The internet is evolving, especially in terms of the content published on it as well as its foundational structure. In the early 1990s, web pages carried mostly read-only, static, and primarily text-based content. Also, the average user was just a consumer and hardly a producer. That phase of the internet has been widely referred to as the Web. 1.0.
In the early 2000s, the internet became more interactive thanks to the invention of new programming languages, in particular, Javascript, HTML5, and CSS3. It became possible for the end user to not only easily consume but also produce text, graphics, audio, and video content. This is Web 2.0, and its most notable applications include social media platforms like Facebook, Twitter, YouTube, and LinkedIn.
The Web 2.0 phase is ending, and the internet is transitioning to Web 3.0 and Web3, two terms often mistaken to refer to the same concept.
Web 3.0 was first described in early 2006 by Tim Berners-Lee. In his vision, it would be more discerning through Artificial Intelligence (AI). The other name Tim Berners-Lee gave Web 3.0 is the semantic web. That is because he expects it to be able to understand concepts as humans do.
Web3, on the other hand, was first described in 2014 by Gavin Wood, the co-founder of the Ethereum blockchain and founder of Polkadot; both are blockchain frameworks designed to automate processes and systems on the internet using smart contracts.
Web3 is not meant to replace Web 3.0, but the two could easily complement each other. Web3 is an ecosystem that uses blockchain technology to create a more secure, transparent, and decentralized internet. With the growth of Web3, we can expect to see a shift towards a more decentralized and democratized world wide web, where users have greater control over their data and online identity.
The following are the core pillars of Web3:
The future that Web3 represents is a decentralized web. The decentralization is to be achieved through blockchain technology. The technology provides robust protocols that make peer-to-peer networks even more efficient.
The anticipation is that all blockchains will, in the end, have the capacity to interoperate, thus creating an internet of blockchains. Making this possible has already begun with the development of bridge protocols and appropriate frameworks.
The end user gains significant control over their internet experience. And that includes ownership of their data and privacy
A critical component of the majority of blockchains and, therefore, by extension, Web3 is native digital tokens. These digital assets are sovereign units of value minted to be used as mediums of exchange, value stores, and account units.
These tokens also serve a critical role in incentivizing the maintenance of the distributed ledger on the web and securing the governance structure of the peer-to-peer networks.
Crypto has struggled in the past with scalability and efficiency. Steps are being made toward resolving these issues, and some of those steps include making blockchains interoperable. Another step blockchain networks are exploring is new consensus mechanisms like Proof of Stake (PoS) that are more energy-efficient and can process transactions faster than traditional Proof of Work (PoW) networks with lower transaction fees.
The benefits the internet stands to get from decentralization include transparency in the way data is collected and used, more control given to the end user, increased privacy, increased security, and low cost of use.
Most of these advantages are possible through the utilization of Web3 tokens. Meanwhile, Web3 and the tokens in it create incentives to make the Internet accessible even to those who might not be attractive to the mainstream corporate world.
Web3 will be composed of numerous blockchains, each purposed to perform a specific function. While that vision is yet to be fully realized, we already have Web3 tokens in use.
One example of Web3 technology is non-fungible tokens (NFTs) that can represent ownership of digital assets such as artwork, music, and collectibles. NFTs provide a way for creators to monetize their digital creations and for collectors to own unique, verifiable digital assets.
The following are popular examples of different blockchains offering unique services and their native tokens (Web3 tokens):
This blockchain network facilitates and incentivizes individuals and enterprises to contribute to building a global open-source wireless network. Anyone can set up and run hotspots in their neighborhoods and villages. In return, they receive the HNT tokens, which they can sell or convert to other currencies.
The primary goal of the community behind Helium is to build a decentralized global network that can effectively compete with centralized cellular network service providers.
This is a peer-to-peer network of oracles, machines that collect and supply real-time data to smart contracts on blockchains.
The LINK token is the native coin of this network and is used to incentivize those who maintain the oracles (nodes). They are paid for their trouble or penalized when they provide compromised data.
Polkadot is a blockchain framework that enables enterprises and individual users to build customized blockchains and smart contracts. This framework is a foundation for the interoperability of blockchains.
The DOT token is useful not only for governance but also to incentivize those who maintain the framework and the chains that are built on top of it. It was also created by one of the founders of the Ethereum Network.
Filecoin is a decentralized global cloud storage. It offers similar services to those of Google Drive and Dropbox. The primary difference is that the platform is a marketplace where those with storage sell to those who need it, with the transactions managed by smart contracts.
The FIL token is the primary medium of exchange in the Filecoin storage marketplace. It is also used to power the network’s governance structure.
This is a video-sharing platform on the blockchain. It provides all the tools one needs to produce, distribute, or share video content. The THETA token is the token that is used to manage the governance structure but also powers the monetization of the content created on the platform.
The list of frameworks contributing to the building of web3 is growing. Casper Network is one of those on the list. This PoS blockchain facilitates the creation of highly upgradable smart contracts.
Enterprises investing in Web3 capacity is becoming unavoidable. While it might seem complex, the onboarding process can be smooth with a reliable blockchain consultant like Casper Labs.
