The digital world has seen constant evolution and development, especially rapidly over the last decade. Web3 looks into a more decentralized approach to the internet, where users have more control over their data and over a platform’s function.
The evolution of the web
Web1 was defined by open-source code, decentralized protocols and shared forums. Most platforms were free. With the dot com crash in 2000, faster internet, streaming and social media started rising to prominence. Mobile internet also gained popularity. This brought with it proprietary software, making the web a centralized network, with ultimate control in the hands of technology giants like Google and Facebook. Collection of user data became the foundation for web2.0.
What can we expect from web3
Decentralization is the pivot that web3 is built on. Blockchain-powered applications are at the forefront of enabling a successful transition into web3. Decentralized finance has become the craze, with new sets of asset classes like NFTs and carbon credits, peer-to-peer lending and other models that enable better cash flow without an intermediary. Cryptocurrency is also gaining popularity. With blockchain, ownership and data breaches can also be monitored and it provides a more secure and solid mechanism for interaction online.
Metaverse is also an important component in web3. Metaverse is being developed into an all-consuming virtual world, not limited to just gaming. Metaverse worlds will provide users with a virtual property asset class as well, increasing passive income and expanding every user’s online persona.
Obstacles encountered by web3
Decentralization has not been achieved, at least definitely not completely. Most blockchain networks are run by big corporations, like Amazon Cloud Services. Ethereum is one of the most common public blockchains and it is notorious for its high transaction fees. The metaverse is in very early stage of development due to these obstacles.
The transition
For the vision of Web3 to come to reality demands every part of an online service, from front end to back end, to be hosted on-chain. There is no need for legacy infrastructure, meaning no gatekeepers and minimum downtime. This will make for 100% authentic Web3 experiences all while providing noticeably better performance. Everything considered, it would be premature to say we’ve made it to Web3 just yet.
Smrithi Shree
SimplyFI Blog 