What is Web 3.0 & Why is It Important [2023 Guide]

The internet is a staple of life for most of the world’s inhabitants, and deactivating it would have consequences on par with a natural disaster. Yet, it remains a relatively youthful invention in the grand scheme of things and continues to iterate, with Web 3.0 being its next evolution.

With the growing worldwide use of the internet and its availability being sometimes more ubiquitous than clean drinking water, the world wide web as we know it has also been weaponized.

At one end of the spectrum are actual hackers and malicious internet trolls, but perhaps even more insidious has been the appearance of the tech firm as a prominent part of the zeitgeist.

Who Controls the World Wide Web?

The world’s most massively capitalized corporations are now internet-based. Companies like Google, Amazon, and Meta wield your private data with abandon as they continue to avoid contributing meaningfully to society.

The current internet climate makes you the product, whether it’s the ironically-named fee-less stockbroker Robinhood basing its entire business on selling user trading data to Wall Street or Meta (formerly known as Facebook) selling private user data and being fined peanuts.

The corporate direction for the internet is truly dark, with Elon Musk’s acquisition of Twitter being a case in point. Still, Web 3.0 may be a way for ordinary users to escape this spiral into corporate dystopia.

What is Web 1.0?

Before diving in and talking about Web 3.0, it’s important to trace the history of the world wide web back to its roots and investigate what Web 1.0 was.

This is especially important because Web 1.0, the internet’s nascent form, was created upon values such as equality, transparency, and information access. This phase of the internet, born as it was upon such utopian beliefs, was referred to as the “Static Web” or the “Read era,” dating from 1989 to 2005.

The names “Read” and “Static” say it all. Users had limited access to information and zero ability to interact, and it was very difficult to find anything relevant without consulting web directories. It wasn’t as easy to create content back then as it is now. Back then, real-time news and email were revelations in their own right.

Web 1.0, or the World Wide Web itself, was pioneered by a British computer scientist, Timothy Berners-Lee. Knighted in 2004, the internet pioneer created the three fundamental technologies of the internet, HTML, URL, and HTTP.

What is Web 2.0?

Web technologies such as Javascript and HTML5 were developed, and their advancement also led to the evolution of the internet as a whole. Web 1.0’s static nature disappeared as more interactivity entered the web domain, giving us platforms we could interact with.

Interaction means engagement, and the platforms that dominate today’s landscape began to emerge in the years following 2005. Youtube was one of these, and Facebook also emerged from a market that included the likes of Hi5 and MySpace.

The company now known as Meta is perhaps more infamous for its Cambridge Analytica scandal than anything else. Its origins were similarly controversial, with the Winklevoss brothers winning $65 million in a settlement after accusing Mark Zuckerberg of stealing their idea.

Web 2.0, also called the Social Web, makes the internet interactive and easy to use but shockingly bereft of value. As ads and scams dominate search results and companies battle each other to sell your data to the highest bidder, the wealth generated by Web 2.0, along with all digital property, is placed very firmly in often predatory corporate hands.

What is Web 3.0?

Web 3.0, a term coined by Polkadot founder and Ethereum co-founder Dr. Gavin Wood, offers a chance to restore the original utopian vision of the internet. It returns data ownership to users while also moving to the next technological level.

Artificial intelligence, machine learning, and distributed ledger technology are some of the building blocks of Web 3.0, and Berners-Lee has been quoted as saying the Semantic Web automates the interface between systems, people, and home devices.

While the advent of technology can’t be stopped, Web 3.0 also stands for a decentralized internet. It returns both the ownership of data and its actual value to users and keeps them away from the clutches of the centralized Web 2.0 firms that still dominate the landscape. This may help explain why Web 3.0 receives the criticism it does in some quarters.

Berners-Lee even predicted some of these elements, writing in the 1990s that the future of the web would need “no permission from a central authority to post anything on the web, there is no central controlling node... and no ‘kill switch’! This also implies freedom from indiscriminate censorship and surveillance”.

How Does Web 3.0 work?

Web 3.0 often goes hand in hand with blockchain technology, primarily because of the decentralized nature of public blockchains. It’s certainly possible to have private blockchains, and many companies do, but an application deployed on a private blockchain would simply be a Web 2.0 app.

Public blockchains, especially the massively decentralized ones like Ethereum, are impossible for a single central entity to tamper with. They’re immutable, with no ‘kill switch’ as described by Berners-Lee. Private blockchains are immutable only so far as their owners wish them to be

Applications built on decentralized public blockchains are called “decentralized applications” or dApps. These dApps are powered by cryptocurrencies, which are used in various ways, including as monetary incentives for all stakeholders—including users.

In this manner, anyone who contributes positively to the ecosystem receives appropriate value, and can even have a say in platform direction via the DAO (Decentralized Autonomous Organization) style structure of many Web 3.0 apps.

You can contribute wireless coverage to a network and get paid for it via Helium, put your GPU to work with Render Network, source talent with Braintrust, and even play ImmutableX’s games to earn cryptocurrency with real-world value.

Web 3.0 vs. Web 2.0 vs. Web 1.0

Web 3.0 and its previous iterations all describe phases of the world wide web, and some authors even describe a Web 2.5 that refers to the current, sometimes-rocky transition from Web 2.0 to Web 3.0.

Characterized by decentralization and user ownership of data and value, Web 3.0 cuts a stark contrast with Web 2.0, even though the end goal for most Web 3.0 developers is to provide a user experience that meets the norm. Some early-stage Web 3.0 projects still look dated and are roundly criticized for that.

Web 2.0’s watchword, if it has one, is centralization. Competition is the spiritual enemy of the corporation, and most Web 2.0 giants could easily be described as monopolies. Meta, which, aside from Facebook, also owns WhatsApp and Instagram, dominates several categories, while Twitter, Amazon, and Google (which owns YouTube via its Alphabet holding company) are also in a league of their own.

Web 1.0, by contrast, describes the early days of the internet. It, too, benefited from a relative sense of decentralization because the true value of the web was not yet understood or tapped. As a result, many of today’s Web 2.0 giants were still in the process of formation during the latter stages of the Web 1.0 era.

The recognition of the value inherent to Web 2.0 spurred the growth of these corporate behemoths. It’s clear that many, if not all, of these firms have made our lives easier in one way or another, but from questionable origins to predatory practices, none are above reproach.

Web 3.0 offers a chance to maintain the ease and efficiency of Web 2.0 while also protecting your own data and sharing value equitably.

Main Features of Web 3.0

So, what exactly is the formula for Web 3.0? Let's take a look at the main features or properties of Web3 apps!

#1. Decentralization

As mentioned, decentralization is one of, if not the most, important properties of a Web 3.0 app, service, or product. Centralization offers both a point of failure and a vector of control. In contrast, when an entity is decentralized, decisions can be made that benefit all, rather than just a single controlling entity.

The pitfalls of centralization can be seen almost every day, as centralized, often Wall Street-owned companies make decisions oriented purely around their bottom line

Wizards of the Coast, a role-playing video game company that is owned by Hasbro, which in turn has several prominent hedge fund shareholders, was at the center of a controversy recently. Specifically, it attempted to modify the OGL (Open Gaming License), allowing players to craft and monetize their experiences.

Netflix, a company even more dominated by private equity, is trying to crack down on password sharing. This is despite tweeting in 2017 that “Love is sharing a password.”

A decentralized structure helps to involve all stakeholders, from creators to investors to developers to users. It ensures that decisions are made in favor of the overall health of the platform and all involved rather than in service to the bottom line or executive paychecks.

#2. Privacy

As the previously referenced Cambridge Analytica scandal revealed, Facebook sold private user data on a mass scale. This wasn’t an isolated incident, and Facebook wasn’t the only firm attempting to monetize user data.

Some countries have clamped down on this, but even restrictions such as Europe’s GDPR don’t cover all the bases. So companies can get away with a lot thanks to the legality of lobbying, a process that doesn’t appear terribly different from bribery barring tenuous technicalities.

Web 3.0, on the other hand, leaves users with full use and control of their private data. Users may monetize their data if they so wish, but that’s their decision, not that of the platform. Several Web 3.0 cryptos are based on this sort of model.

#3. Distribution of Value

When a user decides to monetize their own private data and earn cryptocurrency for it, that’s Web 3.0. On the other hand, when a firm decides to monetize the data of its users, who in turn receive nothing, that’s Web 2.0.

Some of the easiest examples can be found in gaming. Take “Gods Unchained,” which is like the Web 3.0 answer to titles like “Hearthstone and Magic: The Gathering.” Users earn GODS tokens simply for playing Gods Unchained, which they can then use to buy more cards to play at higher levels (and earn more).

The legacy games mentioned, on the other hand, are money sinks. With Gods Unchained, players can earn both currency and cards and even sell the latter to other players for various cryptocurrencies. Most games don’t allow this, so asset and account trading has to happen in black or gray markets.

Thanks to NFT technology, a small royalty can be baked into trades so developers or creators can continue earning a small amount as players trade assets. Thus, they don’t have to worry that the players own those digital assets outright on the blockchain.

#4. 3D Experience

The technology for three-dimensional computer simulation has existed for a long time, and 3D games are just as old as the internet. Online worlds aren’t new either, with games like “Second Life” pre-dating Metaverse projects by a considerable amount of time.

However, many Web 3.0 projects can take the user experience to a new level by employing 3D features. While not the be-all and end-all of Web 3.0, metaverses are very much part of it, and their potential is clear given the continuous adoption by household names.

Facebook even renamed itself Meta. Mark Zuckerberg, dubbed “Zuck the 14th” by Tesla and Twitter CEO Elon Musk in a nod to French King Louis XIV, famous for his hubris and excesses, appears already to have moved on.

#5. Artificial Intelligence

Artificial intelligence, whose bandwagon the Zuck appears to have attached himself to, is prominent in the mainstream thanks to various creative utilities. However, its true value lies in what it can do behind the scenes, sorting the good from the bad and taking over tasks with marginal benefits that are nevertheless necessary.

Web 3.0 utilizes AI not at the forefront but in the background, leveraging the technology to provide users with the ability and freedom to create. Computers will be used to produce faster and more relevant results in areas that actually make a difference, rather than being wasted on things like targeted advertising.

Challenges With Web 3.0

Corporate pushback is perhaps the main challenge to the advent of Web 3.0 because it is disruptive. It also disrupts the industries and entire business models of some of the world’s most massively capitalized companies.

Many Web 2.0 giants are worth tens or even hundreds of billions of dollars. In turn, a lot of this value is held by companies that go into the trillions. So if you had as much to lose and as much capital to leverage in a fight, you would give up too easily.

The sheer threat to massively profitable business models that Web 3.0 poses explains all of the vitriol that the blockchain industry faces. The majority of the mass media is against anything to do with Web 3.0, blockchain, or NFTs, mainly because their hedge fund investors stand to lose on their Google, Netflix, Meta, and Amazon long positions.

This volume of PR—leveraged by the absolute ownership of social media, which by definition encompasses Web 2.0—takes its toll. Many ordinary people who don’t have a dog in the fight are victims of this vitriol and are swayed into thinking that “Web 3.0 is bad” without even understanding what it is.

Examples of Web 3.0

Web 3.0 has the potential to be truly revolutionary and reworks formulas that previously existed in a way that allows you, the user, to benefit from them without being taken advantage of by the system. Here are some Web 3.0 examples at work:

#1. Brave Browser

With built-in ad-blocking and a familiar UI, Brave lets you decide exactly how many ads you want to see and pays you in BAT for the privilege of showing them to you. This is very different from how people normally interact with the internet, with ads forced upon them and Google getting paid for it.

Brave also lets you tip content creators directly without intermediaries taking a cut.

#2. Wolfram Alpha

Unlike search engines, this “computational knowledge engine” answers questions directly through computation rather than giving you a list of webpages. It also gives you more relevant information and collaborates with Filecoin and IPFS.

#3. Gods Unchained

One of the premier play-to-earn games that is currently in full swing, this ImmutableX title allows players to battle it out in true TCG style and earn both GODS tokens and new NFT cards to use or sell.

#4. Reddit Moons

Reddit is one of the most popular social media platforms in the world, and while still centralized, it has begun rolling out Web 3.0 features such as the MOONS token and Avatar NFTs.

#5. GameStop NFT Marketplace

Decentralized thanks to a Loopring backend and ImmutableX frontend, this curated blockchain-based marketplace allows creators to sell their content, from art to even music and film.

#6. Presearch

Presearch is a Web 3.0 crypto project that offers users a search engine that rewards them for using it. Google hits you with ads and takes the cash; Presearch pays you for each search you do.

The applications of Web 3.0 are limitless, and the above are only a handful of working examples of how various technologies, including NFTs, are being used to return value to users. Various other applications exist, such as DAO project structures, Decentralized Finance (DeFi) dApps that are open to anyone, and much more.

The Importance of Web 3.0

Just as the internet’s advent was a fundamental shift in how day-to-day life was lived, Web 3.0 is a giant step for the internet and online spheres of existence in general.

The consolidation of Web 2.0 has become a travesty, if not a crisis, that borders on the existential, and it’s no coincidence that corporate ownership of social media has coincided with increased oppression, violations of labor rights, and even wars.

Unthinkable conduct just a few decades ago is now considered the norm, and this dystopian byline was the Wall Street Journal’s Valentine’s Day ballad to its readers.

The fact that the News Corp-owned publication thought it could get away with such a sentiment is just another sign of the times, hardly a shock given the changing norms of a Web 2.0 world.

Web 3.0 offers a chance to get away from this increasingly pessimistic timeline. The establishment and all of their cronies won’t go quietly, but if the everyman can retain an inquisitive spirit and a desire for value, then Web 3.0 may prevail.

Key Takeaways

Web 3.0, or simply Web3, is the next iteration of the world wide web as we know it. It aims to take the internet back to its utopian founding values that have been shed along the way in the name of profit.

The key features of Web3 are decentralization and the restoration of privacy, along with a focus on user data ownership and an equitable distribution of wealth and value. While these may sound like a pipe dream to consumers jaded by years of Web 2.0 exploitation, many Web 3.0 projects are already in full swing.

The challenge posed by the corporate establishment may be the greatest threat to Web 3.0’s rise. As consumers increasingly begin to question the status quo and realize their own worth and value, perhaps more and more companies will realize the wisdom in the old saying: “If you can’t beat ‘em, join ‘em.”

Web 3.0 FAQ

• How can I invest in web 3.0?

  Some companies embracing Web 3.0 are publicly listed, such as GameStop, so you can buy their stock. Alternatively, you can also look into Web 3.0 cryptos such as BAT, the token of the Brave browser, or IMX, ImmutableX’s native token.

• Do we have web 3.0 now?

  Yes. As mentioned, GameStop, Brave, and ImmutableX are all involved in Web 3.0. You can use Presearch as your search engine, put your computer to work using Livepeer or Render Network, and get involved in other Web 3.0 activities. You’re still early, but there are plenty of options already.

• How do I create a web 3.0 website?

  A Web 3.0 website isn’t all that different from a normal website, except that you might consider using blockchain technology for immutability and to ensure that user privacy is respected. If you fairly incentivize all participants and decentralize control, perhaps with your own Web 3.0 crypto, you’re doing it right.