What Is Web3?

Heard people talking about Web3 but have no idea what it is? In this blog we will simply define and explain what Web3 is.

Web3 – It’s Here!

There’s been a lot of hype about Web3. The noise is getting louder. And while a lot of people are talking about it, most explanations about Web3 are highly technical and difficult to understand. Can you remember the wonder of when you first used the internet in the 1990s? It was pretty clunky and there was barely any interaction but there was lots of information, pictures and by 1995, music and video. It was basically a “read only” domain. Put simply, “read only” is the ability to consume information (not engage or create), much like a newspaper. That was Web1. But a conference in San Francisco in 2004 took it to the next level and signaled the rise of tech giants like Facebook, Twitter, eBay and Google. Data became the new currency – your data! Web2 was the ability to “read and write”, which allowed people to publish their own blogs, share photos or comment on forums and sites for free. It gave us the feeling of control. But as social media and internet trade soared to new levels, the cost was you; you information and your privacy. Companies bought and sold your personal information like stocks and shares. Web3 is the next step in the online evolution, giving people the chance to “read, write and own” their content. It’s about wresting control back from the tech beasts and having a stake in the game!

A Simple Definition For Web3 A Simple Definition For Web3

Web3 or “Web 3” or “Web 3.0” as it occasionally appears is the third and next iteration or “version” of the internet. It’s still evolving but it’s about taking back control of the internet by becoming a shareholder in it – owning your content, brand and identity online. This can be facilitated through the trading of cryptocurrency on the blockchain.

Web3 In More Detail

Web3 exists on the blockchain but don’t worry, it will still be accessible from your desktop computer, laptop or phone. If you already own cryptocurrency or a crypto wallet, you are probably already using it. Blockchain is a decentralized platform, meaning no one person or organization owns it or has control of it. Web3 is the decentralized version of the web. It doesn’t rely on centralized agencies like governments or big tech companies. Instead, investors make decisions in their own best interests. Web3 gives shareholders a vote at the table – a say in how platforms are run and their information is managed. Shares in Web3 are known as tokens or cryptocurrency. If you own enough tokens or cryptocurrency you have a say in the network protocols on the blockchain.

A Token Example

In the real world, Web3 has an enormous number of applications, none more so than in the financial sector. Tokenization is the process of converting a real world asset into a digital asset and dividing it into smaller pieces or tokens. These smaller assets can then be bought, sold, held or exchanged. Imagine you own a $1,000,000 property but need to quickly raise $100,000. Traditionally, you might go to your bank, borrow that money using your asset as collateral and have to pay interest. But using Web3 and the blockchain, you could convert your property into 100,000 tokens each costing $10 and raise the money needed by selling 10,000 of your tokens. Various investors will then own up to 10% of your property. Some could theoretically only own one token or 0.00001% of the property. Anything can be tokenized on the blockchain including:

  • Real estate
  • Commodities
  • Stocks and shares
  • Cars
  • Artwork
  • Sports memorabilia
  • A song
  • A meme

The Evolution Of The Web: The Journey To Web3

1978 – An embryonic version of the internet appears after being developed and financed by the US Military.

1991 – The World Wide Web appears in its current form by Tim Berners-Lee at the CERN scientific research center.

1993 – The web becomes available for public use.

2004 – The rise of interactive websites begins after the first Web 2.0 conference in San Francisco, leading to the birth of social media giants and buying and selling online.

2007 – The introduction of smart phones further increases web traffic.

2014 – The term “Web3” is coined by Ethereum co-founder Gavin Wood as a “decentralized online ecosystem based on blockchain”.

2021 – Web3 gains widespread adoption around the world from tech companies, early adopters and venture capital firms, ushering in the dawn of a new virtual era.

Want To Know More About Web3?

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