What is Web 3.0?
Generations of websites that describe how the user interacts with the website. There is a time series element to these categories (Web 1.0 websites existed prior to Web 2.0 websites, e.g. social media platforms), however, that does not mean that these generations cannot coexist. Despite the fact Web 3.0 is now a reality, many of the world's most valuable companies are considered Web 2.0 e.g Spotify.
Web 1.0 - The Read Only Web
An information space largely considered 'read only'. An experience much like a catalogue.
Web 2.0 - Social Web
Read and write functionality but information is dispersed through centralized parties. Examples of Web 2.0 includes social networking site and forums.
Web 3.0 - The Decentralized Web
A work in progress
Web 3.0 (aka Web3) describes a generation of internet services that operate through decentralized protocols, powered by distributed ledger technology, typically blockchains. Web3 provides the opportunity to own digital assets in a clearly verifiable way. This is known as tokenization.
Why is Web 3.0 important?
The decentralized nature of distributed ledger technology means Web 3.0 technology allows for value to flow between entities / individuals without the need for third-parties to facilitate or validate the transactions, allowing multiple parties to transact and work together in a trustless and transparent way.
Web 3.0 technology will undoubtedly have a huge impact on day-to-day life but in the immediate term the most notable benefits seem to be:
- Verifiable and transparent ownership rights - Known as tokenization, assets and ownership rights can be converted into a token on a blockchain network. These tokens themselves then become stores of value, whether this be in the form of cryptocurrencies, of NFTs, where each token is non-fungible i.e. unique.
- Trustless transactions - Mechanisms are in place which mean all parties involved can transact without a reliance on any single individual or entity.