Web 3.0: The New Internet of People

Introduction

The internet has come a long way undergoing many significant transformations shaping the way we communicate, share information and do businesses. And now we are at the brink of a new era of internet - Web 3.0, also known as the decentralized web, but what does this mean? In this blog we will dive into the evaluation of the web, the new internet and how it will positively impact various industries. 

But before jumping into Web 3.0, let’s look at the evolution of the web for you to get a better understanding about the next internet.

Web 1.0 (1990s - The Static Web)

Web 1.0 was the first version of the internet and primarily consisted of static web sites, meaning you can only read or view information. Other than that, your options of interacting with information were very limited.

It was mainly like one way communication; websites were like brochures with text and images without any rich media experiences and with very limited functionality.

Example of Web 1.0: Yahoo, Netscape, GeoCities collections and AltaVista.

Web 2.0 (2000s - The Interactive Web)

Then came Web 2.0, which brought interactivity. Web sites in Web 2.0 are dynamic, allowing users not only to view content but also to create and share information with others. Social media platforms like blogs (Blogger, WordPress, Tumblr), social networks like Instagram, Facebook, X, and YouTube, social news sites like Reddit, BuzzFeed and Digg, all types of platforms foster community engagement and collaboration. This is actually great! but Web 2.0 is not without its bumps in the road. 

Downsides of Web 2.0:

Censorship: Companies decide what content gets seen or removed. 

Data Privacy Concerns: Companies control and often misuse users' data, sometimes without users' consent.  For example - Cambridge Analytica scandal in 2018.

Lack of Ownership: Users can contribute their content, but they don't really own them. When users upload content to platforms like YouTube, Facebook etc., the content is under the platform control, meaning they can decide how it’s used, displayed, and even whether users content stays on their site.

Web 3.0 (Present and Future - The New Decentralized Web)

Web 3.0 is the new internet built on blockchain leveraging smart contracts to address many of the issues in Web 2.0 specially centralization and data privacy. The core idea of Web 3.0 is to give power into the hands of users over their data, digital assets and online interactions through blockchain and decentralized technologies, thereby shifting away the power from centralized authorities and tech giants. 

This new Web enables peer-to-peer transactions like direct crypto transactions to users and services like decentralized finance (DeFi), eliminating the need for any intermediaries like banks or social media platforms, providing a very transparent and secure user driven experience. Additionally, concepts like RWA tokenization and DePIN further expand decentralization across various sectors. 

Let’s take a look at the main features of Web 3.0 in the image below to get a quick understanding of the nature of Web 3.0

Having explored the main features of Web 3.0, let's now take a look at Web 3.0 main principles. 

Fundamental Principles of Web 3.0

Decentralization: When data is spread across multiple nodes or computers, no single entity can manipulate or remove information. This shift controlling power from giant tech companies to ordinary people. 

Security: Data is encrypted using cryptographic techniques enhancing security, further decentralized systems are resistant to attacks, since there is no single point of failure. 

User Ownership: Users have true ownership of their digital assets, identities, and data. For example, crypto projects like TRON help content creators to publish their work directly by eliminating centralized platforms like YouTube and Facebook. This allows creators to earn fully from their content without losing any commission to third parties.

Interoperability: Platforms in Web 2.0 are designed to operate in isolation. For instance, we cannot move our friends or our content to another application like X, or we cannot move our shopping preferences from Amazon to eBay, or we cannot move our movie preferences, watch lists from Netflix to another platform like Amazon Prime. 

But this is not the case when it comes to Web 3.0. Developers and engineers are trying their best to connect individual ecosystems so that data can be shared easily. 

For example, cross-chain bridges make sure that tokens in Ethereum can also be moved to a new ecosystem like Binance Smart Chain, allowing token holders to participate in dApps in other ecosystems. Not to mention protocols like Polkadot and Cosmos where interoperability among blockchain is their primary objective.

Examples of Web 3.0 in Action

Cryptocurrencies: Bitcoin, XRP, Ethereum etc. enable transfer of value among users directly without the need for banks. 

Decentralized Physical Infrastructure: Decentralized storage networks that allow users to rent out unused storage space. For example, Filecoin. 

RWA Tokenization: Crypto projects like Ondo Finance, Algorand, RIO, Centrifuge etc facilitate Real World Asset Tokenization eliminating the need for intermediaries as much as possible. 

Decentralized Finance: These platforms let users engage in financial activities like borrowing, lending, and trading, without traditional financial intermediaries. Examples include Uniswap, Compound, Aave etc. 

How web 3.0 helps various industries

Financial Services

DeFi plays a major role in this sector. Traditional banking services such as lending, borrowing, savings, earning interest and all other services are built on blockchain leveraging smart contracts to govern the transactions.

This peer-to-peer model eliminates unnecessary costs and increases global accessibility because anyone with a computer and internet connection can take part in this new financial realm that DeFi offers. Uniswap, Compound and Aave are a few examples.

Digital currencies like Bitcoin, XRP, Ethereum and ADA can be used to transfer value from peer-to-peer excluding banks at a very low cost. Recently, XRP has gained significant traction in cross-border payments, with increasing interest from banks in Japan looking to adopt it for nationwide transactions. This highlights why cryptocurrencies are very valuable when it comes to payments in terms of speed, security and cost.

Digital Content Creation

Web 3.0 empowers creators by allowing them to publish directly on decentralized platforms. Projects like TRON, Audius and IPFS enable artists, musicians, and writers to retain full ownership of their work, bypassing traditional gatekeepers like publishers and record labels. This shift not only enhances creator revenue but also fosters a more diverse and inclusive ecosystem for artistic expression.

Retail

Retailers can make use of crypto currency payment integrations for their websites to receive money from customers for their goods instead of relying on 3rd party payment gateways like PayPal or Stripe.

Moreover, Blockchain and decentralized ledger technologies can be used to track the supply chain of the products. This helps brands to tackle counterfeits and also helps customers to make informed purchases and verify that they are buying genuine products.

Real Estate

Smart contracts in Web 3.0 automate property agreements eliminating intermediaries and improving transparency. RWA tokenization allows fractional ownership of properties providing investment opportunities for smaller investors.

Blockchain makes sure that data is recorded in a tamper proof and decentralized way. All the dApps built on blockchain make property listings more accessible, eliminating geographical barriers and middlemen, which lowers costs for buyers and sellers. These innovations streamline processes, boost security, and increase liquidity​

Health Care

Smart contracts can streamline processes by automating tasks like claiming insurance; for example, when a patient visits a health care provider, smart contracts can automatically verify insurance eligibility and process the claim in no time.

Doctors can securely access patient health records such as medical histories, lab results, and other relevant information stored securely on blockchain during virtual consultations facilitating telemedicine. 

Final Thoughts

Despite the promising potential of this new internet, Web 3.0 is not without technical and adoption barriers. Scalability remains a concern, as blockchain networks can struggle to handle transactions during periods of high traffic. 

Interoperability is also currently limited, vulnerabilities in smart contracts can pose serious threats as these contracts cannot be changed when deployed to blockchain but must be replaced with new contracts. 

While properly implemented decentralized blockchains are impossible to hack, applications that interact with blockchains, such as wallets and exchanges, remain vulnerable to phishing attacks and other security threats.

Interacting with Web 3.0 dApps for non-technical users can also be a real pain, this can hinder Web 3.0 adoption, therefore user friendliness should be a top priority.

But in my opinion, overcoming the above issues is just a matter of time. As technology continues to grow at an unstoppable rate, advancements in scalability, interoperability, security and user experience will address the above challenges.

Regulatory clarity will also improve; for example, recent legislative efforts like the Financial Innovation and Technology for the 21st Century Act (FIT21) aim to provide a comprehensive regulatory framework for digital assets​. 

Therefore, over time, Web 3.0 will unlock its full potential, enabling a more decentralized and user-driven internet, offering individuals more control over their digital lives. I’m pretty sure that Web 3.0 will be the new internet in the future, and now is the time to adopt.

Disclaimer: The contents of this article are for informational purposes only and are not financial advice. The views here are just the author’s opinions. The crypto market is volatile, so be sure to do your own research before investing.