Web3 is the name some technologists have given to the idea of a new kind of internet service that is built using decentralized blockchains.
Web3 has stunned the world by forging a parallel system of finance of unprecedented flexibility and creativity in less than a decade. Web3 is an idea for a new iteration of the World Wide Web based on blockchain technology, which incorporates concepts such as decentralization and token-based economics. Yet, the economic value finance trades on are generated by humans and their relationships. Because Web3 lacks primitives to represent such social identity, it has become fundamentally dependent on the very centralized Web 2 structures it aims to transcend, replicating their limitations.
For example, the lack of Web 3-native identity and reputation forces non-fungible token (NFT) artists to often rely on centralized platforms like OpenSea and Twitter (TWTR) to commit to scarcity and initial provenance, and prevents less than fully collateralized forms of lending. Distributed autonomous organizations (DAO) that try to move beyond simple coin voting, often rely on Web 2 infrastructure, such as social media profiles, for resistance to Sybil attacks (one or a few entities pretending to be many more entities). And many Web 3 participants rely on custodial wallets managed by centralized outfits like Coinbase (COIN). No wonder, decentralized key management systems are not user-friendly for any but the most sophisticated.
In our paper, we illustrate how even small and incremental steps toward representing social identity with Web 3 primitives could solve these issues and bring the ecosystem far closer to regenerating markets and their underpinning human relationships in the native Web 3 context.
The term Web3 has been around for years, but it has come into vogue in the past year or so. Packy McCormick, an investor who helped popularize web3, has defined it as “the internet owned by the builders and users, orchestrated with tokens.”
Proponents envision web3 taking many forms, including decentralized social networks, “play to earn” video games that reward players with crypto tokens, and NFT platforms that allow people to buy and sell fragments of digital culture. The more idealistic ones say that web3 will transform the internet as we know it, upending traditional gatekeepers and ushering in a new, middleman-free digital economy.
Many Web3 developers have chosen to build dApps because of Ethereum’s inherent decentralization:
1. Anyone who is on the network has permission to use the service – or in other words, permission isn’t required
2. No one can block you or deny you access to the service
3. Payments are built-in via the native token, ether (ETH)
4. Ethereum is complete, meaning you can pretty much program anything
What are the features of Web3?
Ubiquity: Web 3.0 will have the capacity of being everywhere at any time. In Web 2.0, Facebook provides this feature as users can capture and share their pictures on it, and other users can see that until they have access to it. Web 3.0 will take this further and provide the internet available everywhere at any time.
Semantic Web: Semantic is the study of content; thus, the semantic web allows the analysis of loads of data from the web. Semantics in the Web will enable machines to decode meaning and emotions from data. Consequently, users will have a better experience driven by enhanced data connectivity.
Artificial Intelligence: Web 3.0 machines will easily read and decipher the meaning and emotion of data using AI. Web 2.0 provides this capability but is still predominantly human-based, increasing the chances of corrupt behaviours such as biased ratings and reviews. In Web 3.0, AI will be in action that will enable platforms to sift data and tailor them to users’ liking. The advancement in AI (Responsible AI) will ultimately provide users with the best filtered and unbiased data as much as possible.
3D Graphics: It will blur the lines between physical and digital by revolutionizing the graphic field, bringing it into clear focus 3D virtual world.