The world of Web2 and Web3 conversations has the capability to boggle the mind. Internet users today are most familiar with Web2 platforms. Social media networks fall into this category. Instagram, Facebook, Twitter, Reddit, YouTube, among others are Web2 integrations of the internet. Millennials and Generation-Z individuals have had the unique opportunity to experience the vastly changing internet, from the tail end of the Web1 era, moving forward into the age of the Y2K hysteria; we’ve seen it all. Sure, others that are older have also been exposed to this same transitional period, but millennials and Gen-Z folks were some of the first humans to experience its integration into the real world from their preschool days into adulthood. While most Baby-Boomers are still trying to figure out the internet in it’s Web2 phase, Web3 has entered the chat.
Web3’s backbone is built upon blockchain technology. The term “blockchain” may sound familiar to investors and cryptocurrency enthusiasts, and for good reason. Web3 is being built using the same technology that cryptocurrencies utilize to provide security and value to their customers. This may come to most as a surprise, but the term Web3 was coined by Polkadot founder and Ethereum co-founder Gavin Wood in 2014. The term didn’t gain popularity however until 2021. This latency in understanding solidifies the uncertainty surrounding cryptocurrency, blockchain technology, and in essence Web3. So, all this information begs the question, what gives Web3 its value in 2022? The answer is simple, it’s decentralization.
Web3 eliminates the middleman through actions and transactions usually handled by third-party entities and “big tech” companies while giving the control to the users themselves. The power has been returned to the people, finally, after all these years. Ownership of Web3 technologies is controlled and operated by the builders and users that choose to utilize them. Web3 is also permissionless, meaning anyone with access to the internet has an equal opportunity to take advantage of the benefits Web3 has to offer. Furthermore, Web3 has a native payment process, meaning it utilizes the cryptocurrencies operating within the space for all transactions big and small. The benefit here lies within the transactions themselves. Users and investors are no longer bound by the old, archaic payment methods of payment processing and third-party authentication. The root benefit that remains the umbrella of the entire process is still decentralization. When Web3 creates their tagline, all these aspects and more can be categorized under the term “decentralized”.
Banks and federal governments are fighting to claim their piece of the pie, which would in essence throw a wrench in the entire plan of Web3 and decentralized usage of blockchain technology. Creators and blockchain engineers must work tirelessly and remain strong in their decision-making to keep this technology decentralized, thus allowing it to retain its luster. Web3 isn’t without its limitations however, one of them being the accessibility to its tools. Third world countries for example will have significant difficulty in utilizing Web3 due to their limited technology and resources. Not to mention the increased transaction fees in these marginalized geographical areas. Anything great is never without its flaws at first, and these gaps will need to be filled throughout the next decade to advance society in this new age of the internet.
100% agree. This intermediate phase will allow those ahead of the curve to reap the rewards of #Web3 when its benefits become commonplace in this evolving world of technology and internet use.— John J. II (@johnbink) April 23, 2022