My dad listens to music on an iPod.
No matter how many times we tell him about this cool new platform called Spotify, he insists on paying for songs on iTunes and loading them up on his device from 2007.
Will web2 be the iPod one day, and web3 Spotify?
Web3 Explained: Here’s What You Need to Know
In case you didn’t read my About Me page, I am not a web3 expert. I am new to this rabbit hole too. So, I will let other people do the talking for me.
Here are 25 web3 facts to help explain what it is, where it came from, and what the movement means. These facts are here to orient you and give you a basic understanding of the world of web3.
And if anything is still a bit fuzzy, you can click on the links in this article to learn more.
A History of web3
- Web1 was the beginning of the internet and consisted largely of static, informative pages that didn’t interact with each other.
- Web2 was the next wave of the internet, characterized by web-based applications, user generated content, and social media (this is where we are now).
- The term web3 was coined by Ethereum co-founder Gavin Wood in 2014.
- Web3 is the antithesis to Web2 – a decentralized internet.
- It’s characterized by a collection of emerging technologies like cryptocurrency, NFTs, and DAOs, that are all based on blockchain technology.
- A blockchain is a decentralized database where data is structured in connected blocks – hence block chain.
- It is a record-keeping system, or ledger, wherein records cannot be edited, destroyed, or deleted.
- And since blockchain is decentralized, no one person owns the database or the data. Rather, the same data is spread amongst several networks.
- Advantages of blockchain include increased transparency, data privacy and security, and distribution of power from a single entity.
- Disadvantages include the high cost of implementation, limited data storage, and high barrier of entry.
A Centralized Internet
- Right now, the internet is centralized.
- There are many issues with a centralized system including data privacy, internet security, monopolization, content moderation, censorship, and ethics.
- Everything on the internet passes through a handful of servers and a few big corporations (Meta, Amazon, Apple, Google, Microsoft) have all of the control.
- The way that these companies make money is through advertising and selling our personal data to make those ads more personalized and effective.
- “Big Tech” has successfully commodified human attention. And it’s worth billions.
- Web3 aims to solve a lot of the problems of Web2 by transferring the control from a single person or entity to a distributed network – the users.
- In a web3 world, users would own their own data.
- Decentralization is at the heart of every aspect of web3. Take for example a DAO, or a decentralized autonomous organization.
- A DAO is a group of people who come together, contribute to a shared mission, and get rewarded for it in the form of cryptocurrency or tokens.
- It has a flat organizational structure, a shared crypto wallet, full transparency, and is run entirely by its’ members.
- Cryptocurrency is a digital decentralized currency whose transactions are verified on the blockchain.
- It’s encrypted and recorded on the blockchain making it nearly impossible to manipulate, counterfeit, or double-spend.
- Bitcoin was the first cryptocurrency and is the most popular cryptocurrency in the world.
- At one point, 1 Bitcoin was worth over $68,000 USD.
- Cryptocurrency was the first blockchain-based technology to go mainstream.
There you have it, 25 facts the help explain web3.