What we call Web3 will focus on an ecosystem of technology products that are decentralized, based on blockchain networks, interoperable, and do not have traditional trusted validators (such as companies, institutions, and government agencies). But what does this really mean?
What is Web3?
Web3, a term coined by Gavin Wood, president of the Web3 Foundation, represents the next phase of the Internet, perhaps for the organization of society as a whole. Web1 was the era of open and decentralized protocols, as most web activity consisted of browsing static single pages. The Web2 we are seeing now is an age of centralization where most communication and commerce takes place on limited (closed) platforms and is owned by a few technology companies centrally controlled by regulators and governments.
Web3, in turn, seeks to solve all the problems that Web2 has created by transferring ownership of data and control of digital identities that now belong to large technology companies to individual users.
In other words, Web3 refers to a decentralized web ecosystem based on the blockchain. To better understand this, look at the figure below to compare the architecture of a Web2 application and a Web3 application.
This means that platforms and applications built on Web3 will not belong to a central portal, but to the real owner of the data: the human. In short, people will be the focus of Web 3.
Decentralization and online trust 3
Instead of relying on a single central server, Web3 is built on top of blockchain networks backed by cryptography that allows data to be stored on distributed machines (also known as “nodes”) around the world.
These distributed devices can be anything from computers, laptops, or even more powerful servers. These devices act as the foundation for blockchain networks and interact with each other to store, distribute, and store data transactions without the need for a trusted third party (such as an organization, company, or government).
In other words, thanks to the nodes running the blockchain software, it is now possible to create a decentralized ledger to transfer ownership, unlike anything we have seen before. Now that Web2 was created, we had no choice but to hand over our data to technology companies, governments, and their central storage servers.
Therefore, we had to rely on traditional third-party auditors to use our data in an ethical and secure manner. And we were surprised when there were scandals like the Facebook Cambridge Analytica data scandal.
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With the current structure of the Internet, it is very easy to manipulate our data in “behavioral futures markets” without having any idea of what is going on and how it affects our lives. Not surprisingly, ownership of our data and our decentralized identity, also known as superior self-identity, is a prerequisite for Web3.
Automate Trust with Web3 Compatibility
In Web3, self-identity and data ownership are controlled by individual users themselves through digital wallets such as MetaMask (compatible with the Ethereum blockchain) or Phantom (compatible with the Solana blockchain). These digital wallets work more or less like a real wallet. In this way, the digital wallet acts as proof of your identity on Web3 and keeps your currency and data secure.
This wallet is interoperable, which means it can be easily created online and works with many products and systems so that the user can choose which decentralized applications can access their data and identity. In addition, all transactions and interactions on the blockchain network are prohibited; They do not require the approval of a trusted third party to complete. But how important is it?
Today, people must use their Facebook or Google login details to access many web applications, forcing them to share their details with these companies. On the other hand, in Web3, people own their digital identity. By replacing third parties with blockchain technology, Web3 opens up entirely new business models and value chains where central intermediaries are no longer preferred. Ultimately, Web3 is taking power away from middlemen and giving it back to individuals. And now you should probably be wondering if this shift in power is really possible.