What is Web3 and how could it change the internet?

The rapid growth of cryptocurrencies and virtual non-fungible tokens have dominated news headlines in recent years. But not many may see how these modish applications connect together in a wider idea being touted by some as the next iteration of the internet — Web3.

There are many misconceptions surrounding this buzzy (andfranklyfuzzy) termincluding the conflation of Web3 with Web 3.0. Here’s what you need to know about these terms.

Since Web3 is still a developing movementthere’s no universal agreement among experts about its definition. Simply putWeb3 is envisioned to be a “decentralized web ecosystem,” empowering users to bypass internet gatekeepers and retain ownership of their data.

This would be done through blockchain; rather than relying on single servers and centralized databasesWeb3 would run off of public ledgers where data is stored on computer networks that are chained together.

A decentralized Web3 would fundamentally change how the internet operates — financial institutions and tech companies would no longer need to be intermediaries of our online experiences.

As one business reporter put it:

“In a Web3 worldpeople control their own data and bounce around from social media to email to shopping using a single personalized accountcreating a public record on the blockchain of all of that activity.”

Web3’s blockchain-based infrastructure would open up intriguing possibilities by ushering in the era of the “token economy.” The token economy would allow users to monetize their data by providing them with tokens for their online interactions. These tokens could offer users perks or benefitsincluding ownership stakes in content platforms or voting rights in online communities.

To better understand Web3it helps to step back and see how the internet developed into what it is now.

Computer scientist Tim Berners-Lee is credited with inventing the world wide web in 1989which allowed people to hyperlink static pages of information on websites accessible through internet browsers.

Berners-Lee was exploring more efficient ways for researchers at different institutions to share information. In 1991he launched the world’s first websitewhich provided instructions on using the internet.

These basic “read-only” websites were managed by webmasters who were responsible for updating users and managing the information. In 1992there were 10 websites. By 1994after the web entered the public domainthere were 3,000.

When Google arrived in 1996 there were two million. Last yearthere were approximately 1.2 billion websitesalthough it is estimated only 17 per cent are still active.

The next major shift for the internet saw it develop from a “read-only web” to where we are currently — a “read-write web.” Websites became more dynamic and interactive. People became mass participants in generating content through hosted services like WikipediaBloggerFlickr and Tumblr.

The idea of “Web 2.0” gained traction after technology publisher Tim O’Reilly popularized the term in 2004.

Later onsocial media platforms like FacebookYouTubeTwitter and Instagram and the growth of mobile apps led to unparalleled connectivityalbeit through distinct platforms. These platforms are known as walled gardens because their parent companies heavily regulate what users are able to do and there is no information exchange between competing services.

Tech companies like AmazonGoogle and Apple are deeply embedded into every facet of our livesfrom how we store and pay for our content to the personal data we offer (sometimes without our knowledge) to use their wares.

This brings us to the next phase of the internetin which many wish to wrest back control from the entities that have come to hegemonize it.

The terms Web3 and Web 3.0 are often used interchangeablybut they are different concepts.

Web3 is the move towards a decentralized internet built on blockchain. Web 3.0on the other handtraces back to Berners-Lee’s original vision for the internet as a collection of websites linking everything together at the data level.

Our current internet can be thought of as a gigantic document depot. Computers are capable of retrieving information for us when we ask them tobut they aren’t capable of understanding the deeper meaning behind our requests.

Information is also siloed into separate servers. Advances in programmingnatural language processingmachine learning and artificial intelligence would allow computers to discern and process information in a more “human” wayleading to more efficient and effective content discoverydata sharing and analysis. This is known as the “semantic web” or the “read-write-execute” web.

In Berners-Lee’s Web 3.0 worldinformation would be stored in databases called Solid Podswhich would be owned by individual users. While this is a more centralized approach than Web3’s use of blockchainit would allow data to be changed more quickly because it wouldn’t be distributed over multiple places.

It would allowfor examplea user’s social media profiles to be linked so that updating the personal information on one would automatically update the rest.

Web3 and Web 3.0 are often mixed up because the next era of the internet will likely feature elements of both movements — semantic web applicationslinked data and a blockchain economy. It’s not hard to see why there is significant investment happening in this space.

But we’re just seeing the tip of the iceberg when it comes to the logistical issues and legal implications. Governments need to develop new regulations for everything from digital asset sales taxation to consumer protections to the complex privacy and piracy concerns of linked data.

There are also critics who argue that Web3in particularis merely a contradictory rebranding of cryptocurrency that will not democratize the internet. While it’s clear we’ve arrived at the doorstep of a new internet erait’s really anyone’s guess as to what happens when we walk through that door.