Web3 has become somewhat of a buzzword when it comes to the future of the internet. Few know and understand this brave new world of the internet, but hardly anyone realizes its full potential so far.

This is exactly why we have curated this guide for you to understand how and why Web3 matters. 

Get all your Web3 questions answered below:

What Is Web3?

The new generation of the Internet is being dubbed Web3 as there are some clear transformational periods in the history of the Internet that can be divided into Web1 and Web2. 

The beginning of the Internet is considered to be Web1 where a person could access websites through the Internet to gain information published by companies. 

Web2, on the other hand, is deemed to be the period when social media was born giving users a chance to create their content instead of relying on big companies to publish information. 

However, big companies still own this content and they can choose to disappear it at the click of a button. This has given rise to Web3 and the era of decentralization and individual ownership. 

Web3 is the shift from a corporate-owned centralized network to a blockchain-based decentralized network that allows users to own assets. 

What Are The Main Differences Between Web2 And Web3?

One of the biggest differences between Web2 and Web3 is the aforementioned decentralization. Decentralization in Web3 essentially means that you as the user are the owner of anything that you put out on the Web3 internet. 

For example, if you decide to post a video on Twitter, Twitter is now the hosting/owner platform of that video and it owns the rights to remove the content from this platform.

Another key difference is that, unlike Web2, Web3 can process secure payments through the blockchain using cryptocurrencies. 

The problem with current online payments is that they all have to go through a bank and third-party payment gateways that all charge a percentage of the overall amount. 

Third-party involvement isn’t necessary when it comes to blockchain payments as they function on secure smart contracts that are practically immutable. 

Besides, Web2 payment gateways are susceptible to scams and security risks which is not the case for Web3-based payments. As such Web3 payment systems have the potential to create a new era of online payments even across borders with the added advantage of being free of conversion rates on currencies. 

Why Is There A Need For Web3?

While services like Meta’s Facebook and WhatsApp are free, they have a catch. It all comes down to unethical data collection and sale to advertisers to show catered advertisements. 

Big tech companies have always struggled or rather stretched the boundaries of ethical data harvesting and exploitation of this data to please advertisers. 

This created a system that not only violates users’ privacy but also tracks every single engagement, transaction, session, and activity that they performed on the app. This tracking is ironically what attracts brands to the platform and also repels them from Web3 to an extent.

In fact, social media and its impact have always been a hot topic of discussion with mixed reviews from the public. However, scientific research does support the theory that social media is bad as these platforms are designed to be addictive and spread information that incites a reaction.

Web3 is essentially an attempt to get rid of an internet that has ulterior motives and moves towards a more freeing experience. It is important to stress here that Web3 is only an attempt towards fixing these issues, as there are quite a few hurdles yet to be conquered.

What Are The Advantages Of Web3?

Arguably, the biggest advantage of Web3 is the lack of censorship and control of consumer sentiments that current Web2 platforms claim to have. 

Since there is no one central institution or corporation that owns the blockchain or the internet space where you are posting content, no one can tell you what you can or cannot post. 

This creates a world where content creators are free to post whatever they want and allows their complete ownership of the same instead of having to trust a platform to not delete or ban something. If you have ever come across some of your favorite content creators on TikTok getting banned after creating a whole career on the app with millions of followers, then you will know how big this advantage is.

Another significant advantage of Web3 is the new definition of what ownership means and how different it is from current models. It is hard to have a conversation about the blockchain and about Web3 in general without talking about Non-fungible Tokens or NFTs. 

NFTs have changed the way ownership of an internet-based physical asset or a digital asset is perceived. But let’s first help you understand what Web2 ownership was before we can discuss the differences. 

A good example of Web2 ownership is buying and downloading a song from iTunes. While you own a copy of the original song when you buy it, the artist or iTunes can remove it from the store at any point which means that you don’t truly own it. 

This is where NFTs can prove to be indispensable. 

As each NFT is unique, you will own that specific NFT, and the record of your ownership be publicly acknowledged. No central company or institution will own that NFT which means that you can do whatever you like with it once purchased. 

However, the implications of this technology stretch farther than just owning a rare “bored ape NFT” as this technology has the potential to become the way we verify ownership for physical items too. 

Many predict that this technology will be used to back ownership of important items such as vehicles and land instead of needing a deed. 

An additional advantage of Web3 is that more and more jobs are being created due to the emergence of a new field. Since the need for blockchain developers is relatively new, there is a lot of potential for growth within the field. 

Furthermore, many developers can start their careers quickly by enrolling in a Web3 developer training program to kick-start their Web3 journey.

Where Does Web3 Fail?

Most of Web3’s advantages root in the idea that it is a decentralized environment with no one controlling entity. This is the biggest reason why the public would be willing to make a shift towards Web3 eventually. 

However, Web3 is still very much a first-world idea. 

It does not take into account other parts of the world that are not only finally starting to leverage Web2 but also can do so because of it being free. Web3 costs might deter its worldwide usage.

Another potential failure for Web3 can be the lack of public education about the blockchain, the need for decentralization, and applications of the technology. A lot of resources need to be invested in educating the public. 

However, with fewer brands jumping on the Web3 bandwagon immediately, it is hard to gather up funds to deploy education campaigns. Most big blockchain companies are the ones that are investing in this currently, but bigger brands are needed to add the “worldwide”in the world wide web. 

How Are Tech Giants Dealing With This Change?

You would think that technology companies would be scared about this change and even try to prevent the change from happening; however, many tech giants have recognized the potential of the blockchain. 

Some companies such as Adobe, Fujitsu, Oracle, and Samsung have even adopted the technology in various ways whether for internal or external recordkeeping as well as for payments. 

To say that Web3 is a real threat to some of the big players in the Web2 game would not be too far from the truth. You can already see the effects of an emerging platform such as Mastodon taking over for a declining platform such as Twitter. 

However, to say that this threat is imminent might be an overstatement. 

Be it the regulation of cryptocurrencies, the public education of the concept of blockchain, or even unregulated securities, there are still so many obstacles that Web3 needs to overcome before it can become what Web2 is today.

Conclusion

All in all, there is a lot to unpack when it comes to Web3 and its sister technologies from blockchains and NFTs to decentralization and smart contracts. 

What is easy to understand and see is the potential that Web3 has to change the world – the same way the internet did when it was first created and the same way Web2 disrupted the technology space.

However, Web3 still has a long way to go whether it is from public adoption limitations to private company adoptions. 

Regardless of these limitations, the potential for Web3 is undeniable with its ability to finally provide the decentralized experience that it promises while being one of the most secure ways to do it.

No doubt, Web3 is going to become the norm soon, but how it gets there will be interesting to see!