What Is Web3?
By Dušanka Seratlić, edits Denise Schaefer
What are we talking about when we talk about Web3? As it currently stands, Web3 is primarily an idea, a loose concept that rests on blockchain technology. And while the tech behind cryptocurrencies and NFTs is solid and verifiable, Web3 is constantly shifting in meaning.
Perhaps an appropriate definition would be that Web3 comprises all the digital social systems we build using blockchain. Whether those systems are communities, marketplaces, investment groups, NFT projects, publishing tools, or education platforms, for them to be considered part of Web3, they would have to make use of blockchain-enabled services.
In this article we take a look at the technology behind Web3, the social issues Web3 proposes to solve, and the possibilities Web3 offers.
A Quick Look at Web 2.0: Why Is There a Need to Build Web3?
Web 1.0 is the internet of static web pages, an internet that is read-only. Users were merely consumers of the published content. At the beginning of the 21st century, the way we use the internet started shifting towards Web 2.0, the internet we use today.
Web 2.0 introduced ways for users to become both consumers and content creators. We saw a rise in social media platforms, self-publishing, and user-generated content. This internet is read and write - we can now interact with the platforms we use and with each other.
Web 2.0 transformed almost every aspect of our societies, from communication, media, and businesses, to social interaction and relationships. We’re increasingly moving all of our activities online. Creators have platforms where they can share their content, while businesses get a space to promote their services and reach audiences that were inaccessible before.
So, what’s the problem? Web 2.0 sounds pretty good.
The shift from Web 1.0 to 2.0 also saw a shift from decentralization to centralization. If you think about it, the majority of your online interactions happen within the confines of tech giants like Google, Facebook, Amazon, and so on.
The big tech platforms are generally free and available to the majority of people, but their services come with some trade-offs. In recent years, we’ve become aware of issues like data privacy and security, censorship, algorithmic echo chambers, and monopolization of attention and information.
Web3 is the proposed solution to the shortcomings of Web 2.0. Without removing the fun aspects of the internet, Web3 is the internet where we can read, write, and own our data, content, and identities.
When you sign up for Facebook, for example, you don’t have a lot of control over the way your data is stored, analyzed, and sold. In Web3, you become the sole owner of your data and identity online. You decide how to share and monetize your assets.
Web3: The Case for a Decentralized Network
The main promise of Web3 is an internet that’s decentralized, open, trustless, permissionless, and secure.
On the technical side, the Web3 vision also includes concepts of composability, interoperability, and verifiability. Socially, Web3 promises to erase the need for intermediaries, establish peer-to-peer networks, shift the way we perceive and exchange value online, and give us the tools to retake control of our online identities.
We know, it’s a lot. Let’s break it down!
Web3: The Technology
Blockchain is the main technology behind Web3 development. What is blockchain? Get your basics in this article. For now, it’s important to underline that blockchain technology makes it possible to have decentralized, open, peer-to-peer networks.
Decentralization ensures that there is no central entity making decisions for the rest of the network. It also ensures that the data contained in a blockchain is distributed among network participants, avoiding central failure and protecting the integrity of the network.
The majority of blockchains are open and permissionless. The code is open source, which means anyone can inspect it. You also don’t need any permissions to get involved in a blockchain network - all it takes is an internet connection.
Trustlessness is based on the ability of network participants to review the code and rely on the software architecture for truth. In Web 2.0, you need to rely on third-party intermediaries to facilitate a deal or an interaction. These intermediaries provide assurances that the deal will happen as agreed. In a blockchain, it’s the code that provides the assurances. Therefore, dealings become peer-to-peer, which means that Alice and Bob can now deal directly with each other.
Security and privacy are also huge advantages of blockchain technology. Although everything on the blockchain is transparent, it’s also cryptographically hashed. That means you can review the entire history of transactions in a blockchain, but you can’t know the specific identities of the people who made the transactions.
These blockchain characteristics lead to many exciting possibilities. The Ethereum blockchain, for example, has smart contracts - programs that self-execute once all conditions are met. Smart contracts are enabling many decentralized applications (dApps) and decentralized autonomous organizations (DAOs) to be built.
Blockchains also allow for composability. This is an important feature because it allows all dApps built on Ethereum, for example, to be interoperable. As a developer, you can build on top of existing dApps and mix and match different dApps to offer various services. Check out this article to understand how different layers combine to create Web3.
This interoperability is possible only within a single blockchain… for now. Many Web3 teams are working to make blockchains like Ethereum or Bitcoin interoperable. Once we can have an interoperable network of blockchains, we will truly see the rise of Web3 as envisioned.
Web3: The Values
With its basis in blockchain, Web3 is promising new social and value models. DAOs, for example, offer a new way for people to organize and work together. NFTs are transforming the way creators can monetize their work. Social tokens are driving a new wave in how we communicate and build value together.
The possibilities in Web3 are endless, but the core values lie in decentralization, the democratization of access, security, and privacy.
With Web3 applications, users will be able to own and manage their data, deciding when and how to monetize and share their assets. It will also become easier to prove and track ownership of digital assets.
Perhaps the most interesting aspects of Web3 are the new economic models that we can build with tokens. From regenerative finance to social tokens, Web3 allows us to assign real, economic value to social values that were previously more abstract.
Web3: Where Are We Right Now
Web3 is a vision with a lot of moving parts. The technology is still relatively new, but we already have a lot of talented people building new Web3 applications. The majority of dApps and DAOs are currently hosted on the Ethereum blockchain, but there are many other interesting projects that will expand the Web3 vision and the choices users have.
Whether you’re trading cryptocurrencies, creating NFTs, participating in DAOs, or building on the blockchain, you’re already taking part in Web3.
How this vision translates to real life will largely depend on our common values and our ability to work together. Technology is a major part of Web3, but it’s not the only one. You don’t have to be a developer to start learning and building Web3.
In fact, for Web3 to truly deliver on its promises, we will need to creatively reimagine the ways in which we collaborate, communicate, and build organizations.
Let’s build together
A Web3 project or a community is only as good as the people who comprise it. It’s the principles of open collaboration that make Web3 exciting. The only way to ensure you have a say in this new ecosystem is to take an active part in building its future-proof properties.
Join Surge in this mission--you can join our Discord, follow us on Twitter, or join as a contributor!
