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By: Sreekanth Kannan
| Last updated: May 18, 2022

What Does Web3 Mean?

Web3, also referred to as Web 3.0, is the next evolution of the internet. It is expected to be:

  • Open - Content platforms will be built on open-source software.
  • Trustless - Network protection will extend to the edge and everyone will use Zero Trust.
  • Distributed - Devices, users and services will be able to interact without authorization from a central authority.

In the next phase of the internet, blockchain technology will enable people to interact directly with each other without the need for an intermediary. Users will interact by joining a Decentralized Autonomous Organization (DAO) – a collective entity owned and operated by its community members.

The user's data will be backed by a system of universally accessible smart contracts. These contracts will be coded into a blockchain which will be managed by a decentralized collection of nodes.

Other predictions about Web3 include the following.

  • Data transfers will be decentralized and all transactions will be recorded over a blockchain-enabled distributed ledger.
  • Universally accessible smart contracts will free people from relying on a central authority (such as a bank) to ensure data integrity.
  • The metaverse will become a big revenue source for the entertainment industry.
  • Blockchain technology will enable users to create digital items/non-fungible tokens (NFTs) on the fly to protect personally identifiable information (PII) and intellectual property.
  • Users will be able to monetize their data.

Techopedia Explains Web3

As Web 3.0 becomes the next major era in computing, IT and business leaders should start thinking about structuring their networks and operations to leverage the potential of Web 3.0.

Companies will need to embrace the concept of a distributed architecture to increase efficiency and lower latency -- and then select a common fabric that does both routing and switching. There will be new expectations for transparency and policies that can be written once and work across all applications and parts of the network.

Web3 combines the best parts of of previous generations – the community-governed spirit of Web 1.0 and the interactive, high-engagement nature of Web 2.0. Another way to think about it is this way:

Web 1.0 = read

Web 2.0 = read/write

Web 3.0 = read/write/own

History of the Web

Web 1.0 was essentially a bulletin board where people could create read-only text threads. There was a focus on open protocols that were decentralized and community governed. Web 2.0 changed this by adding multi-media and allowing users to interact with websites as if they were applications.

Web 2.0 also introduced engines that allowed non-technical users to search for information using keywords. This was a step forward, but keyword searches don't always return relevant results.

If a 2.0 user searches for information about an insect called a camaro, for example, it's likely that search engine results pages (SERPs) will include information about the automobile Chevy Camaro. In contrast, Web3 search engines will analyze the user's historical data across multiple platforms and use artificial intelligence (AI) to predict the context of the query context and return information about the insect, not the car.

Web3 Challenges

Laws around data privacy and ownership will have to be updated to protect user-owned data. The decentralized nature of Web 3.0 will also increase latency because data will no longer be stored in large, centralized databases. Companies and internet service providers will have to make huge investments in edge computing to move computing capacity closer to users in order to reduce latency.

Web3 Security

Because the distributed architecture of Web 3.0 negates the need for centralized authorities, security will be enhanced. Potential attack surfaces will be smaller and without a centralized authority, there will no longer be a single point of failure (SPOF).

Web3 Technology

Web 3.0 technologies include:

  • Smart Contracts
  • Cryptocurrencies
  • Blockchain
  • Machine learning
  • Artificial intelligence
  • Augmented reality
  • Virtual reality
  • Advanced Networking (e.g., 5G)
  • Edge Computing
  • Geolocation Services
  • Tokens

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