What is Web3 and why should we care?

If you’ve been paying any attention to the industry headlines recently then you’ve probably seen the phrase Web3 pretty much everywhere.

That’s because Web3 is being dubbed as the next phase of the internet and has got tech and cryptocurrency enthusiasts positively buzzing with excitement.

However, Silicon Valley big hitters such as Jack Dorsey argue that the World Wide Web is already in the hands of wealthy venture capitalists anyway.

Meanwhile, Tesla chief Elon Musk says Web3 is more of a “marketing buzzword” than reality.

So what is Web3 and can this ambitious vision of an independent and democratic internet in the future really become a reality?

What Is WEB3?

Web3 is a wider term for an online ecosystem that cuts out the big middlemen – particularly the well-known search engines which are now household names.

Platforms on Web3 are not owned by central gatekeepers and you wouldn’t navigate the internet through regular search engines such as Google, Bing, Safari, etc.

Instead, it uses blockchain, the same system used by cryptocurrencies and non-fungible tokens (NFTs) such as Bitcoin.

In theory, Web3 will be a combination of the two earlier versions of the Internet, Web 1.0 and Web 2.0, but will take the power away from the tech giants and corporations and put it back into the hands of the many and not the few – pretty much as Tim Berners-Lee intended back in the early 1990s when he created the Worldwide Web.

The difference is, instead of exchanging our data to upload content online, users can become participants and shareholders by earning tokens on the blockchain system – which will allow them to have a say over a network.

How Does It Work?

While still in its infancy, Web3 promises to make “open, trustless, and permissionless” networks a very real possibility in the coming years.

That’s because it consists of several elements that could serve as the building blocks for its success: edge computing, decentralised data networks, 3D graphics, and artificial intelligence.

Moreover, in the world of Web3, search engines, marketplaces and social networks will have no overriding master.

This enables the individual to control their own data and have a single personalised account, meaning they can jump from emails to online shopping and social media – logging a record of their activity on the blockchain system in the process.

What Is A Blockchain?

A blockchain is a secure database that is operated by users collectively and can be searched by anyone where users are also rewarded with tokens for participating.

This is done in the form of a series of records or “blocks” that are each added onto the previous block in the chain, hence the name.

Each block contains a timestamp, data, and a hash providing a unique identifier for all the contents of the block similar to that of a digital fingerprint.

How WEB 3.0 Can Benefit Your Business

If Web3 does become a reality then visitors to your website could enjoy a better login experience thanks to blockchain’s advanced technology and the extra privacy it provides.

Right now people will often their Facebook profile to sign in to websites and while Facebook already owns a customer’s user information, blockchain technology uses the same concept.

The difference is, however, that with Web3 the individual owns their own data meaning that, from a commercial aspect, customers will still be able to sign in easily without you having to worry about securing their data as that is done automatically.

Web3 could also help to avoid hacking as, according to IBM, blockchain is unlikely to be breached due to its use of end-to-end encryption of documents.

This added layer of security prevents hackers from targeting your website by anonymizing data and demanding authorization to view it.

That’s probably why blockchain is already being used by giants such as Apple, Google, and Facebook.

Talk To A Website Expert Today

Still unsure about how Web3 might impact you?

Studio Coact are web and design experts who provide thoughtful, engaging and clear marketing solutions that resonate with people around the world.

As a Liverpool Brand Design Agency, we are passionate about businesses fulfilling their online potential, supporting companies from the outset or working with those looking to grow.

Our digital marketing experts understand how the internet works and can develop ways of helping your website appear higher in their ranking positions.

So if you need help with any aspect of your website then get in touch, we’d love to help.