– What is Web 3.0, and why is it a big deal?
In: 1354
Web 3 is an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies, and token-based economics. This is the definition according to [Wikipedia.](https://en.wikipedia.org/wiki/Web3)
Let’s break it down:
* **Decentralization** – this basically means they want to transition to a model of the internet where big companies aren’t the main providers of online services. E.g. Google provides email, maps, search services, chat apps, etc. Along with provision of those services most of them free, they profit from monetizing your aggregated data to provide advertising. Web3 proponents imagine a reality where these services aren’t controlled by one entity like Google on their servers but distributed along individual nodes instead perhaps computers like you and I are on.
* **Blockchain** – this one is the basis of cryptocurrencies. The idea behind the blockchain is that data is written to it, it’s accessible to all, is immutable (can’t be changed) and permanent. The blockchain was first used to produce cryptocurrencies like Bitcoin. In exchange for computers performing the complex work to produce a coin, they are awarded that coin.
* **Token based economics** – the crypto coins produced by the blockchain had no initial value besides being traded as a “currency” so some folks had the idea to use those tokens as currency for NFTs. Why NFTs? Because you could use regular currencies like dollars and euros for pretty much anything else in life. So instead they made something that specifically needed these new crypto coins (tokens) to purchase and sell.
**Why is this a big deal?** So far it hasn’t been.
The decentralized aspect hasn’t taken off except in the production of cryptocurrency which is by nature decentralized since it is a bunch of individual computers solving an equation to produce them.
The blockchain doesn’t have a real purpose except to produce cryptocurrency. There just isn’t much data that should be publicly accessible to all, immutable and permanent. In addition the process to write things to the blockchain is slow.
Finally token based economics is probably the most public failure. NFT’s had a short surge in the initial frenzy but have since plummeted in activity. It has literally [plummeted 99%.](https://nftnewstoday.com/2022/09/15/opensea-nft-trading-plummets-99/) Most people realized the pictures they were paying for had no real value except to others who thought they could sell it for more.
Edit: a lot of other explanations lumping in VR into Web 3, which is not accurate for several reasons.
VR was invented in [1968](https://en.wikipedia.org/wiki/Ivan_Sutherland) long before even Web 1. VR as a concept (immersive simulation) has nothing to do with decentralization, blockchain or token based economics. The Metaverse (that Meta is building) is basically a rehashing of Second Life which was built in 2003. Ironically, the Metaverse if it is built out and takes off wouldn’t count as Web3 since it would be owned, managed and run by one of Web2’s largest centralized entities i.e. the company formerly known as FB.
Edit2: explaining decentralization to someone else, I realized there is one semi-successful decentralized tech that has taken off which is Bittorrent. However this is far from mainstream and I’d posit that if you stopped a random person on the street and asked them what BT was, they would have no idea what you’re talking about and speaks to it’s limited adoption given that it was invented over 20 years ago in 2001.
Latest Answers