Gavin Wood, one of the co-founders of Ethereum, coined the term web3. However, the original term introduced by Gavin Wood in 2014 was web 3.0. Since then, it has been a major talking point in the tech sphere. So, what is web3? Web3 refers to the next generation of the Internet built on public blockchains. Those who support the idea of web3 claim that web 2.0 is dominantly controlled by big tech, making it subject to regulators, who may or may not be effective in maintaining trust in the matter of data security.
Wood stated that today’s version of the web requires trust in institutions, which isn’t necessarily a good thing. Many companies have misused users’ data for their own benefit. So, is web3 a better alternative to the centralized iterations of the world wide web such as web1 and web2? Yes, it is because of its decentralized nature. Now, let’s dive deeper and understand the concept of web3 by learning about its functioning.
The working of web3
Web3 is a decentralized version of the web that doesn’t require users to give personal information to companies such as Google and Facebook to access their services. Blockchain technology and AI would power this iteration of the web, with all information being published on the public blockchain ledger.
Like cryptocurrency, all transactions in the web3 would need to be validated by the network before they could be accepted. Decentralized apps would allow people to exchange money or information without the need for intermediaries. The web3 internet would also be permissionless. This means that anyone will be able to access it without needing to obtain access credentials or permission from a provider.
Instead of being stored on servers, the internet’s data would remain distributed across the network. Any transaction or new data would be recorded on blockchains, establishing a record that all network members can check. This would prevent bad actors from using users’ data and provide a clear record as to where the data is going.
A blockchain-powered internet would make it more difficult to control and manipulate data. Because data is decentralized, no gatekeeper could have access to it. This would allow for a greater number of people to access the internet. AI would also be used to stop bots and malicious websites.
A peer-to-peer payments app, which works on a blockchain, could be an example of a web3 app. Instead of paying with a bank, users could pay using a decentralized app (dApp). Such a financial system could benefit people who cannot open bank accounts, don’t have access to such financial institutions, or are prohibited from receiving certain services by large payment providers.
All in all, web3 will transform the way the Internet operates.
Web3 is all the rage right now, with large companies pumping massive amounts of money into web3 projects. If you, too, want to dip your toe into the web3 waters, there can’t be a better time than right now. However, to get the right web3 products built, hiring the right web3 development company is important. An experienced web3 development company, having extensive expertise in providing web3 development services will be the right choice for you.
But then experience and expertise are not the only criteria based on which you should select a web3 development company, you must also ensure that your company has a great track record in delivering web3 development services. Once you find the right web3 development company, you should hire it right away without worrying about their charges, especially if you don’t want to settle for anything less than quality work.