May 9, 2022
What is Web 3.0? What are the advantages and disadvantages of Web3? How does a decentralized Internet work? How to invest in Web3?
The Internet has been an everyday part of our lives. However, it has gone through many changes over the years. If before we could only read text and watch videos, now the Internet has become more interactive.
It looks like we are on the cusp of another sea change in the network. There is now a lot of talk about transitioning from Web 2.0 to Web 3.0. As the hype around cryptocurrencies, NFT that metaverse gaining traction, Web 3.0 is attracting more and more attention. But what is Web 3.0? How it works? And what will the Internet look like during Web 3.0? You’ll find answers to all these questions and more in this article.
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What is Web 3.0?
In Web 3.0, in fact, we are all responsible for the Internet. Open source is an important part of Web3, anyone can add anything to the Web using Web 3.0.
In addition, all data will be decentralized. This is perhaps the biggest change from Web 2.0. All data arriving on the Internet will be stored in a decentralized way using Web 3.0.
Cryptocurrency and blockchain will contribute a lot to Web3. Blockchain is also decentralized and is a ledger in which data can be stored.
Furthermore, smart contracts will make a huge contribution to Web 3.0. Smart contracts are fully digital contracts that consist of computer code. Smart contracts can ensure that certain tasks are performed automatically without intermediaries.
Thus, with Web 3.0, the Internet will process data in a decentralized and automatic way. Everyone will contribute to the Internet and there will no longer be big players like Google ruling the Internet exclusively.
Benefits of Web 3.0
1. Decentralization. The Internet is becoming a kind of big network in which all data is stored in a decentralized way.
2. Open source. The internet will become more open and productive, allowing users to contribute to its development.
3. Personalization. Also, working over the internet will become more efficient and easier as it will be more personalized. You decide what you want and this is no longer determined by big players like Facebook or Google.
Disadvantages of Web 3.0
1. Older devices will likely not support Web3. These devices are very old and will not be able to connect to the network.
2. Sites related to the Web 1.0 period will appear out of date. As a result, they will likely no longer be used on the network.
3. Web 3.0 is likely to be quite difficult for beginners to understand. This won’t be that difficult for people who have already used different blockchain protocols, but someone who has no experience with this will need some time first.
4. You can easily find information about other network users. Since everything is stored on a large network and the information is publicly available, you may also find personal information about other users.
5. There will be no more control of big players like Google. This item is both an advantage and a disadvantage. On the one hand, intrusive advertising will disappear, and that’s an advantage. But on the other hand, Google makes sure everything runs smoothly, removes scammers from the platform, and protects you from things you might not want to see. None of this will happen when Web3.0 is fully adopted.
Web 3.0 Examples
Web 3.0 can be compared to dApps – decentralized applications that are blockchain software. dApps, like Web 3.0, are open source. This means that the software code is publicly available and anyone can access it and therefore copy and use it.
Examples of decentralized applications at the moment are DEX (decentralized exchanges). A decentralized exchange is an exchange that no one controls except a Central exchange. Therefore, the liquidity here is provided by the users and the entire exchange can exist thanks to the efforts of the users.
A specific example of dApps is, for example, Augur. Augur is a decentralized application on the Ethereum network. and you can compare it with Unibet. You can use Augur to bet on the outcome of certain events, for example sporting events such as MMA fights, as well as crypto market outcomes. For example, you can bet whether the price of a certain cryptocurrency will be above a certain target on a certain date. Therefore, Augur is fully decentralized and open source.
Another specific example of a decentralized application is Everipedia. Everipedia is a decentralized application on the blockchain network and you can better compare Everipedia with Wikipedia. Everipedia contains information and news about almost everything related to blockchain. Anyone can add articles to Everipedia, and it’s completely decentralized. For example, nobody defines what is allowed and what is not on the platform, because nobody has power over it.
Investment in Web 3.0
As you read this article, you might be thinking: How can I invest in Web 3.0? This is a pretty standard question, because Web3’s popularity has skyrocketed in recent months. The most obvious way to invest in Web 3.0 is to invest in Web3 protocols, like one of the dApps mentioned above.
For example, you can invest in a DEX token. Also think about Uniswap Token (UNI) or PancakeSwap Token (CAKE). When you invest in a DEX token, you are primarily investing in the success of the DEX. The token usually serves as a control token, for example. This means that token holders can vote on the future of the platform. So, the more people use the platform, the more willing they are to participate in the decision-making process and the more people buy this currency, which will increase the price.
Another specific example of investing in Web 3.0 is Filecoin. Filecoin is a decentralized protocol that allows anyone to “borrow” storage space on their computer. Everyone can also buy a place on the network. In fact, it’s similar to Google Cloud or Amazon Web Services as we know them today, except the space is provided by the users themselves, not companies like Google and Amazon.
So you have a Web 3.0 project for just about everything we see on the web right now. After a bit of research, you’ll quickly find a Web 3.0 project that offers a solution to a specific problem, and so you can invest in it.
Web 3.0 is a new form of decentralized Internet, in which power is no longer in the hands of several large companies, and everyone who uses it contributes to it as well. There’s a good chance that Web 3.0 will be everywhere a few years from now, so you can invest in it.
It is likely that at some point blockchain, NFT, cryptography and even metaverse related features will gradually be introduced into the browsers, apps and devices we use every day. When that happens, we will firmly enter the “Web3” era and have more freedom and anonymity on the web and in our lives in general.