What Is Web3: Everything You Need to Know in 2023

The concept of Web 3.0 promises a more transparent, reliable, and free Internet via the use of blockchain and decentralization. Let’s find out how the new standard will help to make money on cryptocurrency, NFTs, and metaverses.

A Bit of History

In the early 90s, Web 1.0 appeared, and the Internet, accessible to everyone, appeared. We got the opportunity to search and exchange information. Society has become a content consumer.

Fifteen years later, Web 2.0 appeared. Then social networks, cloud, and mobile technologies captured humanity. A distinctive feature of Web 2.0 was that the Internet allowed any user not only to view, but also to create content by posting texts, posts with images, audio, and video on social networks. The web has become interactive.

Today we have come to Web 3.0, which promises to revolutionize how people interact with the outside world via blockchain and decentralization. Now users can not only use content and post information on third-party resources but also own digital assets. The term Web 3.0 is believed to have been introduced by Ethereum co-founder Gavin Wood in 2014, who later founded the Polkadot protocol.

Web 3.0 Technology Benefits

After the Web 3.0 concept was formulated by Dr. Wood and the opportunity to work using blockchain technology was introduced, many projects began their development in this direction, for example, Ethereum, Polkadot, Filecoin, Blockstack, and many others. In Wood’s own words:

Web 3.0 is an inclusive set of protocols to provide building blocks for application makers. These building blocks take the place of traditional web technologies like HTTP, AJAX, and MySQL but present a whole new way of creating applications. These technologies give the user strong and verifiable guarantees about the information they are receiving, what information they are giving away, and what they are paying and what they are receiving in return.

Blockchain will be crucial to the spread of Web 3.0. Due to the decentralized nature of the distributed network, traditional data channels will be supplemented by a multitude of computing resources distributed across various devices, which are predicted to produce and consume much more information than they currently do.

Due to its distributed architecture and the absence of unnecessary intermediary links, Web 3.0 equalizes opportunities for users, making the environment more open and democratic. Thus, thanks to the new technology, we will have a more transparent, reliable, and free Internet.

Key Web 3.0 Features

- Open. Web 3.0 apps are built on open-source software that users and developers have access to and control over.

- Equality. The technology enables participants to interact openly or privately without the involvement or control of a third party, such as an ISP, that provides access and determines your rights or preferences.

- Inclusiveness. Use or participation in projects does not require differentiation on any basis or permission from higher authorities or instances.

The sale or exchange of information in a Web 3.0 environment occurs without loss of owner control, waiver of privacy, or reliance on third-party intermediaries. It will be a virtual world where users will be able to control their data and seamlessly switch from shopping to social networks or games and vice versa using one account. Thus, Gavin Wood mentions:

Web 3.0 will engender a new global digital economy, creating new business models and markets to go with them, busting platform monopolies like Google and Facebook and giving rise to vast levels of bottom-up innovation. Cheap government attacks on our privacy and liberty, like widespread data trawling, censorship, and propaganda, will become more difficult.

This is important because:

- Societies can become more efficient by eliminating middlemen, reducing the number of profit-seeking third parties, and returning that value directly to users and network providers.

- Organizations can be internally more resilient to change via their new network of more adaptable communications and governance links between members.

- People, businesses, and devices can exchange a lot of data with great privacy and security guarantees.

- Users will be able to secure future business and investment activities, virtually eliminating the risks of platform dependency that we see today.

- People will manage their own information and digital footprints using provable digital data and assets.

The emergence and development of the decentralized finance sector, non-fungible tokens, metaverses, and the development of Web 3.0 generate a synergistic effect, support, and complement each other.

How to Invest in Web 3.0?

New ways of interaction between people and devices, created thanks to the Internet of the future and integrated with NFT, DeFi, metaverses, and cryptocurrencies, will attract new users, promote industry development and the rapid adoption of new technologies or assets.

This, in turn, opens up a lot of opportunities for investors, which we will consider in more detail next!

NFTs

Non-fungible tokens (NFTs) are one of the new assets attracting the attention of investors. This is one of the fastest-growing segments of the crypto market. According to analysts, the total volume of transactions in the NFT market for all time amounted to at least $26.9 billion. It is also noted that not only the total volume of transactions is growing, but also their average cost.

The advantage of investing in the NFT sector is the great development potential. It’s not about simply collecting pictures anymore. Technology is evolving in areas where digital proof of ownership is important: from music and fan tokens to clothing and real estate in the metaverse.

Metaverses

Metaverses are virtual worlds, often with gaming functionality, that support the possibility of earning and buying various digital assets. Events and concerts, marriages, and business meetings take place within the metaverses. There you can buy land, rent an office or advertising space.

Over the past year, land plots in the most developed metaverses have risen in price tenfold. Considering that transnational corporations and institutional investors are actively investing in the metaverse sector, it can be assumed that this direction has a great future.

Cryptocurrencies

Metaverse tokens and projects that launch them are other tools that can bring tangible profits to investors. Investing in tokens is perhaps the easiest and most affordable way to invest in Web 3.0.

For example, Polkadot (DOT) is a project founded by Web 3.0 ideologist Gavin Wood and supported by the Web3 Foundation. This network connects blockchains into a single space, allowing you to quickly and safely process and exchange data between different blockchains. In less than a year, Polkadot has launched more than 350 apps, and the project is actively developing.

Another promising project is Polygon (MATIC), built on Ethereum and designed to make the entire network more scalable, faster, user-friendly, and interoperable by connecting other blockchains. In addition, Polygon recently created a Decentralized Autonomous Organization (DAO) for the Web 3.0 space.

One should think about investing in metaverses, such as Decentraland (MANA), The Sandbox (SAND), and Axie Infinity (AXS), by buying their native tokens.

Conclusion

Like any new technology, Web 3.0 has its downsides. From a social point of view, the main fears are associated with uncontrolled information flows that can be dangerous for society. Modern parents are worried about the lack of control over their children and possible hater actions on the network.

As for investments, no one can guarantee that NFTs or real estate in the metaverse will be worth more over time than it is now. Skeptics believe that the bubble will burst soon, but most likely, we will see the development and growth of this market in the coming years.