There is a trending buzz of web 3.0 that can be seen all around the world. Web 3.0 is a concept for the advancement of the internet’s future phase, which is based on the criteria of decentralisation built on blockchain technology. Web 3.0 is considered as the third generation of internet services for applications and websites that leverages artificial intelligence, machine learning and blockchain to achieve real life human experience. The main motive of web 3.0 is to create intelligent, quick, connected and open websites.
Currently we are in the internet age of web 2.0 and web 3.0 is not fully implemented yet so there is no clear definition available that can define the features of web 3.0. One thing that we can expect from the third generation of the web is that people will enjoy personalised interactions with machines and websites in the same manner humans communicate.
Before diving deep into the topic of investment in the third generation of the web it’s really important to know the basics and the history of the web to understand better. This will indeed help you build clarity of investing in web 3.0.So let’s start with the evolution of the web.
Evolution of web
The Web is known as World Wide Web (www), the Internet’s core information retrieval system. The term World Wide Web was first coined by the internet pioneer Tim Berners-Lee, which means the global web of information and resources interconnected through hypertext links.
Sir Tim Berners-Lee invented the World Wide Web in 1990 while working at CERN (Conseil Européen pour la Recherche Nucléaire, or European Organisation for Nuclear Research). In 1990, Berners-Lee had written the three fundamental technologies that became the foundation of the web:
- HTML (HyperText Markup Language): the markup or formatting language of the web
- HTTP (HyperText Transfer Protocol): allows for the retrieval of linked resources from across the web
- URL (Uniform Resource Locator): a unique address used to identify each resource on the web
Web 1.0 started in 1989 and remained active until 2005.
As web 3.0 is not implemented fully so at present the web we are using is of generation 2. In 2004, there was a paradigm shift in the way the internet was used. The bland WebPages of Web 1.0 have been completely replaced by Web 2.0’s social connectivity, interactivity and user-generated content. Web 2.0 has made interaction common and has promoted content creation that is viewed by millions of people around the world virtually instantly.
Web 2.0 helped in booming the era of facebook, instagram, youtube etc and this was possible because Smartphone’s were created and mobile computing was launched. The second generation of the web has shifted the world away from static desktop web pages created for information usage through expensive servers toward interactive encounters and user-created content.
Companies such as Uber, Airbnb, Instagram, Facebook, Twitter, Tik-Tok, YouTube, WhatsApp and other social media platforms arose during the web 2.0 reign.
Web 2.0 contributed to the growth of the gig economy, by enabling millions of people to earn income on a part-time or full-time basis by renting their homes, driving, delivering food and groceries, or selling goods and services online.
In 2006, the term web 3.0 was coined by John Markoff . Web 3 is the third iteration or phase of the evolution of the web/Internet that connects in a decentralised way to deliver a faster and more personalised user experience. It is built upon the basic characteristics of Decentralisation, openness and incredible user utility. Web 3.0 is built using machine learning, artificial intelligence, virtual reality, augmented reality and the semantic web, and uses the blockchain security system which is often used in crypto-currency to keep your information safe and secure.
Some features of web 3.0:
- Open source:It often refers to a software or IT development program, with source codes that are freely available, accessible and which can be modified or enhanced to make edits, to fix bugs and alterations. Open source. Some of the most popular applications that use open source software are the Android OS for Smartphone’s and the Firefox web browser. Open source relies on community engagement, permissive licensing strategies and trust.
- Permissionless:This means that anyone, both users and suppliers canparticipate without authorization from a governing body or controlling organisation.
- Trustless:Third generation of the web can be trustless i.e. the network offers the freedom to interact directly without going through a trusted intermediary.
Now the question that arises is what makes web 3.0 unique and different from web 2.0 and web 1.0.
What makes web 3.0 unique?
Key drivers of web 3.0 are:
The decentralised nature of Web3 is made possible with DAOs (Decentralised Autonomous Organisations). In web 3.0, decentralised data means that users will own their data. Decentralised data networks enable various data generators to sell or trade their data without risking privacy, losing ownership, or relying on intermediaries. It enables users to log in securely over the Internet without getting tracked by using Internet Identity.
Some of the well known tech giants like Facebook, Google, and Microsoft etc. are making huge profits by using user’s data.But in this case of web 3.0 it enables all of us to be compensated for our time and data: “people have been exploited by tech firms — essentially, defrauded into giving valuable data away with little or no compensation from the firms who collect and benefit from it. Instead, the people should be paid for the data they share.”
This states that on implementation of web 3.0 users will be able to sell their own data to advertisers while still retaining ownership and data privacy. Web3 will enable websites and applications to use data more meaningfully.
- Artificial Intelligence & Machine Learning
Use of AI and machine learning, which is an area of artificial intelligence (AI) with a concept that a computer program can learn and adapt to new data without human intervention. Computers will be able to understand information similarly to humans, through technologies based upon natural language processing and Semantic Web concepts. These advancements will enable computers to produce faster and more relevant results that will be intuitive and predicted.
With Web 3.0, information and content are more connected, ubiquitous and available to all of us, at any point of time and from any location. Every device will be connected to the network and content can be accessible by various applications, as it won’t be restricted to Smartphone’s and computers. As IoT (Internet of Things), technology will enable the development of a multitude of new types of intelligent gadgets.
- Semantic Web
Semantic Web technologies enable people to create data stores on the Web, write rules for handling data and build vocabularies. Web 3.0 is based on Semantic Web concepts and natural language processing to make user interaction more intuitive. In short it gives a better understanding of web contents rather than just concentrating on keywords and numeric values. Web 3.0 uses semantic metadata to provide enhanced connectivity.
Blockchain is considered the foundation of web3, as it redefines the data structures in the backend of the semantic web. It is a decentralised state machine that deploys intelligent contracts. These smart contracts define the logic of an application for web 3.0. So anyone who wishes to build a blockchain application needs to deploy their application code on the shared state machine.
All data here is globally accessible, but the existing data can’t be changed or edited. Users can send files in a copy-protected way, hence enabling actual P2P (person to person) transactions without intermediaries. This means files and data are encrypted before sharing and are fully secured on web 3.0.
- VR and AR
Use of virtual reality and augmented reality, for more realistic and natural looking graphics which are extensively used.
Before investing in any new avenue the first thing that an investor must do is doing the market research of that particular entity. By knowing all the related advantages and disadvantages that comes with that investment.So, let’s have a look at some pros and cons of Web 3.0.
Advantage and Disadvantage of Web 3.0
|Data privacy and control||Need of advanced devices|
|Transparency, as blockchain is used for development.||Not ready for widespread adoption|
|Seamless services, due to decentralisation||Web 1.0 Websites will become obsolete, as it will become outdated when web 3.0 is fully adopted.|
|Open accessibility to Data, from anywhere and from any device.||Complicated functionality, as use of A.I. and blockchain is done|
|Enhanced Data Processing||Demand for Reputation Management Will Increase because there is easy access to user’s information.|
|Restrictionless Platform, since blockchain network is accessible to all|
|Single profile creation|
After knowing the advantages and disadvantages of Web 3.0 now let’s dive into the ways to invest in this.
Ways to invest in Web 3.0
There are multiple ways in which an investor can invest in Web 3.0 and some of them are:
Non-fungible tokens, or NFTs, more or less means that it’s unique and can’t be replaced with something else. A non-fungible token is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger that can be sold and traded. NFTs are considered as one of the first building blocks of Web 3.0. As NFTs are proof of ownership in the metaverse and NFTs can be used as a type of currency in the metaverse. NFTs are unique; they enable the transparent documentation of digital property rights and their automated transfer without any centralised intermediaries.
Metaverse is generally defined as shared virtual world environments or a computer-generated environment, which is accessible to users via the Internet. It is a digital space that is designed as more lifelike by using “extended reality,” that is the combination of virtual, augmented and mixed reality. Metaverse is still not a reality, but soon it can bring the next evolution of the internet.
Today people communicate via messaging apps or by social media platforms. But when we think of virtual space, people will communicate via their avatar or will have their own character that can walk around and will interact with others. This means that people will have a 3D experience on the Internet. They can play, work, interact or join in digital environments as if they are experiencing it in reality rather than just watching the content.
Web 3.0 will help the virtual world to exist online and be accessible through a web browser. The role of third generation web is vital in making Metaverse a reality, specifically if it uses blockchain technology. At present metaverse is used in gaming but it is also used in the education industry too. When we see the example of education metaverse users can enter an immersive classroom and interact with their teacher and other students. People can participate in the metaverse through the purchase of affiliated coins. Decentraland is an example of a metaverse coin.
Metaverse is a great option to invest in as it is going to change the dimensions of people’s life. Recently Facebook has announced its new name ‘META’. The idea behind this is to showcase that the company is moving toward the metaverse. Big giant companies are investing in this technology and will be reaping the benefits in near future
The third generation of the web is often associated with blockchain. It is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Often Cryptocurrency is associated with blockchain. Blockchain, also called Ethereum blockchain, is a decentralised state machine that deploys intelligent contracts. These smart contracts define the logic of an application for web 3.0. So if a person wishes to build a blockchain application needs to deploy their application code on the shared state machine.
Blockchain is a kind of technology which will be widely used by every giant business in the coming future and it will definitely act as the foundation of web 3.0. So blockchain is worth investing if an investor is thinking of investing in web 3.0.
Cryptocurrency acts as a financial arm for web 3.0 and it is also used to purchase land, NFTs and other objects in metaverse. Fintechs envision a future parallel banking system in the metaverse, where people can use cryptocurrency to buy or fund anything that they do in the physical world. We might end up using cryptocurrency to buy a car or a house in the metaverse, or to purchase an avatar.
cryptocurrency, is the right place to start participating in the growth of Web 3.0. There are thousands of cryptos currently available that can contribute to betterment of web 3.0 are:
- Polkadot (DOT): Every project that comes to Polkadot first goes through Kusama (KSM), which is Polkadot’s pre-production platform. Kusama is a unique project that allows crypto developers to experiment with their applications before minting them on the main chain.
- Helium (HNT): provides network
- Ocean protocol (OCEAN): it provides cloud storage for data.
- The graph(GRT): it is an index that will tell the details of product stored
- VeChian (VET): stores the complete history of a product from A to Z.
- BitTorrent (BTT):
- Basic addition token
These are some of the best related options of investment if a person is interested in investing in web 3.0.
Web 3.0 in real life
There are ample examples of web 3.0 in real life as it is already implemented in education, virtual assistance, social networking browsing , exchange of services etc. there is a list of examples:
- Apple’s Siri: example of voice recognition software as a key component of web 3.0.
- WolfRam Alpha: it is a computational intelligence platform that computes answers of users from different fields like mathematics, nutrition and science.
The internet will be arriving soon so let’s prepare accordingly and invest considering each aspect in mind so that every investor can reap benefits out of this web 3.0 investment. Web 3.0 has the potential to offer a whole new world of investment opportunities. As web 3.0 promises huge benefits but there is need of patience to reap the benefits.