Since those early days, the internet has undergone several major shifts. That evolution has led us to the next iteration of the Internet, known as Web3. The plan for this new iteration is a more decentralized, transparent, and user-centric online experience. Web3 uses blockchain technology to escape the exclusive, centralized models of Web1 and Web2. It opens the door to much more decentralized and peer-to-peer financial transactions, and through that user empowerment.
To fully grasp Web3, we need to consider how the internet has changed over the years. From the landing pages of web1 to our social media feeds and viral videos in web2. What makes Web3 unique is its decentralized structure. It provides a roadmap toward an internet unshackled from the grasp of a few powerful tech corporations. Rather, it is powered by blockchain technology, which enables transparency and security in all interactions that happen on the platform. Though still nascent, this new paradigm has the promise to reframe how we relate to the digital universe around us.
The Genesis of the Internet Web1
Web1, the internet’s first incarnation, lasted from the 1990s to the early 2000s. It was an internet defined by one-way communication with customers on bland, unchanging web pages. Picture this massive online encyclopedia crammed with tons of useful information. Users do have some access to this knowledge, but very few opportunities to contribute or engage.
Web1 primarily consisted of static HTML pages. Users were passive consumers of content, provided few ways to interact. User engagement, user-generated content, and building a community were not among the goals of any of the sites.
Feedback loops were minimal in Web1. Websites did not provide easy ways for users to share their information or interact with the website. This era laid the foundation for the internet but lacked the dynamic and interactive elements that would define later stages.
The Rise of Interactivity Web2
Web2 started to fully materialize by the mid-2000s and still largely constitutes the backbone of today’s internet. This phase was the industrial revolution of the internet user experience. Social media platforms, blogs, and interactive websites became commonplace, allowing users to create, share, and engage with content in unprecedented ways.
Web2 is characterized by user-generated content. For better or for worse, platforms like Facebook, YouTube and Twitter unlocked the potential for billions of users to be creators and changemakers in the digital landscape. This period cultivated an intense spirit of experimentation and partnership. While this increased access has been overwhelmingly positive, it posed new challenges around data privacy and centralization.
A pervasive feature of Web2 has been the concentration of power and control in the hands of a few tech mega-corps. In today’s world, tech companies such as Google, Amazon, and Meta (formerly Facebook) have built their own monopolistic platforms that they control. This centralization has raised major issues about who ultimately controls data, the risk of censorship, and monopolistic behavior.
The Decentralized Vision Web3
Web3 is a deep leap from the more centralized ecosystems of Web2. What is the metaverse? It’s an immersive virtual world, powered by blockchain technology, where decentralized, transparent and tamper-proof interactions can occur. Through this new paradigm, users will finally be in control, having true ownership over their data and digital assets.
Blockchain technology is the foundation of Web3. It offers a safe, verified environment for the next generation of decentralized applications. This technology is based on a distributed ledger that makes transactions censorship-proof and tamper-proof by design.
Web3 allows people to conduct financial transactions directly with one another, without reliance on banks and traditional financial institutions. Payment systems Cryptocurrencies such as Bitcoin and Ethereum are the original Web3 applications, enabling people to send and receive money directly with each other. This disintermediation could transform the financial sector as we know it.
The beauty of Web3 is that it can’t be owned, controlled or exploited by a handful of technology companies. Rather, it is regulated by the very communities and protocols that are fragmented and decentralized. This bottom-up participatory governance model is what has helped the internet remain open and accessible to all. It keeps a single entity from accumulating too much power.
Web3 offers decentralized alternatives to government-issued money. Cryptocurrencies are an increasingly common means of allowing people to transact without detection in the formal financial system. This is especially attractive in countries with high inflation or poor banking infrastructure.
This decentralized structure of Web3 is what makes it more secure and private. Users are empowered to control their personal data as they choose and can engage with applications without concern for censorship or surveillance. This newfound freedom dovetails with a larger global push for more digital sovereignty.
Web3 promotes competition and innovation by opening new spaces for developers and entrepreneurs to explore. Decentralized platforms and protocols allow for entirely new applications and business models to emerge. Many of these innovations are driving a great economic transformation that is disrupting legacy, traditional industries and creating more economically prosperous cities.
Web3 promotes greater transparency and accountability. Blockchain technology provides transparency, so every single transaction is recorded on a public ledger that anyone can access and audit to verify. This level of transparency fosters deeper trust and discourages fraud on the internet.
