Five Concepts to Help You Better Understand Web3.0
To be honest, Web 3.0 can be a complicated topic for many people (myself included), especially those who know little or nothing about the field. Even for those who think they "get" it, I bet sometimes people will ask you questions about Web 3.0 that you don't know how to answer.
Whether you're a Web 3.0 expert trying to convince others that these things are revolutionary, or you're a genuinely curious newbie who wants to learn more, here are five concepts to help you better understand Web 3.0:
The three phases of the Internet
This concept is the source of the "Web 3.0" idea that I often refer to. Since Tim Berners-Lee invented the Web in 1990, there have been three versions of the Internet:
Web 1.0 -- Reading (Information Economy)
From the 1990s to the mid-2000s; Most millennials and Gen Z won't know/remember this, but their parents will.
At this stage, a web page is just information to read online (like a library)
Can't interact (can't post, share, comment, etc.)
This version of the web is decentralized and open source (anyone can build on it)
Web 2.0 - Read and Write (Platform Economy)
From the mid-2000s to the late 2010s (still thriving today)
Allow anyone to post content on the Internet, even if they have no technical skills (i.e. coding)
Helped spawn popular products like Facebook, Twitter and Instagram.
The web has become more centralized, with big companies like Facebook monopolizing the Internet and user data
Web 3.0 - Read, Write, and Own (Ownership economy)
Started with the creation of blockchain via Bitcoin in 2009, but emerged in 2018
Digital ownership and scarcity are possible for the first time
The web is becoming decentralized again, giving power back to the people
Users own and profit from their data, not companies
Peer-to-peer trading is not inherent to Web 3.0, it has been around since the dawn of mankind. All peer-to-peer approaches involve two or more parties interacting without any mediation. As a simple example, I hand you a $20 bill. The transaction was made from me to you. No one else was involved.
However, the peer-to-peer concept hasn't been a big part of our lives for a long time, especially on the Internet. If I gave you $20 over the Internet today, I would most likely use Venmo. However, this transaction will not be peer-to-peer as we will rely on Venmo to facilitate the completion of the transaction. In Web 3.0, all interactions on the blockchain are person-to-person and do not involve any third-party intermediaries.
De-trusting a system is the idea that you can operate without having to trust any third party intermediaries. Think of the previous example: handing you $20 is not to be trusted. Venmo is giving you $20 to trust Venmo and the bank to perform the feature
Where do you keep most of your discretionary money today? The answer is probably the banks. With Web 3.0, you can keep your money safe without trusting a bank to store it securely for you, because you can store it securely on the blockchain.
A permission-free system is a system without gatekeepers, which means anyone can access it (as long as you have access to the Web3.0 Internet). Anyone can create a digital wallet that gives someone access to the blockchain, and no one can restrict a person from using the blockchain network itself. Here's an example:
It makes sense that people with poor credit scores can't get bank loans, because banks fear that these people won't pay them back.
In Web 3.0, you can get a loan from the DeFi platform, where the underlying smart contract controls whether or not you are liquidated (if your collateral falls below an agreed threshold, your position is liquidated).
Economy of creators
In this world, those who create content (musicians, comedians, artists, etc.) are funded directly by their audiences, not middlemen such as record companies, recording studios, publishers, etc.
The creator economy is no stranger to Web 3.0. Creators use platforms like Instagram, Youtube, Twitch and others to produce content for fans. However, the cost of watching this "free" content on these platforms is to serve you ads based on data that these tech giants have at their disposal.
In Web 3.0, the creator economy is different, and in many ways better. Creators are completely independent of third parties, have 100% data ownership and autonomy, and can create whatever content they want without fear of being demonetized or banned. A world where creators make money from real creativity rather than ad-driven content to make better products for their fans.
Moreover, in the Web 3.0 world, the creator's earliest and most important supporters can share in the creator's benefits. For example, Chainsmokers recently released an NFT program in which the owner of the NFT gets a cut of royalties from the album. The possibilities that Web 3.0 opens up for creators are endless and could change the way we interact with artists.