What Is the Web 3.0 Revolution?

You’ve heard top industry players and projects talk about how Web 3.0 would revolutionize the internet. But what is it, and what does it mean for cryptocurrency and blockchain?

What Is Web 3.0?

Web 3.0 is an ideological revolution to wrestle back control and power from centralized giant corporations. It envisions an online decentralized ecosystem that is non-custodial and which transcends physical boundaries.

Through incorporating new technologies like blockchain, users have control over their personal data and sovereignty over their identity.

A Brief History Before Web 3.0

Ethereum co-founder and Polkadot founder Gavin Wood first coined the term in 2014, as the next iteration of the internet. But before Web 3.0, there were Web 1.0 and Web 2.0.

Web 1.0 was the beginning of the internet which consisted of static web pages and links. Web 2.0 came next and introduced interactive content, feedback systems, and social media.

However, to participate in Web 2.0, you have to give away your personal data to companies (e.g., Google, Facebook) when registering for accounts or buying products and services. After all these years, these companies now hold the majority of data on the internet - and thus control the internet.

Crypto and Blockchain on Web 3.0

Blockchain technology is the main driving force behind the Web 3.0 ideal.

• Removes the need for central custody: Every transaction or movement can be tracked on an online ledger.

• Empowers individuals to create the decentralized web: Users can develop their own DApps, instead of only consuming and creating content on platforms by tech giants.

• Allows for tokenization: Anything - whether currencies, art, music, entry tickets, videos, or physical items - can be tokenized, then bought, sold, or collected.

• Empowers user participation: Users, not centralized corporations, decide what the internet should be.

• Transcends physical boundaries: Users can interact from across the world in virtual metaverses using a single online identity.

If blockchain technology is the backbone of Web 3.0, digital assets like cryptocurrencies and non-fungible tokens (NFTs) keep Web 3.0 alive. The world’s oldest cryptocurrency, Bitcoin, was created for decentralized payments. Such payments would be fast, borderless, and have low fees.

Already, TradFi payment giants like PayPal and Stripe are incorporating cryptocurrency payments in their services.

That’s not all. Web 3.0 domains like Ethereum Name Service (ENS) are popular today as verifiable, personal identifiers on the blockchain. ENS domains are NFTs that prove ownership of a user’s username and can store an avatar and other profile data to be used across decentralized services.

Web 3.0 Challenges

While Web 3.0 seeks to give power back to the people, some argue that early adopters and VCs would still hold ownership over blockchains or metaverses. Many prominent Web 2.0 companies may also have enough funds and resources to influence the trajectory of Web 3.0.

Perhaps this is why decentralized autonomous organizations (DAO), which advocate for power to the people, have gained prominence in recent years.

Blockchain is a nascent technology to the mainstream, and both crypto and traditional industries are still trying to understand and develop the sector. However, there is no denying the potential of Web 3.0 to change everyday life, perhaps in the next decade.