Top
image credit: Unsplash

What is Web3?

December 22, 2021

Category:

The introduction of the Static Web, or Web1, was revolutionary. It didn’t get the same praise as its successor, Web2, but it was, nevertheless, an invention that eased a couple of hassles.

Those who were fortunate enough to have lived through Web 1.0 are able to appreciate the distinction between Web1 and Web2.

Currently, the ruling technology is still governed by Web2’s boundaries; and with the arrival of the Social Web, or Web2, the world managed to function in different societal and interactive ways.

Advancements in web technologies like JavaScript, CSS3, HTML5, and so on, enabled companies to build interactive platforms that paved the way for the technology that will supersede it—Web3.

The world of Web3 promises a decentralized, free internet, where people have full reign and ownership over their information and monetary transactions.

So, is the world at the tipping point of a revolution that could irretrievably change the way people live? Or, is it hardly an “investment opportunity” that could yield short, insignificant returns?

How could Web3 affect the world?

While the world might be years away from truly considering Web3 as a major technology that captures a fair market share, TechCrunch research shows that the Web3 investment landscape is rising in competition.

As of now, the term “Web3” is still hazy, with proponents preaching the advent of an overarching, utopian technology, and critics pointing out how Web3 is merely a marketing campaign that leads the public on with a false narrative.

The former base their conclusions on best case scenarios, where people have their say, are in control of information, and can exchange currency and data without the need of a middleman. Not only that, but benefits such as more personalized browsing, better search, and richer app experiences also serve as an incentive for people to join the Web3 wagon.

The latter, however, are reasonably pessimistic. As those technically-versed in the realm of computer science claim that there isn’t going to be an inevitable shift—since this technology faces three technical issues: Compute, bandwidth, and storage problems.

“On a compute basis” Says Stephen Diehl, a software engineer, “blockchain networks don’t scale except by becoming the very same plutocratic and centralized systems they allegedly were designed to replace”.

Web3 and the introduction of “metaverses”

With “metaverses” gaining popularity, and the ability to create decentralized apps became a reality, the idea to fuse between Web3 and metaverses is starting to compel audiences to partake in this digital revolution.

Facebook has acted quickly and seized the opportunity to name their metaverse company “Meta”. But, Meta isn’t the only organization that has capitalized on this trend. Companies such as Nvidia, Apple, Decentraland, Verizon, and many others, are going to great lengths to create  a product for every market: Experience, spatial computing, infrastructure, discovery, and more.

Another thing that stirs this digital pot is the availability, and critical need, of cryptocurrencies.

Without these digital, decentralized coins, there wouldn’t be a creator economy, as banks wouldn’t be keen to support a cause that eliminates dependence on their services.

Best and Worst Case Scenarios

With an embellished perspective, plans towards Web3 continue accordingly, and developers figure out a way to make Web3 a palpable reality. Proponents of this new way of life will then embrace the opportunity to establish a large creative economy that isn’t constrained by today’s big tech and their shackling policies.

Lior Messika, founder and managing partner of Eden Block, has great hopes for Web3. “The two most distinct properties of Web3 are composability and decentralization”; he adds, “When I look at Web3, I see an amalgam of decentralized infrastructure capable of powering a new world.” 

By taking on a realistic point of view, however, you’ll notice how Web3 is far from becoming a reality.

If the cryptocurrency bubble bursts, for any reason, Web3 will go down with it—much like how Amazon’s stock declined by 90% after the .com bubble was vaporized. The same is likely to happen, should the same burst occur to Ethereum.

Twitter’s founder and Block CEO, Jack Dorsey, shared his thoughts and noted that the public won’t own Web3—” […] The VCs and their LPs do.”

Entertaining the idea that this decentralized technology will never escape the incentives of the “powers that be” should make advocates of Web3 consider a change of heart.

Ultimately, it’s a centralized entity with a different label.