Web3.0

**Web3** (also known as **Web 3.0**) is an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies, and token-based economics. Some technologists and journalists have contrasted it with Web 2.0, wherein they say data and content are centralized in a small group of companies sometimes referred to as "Big Tech". The term "Web3" was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms.

Some commentators argue that Web3 will provide increased data security, scalability, and privacy for users and combat the influence of large technology companies. They also raise concerns about the decentralized web component of Web3, citing the potential for low moderation and the proliferation of harmful content. Some have expressed concerns over the centralization of wealth to a small group of investors and individuals, or a loss of privacy due to more expansive data collection. Others, such as Elon Musk and Jack Dorsey, have argued that Web3 only serves as a buzzword or marketing term.

While Web3 technology is still very nascent, it already offers a number of distinct use cases. Here are the top 5 at present:

### Metaverse

The concept of the metaverse dominated tech headlines in 2022, with Facebook even rebranding to Meta and dropping billions into development in order to annex this new digital realm before anyone else could. Well, not so fast there Zuck. As Meta’s Q3 2022 earnings and tanking stock price have shown, investors and users are not very enthused about Facebook’s metaverse plans.

The metaverse is essentially a virtual world — and can be thought of as a 3D version of the Internet and digital representation of the real world. Users can navigate either with computers, phones or VR/AR headsets, providing a deeply immersive experience that will increasingly blur the edges of reality.

All this will cost a tremendous amount of money to build, which is why deep-pocketed big tech brands like Facebook and Google have invested heavily in it early in order to dominate the sector later.

Web3 proposes a very different metaverse vision, one that is fully open to anyone, decentralized, interoperable, open-source and will reward creators and security contributors fairly.

Again, this is where Web2.5 will likely come in, with both industries taking ideas from the other and working together in order to make the metaverse a reality.

### Blockchain Gaming

The success of Axie Infinity in 2021 kicked off the play-to-earn mania, promising gamers the opportunity to make money from playing games. Soon, thousands of copycat blockchain-powered games popped up offering lucrative rewards to players in the form of native tokens which skyrocketed at launch and then continued to tank.

While the bear market devastated the high-risk sector of crypto gaming, it’s not game over just yet. A number of high-quality crypto games are still in development, while Web2 gaming behemoths like Epic Games are distributing Web3 games. Expect a strong resurgence in blockchain gaming, when developers figure out how to make it fun and exciting enough for players.

Read: CoinMarketCap and Naavik: 2022 Blockchain Gaming Report — New Frontiers And The Path Forward

### Creator Economy

One of the biggest gripes with Web 2.0 giants such as Facebook, YouTube and Spotify are that they don’t adequately reward artists and creators on their platforms for the visitors they pull in.

With Web3, creator communities of artists, writers, musicians, designers and developers will finally be able to bypass intermediaries and connect directly with their audiences and supporters. This will help them earn the bulk of any revenue generated in the process.

Read: ​​Top Blockchain-Based Platforms for Content Creators

### Decentralized Autonomous Organizations (DAOs)

Much has been said about the power of decentralized autonomous organizations (DAOs) to create a truly democratized and self-governing organization that will transcend human interference and geographical challenges through the power of smart contracts.

While DAOs have taken some flak due to crypto projects tying it to governance tokens that soon become worthless, the need for DAOs still remain and this innovation could potentially exist as a dominant organizational structure once projects know how to optimally structure it.

Read: How to Create a DAO

### Decentralized Finance (DeFi)

Decentralized finance (DeFi) exploded in value in mid-2020, offering cryptocurrency users the ability to invest, borrow, lend, trade and stake crypto assets permissionlessly. While DeFi faced its fair share of security issues like hacks and scams, the industry offers Web3 the opportunity to onboard potentially billions of users that have been neglected by traditional finance firms such as banks.

DeFi products and services will undoubtedly be used in leading Web3 protocols looking to incentivize their users.

Read: CoinMarketCap and Spartan Labs: State of the DeFi Industry Report

## **Web3, Cryptocurrency and Blockchain**

As Web3 networks will operate through decentralized protocols — the founding blocks of blockchain and cryptocurrency technology — we can expect to see a strong convergence between these three technologies and other related fields. They will be interoperable, seamlessly integrated, automated through smart contracts and used to power anything from micro transactions, censorship-resistant P2P data file storage and sharing with applications, to completely changing every company conduct and operate their business. The current slew of DeFi protocols are just the tip of the iceberg.

## **Web3 Technologies**

There are a few details that we need to keep in mind when looking into Web3 tech. First of all, the concept isn’t new. Jeffrey Zeldman, one of the early developers of Web 1.0 and 2.0 applications, had written a blog post putting his support behind Web3 back in 2006. But talks around this topic had begun as early as 2001.

### **Evolution of the Web3 Technologies**

Web3 will be born out of a natural evolution of older-generation web tools combined with cutting-edge technologies like AI and blockchain, as well the interconnection between users and increasing internet usage. Apparently, Internet 3.0 is an upgrade to its precursors: web 1.0 and 2.0.