As the planet increasingly focuses on cryptocurrencies and blockchain technology, web 3.0 has become all the more relevant as a concept. And with this ‘internet of money’ hailed as the next big thing, the tech certainly has everyone intrigued. So what’s the big deal about it? Let’s find out.

To truly understand the importance of Web 3.0, it’s crucial to take a look at its predecessors – Web 1.0 and Web 2.0

Web 1.0

Web 1.0 was the first version of the internet when it was just a collection of static web pages linked together by hyperlinks. While its functionality was limited to these static pages, it was groundbreaking at that time because it allowed people to share their ideas with the rest of the world. It did, however, come with its own set of challenges, the most significant of which was a lack of functionality.

Web 2.0

Then came Web 2.0, which gave users the ability to read and write. Web 2.0 also fixed Web1.0’s UX problem by making it easy for individuals to come online and express themselves. At present, we’re largely operating within Web 2.0.

Web 2.0 was no doubt a huge success, as evidenced by the criticality of the internet in our lives today. But it also came at a price. Closed ecosystems have replaced open protocols on Web 2.0. This means that the audience does not belong to the creators, and power is concentrated in the hands of a few powerful corporations. Despite the fact that users generate the majority of the value, the value is taken by these corporations. The centralization of Web 2.0 has also led to a number of privacy concerns.

This leads us to Web 3.0.

Web 3.0

Before Web 3.0, users and developers had to pick between Web 1.0’s limited capabilities and Web 2.0’s centralized model. Web 3.0, however, integrates Web 1.0’s decentralized, community-driven philosophy with Web 2.0’s enhanced, modern functionality. In essence, Web 3.0 is a tokenized internet controlled by its creators and users. The main distinction with Web 3.0 is that users can own the network without the need for a middleman. 

Why does Web 3.0 matter?

Unlike Web 2.0, which was largely fueled by mobile, social, and cloud technology, Web 3.0 is primarily driven by edge computing, decentralized networks, and artificial intelligence. In Web 3.0, web services will be controlled and owned by users, creators, and developers, with ownership and control managed by tokens issued by the network.

Indeed, Web 3.0 is a major step forward in terms of open, trustless, and permissionless networks. Open means that they’re made of open-source software developed by an open and accessible community of developers. ‘Trustless’ means that it allows participants to interact openly without the need for a trusted third party. And ‘permissionless’ means that anyone, including users and providers, can engage without the need for permission from a controlling organization.

With Web 3.0 offering a more user-centric environment and data monetization no longer possible, corporations are sure to lose large sums of money. Certainly, Web 3.0 can be viewed as a response to power abuses in today’s digital environment, and at the heart of this concept lies the decentralization of data and power. 

Closing thoughts

As we saw above, Web 3.0 is a revolutionary concept that combines the open protocol standards of Web 1.0 with the functionality and user experience of Web 2.0 without losing either. It returns control of the internet to users, creators, and developers, by taking it away from the hands of powerful corporations. It will also be more user-specific and enhance data security and privacy while minimizing the chance of hacking. 

Right now, it is still early days for Web 3.0, but the technology for sure is promising, and people can’t wait to see how it will transform the world for the better. 

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.