Most people think of Bitcoin and other cryptocurrencies when they hear “blockchain technology.” It’s easy to overlook that technology has enabled new forms of ownership.
Not just money but also organizations, art, and all forms of digital property. Even historical artifacts. There are many options.
It actively breaks down financial barriers and fundamentally changes how we deal online with money (and other forms of property).
What’s Web3? Why care?
Web3 is not just a new layer on the internet but a fundamentally different approach to corporate governance, value generation, and stakeholder participation with pari passu interests. This presents an opportunity for people to be more than just beneficiaries of technology-powered business models.
They can also build and own unique assets. For example, the COVID-19 pandemic exposed pre-existing social vulnerabilities, while technology and universal internet access offered some semblances of continuity. Post-pandemic recovery will require reformulating international and institutional norms.
The technological battle of our time is the technology and how it can be harnessed, particularly with the rise of open internet value. This is particularly true and urgent because even basic services provided over fixed or brick-and-mortar lines have seen diminishing returns.
How WEB3 Technology Works
Much of the Web3 vision, like many computing trends nowadays, is based upon blockchain technology. Blockchain is essentially a distributed network that relies on peer-to-peer connections.
Each device on the network only handles a small portion of the computations and communication occurring on the network. This creates a serverless online network.
Peer-to-peer networking, like the blockchain, allows for non-stop communication between users. This has been demonstrated by the mesh apps, which allow for peer-to–peer-based messaging. They kept activists connected during Hong Kong’s protests without jeopardizing the anonymity of their identities. There is no central server that facilitates their connection.
Each user’s computer keeps a small amount of the website data instead of connecting to a server. This is similar to how BitTorrent downloading works; some browsers have already started experimenting with the technology. You could eliminate the need to have centralized servers if you implement this technology on a global basis.
The possibilities of peer-to-peer communication are fascinating, but the blockchain is best known for its powering cryptocurrency and NFTs. Both of these are vital Web3 technologies.
Many people view NFTs and crypto as temporary distractions for “tech bros” at best and outright scams at worst. There are examples of NFTs or cryptocurrencies being used in ways that benefit artists and other users.
NFTs can be used to trade or sell digital goods you have purchased. You could show proof of purchase, such as selling a digital copy of a PC game you bought on Steam to a friend.
Artists could be freed from the need to sell work through centralized platforms. NFTs could allow musicians to sell access to their music rather than posting it on Spotify. NFTs could also be used to provide safer and more anonymous login authentication and make the hiring process almost instantaneous.
The “metaverse” project is the most ambitious Web3 project. The metaverse concept is a virtual world where users can interact with each other and online content in real-time. It’s often done in VR or AR environments.
Although the idea has been well-known in speculative sci-fi for decades, Mark Zuckerberg has given it a major boost (hence the company name change), and many companies are working to make this a reality.
Hence, Why Should I Be Concerned?
It is only 30 years since the creation of the world wide web we now know. It has changed a lot in the past 30 years and revolutionized the world’s work.
It isn’t like flipping a switch. It takes time to see a gradual and slow change. People are resentful of Google and Meta. After scandal after scandal, our data is used against us. To sell to the highest bidder.
We are currently transitioning from a centralized internet to a decentralized one. You won’t find any platform that can rival Reddit and Facebook in sheer numbers right now. There is no doubt that there will be a decentralized platform in the future that can rival these centralized platforms that allow users to control their data and privacy.
It will take time and clever people to push Web3 in the right direction. Similar to how we saw the development of many blockchains, cryptocurrencies helped spawn Web3 in its first place.
Web3 is something you should be concerned about. It gives back ownership to all internet users on paper. You are included. Trust can be removed from the equation to remove the authority and improve security and privacy.
Attaining WEB3’s Full Potential
Web3 offers a new way for us to organize and monetize data, which is the richest resource in the world after the sun and human ambition. It is wrong to dismiss the instinct to stop the Web3 revolution because of short-term failures in conforming to institutional norms across banking and traditional corporate governance.
This would be a mistake and ignore the democratic tendencies of Web3. Web3 is also powering trillions of dollars in economic activity, despite the slow growth of traditional sectors.
As with all new competition models, it often shows where incumbents and their policies have failed. For example, how will the world achieve the United Nations Sustainable Development Goals for eradicating extreme poverty, with billions of people unable to access the brick-and-mortar banking system that is the gateway into the formal economy?
How will the gates to the bottom of the ladder of economic mobility for billions of people born in the shadows without a portable identity acceptable for entry to the formal economy be opened?
It’s not as simple as you believe. Although a re-invention of the web won’t be a quick process, investors, especially crypto-backed investors, are placing their money into the Web3 pot. NFTs are also driving the discussion and demonstrating the potential of an internet powered by cryptocurrency could be able to.
Yet, according to experts, Web3 isn’t likely to replace Web 2.0; however, it will be used in conjunction with it. Businesses like Twitter are currently looking for ways to integrate both. This study reveals that Web3 is much more than a buzzword, which is a significant reason to be concerned.