Web3, also known as Web 3.0, is the next iteration of the Internet. It is a web-based protocol that delivers decentralized applications (DApps) and smart contracts to end users in an open source environment. The entire point of this new system is to create an even playing field for all participants on the internet; there are no centralized points of control or power which would give some entities unfair advantages over others.
It’s important for businesses to understand how Web3 will impact their business in order to make informed decisions about what technology they choose to implement now and in the future.
Web3 is different from Web2 in a number of ways but the biggest shift is from centralized to decentralized systems. Web businesses need to pay attention to these changes and how they can be implemented in their own companies. In order to survive in the coming years, businesses will need to move towards more decentralized models that put the power back into the hands of the users.
But what does a decentralized system look like?
A decentralized system is one that has no central controlling server or authority. All the entities involved in the system (users, companies, etc.) are all able to make changes and updates as they see fit without any one entity having more power than another.
Starting with the basics
The following is a list of components that make up Web 3.0:
Content Addressing: Web addresses will contain content hashes, not IP addresses. This means that the contents of information shared on the web can be verified by users without having to go through a third party server or provider.
Tokenization: The most notable impact tokenization has had is in the financial sector where tokens are commonly known as cryptocurrencies. Cryptocurrencies are used to transfer funds between users without having to go through a bank or other financial institution; they act as an alternative currency that cuts out the middle man of traditional banking.
Decentralized Storage: Data is stored across multiple nodes on the blockchain rather than in one centralized location, increasing security and privacy.
Decentralized Computing: This is a significant improvement in the technology of blockchain and will impact all aspects of web development. It allows for DApps to become more powerful with access to the computer resources that they need without having to go through an intermediary server. There are multiple types of decentralized computing such as computation, storage etc.; this will allow for a more customized user experience.
Autonomous Agents: These are computer programs that can act on their own without human interaction. They can be used to automate business processes and tasks or to provide customer service.
Decentralized Name System: This improves the way that we access websites on the Internet but it also impacts how network devices are assigned addresses; imagine having a pet’s name automatically resolve into an IP address with no need for a third party server.
Cryptographic Keys: These are used to access and encrypt information on the web; each user has their own key allowing them more privacy and security when browsing online.
Verifiable Claims: This is how businesses can verify your identity and credentials using blockchain technology rather than having to rely on central authorities.
GraphQL: This is a new query language that was created by Facebook and allows for more efficient data retrieval from decentralized sources. It makes it possible to request only the data you need instead of getting everything which can slow down page load times.
Web3 power to the people
Anyone can take back power with Web3 by implementing these technologies into their business model. Some ways include using decentralized storage to keep company data more secure, tokenizing their business model in order to increase transparency and reward customers spending habits on a blockchain-based rewards program. Additionally, users can utilize decentralized computing to run their own DApps on the blockchain. WebAssembly will make it easier for developers to create DApps in multiple languages without having to learn a new language or use an intermediary server, while cryptographic keys give users more security when they are browsing online.
Verifiable claims allow businesses to verify your identity and credentials using blockchain technology instead of relying on central authorities, while the decentralized name system improves website accessibility. WebAssembly makes it easier for developers to create DApps in multiple languages without having to learn a new language or use an intermediary server.
Web development is about more than just connecting users with information; it’s also about keeping their data secure and accessible when they want it. These technologies will help to shape the internet of the future and give users back some control over their information.