The “Internet,” also known as the information superhighway, is one of the most promising technological revolutions in entire human history. What is surprising, though, is the fact that evolution never really stopped for this technology. Each year we see some major advancements in the internet, leading us to a better lifestyle.
Web3 is one such technological advancement that could revolutionize the internet forever. For the first time ever, users will have all the control over their data online. Such promising features of web3 have sparked worldwide speculations around this technology, increasing the demand for more web3 development companies. In this blog, we will highlight some of the key benefits of the latest version of the internet, web3.
But before we dig deeper into the concept of web3, let’s have a look at how this journey of evolution started.
Progression of web1 to web2 and finally to web3
The road to the upgradation of the internet towards the development and improvement of communication is self-evident. Anybody who used the technology a decade ago is well aware of how it has developed in terms of its services and features.
Let’s recall our past experience with the web before we understand the third phase of the internet called web3.
Web 1 is the very first phase of the internet through which we originally interacted. This web version was mainly read-only, and participants could barely interact with the information provided by the developers. All they could do was read and view those static HTML pages rendered on the website.
Gradually the transformation happened, and we were introduced to the second version of the web called web 2. It came as a revolution that drastically changed the whole landscape of the internet. This time the web became more collaborative, interactive, and social. Platforms like Facebook, YouTube, and blogging websites fall into this category.
Web 3 is a version of the web that is advancing at an astounding rate. This third phase of the internet is built upon the core concepts of decentralization, enhanced security and data privacy. The main focus of establishing web3 is to provide users with the power to control and execute certain aspects of the web.
The current analysis suggests that web3 is swiftly gaining popularity. Owing to the unique capabilities that web3 has, the demand for web3 development companies is steadily increasing.
Now, let’s dig deeper into this transformative technology.
What is web3?
Those who once used web2 agree that most part of the web is under the control of big tech companies. This practice called for unachievable public trust and data privacy limitations.
Web3, for that matter, proves to be a game changer. The term web3 was coined in 2014 by Gavin Wood, the co-founder of Ethereum. He introduced web3 to define its potential for decentralization and ability to rebuild public trust. Wood believed that web3 technology was a powerful catalyst for enabling the global tech ecosystem to thrive.
The fundamentals of web3 are based on cryptocurrency, blockchain and NFTs to facilitate unprecedented security and transparency. And the main focus of web3 development is to make the internet more permissionless.
5 defining characteristics of web3
Now that we have a basic idea of web3, let us closely look at its features. There are many prominent differences between web3 and its predecessors.
Read on to understand web3’s five most notable traits deeply.
The web3-based internet envisions a more autonomous and user-centric experience. The decentralized approach of the technology removes all the gatekeepers and intermediaries and restricts overall third-party involvement. The data is distributed across a blockchain network, providing greater control to users. In addition to decentralization, web3 is also providing room for the internet to become trustless and permissionless.
Web3 aims to accelerate the transition toward a more equitable environment. Ownership is fundamental in establishing a more transparent internet with a higher degree of data privacy or security.
NFTs, or non-fungible tokens, are key to ownership and transparency in web3. These cryptographic tokens make buying, selling, and trading digital assets easier. Every detail of an NFT, including information related to its creator and the present owner, is recorded and tracked on the blockchain. Further, the data is also made available to the public.
3. Digital identity
Each digital platform based on the web2 model requires separate accounts and login credentials. This seems to be a complicated task and demands a lot of work to keep the credentials for each platform safe and easily accessible. Some rely on their memory for the same and regret it later.
Web3 makes things simple. With web3, there is no need to set up a separate account on every platform. Everything is managed by a unique identity connected through a digital wallet.
Apart from providing ownership rights to the user, web3 also demands the usage of crypto tokens. DAO stands for decentralized autonomous organization and is based on rules written in codes. The organization operates using smart contracts that automate decentralized decision-making.
DAO promotes community-based governance. This means voting rights are given to the token holders responsible for taking major decisions on the platform. Through this mechanism, everybody is treated equally without prioritizing those in the majority. Many also claim that this voting system will soon be applicable in the real world too.
5. Enhanced security
The traditional methods used to store data were prone to attacks. In web 3, data is shared across a network without any third-party involved. The data gathered is, moreover, protected with an extra layer of security achieved through encryption. For the encryption process, web 3 utilizes public and private keys. This makes data hacking and tampering almost impossible.
We are at a point where web 3, web 3 development companies, and web 3 developers have formed a major part of the tech sphere. With decentralization and security in the picture, web 3 technology has shown signs that it will be the future of the internet. And that is certainly the reason why everyone intending to invest in a future-ready business is looking to invest in a web3 development company. Not just that, even the market value of a web 3 developer has risen considerably. So, it’s easy to infer that like every other innovation, web 3 too will penetrate our homes in the times to come, streamlining our daily life.