Web3 is often referred to as the decentralised internet. It is the next evolution of the web. It gives users more control over their digital assets and data, and offering a fresh vision of the internet built on blockchain technology. Web 3 represents a significant shift from the current internet, Web2, that we use. The present technology is dominated by a lot of tech companies that call themselves central authorities. They control content and data.
The Evolution of the Web
To gain insights into Web3, it is better to understand where we have been for so long:
- Web1: The read-only web, where we were able to read content alone from the web.
- Web2: The read-write web, where we can read content and also we can create content like blogs, social media platforms, etc.
- Web3: The read-write and own web. Web 3 aims to put ownership back in the hands of users. As opposed to central servers, it uses a decentralised network and blockchain.
Key Concepts on Web3
Web3 is powered by a set of core technologies and ideas as follows:
dApps (Decentralised Applications)
dApps are decentralised applications developed on a decentralised network. They often use smart contracts. Compared to traditional applications, they do not have a central server and are more resistant to shutdowns and censorship.
Tokens & Cryptocurrencies
We can call digital currencies like Bitcoin and Ethereum the financial backbone of Web3. They are used for transactions. Tokens can denote ownership of these digital assets, or they can give you a vote in the governance of a decentralised project.
Smart Contracts
Smart contracts are self-executing agreements. They carry the terms of the contract written directly into code. Smart contracts run on the blockchain, and they automatically carry out actions when particular conditions are met. In turn, the need for a third party is eliminated.
Decentralisation
This is the core principle of Web3. In contrast to depending on a centralised sole authority like Web 3 applications, data is distributed across a network of computers. In turn, the risk of a single point of failure, the company controlling your information and censorship is reduced.
Blockchain
This is the foundational technology. It is a decentralised public digital ledger that records transactions. It is transparent and secure as data is stored across different computers in the network. So, it becomes nearly impossible to tamper with.
Why Web3 Matters?
The shift to Web3 is not just a technical upgrade. It is a basic change in how we communicate online. It assures:
- Data ownership: You can control your own digital identity and data. You can select how to share it, and you can even get compensated for it.
- Censorship Resistance: Without any central authority, a corporation or government cannot easily remove content or shut down a service.
- Trustlessness: Interactions and transactions happen based on cryptographic verification and code, and not on trust in a company. In turn, the need for intermediaries is eliminated in many situations.
