What is Web3?

By Om Gautam3 min read · Posted Mar 9, 2023

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Web3 is a developing idea that aims to rewrite the World Wide Web as we know it. It plans to use blockchain – a database hosted by a network of computers to provide information storage – to change how information is stored and shared. Cryptocurrencies like Bitcoin and Etherium currently use blockchain; however, if these decentralized blockchains power the internet, it may change the economy as we know it.

Progression of the Internet

The internet started as Web 1.0 in the '90s. This web was a collection of static web pages where users could only read information. In the 2000s, Web 2.0 was created. This allowed people to voice their opinions, making the internet a reading and writing platform. Mainly, we do this through social media platforms like Facebook and Twitter. The problem is that all of our information is in the hands of these big companies; you could say these enterprises own us. Enter Web 3.0, more commonly known as Web3.

The Goal

This vision of the internet aims to give ownership back to the people through cryptocurrencies and voting rights. It aims to make the internet more democratic through decentralized blockchains. Advocates of this new form of internet believe that Web3 will dethrone monopolies that control information and money online. It is made to build a truly “free” digital economy, whether it be play-to-win video games or NFT platforms where you can sell digital culture.

Components of Web3

One of the critical components of web3 is the use of smart contracts. These are self-executing contracts with the terms of the agreement written directly into the code. This allows for automating complex processes, such as supply chain management and voting systems, without intermediaries. Another critical aspect of web3 is decentralized applications (dApps). These applications run on a blockchain network and are not controlled by any single entity. This allows for a more open and transparent ecosystem, where users have greater control over their data and can access a broader range of services.

Impact on Entrepreneurs

  1. Decentralized platforms: Web3 allows for the creation of decentralized platforms, which can potentially reduce the need for intermediaries and increase efficiency. This can enable new business models and revenue streams for entrepreneurs.
  2. Tokenization: Web3 enables the tokenization of assets, which allows for the creation of new financial instruments and the ability to raise capital in new ways.
  3. Microtransactions: Web3 allows for micropayments to be made through smart contracts, which can enable new business models and revenue streams.
  4. Data ownership: Web3 allows for users to own and control their own data, which can enable new business models and revenue streams for entrepreneurs.
  5. Access to global market: Web3 enables entrepreneurs to reach a global market with low transaction costs and with no geographical barriers.

Web3 is still in its early stages of development, and there are still many challenges to overcome before it can reach its full potential. However, with the continued growth and development of blockchain technology, it is clear that Web3 has the potential to change the way we interact with the internet and create a more equitable and secure online ecosystem.

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