What Is Web 3.0: How Will Web 3.0 Affect Cryptocurrency?

Web, URL, DNS, HTML — when it comes to the Internet, it seems that all these terms are too difficult to understand from the technical side of the issue. Partly they really are. Still, anyone can understand the basics and find out why Web 3.0 is the future and Web 1.0 is a forgotten history. In this article, we will find out what the essence of the Web 3.0 concept is, how it differs from previous versions, and why cryptocurrency projects are an integral part of it. Let’s get started!

World Wide Web Vs. Internet: What’s the Difference?

Contrary to popular belief, the Internet and the Web are not the same things. While the Internet is a network that connects millions of computers around the world, the Web is one of the tools for connecting. In other words, the Web is a system of websites linked together by URL links using DNS servers.

What Is Web 1.0?

Web creator Tim Berners-Lee described the first Web version as a ‘read-only’ network. This means that content that was previously distributed on radio or television could now be accessed from any PC connected to the Internet.

In Web 1.0, a small number of users created content for the majority. For example, resources with ads, online catalogs, and so on were popular. To leave a comment, you had to go to a special guest page and send it through an email client.

Initially, the system worked through modems and telephone networks. Because of this, it was chaotic and unstable, but the issue was solved with the advent of leased lines and Internet providers.

At the same time, people’s expectations from the new sphere turned out to be overestimated, which led to the legendary ‘dot-com boom.’ People were excited about the opportunities that the Internet could provide them with in the near future.

Internet startups appeared almost every day. Still, the industry was young, so most entrepreneurs did not understand how to run this business. Many companies were overvalued, and they tried to raise as much money as possible. The slogan of that time was the phrase: grow fast or disappear. However, in the end, investors realized that the startups they invested in could not start to bring them profit.

As a result, in the 2000s, many Internet companies went bankrupt, and investors suffered huge financial losses. However, those who were able to survive this period became IT giants, such as Amazon or eBay.

What Is Web 2.0?

2004 marked the birth of the Internet as we know it today. Back then, O’Reilly Media co-founder Dale Dougherty and publisher Tim O’Reilly emphasized the importance of user-generated content. Therefore, the key platforms of the Web 2.0 era were the social networks Facebook, Twitter, and YouTube video hosting.

Literally anyone who had access to the network could publish their content on various platforms. This led to the popularization of the Internet and gave a powerful impetus to the development of mobile devices, as well as apps and various online platforms.

Since the Internet began to generate high income, large providers began to appear. They were able to improve the quality of access to the network and reduce the price of this service. This again had a positive effect on the popularity of the Internet but at the same time became a key reason for its centralization.

Amazon now powers the websites of businesses worldwide, while Google and Facebook control the data of billions of users. Sometimes this leads to global issues. For example, last November, the Amazon Web Services (AWS) outage affected thousands of services, from Pokemon Go and League is Legends to Tribune Publishing and Baltimore Sun.

And leakage of data about millions of Facebook users led to a worldwide scandal. This became one of the key arguments of financial regulators who opposed the launch of the Facebook Libra crypto project (it became known as Diem after rebranding).

What Is Web 3.0?

Web 3.0 is a new version of the same Web, created back in the last millennium, but it works based on machine learning and artificial intelligence (AI). The concept is aimed at open, interconnected websites and web apps related to understanding data and teaching computers using AI. Due to this, it is possible to obtain the most relevant information in a short period of time.

In Web 3.0, each individual user will receive information tailored specifically for them. The concept of this system is not new. Back in 1999, Web 1.0 creator Tim Berners-Lee introduced it under the name ‘Semantic Web.’ This network should allow computers to process various mechanisms embedded in commerce, bureaucracy, and people’s daily lives.

It is assumed that the new version of the Web will be able to use peer-to-peer (P2P) technologies such as blockchain, open-source software, virtual reality, Internet of Things (IoT). But these advanced technologies are only a small part of Web 3.0.

Today most apps are created for a specific operating system, such as iOS. Thanks to Web 3.0, they will be able to work on any system without requiring separate development. This is a step towards the decentralization of the Internet, where users will not depend on the capabilities and solutions of providers. And this, in turn, will make the Internet a safer environment in terms of data security.

Among other advantages of the new version of the Internet are the ability to provide each user with more personalized information that meets their needs, more targeted advertising, and better customer support.

Web 3.0 & Cryptocurrencies: Key Things to Know

Blockstack CEO, Munib Ali, said that the best foundation for Web 3.0 would be the Bitcoin network as the most reliable of the blockchains. He states that Web 3.0 gives people back control over their data and digital assets. For this reason, many crypto projects are actively developing the concept of Web 3.0.

You can’t discount Bitcoin from the entire Web 3.0 ecosystem. It is by far the most secure blockchain. There are network effects, as well. Most people get introduced to cryptocurrencies through Bitcoin, and projects like Lightning are innovating on top of Bitcoin.

Blockstack CEO, Munib Ali

Decentralization is one of the most important principles of Web 3.0. For example, decentralized applications (dApps) from the DeFi sector do not need to be controlled by a third party. They are more secure due to the lack of central control points and more efficient due to the absence of intermediaries.

Another striking example of combining the sphere of cryptocurrencies and Web 3.0 is the Brave crypto browser. It does not track user activity and also blocks website ads by default. Users can consent to the display of commercial materials and receive native $BAT tokens instead.

At the same time, the Polkadot crypto project introduced a unique decentralized protocol that combines various blockchains and allows transferring information or tokens and deploying apps.

And this, in turn, is one of the main tasks of the new Internet Web 3.0 — the ability to work on any system without special modifications, apps, and add-ons.

Conclusion

Over the past 20 years, the Internet has changed and evolved significantly. It went from a decentralized chaotic network to an ordered system. Still, the security of users’ personal data suffered from this. Web 3.0 is just another step forward in the evolution of the World Wide Web.

Now the Internet is returning to decentralization again, with the help of blockchain and cryptocurrencies. Over time, the network will become more focused on each individual user, and programs will be able to run on any operating system at lower costs. And this will again improve the quality of the Web, reducing its cost to users.