A Synopsis Of Web 3.0's Past
In 1991, the very first webpage ever made was launched. It's still accessible online today.
With over 5 billion active users today—roughly 63% of the global population—the internet has come a long way since its inception.
Some individuals think that Web 3.0, or Web3, as it's commonly known, is a new paradigm for the internet. They contend that a new wave of technologies has the potential to upend society in the same way as Web 1.0 did in the 1990s.
In spite of these grandiose assertions, Web 3.0 can be a vague and perplexing idea. To get a better understanding of Web 3.0, let's examine its proponents and detractors in more detail.
Web 1.0: the static web.
The initial version of the internet is frequently referred to as the "static web." It was made up of read-only webpages with little interactive features.
Other than perusing static sites, Web 1.0 provided little else. A small group of people were in charge of creating content, and information was difficult to access.
Web 2.0: The Dynamic Web.
O'Reilly Media and MediaLive co-hosted the first Web 2.0 conference in October 2004, showcasing a slew of new web-based apps.
YouTube debuted in late 2005. The video-sharing site was a key component of the Web 2.0 revolution, which heralded the internet's transition to an era of dynamic content. Users could now engage with online pages, talk with one another, and generate content.
The rise of social media networks is widely seen as the most significant symbol of our period. Smartphones quickly followed, with the first iPhone debuting in 2007.
We soon found ourselves generating, sharing, and commenting on material from the palm of our hands. If Web 1.0 was the read-only version, Web 2.0 may be viewed as the read/write update, resulting in the internet we know today.
What is Web 3.0?
This leads us to Web 3.0. Consider it the "read/write/own" upgrade for the internet.
Web 3.0 is difficult to define precisely because it is still just a collection of concepts. Web 3.0 includes the technology and concepts that are important to cryptocurrencies, such as decentralization, token-based economies, and blockchain.
This Web3 concept is generally more democratic than today's online environment. It revolves around the concept of ownership, taking control away from the dominant big data companies and other central authorities and giving it to the people. This is what "decentralization" means.
Through peer-to-peer online commerce, decentralization eliminates middlemen and takes authority away from centralized organizations. The privacy, transparency, and ownership of users are given more consideration.
This is where cryptocurrencies and blockchain technology enter the picture. This decentralized paradigm is made possible by cryptocurrencies and the token economy, which let data to be recorded on a distributed ledger without being under the jurisdiction of a single institution.
Although some cryptocurrency initiatives claim to be democratizing, allowing token holders to take part in governance, a common critique of Web 3.0 is that power is concentrated among early adopters and venture capitalists.
Technologies for Web 3.0
There are numerous directions Web 3.0 development could go in the future. A handful of the Web3 technologies that are beginning to be used now are as follows:
DeFi stands for Decentralized Finance.
Decentralized finance, or DeFi, is one of the most interesting industries.
By eliminating the need for centralized entities like banks, payment processors, and other middlemen, DeFi seeks to transform the financial industry. A peer-to-peer blockchain-based financial system would take their place.
Proponents contend that this strategy would improve capital allocation, lower fees, and speed up transactions.
Increased transparency would also be possible, as with most Web3 apps, because publicly accessible blockchains make all loan amounts, collateral, and other data visible to everybody.
Additionally, accessibility is improved, which is significant for some countries. Without documentation or third-party authentication, DeFi would be available to everyone with an internet connection.
DeFi's supporters contend that it is possible to accomplish the majority of what banks and other financial intermediaries provide. This covers, among other things, bank deposits, lending and borrowing, trading in assets, and insurance.
Popular DeFi protocols that are intended to conduct financial transactions are Uniswap (UNI), Aave (AAVE), and Chainlink (LINK).
Investing in Web 3.0: A Guide
According to futurists, Web 3.0 will play a crucial role in the internet's ongoing development. If this vision is realized, developers and investors may be able to take advantage of speculative opportunities.
If you think that Web3 is the way of the future, purchasing cryptocurrencies is a simple method to learn about it. NFTs allow you to purchase digital art or cryptocurrency that support DeFi protocols and DAOs.
Recall that Web 3.0 is still in its early stages. These kinds of investments should be explored with a financial advisor as they are very speculative.
