS. Similarly, Windows desktop applications cannot run on Macintosh devices. This slows down the development process and increases the cost since businesses have to develop dedicated applications for each platform. This problem will be solved with the introduction of Web3.0 as it enables decentralized apps (Dapps) that run on the blockchain. These applications will be dependent on the power of peer-to-peer nodes (servers). Thus, saving development costs and enhancing overall scalability.
2. Businesses will Ensure Security
Today, people are concerned about their data security and privacy. After tons of data and privacy breaches over the past decade, people demand businesses have safer data storage. Web3.0 will introduce a new level of security for businesses with blockchain technology, which stores data across a huge network of computers. Cybercriminals would need to access all of the connected computers to access user data, which is very challenging and impractical.
3. Businesses Will Use Smart Contracts
A smart contract is a digital agreement between two or more parties, which is enabled once specific conditions are fulfilled. Such contracts were first implemented when Ethereum was introduced by Vitalik Buterin. There could be incredible use cases of smart contracts, especially in the banking, finance, and insurance industries.
4. Businesses Could Sell Digitalized and Tokenized Assets through NFTs
NFTs or Non-Fungible Tokens are bits of digital content or assets present on the blockchain. It is like intellectual property and could be present in the form of audio, photo, video, or any digital format. NFTs are already hugely popular in the gaming industry. However, other businesses are also taking advantage of such digital assets.
5. Businesses Could Discover More Online Customers
The introduction of Web3.0 is also bringing Semantic Web. It is an intelligent web, where artificial intelligence plays a key role in understanding web pages and providing tailored recommendations (content) to the users. The scope of digital marketing is bound to change with the Semantic web because it makes it easier for users to discover information. Instead of stuffing keywords to rank higher on Google, you can publish relevant content that meets your target audience’s intent.
6. Better International Businesses
Although, businesses could operate internationally, they haven’t reached their full potential due to restrictions on cross-border commercial trade. The introduction of Web3.0 truly connects the world together with borderless and frictionless methodology. The tokenized payment system enables the users to move more quickly and pay for services without any delays. This could bring a day and night difference to traditional banks.
Real-World Benefits of Web 3.0
Web3.0 might be a reality in the near future. It has the aim to empower real users and protect their data & privacy on the web. It could be the real equal internet for everyone. These are some real-world benefits of Web3.0:
- An End to Internet Censorship: A central authority won’t be able to control the accessible content on the web enables true freedom of expression.
- Enhanced User Privacy and Security: There won’t be any central authority to control our user data. It will remain safe on the blockchain.
- Fully Decentralized: The decentralized network will be owned by the participants only
- Improved Content Management: Users will gain full control over what they upload to the network and how it is utilized.
- Equal Internet: It could be the beginning of an equal internet where everyone will have equal opportunities.
Disadvantages of Web 3.0
Every technology has some disadvantages or hurdles to overcome to become more effective. The main problem will come in the form of a decentralization process for Web3. It is very hard to moderate and filter content without the involvement of a central authority on the network.
- Some users might exploit the decentralized nature of the web by spamming, spreading hate speech, or even terrorism.
- The technology is still in its infancy. Thus, there are no global standardized protocols or practices to implement in the real world.
- It might be a difficult concept to use for some users because there are a lot of technicalities involved.
So, What’s the Conclusion?
Although Web3.0 hasn’t been implemented yet, we could say that it is the future of business. It would become a major driving force for entrepreneurs, companies, and corporations around the world. Businesses would be able to scale faster, operate more freely, and provide a top-notch experience to users. AI, ML, Blockchain, Crypto-assets, and metaverse would be significant factors in shaping the future of the digital world. MobileCoderz is a Web3.0-ready digital transformation company with years of experience in web and app development services. You can hire us to gear up for the world of Web3.0.
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