What we call Web3 will focus on an ecosystem of technology products that are decentralized, based on blockchain networks, interoperable, and that do not have traditional trusted validators (such as companies, foundations, 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 stage of the Internet, and perhaps the organization of society in general. Web1 was an era of open and decentralized protocols where most of the web activity involved browsing static individual pages. Web 2 we live in today is the age of centralization where most of the communication and trading takes place on captured (closed) platforms and is owned by a few technology companies that are centrally controlled by regulators and government agencies.

On the contrary, Web3 seeks to solve all the problems created by Web2 by transferring data ownership and power over digital identities, now owned by large technology companies, to individual users.

In other words, Web3 refers to a decentralized web-based ecosystem based on the blockchain. To better understand this, see the figure below for a comparison between the architecture of a Web2 application and a Web3 application.

This means that platforms and applications built on Web3 will not belong to the central gatekeeper, but the real owner of the data: the human. In short, people want to be the focus of Web3.

Decentralization and trust in the Internet 3
Instead of relying on a single central server, Web3 is built on top of cryptographic-based blockchain networks, so that data can be stored on distributed machines (also known as “nodes”) around the world.

These distributed devices can be anything – computers, laptops or even more reliable servers. These entities act as the backbone of blockchain networks, interacting with each other to enable the storage, distribution and continuity of data transactions without the need for a reliable external auditor (such as an organization, company or government).

In other words, thanks to the nodes running the blockchain software, it is now possible to register a decentralized registration of transfer of ownership, which is 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.

So we had to trust that these traditional third-party checkers would use our data in an ethical and secure way. And we were surprised when scandals like the Facebook data scandal and Cambridge Analytica emerged.

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With the current structure of the Internet, it is very easy to move our data into the “behavioral markets for futures” without even knowing that this is happening or its impact on our lives. It is no surprise that ownership of our data and our decentralized identity, also known as sovereign identity, is a prerequisite for Web3.

Confidence in automation with Web3 compatibility
In Web3, self-identity and data ownership are managed 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 Web3 identity, and stores your currency and data securely.

This wallet is interoperable, which means that it can be easily created online and work with different 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 not permitted; It does not require the approval of a trusted third party to complete. But how important is it?

Today, people have to use their Facebook or Google accounts to access many web applications, forcing them to share their data with these companies. In Web3, on the other hand, people want to own their digital identity. By replacing third parties with blockchain technology, Web3 opens up completely new business models and value chains where central intermediaries no longer have an advantage. Ultimately, Web3 takes power from intermediaries and gives it back to individuals. Now, of course, you have to wonder if this change of power is really possible.

Source: CoinTelegraph