What Is Web 3, and Does It Matter?
The terms Web 1, Web 2, and Web 3 are not new to those who use the internet severally. These are the iterations of the World Wide Web that have ever existed. We are in the transitional period between Web 2 and Web 3, which is why the term Web 3 has been cropping up lately.
Web 1 was the first internet iteration that rolled out in the early 1990s. It allowed users to connect over long distances and was the first workable connection of computers internationally. It offered its users the chance to enjoy the internet’s simplest services, including search engines, and publishes with hyperlinks.
Web 2 came in 2003, about a decade after the first iteration of the internet became available for use. This iteration of the internet was the one that changed everything and reconfigured what people thought to be the standard ways of socialization. It was known as The Social Web. It brought the large social media platforms with it, and since then, businesses and big companies have capitalized on it to explore the markets.
Now, the age of Web 3 is upon us. This internet iteration leverages the technologies rolled out before it to capitalize on intuited computer systems like Artificial Intelligence. Other landmarking innovations like cryptocurrencies and blockchain technology that came before will be a large part of its structure. It will spearhead the technology that allows virtual events to complement normal world activities. Web 3 began rolling out in 2013. However, its full realization is taking longer than its predecessors as its structure is more complex.
When the internet was first introduced in the 1990s, many rejected it. However, those who leveraged its opportunities, like Jeff Bezos, are now ruling the tech space. Even though it’s still early to ascertain that the same might happen with Web 3, its integration with the upcoming and available technology is not to be dismissed.
Web 3 aims to bring an age where almost everything will be available digitally while leveraging decentralization and integrity offered by technologies like blockchain. Even though tech companies are explaining it and how it will benefit its users rather than just the corporations, it’s best to research it fully at an individual level. Despite its promising future, some tech stakeholders like Jack Dorsey feel that it may be a trap for Venture Capitalists and Liquidity Providers.
If you ever wondered what Web 3 is all about or why it is important to learn about it, worry no more as some of the key information is provided here!
The History of Web 3.0 and the Internet
Like all other innovations, the internet has been rolling out in stages, with each succeeding and capitalizing on the shortcomings of the other. There are three internet iterations: Web 1, Web 2, and Web 3. But what are these iterations all about?
Web 1
Many know that this was the first iteration of the internet to roll out. But there is much about it that they do not know. It’s the most important iteration as it introduced humanity to a world of unlimited virtual adventures, which is an aspect that all other iterations of the internet build on. The realization of the possibilities of advancing communication through virtual means gave birth to the idea of Web 2. Currently, people spend almost 40% of their time on virtual communication platforms.
Web 2
The early 2000s brought a surprise to the world as the idea of virtual communication began being a reality. Social media platforms like Myspace and Livejournal began cropping up. It was also around the same time dominant platforms like Facebook first went live. Yahoo! Messenger also topped the market around the same period.
Online communities began forming, and almost every social media platform that one could access had people to communicate with. Large corporations saw this as an opportunity and began exploring e-Commerce. It has worked out well for some, like Amazon and Walmart.
We are still far from leaving this iteration of the internet behind, as most of the technologies that Web 3 depends on are still too young. We cannot underrate the developments that Web 2 has brought to the world. However, things are about to get a lot better and more exciting for adventurous people with the full rollout of Web 3!
Web 3
Have you ever heard of Artificial Intelligence (AI) and Machine Learning (ML)? That is the kind of technology that Web 3 wants to introduce. Artificial Intelligence introduces computer systems programmed to make decisions and execute them akin to a human brain or even more efficiently. It spans from industrial purposes to ‘smaller’ roles like social media and highly intuited advertisements to target specific markets.
Web 3 also plans on building systems with designs optimized to focus on User Experience (UX). This functionality is key as Web 3 dictates that the users come first while products are being made to increase their comfort. It also focuses on data security which has been a major issue with the current iteration of the internet. Large hacking incidents and leaks have dominated the internet for a long, but it may be time to get things in check.
What Are Some Components of Web 3.0?
Web 3 makes the user the content owner and gives control back to them rather than corporations that capitalize on them in Web 2. For this to happen, Web 3 needs support from different elements that will form it. Some of these elements include:
Semantic web. In this type of web, technology is designed to create, share and connect content using search and analysis methods based on comprehension rather than keywords.
Artificial Intelligence and Machine learning: Artificial intelligence and machine learning offer intuitive responses like the human brain where there is no need for staffing or to run in working environments that are risky to people. It will also automate many processes making life much easier for everyone, including workers.
Internet of Things. For Web 3 to connect to people better than its predecessors, it requires highly intuited technologies to link devices and applications. That is where the Internet of Things (IoT) comes in. Internet of Things describes physical objects with sensors, processors, softwares, and other components that help exchange data between other devices over the internet or communication networks. IoT technology will be important to Web 3 due to the need for fast connection and data exchange between devices.
3D Graphics. These graphics are key to the development of Web 3 since it ushers in the age of virtual reality. For virtual reality to occur in an appealing manner, its technology must support 3D Imaging to create thrilling visuals. One of the applications of such technology is the metaverse which is an upcoming technology as well. The metaverse will be a virtual world where people can connect and socialize while capitalizing on the shortcomings of the real world. It relies on the Web 3 infrastructure, making 3D Imaging an important pillar and connection for both technologies.
Decentralization. Web 3 is capitalizing on the already available technologies to reshape the world. One of these technologies happens to be blockchain technology, which campaigns to decentralize power and governance. Decentralization has already been tested in other technologies like data security and the crypto space. Since it offers a user the right to decide what policies govern them, it would be a good idea to mainstream it through Web 3. That makes it a major pillar of the incoming iteration of the internet.
What Changes Should One Expect From Web 3.0?
As an upgrade to the existing innovation, Web 3 will come with new features and improvements. Such changes include:
Economic Inclusion: Web 3 views the user as the owner of the content they upload on the internet, which is way better than Web 2, which views them as products. It also wants to include everyone in the new economic models like decentralized economies and e-Commerce. Therefore, one can expect that more people will earn from the internet or the users’ revenue will increase significantly with its full realization.
Decentralization: Web 3 brings decentralization to the internet, where people are no longer under the governance of central bodies and organizations. It will give people control over policies and other governance protocols through consensus mechanisms that leverage blockchain technology. Decentralization will be a major solution as the new internet model seeks to reconfigure the power hierarchy of Web technology. Such an achievement will be a gamechanger for many, like content creators who suffer from exploitation by large corporations in the name of third-party assistance to access the market.
Artificial Intelligence (AI). AI will be a game-changer shortly. If fully realized, work will be much easier, and many lives shall improve. It will replace human beings in the works that prove harmful to their bodies in the long and short term while improving the uniformity of products and services. Even though it is still a young innovation, AI is worth keeping an eye on it as it may significantly reshape the world.
Innovative Economic Models. Since the first internet iteration came to age, e-Commerce has had immersive growth, with almost every large business capitalizing on it. Things will be much better with Web 3 as it introduces new technologies like faster internet, better data security, decentralization, the metaverse, blockchain technology, and digital currencies. When combined, these technologies and others will spearhead an innovative economy that will create new solutions to current limitations through technology.
How the Use of AI Will Affect the Development of Web 3
In 2011, Venture Capitalist Marc Andreessen said that Software development was ‘eating the world,’ signifying that most companies were turning to softwares to achieve digitization. Now, AI and ML are eating the world. As many companies were transitioning from analog to digital in the last decade, some have started incorporating AI/ML functionalities.
The available softwares are being rewritten into AI and ML compatible versions that can serve as cornerstones of certain industrial processes. AI is also becoming a fundamental building block of modern softwares.
The use of AI and ML is already affecting and influencing the development of Web 3. Intuitive technologies like cloud engineering and computing, networking, and cyber security are already being re-imagined using AI and ML. These technologies are significant in Web 3 as they are among the main features that it aims at improving. The extensive rollout and advancement of AI and ML technologies will increase the rate of realization of Web 3.
What Is the Connection Between Crypto, NFTs, the Metaverse, Blockchain Gaming, and Web 3?
Web 3 will bridge to connecting different innovations since it is the internet connection itself. Some of the most important innovations of our generation include crypto, NFTs, Metaverse, and blockchain gaming. These innovations are important because they offer opportunities for many to get new experiences like decentralization, efficiency, and better revenues. Below is how each of these innovations is connected to Web 3.
Crypto. Cryptocurrencies depend on blockchain technology to run smoothly and record transactions. While it may seem self-sufficient, it also requires a strong and reliable internet connection to ensure that the connection between devices is optimum. Web 3 will provide all the necessary tools to make the connection between devices required by cryptocurrencies run seamlessly. It comes with new speeds and efficiency compared to Web 2, which will motivate developers to build better crypto projects.
NFTs. Like cryptocurrencies, NFTs rely on the underlying blockchain technology to operate while leveraging resources provided by the internet. As Web 3 will be upgraded for the internet, NFTs will benefit from its efficiency and policies that involve digital assets as a form of exchange with cryptocurrencies. Also, Web 3 aims to safeguard the rights of content produced by its users, which will most probably involve tokenizing the content in a form close to NFTs.
Metaverse. 3D technology, virtual reality, and other technological advancements that the metaverse requires will be provided by Web 3. Web 3 also requires these technologies to reshape other innovations connected to it. It will also provide necessary internet resources to the metaverse projects creating a connection with mutual benefits.
Blockchain Gaming is one of the most recent trends in the tech space. It allows people to play online games while earning from them through programmed systems that rely on blockchain technology. Blockchain gaming requires very efficient internet connections due to the heavy data transmission to facilitate real-time synchronization between players. It also requires a strong internet connection to upload data from the game’s softwares to the servers as people play. Even though Web 2 offers these services, Web 3 offers better reliability, motivating game developers to make more realistic softwares while leveraging its resources.
What Does the Interoperability Offered by Web 3 Mean to the Future of Crypto Space?
According to the above information on how Web 3 offers interoperability between different innovations tied to the crypto space, it is evident that the crypto space has a brighter future. Interoperability is key to the crypto space as it allows users to access different innovations without much struggle.
Web 3 serves as the bridge to all innovations tied to the crypto space since it offers the necessary internet resources to them. That means that massive adoption of Web 3 may lead to massive adoption of innovations in the crypto space. Since Web 3 is heavily intuited, people will stop viewing crypto space as a fantasy but a reality.
Consequentially, developers will also have an easier time coming up with crypto projects that leverage opportunities offered by different innovations. That calls for attention to what opportunities Web 3 offers and how to advantage of them.
Strategies on How to Invest in Web 3.
Web 3 offers many investment opportunities to the world. Since it depends on underlying technologies like blockchain and software development, the best way to invest in it is to invest in such projects. While it may not be possible to start a crypto or software company, it is best to select some of the best projects related to Web 3. Such projects include the metaverse, Web 3 stocks, NFTs, cryptocurrency, and blockchain-related projects.
The Metaverse
The metaverse is one of the most recent technologies. It allows for the interaction of people virtually. It also has many opportunities for the digital economy, making it a good investment vehicle. While investing in the metaverse, go for its projects like virtual lands or go for parent company stocks and its cryptocurrencies.
Web 3 Stocks
Like the metaverse, Web 3 can also be invested in through the stocks of companies that capitalize on it. These companies are led by brilliant strategists and teams that only focus on the most promising projects. Some of the best Web 3 stocks to invest in include:
- Advanced Micro Devices (NASDAQ: AMD)
AMD is among the semiconductor designers racing to develop the best AI and graphics chips to power Web 3. The Bank of America anticipates that AMD will increase its server market share by around 25% in 2022. Therefore, it is one of the best Web 3 stocks to consider.
- IBM (NYSE: IBM)
IBM is pursuing artificial intelligence initiatives that are related to Web 3. It stands as one of the most promising Web 3 stocks out there. By exploring opportunities offered by AI and ML, IBM can be a pioneer in the next generation of internet connectivity, and holding their stocks may be worth it.
- Apple (AAPL)
As a leading tech company, Apple also seeks to capitalize on Web 3.0. It controls about a quarter of the smartphone market, and smartphones are a necessity for technologies like cryptocurrencies. This stock is promising considering their plans with Web 3.
- Block (NYSE: SQ)
Block is a fintech giant formerly known as square and founded by Twitter co-founder and ex-CEO Jack Dorsey. It provides solutions for P2P payments, cryptocurrency, and point of sale. Even though its CEO Jack Dorsey criticizes how VCs and LPs are trying to take advantage of Web 3, he plans to capitalize on it. That makes Block stocks one of the most important Web 3 stocks to invest in.
NFTs, Cryptocurrencies, and Other Blockchain-Related Projects
NFTs, Cryptocurrencies, and other related blockchain-related projects stand as some of our generation’s most lucrative investment options. They are part of Web 3 and stand out as they have an almost stable market. They are among the most bullish projects that our generation has seen. However, it is best to DYOR while investing in them as they are still young, and some of their projects can lead to devastating losses.
What Big Organizations and Tech Stakeholders Think About Web 3
Meta
Meta believes in Web 3, the metaverse, and other upcoming technologies like cryptocurrencies. Its CEO Mark Zuckerberg has already allowed the development of a Web 3 project involving a metaverse worth $10B to start. It also plans to increase its investment in the project.
According to Alphabet CEO Sundar Pichai, they are looking into helping develop Web 3 and blockchain products.
During the Q4 2021 earnings call, he said: “definitely looking at blockchain and such an interesting and powerful technology with broad applications.”
Jack Dorsey
Jack Dorsey was involved in a spat with several crypto space stakeholders for campaigning blindly for Web 3. The feud led to an unfollowing spree on Twitter last December. Jack believes that VCs and LPs are still trying to take advantage of Web 3 to make profits from investors and users.
His tweet read:
“You don’t own “web3.” The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into….”
Elon Musk
Tesla CEO and Techno King Elon Musk believe that words like Web 3 and metaverse are still buzz words, and it will take a long before realizing their full potential. That assertion is true, but at least the two innovations show promising improvements.
The concept “seems more marketing buzzword than reality right now,” he tweeted back in December.
Final Word
We are the generation that has had the most significant developments in technological innovation, and the internet is at the center of all that. It has brought an age where people can connect virtually with an almost natural feel. It all began with the simplest forms of communication advancing to the innovation of the first internet iteration.
Social media also followed after the conditions were right for its innovation. This trend shows dependency in the tech industry, where the most recent innovations incorporate the features of its predecessor and improve on its shortcoming. Currently, the world is in an important phase where many technologies projected to reshape it are in their first stages of development. Technologies in question include Artificial Intelligence, Machine Learning, Blockchain technology, Web 3, Metaverse, Cryptocurrency, NFTs, etc.
These technologies also share an interdependence in their connection with Web 3 in the center of all that. However, their relationship is a little complex as Web 3 is meant to be their backbone, but it is building on what they have already accomplished. From a technological point of view, this will make Web 3 more compatible with the technology as it will be filling the voids and offering solutions to them.
The rollout of these technologies could be an opportunity for individuals and enterprises to be at the forefront of the next age of technology. Therefore, everyone should start researching these technologies and investing in them. There are many ways of investing in these technologies, but it is advisable to explore those not tied directly to them. Also, one could balance out their portfolio by having several assets tied directly to these technologies and others tied to the companies that pursue these technologies.
The main reason for balancing the portfolios is not because these technologies are meant to fail but are to maintain a healthy investment plan as they are still young and no one knows what will happen in the future. Follow trusted sites like crypto.news to research such developments and get insight into the latest developments in the crypto space.
