Honestly, Web 3.0 can be a complicated topic for many people (myself included), especially for those who know little or nothing about the field. Even for those who think they “understand” it, I’d wager that sometimes people will ask you questions about Web 3.0 that you don’t know how to answer.
Whether you’re a Web 3.0 expert trying to convince others that these things are revolutionary, or you’re a newbie who’s really curious and wants to learn more, here are five concepts to help you better understand Web 3.0:
The three stages of the Internet
This concept is the source of the “Web 3.0” idea I often refer to. Since Tim Berners-Lee invented the World Wide Web in 1990, there have been three versions of the Internet:
Web 1.0 — Reading (Information Economy)
- From the 90s to the mid 2000s; most millennials and Gen Z won’t know/remember this, but their parents will.
- At this stage, web pages are just information to read online (just like a library)
- Can’t interact (can’t post, share, comment, etc.)
- This version of the network is decentralized and open source (anyone can build on it)
Web 2.0 — Read and Write (Platform Economy)
- From the mid-2000s to the late 2010s (still thriving today)
- Allow anyone to post content on the internet, even if they don’t have technical skills (i.e. coding)
- Helped spawn popular products like Facebook, Twitter, Instagram, and more.
- The web has become more centralized, with big companies like Facebook monopolizing the internet and user data
Web 3.0 – Read, Write and Own (Economy of Ownership)
- Started with the creation of blockchain via Bitcoin in 2009, but emerged in 2018
- Digital ownership and scarcity are possible for the first time
- The web becomes decentralized again, putting power back in the hands of the people
- Users own and monetize their data, not companies
Peer-to-peer transactions are not something inherent to Web 3.0, it has been around since the dawn of mankind. All peer-to-peer methods are two or more parties interacting without any intermediaries. As a simple example, I hand you a $20 bill. The transaction is from me to you, no one else is involved.
However, the peer-to-peer concept has not become an important part of our lives for a long time, especially on the Internet. If I gave you $20 over the internet today, I would probably use Venmo. However, this transaction will not be peer-to-peer as we will be relying on Venmo to drive the transaction to completion. In Web 3.0, all interactions on the blockchain are human-to-human and do not involve any third-party intermediaries.
A trustless system is an idea where you can operate without trusting any third-party intermediaries. Consider the previous example: Handing you $20 is trustless. Venmo gives you $20 for trusting Venmo and the bank to perform the function
Where do you keep most of your disposable money today? The answer is likely to be banks. With Web 3.0, you can self-custody your funds without trusting a bank to store it securely for you because you can store it securely on the blockchain.
A permission-free system is a system with no gatekeeper, which means that anyone can access it (as long as you have access to the Web 3.0 internet). Anyone can create a digital wallet that gives someone access to the blockchain, no one can restrict a person from using the blockchain network itself. Below is an example:
It makes sense that people with poor credit scores can’t get a bank loan because the bank fears that these people won’t repay.
In Web 3.0, you can take loans from DeFi platforms, where the underlying smart contract controls whether you are liquidated (if your collateral falls below an agreed threshold, your position will be liquidated).
In this world, those who create content (musicians, comedians, artists, etc.) are directly funded by their audiences, not middlemen like record labels, studios, publishers, etc.
The creator economy is not new to Web 3.0. Creators use platforms like Instagram, Youtube, Twitch and more to create content for fans. On these platforms, however, the cost of watching this “free” content is serving you ads based on data held by these tech giants.
In Web 3.0, the creator economy is different, and in many ways better. Creators are completely independent of third parties, have 100% data ownership and autonomy, and can create whatever content they want without fear of being demonetized or banned. A world where creators make better products for their fans by making money from real creativity rather than ad-driven content.
Furthermore, in the Web 3.0 world, the creator’s earliest and most important supporters can share in the creator’s benefits. For example, Chainsmokers recently released an NFT project where the owner of the NFT can receive a portion of the royalties from albums. The possibilities that Web 3.0 brings to creators are endless, and it can change the way we interact with artists.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/five-concepts-to-help-you-better-understand-web-3-0/
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