If you are conversant with the happenings in the Crypto space, you would have most likely come across “web 3.0. we wouldn’t be surprised if you still have a vague idea of what it actually means as we are yet to see the full implementation of this new internet.
Well, is web 3.0 truly the future of the internet or just a marketing ploy controlled by the VCs? Oh, what is web 3.0!? I wouldn’t want to dive into this concept while leaving behind the evolution of the internet. Let’s go back in time and unravel the mystery surrounding web 3.0!
Evolution Of The Internet - Web 1.0, Web 2.0 & Web 3.0
Web 1.0 is the first stage of the internet that comprises 3 fundamental technologies - HTML, URL, and HTTP. It is considered the read-only (or static) web, therefore, not user-friendly! Being a read-only web, we were merely consumers of the information uploaded by the owners of web1 platforms.
In the mid-2000s, the concept of web 2 emanated from advancements in web technologies such as JavaScript, HTML5, and CSS. This, of course, marks the second and current stage of the internet. Web 2.0 is interactive and more user-friendly; we are not only consumers of information but also contributors we see today. Twitter, Facebook (now Meta), forums, etc. are all web2 platforms. Therefore, you could refer to it as read-write or social web.
This all seems good but what’s exactly the point of web 3.0?
Web 2.0, being a centralized system, you need to trust the company owners with several confidential information that you are not quite sure of whatever they use it for. When registering on web 2.0 websites, you are usually made to agree to their terms and conditions. As long as you agree with this, you’re not in control of your account and they could kick you out without an initial warning.
This trusted system has generated trillions of dollars for its stakeholders by effectively leveraging your data and other several users worldwide.
Moreover, security is another critical issue for web 2.0. If you could remember pretty well, there were several times Facebook (now Meta), Instagram, and WhatsApp shut down and were not able to access them. Of course, these are some of the issues web 3.0 tends to address.
What Is Web 3.0?
Web 3.0, originally referred to as the semantic web, is the future of the internet that will utilize technologies like decentralized ledger technology, machine learning, etc. for information processing. In web 1.0 and web 2.0, information about your interaction with content is stored by its provider, however, this new internet is all about data ownership.
Apart from owning your data, you can also participate in the decision-making process of any network. Web 3.0, therefore, is referred to as the read-write-own web.
Features & Benefits Of Web 3.0
Web 3.0 is characterized by the features below…
- Decentralization
Although web 3.0 applications are similar to web 2.0, their backend is technically different. Web3 applications will be more interconnected since they are made to be compatible with many devices and various software types.
On web 2.0, data is held on a single server and is usually exploited by such centralized platforms holding it. On the other hand, data stored on web 3.0 are naturally decentralized, and a transparent/secured environment will be established through the use of blockchain technologies.
Data decentralization in web 3.0 means information is stored or co-exists in multiple locations at the same time. Consequently, this breaks the enormous databases currently held by tech giants like Google thereby giving internet users better control of their information.
- Artificial Intelligence/Machine Learning
Based on AI/ML, the meaning and emotions associated with a set of data can be read and correctly interpreted by web3 machines. Although a similar thing has been seen in web 2.0, it is still predominantly human-based.
An instance in web2 is when a company gathers or creates multiple accounts for review purposes for their App on PlayStore. However, this cannot be the case in web 3 with the aid of its AI/ML properties.
- Trustless & Permissionless
Web 3.0 applications (otherwise known as dApps) rely on blockchain technology for their operations. And as part of the inherent properties of the blockchain, it will allow direct interaction between its participants, thereby, cutting off any trusted intermediaries. In addition to this, you will be able to use the network without any authorization from a centralized system, hence, it is permissionless.
- Spatial web & 3D graphics
Web 3.0 will revolutionize the internet by transforming the basic 2D nature of web 2.0 into a more realistic virtual world based on 3D graphics. You might have seen this at work already in some futuristic gaming applications (e.g. Decentraland), real estate market, health, e-commerce, etc.
- Connectivity & Ubiquity
Web 3.0 allows information to be more connected via semantic metadata which leverages every available information. More explicitly, semantic metadata describes or explains the meaning of a set of data.
On the other hand, the ubiquity nature of web 3.0 eliminates data silos, therefore, no single unit will be able to control the repository of users’ data. Also, more applications and devices will be able to connect to the network - a good example of this is the IoT (Internet of Things) technology.
Web 3.0 Challenges and Criticisms
Although web 3.0 tends to be a paradigm shift in the history of the internet, it does come with a few challenges highlighted below…
- User-friendliness
Recently, web 3 applications have become a lot easier to use. However, a lot of work still needs to be done to ensure they are usable by the general public.
For your no-coiner or non-technical friends, using web 3 applications may seem complex to them; from setting up their wallet to carrying out simple transactions may prove difficult and confusing. They can’t afford to make errors during such computations in their wallets
- Transaction Cost
Using a web 3 application usually attracts some fees and if you do not pay this fee, you won’t be able to compute smart contracts. On the Ethereum network, this is associated with the gas fee and is still very high. On other layer one networks, this fee is pretty low. However, how many of your no-coiner friends will be willing to pay such a fee to access a decentralized application (dApp)? They will rather stick to their web 2 apps and use them for free.
- Scalability
Since web 3 applications are built on top of the blockchain network, they tend to acquire its properties. Perhaps, scalability is one of the most important issues of blockchain technology, hence, web 3 applications.
A scalable network can retain its processing speed as more functionalities or loads are being added. Because web 3.0 applications are built on a decentralized network, it is nowhere near as fast as serving data and running computations as it is on a central server.
For instance, block propagation is quite important to update the state of the ledger on the Ethereum network and this often takes time. What then is the point of using a decentralized social media platform if you have to wait for so long to obtain this data?
- Security
While the open-source nature of blockchain is good for transparency, the fact that it is a target point for attackers and other miscreants makes it a bad one. Should there be any vulnerabilities in this code, they would be more than happy to exploit them for a payday. Of course, this often leads to the loss of a huge sum of cryptos associated with such protocols.
Criticisms Of Web 3.0
Since the onset of web 3.0, there have been several criticisms coming from notable guys in the tech industry. Jack Dorsey, the CEO of Twitter, said in a tweet that gained a lot of attention that…
You don’t own “web3.” The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into…
In another tweet, Elon Musk, the CEO of SpaceX said…
Has anyone seen web3? I can't find it
Rebuttals
Criticisms or not, web3 existence remains valid as it has some good edges over web2. The decentralized nature of this new internet eliminates the roles of intermediaries thereby making it cost-efficient. Moreover, every party involved has a sense of ownership and rewards are given for their contribution. Who wouldn’t appreciate rewards for posting ordinary pictures on Instagram if it was a web 3 platform?
At the moment, web2 applications still dominate the internet for obvious reasons! Web2 platforms are user-friendly and many users are not yet thrilled by the nature of web3 platforms; decentralized, trustless, and censorship-free.
For its wide acceptance, web3 applications’ User Experience(UX) should be first improved. Doing this will, of course, make it a good rival for web2 applications.
What Makes Good Web 3.0 Applications?
The poor UX of web3 applications is related to the complexity as well as the cost of blockchain technology. Cosmos SDK and Substrate address the issue of complex consensus mechanisms and security architecture, thereby allowing developers to focus on the front-end of their applications. Moreover, developers are also given the liberty to customize the blockchain’s structure.
In building promising web3 applications, we might need to answer the question of whether to use an independent chain (Appchain) or use a smart contract, then, deploy them on a layer 1 network [e.g. Ethereum as dApps. Well, let’s take a look at the benefits of App Chains over Smart Contracts.
App Chain Vs Smart Contract
App Chains are application-specific blockchains that allow only a particular type of blockchain App to run on them. If a developer should deploy his applications on a layer 1 network it implies that they are sharing the functionalities of that blockchain with other Apps.
However, running your web3 applications on App Chains does have many advantages over the other. Let’s take a look at these;
- Performance
Applications deployed on layer 1 share the network’s throughput with other applications (dApps) deployed on that shared chain. This is similar to a congested system which, of course, affects its performance. Running them on a chain specific to the applications, however, implies they have their validators with high transaction throughput.
- Customization
Aside from the slow performance, deploying an App on a layer 1 network limits the extent of customization. However, with app chains, there are no limitations; the governance structure, consensus mechanism, incentive model, and virtually everything are customizable.
The Role Of Octopus Network In Web 3.0
Polkadot as well as Cosmos have already existed as a multi-chain ecosystem, what then is the need for Octopus Network? While Octopus network is particularly made for app chains, Polkadot & Cosmos are NOT.
For Substrate-based chains, the go-to ecosystem is Polkadot, however, it is not suitable for app chains because its consensus’ cost is terribly expensive. Although both Polkadot’s relay chain and Parachains share a single security layer, each Parachain is responsible for its consensus cost.
The Cosmos ecosystem, on the other hand, necessitates developers to have PoS security and an active community of validators right from the onset. Such requirements are both uneconomical and difficult to fulfill. Moreover, bootstrapping such projects may attract huge native tokens leading to hyperinflation.
Octopus Network
The Octopus network is best referred to as an Octopus Relay - a set of smart contracts deployed on the NEAR blockchain. Similar to Polkadot and Cosmos, it also addresses the issue of complex infrastructure for app chains. In addition to that, the Octopus Network addresses the issues with these networks.
The Octopus Network plays the following vital roles…
- An interoperable multi-chain crypto network that allows developers to bootstrap and run web3 application-specific blockchains
- Through the use of App Chains, developers are able to customize their application’s governance structure, economic design, and the consensus algorithm
- Moreover, these App Chains benefit from the flexible and economical leased security (LPoS), out-of-the-box multichain interoperability, complete infrastructure, and ready-to-be-engaged community
- With their leased security (LPoS), app chains can choose the level of security they need at anytime
- They want to achieve interoperability between NEAR, Ethereum, Polkadot, and Cosmos
- The cost of launching App Chains is significantly reduced and it is capable of hosting an unlimited number of App Chains
While any substrate-based chain can become an octopus app chain, the octopus community still needs to examine such a project and decide if it aligns with the Octopus aims. Once it passes this examination stage, it can then be considered.
The Octopus Network Token ($OCT)
$OCT is the native token of the Octopus network and serves the following purposes…
- As collateral to certify app chain security
- For governance or decision-making process
- To endorse app chain candidates through upvotes
- To validate an app chain, validators can stake their $OCT
- To earn rewards, $OCT can be delegated to validators
$OCT Token Release and Locking Schedule
The total supply of $OCT is fixed at 100 million.All $OCT will be minted before the Octopus mainnet goes live.30% of $OCT is allocated to 15% Seed + 12.5 Series A + 2.5% IDO. There is no lock for this portion.5% of $OCT belong to the Octopus Foundation to be used to provide the initial security for appchains. While there is no locking for this portion, it won’t go to circulation because it’s designated for appchain staking.Of the remaining 65%, the portion including 6% angel investors + 5% the strategic investor + 24% core team +10% Octopus Foundation will be released linearly over the course of three years after the token generation event (TGE).
Conclusion
Although it has its own downside, the future web 3.0 promises is realistic and it's just a matter of time before we see its full implementation. However, the only thing that can spur that is to first make it appealing to users.
Hopefully, the Octopus network and other solutions that are currently available will make things work out as planned. No doubt, web3.0 is not a marketing ploy by the Venture Capitals, instead, it is a panacea to the issues plaguing the current web system.
Originally published here.