What is Web 3 ?
Before I start about Web3 or Web 3.0 , let’s talk about web1.0 , web 2.0. Both of these are traditional way to accessing internet starting from creating HTML pages, websites to apps which we are using till now. Web2 is the current way to consuming, creating, monetizing using internet.
Web 2 is completely a model of Centralized network which works in the form of Server-Client Model where a complete control of application and data is hosted at a central place which might be a stand alone server or a data source hosted in cloud application and the user doesn’t have full control over the data and the data also is vulnerable to data breaches and security issues.
Monetization of Web2 applications often rely on external sources which force the applications to change their way of modelling the business and push the ads and monetize from them.( Ex : Google, Facebook Ads)
In Web2, you don’t have any control over your data or how it is stored. All of this data is then owned and controlled by the companies in charge of these platforms.
Web3 aims to solve many of these challenges by redefining how we develop and interact with applications from the ground up. The core concept of Web3 is build applications on decentralized or Peer-2-Peer Network by providing full access of information to users and machines.
Web 3.0 will be combined with cutting-edge technologies like AI and blockchain, as well the interconnection between users and increasing internet usage. Apparently, Internet 3.0 is an upgrade to its precursors: web 1.0 and 2.0.
Web3 applications are often referred as Decentralized Apps ( DApps) as the name indicates that they are built on a network which follows decentralized protocols or P2P networks where users have more control over the application. The concept of web3 also encourages tokenization system to support the participants of the network who support the project in the form of governance, development, operations etc.
Tokens also introduce a native payment layer that is completely borderless and frictionless. Companies like Stripe and Paypal have created billions of dollars of value in enabling electronic payments. Tokens also brings about the idea of tokenization and the realization of a token economy. Tokens also brings about the idea of tokenization and the realization of a token economy.
Bitcoin and similar blockchains introduced a method for each participant in a network to hold and transfer value in a digitally native format, without the need for trusted intermediaries
In designing crypto economic systems, we apply theory and mechanisms from economics alongside many of the tools and concepts from computer science that enable cryptocurrency, such as distributed systems and cryptography.
Our goal is to design self-organizing systems, comprising networks of interacting human and autonomous agents, that sustainably optimize for one or more objective functions.
Currently Web3 is under development and many real-time use cases are already developed on existing blockchains like Ethereum, Matic networks which helps the users adapt the web3. One of the best example is FileCoin, which uses the IPFS( Inter Planetary File System) a decentralized file sharing service which allows users to share the files across the end users.
Filecoin is a peer-to-peer network that stores files on the internet, with built-in economic incentives to ensure files are stored reliably over time. Peers communicate over secure channels that they use to distribute information to the network (gossiping), to transfer data among themselves, and to discover other peers, maintaining a well-connected swarm in which information like blocks and messages flows swiftly even when many thousands of peers participate.
ADVANTAGES:
- Data Security
- Native internet money
- Decentralized data accessibility
- Self-governing
References:
What is the Web3? The Decentralized Web — Blockchain (blockchainhub.net)
What Is the Token Economy? — What Is the Token Economy? [Book] (oreilly.com)
What is Web3? The Decentralized Internet of the Future Explained (freecodecamp.org)
