Do you struggle with understanding Web3? This post is to define what Web3 is and why Web3 is important. May it become the future?

Introduction

Web3 is a better version of the internet that seeks to give power back to the users and its core values are based on blockchain and cryptocurrency technology. These are the basic things you need to learn about Web3, the technologies it was built on, and why it is important to all internet users. 

Understand Web1, Web2

Web1, in traditional telling, refers to the internet of the 1990s and early 2000s. It was the internet of blogs, message boards, and early portals like AOL and CompuServe. Most of what people did on web1 was passively read static web pages, and much of it was built using “open protocols” like HTTP, SMTP, and FTP. (Don’t worry about what those things are just know that an open protocol is a piece of web infrastructure that isn’t owned by a single company and that the concept of open protocols is going to reappear a few sentences from now.)

Web2, the story goes, was the next phase of the internet, starting around 2005 or so the one characterized by social media behemoths like Facebook, Twitter, and YouTube. In web2 (or Web 2.0, as it was usually called then), people began creating and posting their own content, actively participating in the internet rather than passively reading it. But most of that activity ended up being distributed and monetized by big companies, which kept most, if not all, of the money and control for themselves.

Web3, the story goes, will replace these centralized, corporate platforms with open protocols and decentralized, community-run networks, combining the open infrastructure of web1 with the public participation of web2.

What is Web3?

Web3 is the name some technologists have given to the idea of a new kind of internet service that is built using decentralized blockchains — the shared ledger systems used by cryptocurrencies like Bitcoin and Ether.

The term has been around for years, but it has come into vogue in the past year or so. Packy McCormick, an investor who helped popularize web3, has defined it as “the internet owned by the builders and users, orchestrated with tokens.”

Proponents envision web3 taking many forms, including decentralized social networks, “play-to-earn” video games that reward players with crypto tokens, and NFT platforms that allow people to buy and sell fragments of digital culture. The more idealistic ones say that web3 will transform the internet as we know it, upending traditional gatekeepers and ushering in a new, middleman-free digital economy.

What’s an example of a Web3 app that exists today?

An oft-cited example is Axie Infinity, a video game developed by the Vietnamese game studio Sky Mavis, which uses NFTs and Ethereum-based cryptocurrencies to reward players with real money for achieving in-game objectives.

In the game, players can “breed” characters called Axies, and use them in battles against other players. They can also collect virtual land, in the form of NFTs, and earn a type of digital money called Smooth Love Potion, or SLP, which can be traded on a cryptocurrency exchange. (In an article last year, the writer Casey Newton called it “Pokémon on the blockchain.”)

Axie Infinity has attracted millions of players, including a number of people in the Philippines who make a full-time living from playing the game. But the game’s reliance on crypto tokens makes it volatile, and players can lose money if token values drop, as happened last year.

Why is Web3 Important?

Ideas of Web3

Permissionless Internet

Web3 is built on the idea that everyone is entitled to make use of the internet and no one should be excluded.

Decentralization

Both Web1 and Web2 operate on a centralized form where big companies and firms control the internet. The idea of Web3 is to distribute the ownership of the internet among the users and its builders. 

Native Payment System

One cannot deny the fact that the financial industry is heading towards cryptocurrency and many top companies including Tesla are now accepting payments in crypto. Web3 uses cryptocurrencies to make payments instead of the old banking and third-party system, which is getting outdated. This is one of the biggest benefits of Web3.

Importance Of Web3

It is sometimes hard to explain the importance of Web3 without making use of big words that the average human being may not understand well. There is so much importance to the Web3 and these include:

Easy Identification

The majority of the platforms on the internet require you to create an account with them to be able to have access to the site. This means that without creating an account and giving them access to some vital personal information, you cannot be identified as a member of the platform. The benefits of Web3 come up as you can easily make use of your Ethereum address and ENS profile to control your digital identity. 

Native payments

A quick answer to "what is Web3 used for" is that it aids monetary transactions across the Internet without requiring banks or third parties. This means you can make use of ETH to send money to another person while still making use of your browser. 

Refined Ownership

Changing the narrative of ownership on the internet is one of the importance of Web3. A good instance to explain this is when you are playing a game and purchasing in-game items, deleting your account from the gaming platform means that the purchased items will be lost too. But with Web3, you are the direct owner of the in-game items such as non-fungible tokens(NFTs).

Rise In Artificial Intelligence

The inception of Web3 will give rise to the massive introduction of artificial intelligence due to the decentralized nature of Web3. This artificial intelligence will help humans with medication, pharmaceuticals, and precision materials, and they will do this far better than humans have done in the past. 

Resistance To Censorship

One of the things that define the answer to "what is Web3 '' is that it gives power to the users of the internet. In the case of Web1 and Web2, companies on the Internet tend to censor and monitor the actions and data of users. But Web3 is built on blockchain technology and you can decide to remove your data from the blockchain and take it to where it fits into your preferred values. This is another excellent answer to "what is Web3 used for'' 

Conclusion

Web3 in a nutshell is a better version of the internet that aims to make the users of the internet sovereign. One of its goals is to help users control how their information is shared on the internet and also control who profits from their content. In Web3, users are compensated for their time and data on the internet. It is exciting as Web3 features a native payment system where individuals can send payments to each other without the need for banks or any other third parties.