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Why Web3? The Future of Digital Business

Web 3.0 – The Upcoming Internet in the Hype

The world is moving fast forwardly. The internet has changed many versions and now we’re waiting for the next iteration. The current web generation, 2.0 has not given us the right to own our data. But Web3 promises to provide ownership of our digital assets and information. Web3 will eliminate all the intermediaries we are having now to use internet services with the use of blockchain technology by peer-to-peer network systems. Web 3.0 will redefine the internet and gives a new form. It also guarantees data privacy and secure transactions.

How does Web3 work?

Web 3.0 uses concepts to work like: decentralization, token-based currency, blockchain technologies, machine learning, and artificial intelligence. Web 3.0 does not control the users data in other words it gives users the ability to control their data and information. The users can see, copy, and use the data for themselves. The control will be managed by smart contracts. The data of Web3 users are stored in crypto wallets which are encrypted. As the data is owned by the users, the giant tech companies have no power over it. The crypto wallets will be the users identity but it will not be the same as their real identity. All their personal data remain hidden.

Web3 lets users create products and services and earn money for them. The apps running on web3 are maintained by DAO(Decentralized Autonomous Organization).

Let’s see the Web 3.0 defining features one by one.

Artificial Intelligence

With the presence of Artificial Intelligence, Web 3.0 will give an enhanced experience in browsing for data like never before. If you input something, the AI will help process the data like a normal human and gives a faster result that is more tailored to you. The best thing is that it will know exactly what you are looking for.

Decentralization and DAO

One of the most important aspects of Web 3 is decentralization. By decentralizing the web the user doesn’t need any mediators to access the information, instead, they own their data. The data will be secure and there will be no third party taking advantage. The decentralization will take place with the use of blockchain technology. In web 3.0, there are decentralized community(community which is not owned by anyone) that will be controlled by DAO. The DAO has no owner which means it has no central authority. It is run based on smart contracts. The people in DAO can vote for any decision to take. DAO allows anyone to participate in the community. But it executes the vote via smart contracts, not by humans. The DAO is completely decentralized and transparent.

Blockchain Technology

Blockchain gets its popularity from the arrival of cryptocurrency. The data stored in the blockchain are immutable and transparent. They are hard to hack or alter. In blockchain, the sequence of blocks is interconnected with each other and all blocks contain data of the transactions. If a new transaction is made, it changes all blocks in the blockchain. That’s why it becomes hard to alter the data or hack it. In web 2.0 the data are stored in a large server which is owned by a third party. But in web 3.0 the data is in a public database that is stored in blockchain.

Tokenization & Secrecy

How can the data kept in a public database be secret? This is where tokenization comes into play. It is more likely to the cryptocurrency and NFTs. Your money is converted into tokens and you can use these tokens for making transactions. Imagine when you buy things online but it doesn’t ask you for personal information like phone number, etc., This could be possible with Web3. Crypto wallets will be used to make purchases that don’t need any sensitive information to process the transaction. Web3 keeps you anonymous. No one knows you have made the purchase, but the transaction information will be transparent. You will have a digital identity to make transactions. This identity will be your overall identity in web3. But your real identity and digital identity are not the same. So your real identity will not be identified.

Benefits and Pitfalls in Web 3.0

Web3 also includes its merits and demerits. Below are some of the advantages of Web 3.0.

  • Privacy and Data Control: The Users data will be encrypted to safeguard their information from being leaked. The encryption is not breakable and it will never allow top giant companies to use people’s information for their own benefit.
  • Continue flow of services: The data are stored in the decentralized network that makes the data to be accessible in any situation. Users can get several backups even in service disruptions due to technical or other issues.
  • Open Source: Most of the apps and websites developed in web 3.0 are open source. This allows users to inspect the source code and improve it on their needs and it eliminates waiting for the users who developed the platform.
  • Efficient and tailored browsing experience: The search results will not show the top pages users click. Web3 improves your browsing experience with the assistance of AI. The machine can predict and recognize your preferences and provide a tailored result.
  • Secure and simple login with one account: Websites or apps in web 2 may ban your account if you violate their terms and conditions. They can shut down your account at any time without your permission. But in Web 3.0, your account is secure and you can use a single account or the same login details to sign in to multiple web3 websites.

Pitfalls or Limitations of Web3

Implementing Web 3.0 arises many challenges that are discussed below.

  • Need more advanced equipment: Web 3 requires advanced devices to make the process easier this will cut off the less advanced devices. It also needs more computation power so the devices used today may not be able to work for it. Implementing the technologies like AI, blockchain, and 3D graphics requires high-capacity computers. Upgrading the existing devices of users will also cost more money.
  • End to Web 1.0: As Web3 websites occupy the internet, websites created in web 1.0 has no capability to fulfill the new features to match the web3 sites. So these web1 sites remain outdated and in the end, they lose the competition.
  • Possible for the increase of cybercrimes: The data is stored in a decentralized manner. Chances for the wrong person to enter the node and spread abusive data on the server. Experts tell there may have a chance for an increase in cyber crimes as there will be no central authority to control web 3.0.
  • Difficult for beginners to understand: Web 3.0 entails several terms that make it difficult for users to understand its functionality. Also, only advanced devices or devices that adopted this technology can survive in Web 3.0.

Why Web3 for/is the Future?

Web3 will definitely transform the way we use the internet today. It is a web for creators and users. It lets us avoid relying on central repositories for their services. Tokenizing digital assets will make the users own digital assets. It also allows users to own their data and digital footprints. AI on web3 provides an enhanced surfing experience thus making web3 more important in the future to provide human-like search results for the query input by users. The web or network is structured in a peer-to-peer connection which enhances sharing more data securely.