What is Web3 (Web 3.0)? Everything you need to know

Web3, also known as Web 3.0 is an evolution of the Internet that promises to revolutionize the way we interact and share information in the online world. The term signifies many changes in the technological and philosophical approach to the web. In this article, we will cover everything that is known about this phenomenon. 

What is Web 3.0?

Web 3.0 is a concept in the evolution of the Internet and Web technologies that seeks to change the way people interact with online content, data, and other users. The term was introduced to describe the transition from Web 2.0, which focused on social networking and interactivity, to a new stage of development towards a more decentralized Internet.

Web 3.0 is inspiring innovation in many areas including finance, healthcare, education and even the internet of things. This means that in the future we can expect a more personalized and efficient experience online, where we will have more control over our data and more smart online interactions. Personalization in the case of Web3 plans to be incredibly big. It's as if there's a large and very advanced neural network somewhere, whose main task is to make your online life more convenient. And all this is not for a select few, but for every user on the web. 

What advantages does Web3 offer?

The key benefits that Web3 offers are:

1. Decentralization. One of the main advantages of Web3 is decentralization. This means that control over data and information will be distributed among the participants of the network, rather than concentrated in the hands of large corporations, states and so on. This ensures greater independence and security of data.
2. Data Ownership. Web3 allows users to have full control over their data and digital assets. You can decide who to give access to your data and how it will be used.
3. Improved security. Blockchain and cryptography are an integral part of Web3, providing a high level of security and protection against fraud and hacking.
4. Lack of censorship and accessibility. Web3 creates a freer and more independent online space where information is available without censorship and restrictions.
5. Full transparency. All Web3 transactions and operations are typically recorded on public blockchains, providing a high degree of transparency and verifiability.
6. Innovation and new business models. Web3 facilitates the creation of new business models and enables innovators to develop new products and services based on decentralized technologies.
7. Smart contracts and autonomous organizations. Web3 includes smart contracts that automate and enforce agreements without intermediaries. This can lead to more efficient and transparent business processes.
8. Personal Identity. Web3 can provide new ways of personal identification that protect privacy and prevent data misuse.

Web3 promises to create a more open, free and secure Internet space that will benefit users, developers and society as a whole.

Web 1.0, the first generation of the Internet, covers the period from the late 1980s to around the mid-2000s. This phase of the Internet differs from subsequent generations in its characteristic features and technological features.

Key features of Web 1.0 include:

• Static websites. Web pages were mostly static, meaning that they did not change dynamically in response to user actions.
• Unidirectional information. Interaction was limited. Users could simply view content but not actively contribute.
• Low social interaction. Popular social networking sites such as Facebook and X (Twitter) did not yet exist. The Internet was a place to consume information. Although there were already online forums (the first one was created in 1979) and social networks (the first one was created in 1997), and even everyone's favorite Discord and Reddit, but they were not very popular. 
• Low data transfer speed. The connection speed was relatively slow, which severely limited the ability to stream multimedia content.
• Lack of interactivity. Internet applications were limited and opportunities for online commerce, social networking and interactive applications were limited.

Web 1.0 was a phase in which the Internet was just beginning to show its potential as a means of communication and information. It was the time period in which the foundations were laid for the more interactive and social Internet we see in subsequent generations.

Web 2.0 represents the current generation of the Internet, which began around the mid-2000s and continues into the present. This generation of the Internet differs from the previous Web 1.0 in a number of key aspects that have changed the way people interact with the online space.

Key features of Web 2.0 include:

• Interactivity and social interaction. Web 2.0 has provided the opportunity for greater user interaction. Social networks, blogs, forums, and web applications allow users to create, share, and interact with each other.
• More dynamic websites. Web pages have become more dynamic and interactive thanks to technologies such as AJAX (asynchronous JavaScript and XML). This allowed content on a page to be updated without a complete reload.
• Cloud computing and storage. The introduction of cloud technology has made it possible to store and share data online, allowing it to be accessed from different devices.
• Expansion of mobile devices. The proliferation of smartphones and tablets has led to the ability to access the Internet anytime and anywhere.
• Analytics and personalization. Web 2.0 has provided the ability to analyze data and personalize content to provide users with a more relevant experience.
• Online collaboration and knowledge sharing. Web-based collaboration and knowledge sharing applications such as Wikipedia and Google Docs have become popular.

Web 2.0 has changed the way we communicate, work, entertain and share information. This generation of the Internet has become a platform for innovation, new business models and ubiquitous social interaction.

Web 3.0 has brought many innovative products and platforms that reflect the decentralized and innovative nature of this evolution of the Internet. Here are some examples of products and services characteristic of Web 3.0:

1. Cryptocurrencies and crypto wallets. Bitcoin, Ethereum and other cryptocurrencies represent decentralized means of exchanging and storing assets. Cryptocurrencies allow users to manage their assets, make quick transactions, exchanges and more. In general, the cryptocurrency niche is widely developed and offers many new technologies.
2. Decentralized exchanges. Platforms such as Uniswap and Dydx provide the ability to exchange cryptocurrencies without intermediaries, which promotes and demonstrates the decentralization of financial services.
3. Smart Contracts. The Ethereum network has become home to smart contracts and programs that automatically execute agreements without the need to trust a third party.
4. Decentralized Applications (DApps). DApps such as Decentraland, CryptoKitties and Golem allow users to interact and trade without intermediaries.
5. Decentralized data warehouses. Projects provide decentralized methods for storing and sharing data.
6. Identification and authorization. The products provide decentralized solutions for personal identification and authorization.
7. Decentralized organizations (DAOs). DAOs allow participants to collectively manage an organization based on smart contracts.
8. Web3-games and Entertainment. Decentralized games, such as Axie Infinity, provide opportunities to earn money and interact in game worlds.
9. Education and knowledge. Projects use blockchain technology to improve access to education and knowledge.
10. Financial Products. DeFi (decentralized finance) provides access to credit, exchange and investment without banks.

These products and services represent only a small part of the diversity of innovations offered by Web 3.0. They allow users to manage their data and assets more independently and participate in an ecosystem of decentralized applications and services. Let's look at all of these in more detail. 

Decentralized Finance (DeFi) platforms:

Decentralized Financial (DeFi) platforms are innovative financial services that are powered by blockchain technology and eliminate the need for intermediaries such as banks and exchanges. Examples of popular DeFi platforms:

• Uniswap. It is a decentralized exchange that allows users to exchange various cryptocurrencies and create liquidity while earning rewards.
• Compound. The Compound platform provides cryptocurrency lending and borrowing services and offers interest rates on deposits.
• Aave. It is a decentralized lending and borrowing platform that gives users access to multiple cryptocurrencies.
• MakerDAO. This platform provides a stable coin DAI, which is a cryptocurrency pegged to the U.S. dollar, and uses a voting system to manage price stability.
• Yearn.Finance. Yearn.Finance creates automated strategies to maximize returns in DeFi, ensuring optimal fund allocation.

These platforms provide a wide range of financial services such as exchanging, lending and investing, and allow users to manage their assets without intermediaries. However, it is important to be mindful of the risks associated with investing in DeFi and the fact that they may be exposed to market fluctuations.

Distributed data warehouses

Distributed data warehouses are innovative solutions for storing and sharing data that are built on blockchain technology and decentralization. They provide improved data security and availability. Some examples of distributed data warehouses include:

• InterPlanetary File System (IPFS). IPFS is a protocol and network for storing and sharing files. It breaks files into blocks and distributes them across the network, providing fast access and resilience to failure.
• Filecoin. This project uses IPFS and blockchain to create a decentralized storage marketplace. Users can rent space on other users' computers and get paid for it.
• Storj. Storj is a file storage and sharing platform built on blockchain technology. It uses decentralized storage nodes to provide secure and efficient file storage.
• Sia. Sia is a decentralized storage platform that allows users to rent out free space on their hard drives and receive cryptocurrency for doing so.

These distributed data stores provide improved security, availability, and control over user data, and they are becoming increasingly popular in the context of Web 3.0, which calls for decentralization and data protection.

Blockchain-based content

Blockchain-based content is content created and managed using blockchain technology. This technology provides transparency, copyright, and digital uniqueness to the content. Some examples of blockchain-based content include:

• NFT (Non-Futurable Tokens). NFTs are digital assets that are used to represent unique and non-interchangeable items such as digital works of art.
• Music and Audio. Artists and musicians can release their songs and albums as NFTs, ensuring proper remuneration and copyright.
• Games. Companies develop game items and characters that can be bought and sold using NFT, giving them a unique value.
• Publishers and journalism. Some publishers are using blockchain to authenticate news articles and research papers.
• Educational content. Blockchain-based platforms provide educational content and certificates, guaranteeing their authenticity.

This content provides trust and transparency in the online environment, as well as new opportunities for monetization and distribution of digital assets.

Smart Contracts

Smart contracts are software agreements whose execution is automated using blockchain technology. They provide a secure and decentralized way to enter into and execute contracts. Some use cases for smart contracts include:

• Investment and Finance. Smart contracts can automatically pay interest or dividends to investors based on the terms of the contract.
• Insurance. Smart contracts can automatically pay out insurance benefits when certain events occur, such as natural disasters.
• Real estate. Smart contracts can simplify the process of buying and selling real estate by automating the transfer of funds and transfer of ownership.
• Logistics and Supply Chain. Smart contracts can track deliveries and automatically make payments to suppliers when contract terms are met.
• Education and Academia. Smart contracts can automatically manage academic records, certificates and payments for training.
• Social agreements. Smart contracts can simplify the creation and execution of agreements between parties, such as prenuptial agreements and inheritance.

These examples demonstrate the variety of areas where smart contracts can be useful for automating and simplifying processes. They allow contract participants to trust automated execution without intermediaries.

Virtual Reality (VR) and Augmented Reality (AR):

Virtual Reality (VR) and Augmented Reality (AR) are cutting-edge technologies that are changing the way we interact with the world around us and create digital scenarios.

Virtual reality (VR) immerses the user in a completely virtual environment, separating them from the real world. Examples of VR include games and simulations, education and training, and virtual museums and cultural events.

Augmented reality (AR) adds digital elements to the user's real-world environment. Examples of AR include mobile apps that allow you to see information about places or products through your smartphone's camera, and AR glasses that add interactive elements around you.

Both technologies are used in a variety of fields including gaming, education, medicine, design, marketing and more. VR and AR continue to evolve and change the way we interact with the digital and real world.

Machine Learning and Artificial Intelligence

Machine learning and artificial intelligence (AI) play an important role in the context of Web3, bringing innovation and enhancements to decentralized applications and services. These technologies can provide automation and improved data analysis capabilities. Examples include:

• Enhanced recommendations. AI is used to analyze user preferences and provide personalized recommendations in both content and financial services.
• Automated data analysis. Machine learning helps in analyzing large volumes of data based on smart contracts and blockchains, making it easier to identify trends and anomalies.
• Smart contracts. Smart contracts can use AI to make more complex decisions based on data, training models and algorithms.
• Artificial intelligence for creativity. AI can be used in the spheres of art and game design, creating unique and interesting visual and audio effects.
• Learning from blockchain data. Researchers can use the wealth of data collected from blockchain to train machine learning models and predict market trends.

AI and machine learning complement decentralized technologies in Web3, enriching their functionality and providing new opportunities to improve processes and data interactions.

How does Web 3.0 affect the future of the Internet?

Web 3.0, also known as the "semantic web," has the potential to radically change the future of the Internet, making it more intelligent, decentralized and interactive. This transition to a new era means greater understanding and interaction of data on the Web, which could affect a multitude of areas including information retrieval, social media, finance and medicine.

One of the key characteristics of Web 3.0 is the creation of semantic relationships between data, which will allow search engines and applications to more accurately understand the context of queries. This will enable more accurate answers to user questions and provide relevant information.

Here's what some celebrities think about it:

• Tim Berners-Lee, creator of the World Wide Web: "Web 3.0 is the idea of a smarter web, where information is more clearly structured and we're able to make connections between data."
• Sergey Brin, co-founder of Google: "Web 3.0 will mean more individualization, more precise search, and perhaps even a more decentralized structure."
• Jack Dorsey, co-founder of Twitter and Square: "Web 3.0 can lead to a more transparent and decentralized system for sharing information and value."

These quotes highlight the importance of Web 3.0 in the future of the Internet, predicting a more intelligent and decentralized future in which data and information become more accessible and understandable to users.

Web 3.0, as a promising direction in the development of the Internet, is not without criticism. Some well-known personalities and experts have expressed concerns and doubts about the concept. The criticism may be related to security concerns, concentration of power and other aspects. Here are some key points of Web 3.0 criticism:

• Security and privacy. Web 3.0 systems may be vulnerable to new types of cyberattacks and misuse. This raises concerns about the security of personal data and financial transactions.
• Decentralization vs. centralization. Some fear that Web 3.0 may lead to new forms of centralization, especially in the area of blockchain and cryptocurrencies.
• Complexity of use. For general users, some aspects of Web 3.0 may be too complex, which can be a barrier to mass adoption.
• Environmental aspects. Cryptocurrency mining processes and many Web 3.0 technologies can be environmentally negative, raising concerns about their sustainability.

Here's what the critics are saying:

• Vitalik Buterin, co-founder of Ethereum: "Web 3.0 is a wonderful idea, but we need to pay special attention to security and data protection to avoid serious vulnerabilities."
• Tim Berners-Lee, creator of the World Wide Web: "Web 3.0 is a potentially beautiful future, but we must fight for decentralization and transparency to avoid new forms of centralization."
• Environmental activists. Many environmental groups and individuals have expressed concern over the potential environmental consequences of the mass use of cryptocurrencies and Web 3.0 technologies.

Criticism of Web 3.0 serves as a reminder of the importance of developing the concept with security, transparency, and environmental sustainability in mind so that it can realize its full potential.

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Not keeping up with the times is a mistake, because the process of technology development is only accelerating.

This mistake has already been made by the older generation, which is at ease with modern phones and other technologies.

We are now seeing the rapid integration of new solutions that simplify and improve our lives. It is important to keep up and immerse yourself in what is happening, otherwise you risk being unnecessary specialists or being deprived of all the benefits of modern technology.