The ultimate question of the internet's future affects the entire technological sector, including some of the richest investors and companies in the world.
An idea known as Web3 is at the centre of a heated discussion about how our online experiences will change.
Although the concept has been around for more than ten years, opinions on it are still divided between those who see it as a way to improve the world as well as those who see it as a way to profit more from a decentralised internet.
What precisely is Web3, and how is it altering our internet?
What is Web 3.0?
Although both web2 and web3 are fundamentally decentralised, there are several significant differences between the two.
Developers hardly ever store all of their data on a single server or database when building and deploying web3 apps.
On the other hand, Web3 apps either run on distributed networks of many peer-to-peer hubs (servers), blockchains, or a mixture of the two to build a cryptoeconomic protocol. These programs are usually referred to as "DApps," or "decentralised apps," a term that is frequently utilized in the web3 environment.
In order to build a robust and secure distributed system, network participants (developers) are driven and compete to give the highest calibre of services to every user.
You'll note that bitcoin is frequently addressed anytime web3 is mentioned. This is due to the significant role that cryptocurrencies play in many of these platforms. Anyone who wishes to help create, manage, advance, or otherwise contribute to one of the projects can receive financial rewards.
These principles may frequently provide a range of online services, including computation, storage, bandwidth, hosting, identity, and other online services that cloud companies have previously offered.
To make a living, involvement in the protocol could be done in a range of technical and non-technical roles.
Similar to how businesses already bill for a cloud platform like AWS, customers of the service frequently pay to utilise the protocol. Users of the network receive payments directly in addition to web3.
Additionally, tokens enable a seamless, entirely global native payment system. By allowing electronic payments, businesses like Stripe and Paypal have gained billions of dollars.
These solutions are extremely complicated and yet do not allow for true user interoperability on an international scale. Additionally, in order to use them, you must provide your private information and sensitive information.
You can include quick, anonymous, and secure global payments and transactions into web3 services using crypto wallets like MetaMask and Torus.
A few hundred digit millisecond delay and transaction prices of a fraction of a penny are offered by networks like Solana. Users do not need to go through the customary cumbersome, friction-filled stages in order to interact with and take part in the network, unlike the current financial system. All they have to do to begin sending and receiving funds without any gatekeeping is install or run a wallet.
A new approach to creating businesses
Tokens are also responsible for the idea of tokenization and the development of a token economy.
As an illustration, consider the expansion of a software company. Someone gets an idea, but before it can flourish, they need to purchase groceries for themselves.
To raise money, they look for venture capital funding and sell a piece of their company. The incentives provided by this investment are not in line with what will eventually result in the best user experience.
Additionally, even if the business is ever successful, it will take a very long time for anybody engaged in receiving any value, which sometimes results in years of labour with no discernible payoff.
Imagine instead that a novel and intriguing initiative is revealed that addresses a pressing issue. From the beginning, anyone can take part in creating it or making investments in it. The corporation announces the release of a certain amount of tokens, distributes 10% to the early donors 10% to the general public, and reserves the remaining tokens for future contributor payments and project finance.
The individuals who helped construct the project can trade some of their shares to make some money after the coins have been released, and investors can use their coins to vote on improvements to the project's future.
Ownership can be purchased and held by those who support the project, and it can be sold by those who believe it is moving on the wrong path.
The entirety of the blockchain's data is public and accessible, giving buyers complete visibility into what is happening. This contrasts with investing in private or centralised enterprises, where many decisions are frequently made in the dark.