If you’ve been online for the last couple of months you must have been flooded by news regarding the Metaverse and Web3 being the next digital revolution. Promised to be the best iteration of the Internet yet, Web3 is a concept some users love while some find skeptical. But what exactly is this Web3 and does it actually affect you? If you’re confused about it and want to find out more, you’re at the right place. This explainer will tell you all about Web3. So strap yourself in and let us begin.
While this explainer will tell you all about Web3, I will also take the time to explain other related concepts including Web 1.0 and the Metaverse. However, if you would rather just skip to the definition, use the table below to do so.
- What Are Web 1.0 and 2.0?What Is Web3?Trustless and PermissionlessMaking You the OwnerHow Does the Metaverse Relate to Web3?Will Artificial Intelligence (A.I) Be Involved in Web3?Downsides of Web3Examples of Web3 in Practice
What Are Web 1.0 and 2.0?
In order to understand what Web3 essentially is, we first need to go back in time and learn about the previous iterations of the Internet.
Privacy vs Convenience
However, with Web 2.0 came some downsides. Existing to this day and talked about a lot, the most persistent of them are privacy concerns and data abuse. Once social media companies realized that a user’s data could be profitable, the world of third-party advertisers opened up. User data tracking became part of the conversation and targeted advertising entered. From the exact commute one makes every day to the type of Google searches a user does, everything is cataloged and then used to build an advertising profile. This same profile is then used to show users like you and me targeted ads on social media platforms. Web 2.0 continues to this day and is the version of the Internet you and I are on.
Since Web 2.0 is the current version of the Internet, the above problems still exist. A lot of users consider Web 2.0 to be centralized in a strong way. What this means is that instead of freedom for online users, all their data is stored and controlled by a select few companies in the business also known as ‘Big Tech‘. This data is mostly stored on a few select servers and is at the mercy of the owners who run the infrastructure.
Note: You might have seen Web 3.0 being described as the ‘Semantic Web‘, a concept founded by the ‘father of the Internet’ Sir Tim-Berners-Lee. However, the term Web3 is a distinct concept coined by Ethereum co-founder Gavin Wood in 2014.
Decentralize: To take away control from a select few members/companies and distribute it among the larger masses.
Currently, in Web 2.0, almost all of the popular social media sites and services we utilize are owned by big companies and corporations. For instance – As a general user, your social media usage might consist of browsing through Instagram and Facebook. You very well must use WhatsApp for messaging and calls. This gives the companies control over your data and what they do with it. However, most of all, this gives them control over you as a user. While there are certain parts of your data you can have removed, there is no real guarantee about its deletion.
Since the files themselves will be across potentially thousands of computers, no single person can delete or modify the file without the keys or permission of the entire network. This also means that if a single or even dozens of the computers get taken out, your copied data can safely exist on the network. A potential Web3 network aims to employ these two core concepts into its infrastructure and hence why blockchain technology is important to it. However, there is more.
Some other concepts fundamental to Web3 include it being Trustless and Permissionless.
After reading all of this, you might be starting to like the idea of Web3. The above points make Web3 out to be an evolution of the Internet that gives back control to the user. Instead of giving control to a single entity or company, the Internet itself is poised to become more democratic. Furthermore, since your data itself will be in your control, this should in theory reduce or even eliminate its misuse. A user on Web3 can share their data online and decide who gets to access it and always be in full control. While this sounds amazing, there are also a few downsides to this. I’ll be discussing these below. First let’s talk about another concept you’ve been seeing a lot these days, The Metaverse.
How Does the Metaverse Relate to Web3?
You might have already seen some companies online referring to the Metaverse and Web3 together. If you’re someone with no idea about the Metaverse, I suggest checking out our explainer on what is the Metaverse first. However, to summarize it, the Metaverse is a digital universe that will combine a host of technologies into an entire online universe.
However, while a lot of people confuse the two terms, it is important to note that Web3 can exist without the Metaverse. But that hasn’t stopped the Metaverse from taking off by itself either. Besides just simple experiences, the Metaverse is evolving. From accessing the Metaverse on the Quest 2 to NFT Avatars, there’s a lot on offer. As for their combined existence, both the Web3 and the Metaverse are concepts under construction right now. Only time will tell if a legitimate and popular combination of both pops up.
Okay so all the users get freedom and everything is hunky-dory on Web3. But what about all the current companies; where do they go? This is where the existence of DAO comes in. Short for Decentralized Autonomous Organization, DAO is a concept in Web3. A DAO in theory is a group or a company that follows a set of rules through a Smart Contract that is coded inside the blockchain. This contract itself works in an unbiased way and must be followed by every member of the DAO. However, this code is also automated and in theory should take care of all the processes including legal, social, promotion, hiring, etc.
No aspect of the DAO can be changed without proper voting procedures. Moreover, all the financial data inside a DAO cannot be stolen or erased since they exist on the blockchain. There are some examples of DAOs already in action. DAOs like MakerDAO and MetaCartel have been in existence for a few years now.
A lot of users speculate that Artificial Intelligence has a role to play in Web3. Since the concept of Web3 involves some aspects that require automatic decision, we just might see AI involved in the process.
While Web3 sounds good in theory, there are some red flags that have yet to be properly discussed. Some of these downsides are:
One of the principal concepts behind Web3 is the amount of freedom each and every user has. Full control of one’s data to the point it can’t be deleted without permission sounds good. However, the same freedom can quickly become a dual-edged sword. Since this freedom translates to everyone, it opens up room for malicious folks looking to post harmful and illegal things on Web3.
The same problem exists with too much anonymity. A fundamental concept of Web3 is the ability to have a digital identity that is separate from your real one. While that is amazing for privacy, the same anonymity can be again be used for illicit purposes. Moreover, the lack of oversight when it comes to Web3 is concerning for not just people but for governments. Since Web3 is only a little more than a concept, we will see how much actual freedom it ends up getting from governments and companies.
Since the above disadvantage of Web3 is a real threat, it makes sense that governments and regulatory organizations would seek to control it. However, with the lack of any certain mainframe, regulating Web3 can be difficult. This can lead to an increase in cybercrimes such as the ones described above.
While the concepts of freedom from Big Tech and safety are rampant in Web3, there are people who are skeptical. Most notably, Twitter’s Ex-CEO Jack Dorsey believes that Web3 is just another iteration that will have different owners but with the same problems. He said as much in his Tweet about Web3. How this plays out, however, only time will tell.
You don’t own “web3.”The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into…— jack⚡️ (@jack) December 21, 2021
There is also skepticism regarding the exact amount of entry that will be required to access Web3. While there is no cost to logging online, using the blockchain itself will require a system that has above-average specifications. Since PC configurations vary across the world, it’s safe to assume not everyone will be able to access Web3 efficiently.
5. Tough for Existing Businesses
If the implementation of Web3 goes right then the world will slowly start to shift to it. However, that will put a strain on businesses to shift their market to Web3 or risk losing profits. Since not every business will be able to do that, it stands to reason that the shift to Web3 will be damaging for some businesses.
While worldwide Web3 implementation is not here yet, there are full-fledged ventures that exist on the Blockchain. You might even have heard about some of these. The most popular examples of Web3 are:
Perhaps the most heard of example on this list, Bitcoin is a digital currency that has risen in ranks and defined cryptocurrency. Bitcoin itself is based on the blockchain and is decentralized. If you’ve done even a little research on crypto, you must already have seen the effect BTC has had in the cryptocurrency market and even the Metaverse.
We have talked about social media that is intrusive but what about one that is built on the Blockchain itself? diaspora (visit) is a non-profit user owned social media platform where users are in control of their data. Based on decentralization, data inside diaspora is held on independently run servers called pods all over the world. diaspora also allows users to mask their identity by using an alias instead of their real name. So if you’re someone who wants to get a feel for what anonymized social media might be on web3, check diaspora out.
