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Home > Courses > Cryptocurrency Fundamentals > Cryptocurrency Basics > What is Web 3.0?

What is Web 3.0?

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What is Web 3.0?

It is a future; with a cup of coffee in hand, you log into a dAPP to chat with friends and watch your favorite comedy show – no video ads or other pop-up ads. You know that no central (government or platform owners) controls your fully-encrypted data, and it is yours to keep safe, share, or trade with a third party.

This data is accessible only by you on any device – akin to using Google Drive on your phone and MacBook simultaneously. Then on a cold day, you decide against using a platform, or the owner decides to delete your account – like Twitter to Donald Trump. Instead of losing your data and followers, you move them to another dAPP. It doesn’t end there; no IP, gender, or other restrictions could stop you from accessing a page anytime, promoting efficient cross-border transactions and interactions. These, among others, are the numerous promises of Web 3.0.

Our web space needs a version that provides data privacy for users, allow people to be self-governed, eliminate third parties to reduce transaction cost, and provides opportunities for brands to leverage digital assets for community development and customer satisfaction. Unfortunately, these yearnings are not permissible with our current web version as it is laden with data privacy issues, transparency problems, centralized control of communities, and content overload. These problems have hampered long-term relationships between businesses and customers, among other topics. Hence, the need for web3 comes in. 


Web 1.0 to Web 2.0 to Web 3.0


Humans have evolved throughout history, and so does the internet since its inception. Likewise, our internet usage has grown through new tools and technologies. This evolution is categorized into three phases – web 1.0, web 2.0, and web3. The inception of www revolutionized information, while web 2.0 revolutionized interaction. However, web3 is set to revolutionize data privacy, value exchange, and agreements. 


In the beginning, was Web 1.0


The inception of the internet was web 1.0; content creators were few, and almost everyone with internet access was a consumer. Meanwhile, personal web pages littered web 1.0 – static pages hosted on free web hosting services or ISP-run servers. This web 1.0 happened between 1989 and 2005 with no algorithms to shuffle pages to find relevant content. Thus, web 1.0 was not user-friendly  – a one-way path with no personalized content.  

Additionally, web 1.0 was not interactive as users could not contribute to or impact the sites, making it difficult for brands to build engaging communities. Hence, the web was in the form of a catalog, allowing brands only to show their products to potential consumers. 


Then Web 2.0 came and sent Web 1.0 into extinct


Unlike the web 1.0, where most users were consumers rather than creators, the web 2.0 version ushers in an era of user-generated content, usability, and personalization  – a participative social web. To top the cake, web 2.0 allows interaction, collaborations, and a source of revenue for many users apart from the platform owners. This feature enables brands to create engaging communities and increase bonds with the target audience. 


Web 2.0 limitations


It is not all rosy; our data copies are stored on other computers with each interaction on the internet, losing control over them to centralized servers. This data control leads to inefficiencies at the backend in the goods and services supply chain. Additionally, data breaches of service providers, and high costs to handle data, among others, are numerous problems that abound with web 2.0

Other problems of web 2.0 are

- Information overload: thousands of content are posted on different web 2.0 platforms daily, creating confusion for readers finding quality and reliable content on the internet. 

- Web 2.0 has loads of fake identities and spammers, serving as hallmarks of internet fraud, including losing accounts and money.


Web 3.0 definition


Web 3.0 is on the lips of web enthusiasts and brands seeking to augment their community, be transparent, and streamline their business processes. It won’t take long before the full adoption of the web version.

The beauty of Web 3.0 begins with allowing decentralized access to connected data, unlike web 2.0, which centrally stores data. Web3 also enables the deployment of decentralized applications, allowing individuals to control their data. This new web version provides new revenue streams for brands. It leverages business growth by connecting new products and services for further value creation, a new market and value chain, more valuable business, and customer-centric designs. Additionally, web3 reduces hackers putting the whole user’s data at risk when they hack a platform, and blockchain technology, as a backbone of web3, reduces the chances of server crashes. 

We can define web3 as a third phase of the internet with decentralized data for a faster, more accurate, and personalized user experience. Breaking it further, web3 is a community-powered, self-monetized content and an advertising model using a web3 personal wallet instead of trading personal data. Additionally, web3 will bring more human-like interaction through technologies, making the internet more intelligent and information processing more relatable. 


Benefits of Web 3.0


NFT


Tokenizing anything with non-fungible tokens (NFTs) helps authenticate any product or intellectual property; selling the assets as NFTs also provides another source of revenue for creators. Additionally, with NFTs, creators can launch DAOs and creator tokens. 

Business owners can auction their branded assets to their core fans, like owning an NFT of Puma’s logo. Also, brands can sell the designs of their products and maintain the rights to market them or sell tickets to their events as NFTs. Similarly, brands like automobile companies can sell digital twins of their cars for virtual races.  

Among other opportunities for brands with NFTs is giving NFTs as coupons to increase brands' engagements. Making it easier for brands, Arianee helps brands to create digital pairs of their products, tailor customer services, promote access to events with NFTs, and leverage SPKZ to engage and reward your community.  


Streamlined business processes


Web3 allows brands to maintain transparent records for all parties and manage their supply chains by automating all smart contracts. For instance, a fashion brand can streamline its processes, including pricing, customers list, invoices, etc. Web3 also makes it easier to provide personalized services for each user based on their purchase history and preferences; the freelance industry will benefit too


Effective collaborations with employees, suppliers, and customers


Imagine a catalog where you can see every information about a product’s supply chain  – this is another promise of web3. This new internet version makes business more transparent for all parties through blockchain transparency. For example, any brand can save necessary information about their suppliers on the blockchain, allowing direct communication. 


Higher transparency in marketing and sales


Since every transaction is traceable, companies become more accountable and more accessible for people to purchase products as they trust the business, cutting product research costs. For instance, a restaurant can save their suppliers’ info and cooking processes on the blockchain, allowing users to know what to eat or not. Additionally, brands can use NFTs to incentivize brands for better community engagement. 


Seamless currency exchanges


Decentralized finance simplifies cross-border payments – global trade becomes more comfortable for all parties. Examples are businesses creating smart contracts with their suppliers for easier and quicker transactions, reducing dependency on financial third parties. 


Governance


Web 3 disrupts governance and brings an alternative to the old economic principles. With the Decentralized Autonomous Organization (DAO), Web 3.0 empowers users to govern their economy by merging socialism with capitalism. Therefore, web3 proffers a massive upgrade to web 2.0 that stakeholders or content creators have no say in controlling any platform.


Defi


Smart contracts to execute transactions eliminate flaws in arrangements that humans intentionally or unintentionally make. A permissionless system brought by web3 decentralization will revolutionize our financial system.


Data privacy - Web 2.0 vs. Web 3.0


There are growing concerns about data privacy with web 2.0. Virtually all web 2.0 companies mishandle users' data, selling data to third parties rather than using it to improve products and service delivery. Blockchain technology allows data transparency  – web3 will solve all data privacy issues.  


Play to earn


With Axie infinity and other play-to-earn games, web3 allows users to earn as they play games, unlike web 2.0, which empowers a selected few, primarily social media influencers, to earn from their engagements. In addition, other brands can use play-to-earn games to augment their community by creating games around their products to incentivize their customers. 


When will Web 3.0 be released?


Tech giants are creating their web3 version with native tokens and other incentives for effective running, but where are we? The rise of NFT and metaverse has roared the buzz about web3. 

There is high optimism that web 3.0 projects will help people organize themselves and create organizations that will send web2 giants like Google and Meta packing through decentralized autonomous organizations (DAOs), where ownership and decision-making power belong to the people.  

Additionally, web3 will help brands augment their communities and create a solid and lasting business-consumer relationship. The web 3.0 startups that will power these benefits are already in development. One of the pacesetters and business-centric applications is SPKZ, a decentralized social platform for digital asset holders, issuers, and communities. Brands and individuals can leverage the app to chat with others, communicate directly with token issuers, and enjoy exclusive community perks. 


Conclusion


The bottom line is that web 3.0 technologies will change how we work, shop, interact and have fun. The metaverse will provide tremendous opportunities for brands to enjoy better social presence, office and off-work communications, improved healthcare, and products and services trading. Working towards the web3 possibilities has seen Facebook rebranding to Meta, Epic Games, Microsoft, and other major companies already bracing for web 3. Thus, Arianee helps brands and owners project future possibilities and opportunities of web3 by giving digital life to valuable assets, experiences, or communities through NFTs.


Yusuf Na'im Olatunde



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