What is Web3: Things You Should Know About It

Things You Should Know About Web 3.0

“What is Web3?” – one of the common questions as we observe more and more people started to be interested in digital assets such as cryptocurrencies or NFTs.

What is Web3

Web3 refers to the internet’s next version, which will focus on decentralization and user ownership.

It can be more beneficial to review current and previous phases of the internet in order to better know about Web3. In the current internet phase, centralized organizations such as huge tech corporations hold platforms and applications. Unlike the present Web 2.0 phase, customers will develop, own, and maintain Web 3.0 platforms and apps.

The upcoming Web 3.0 generation resembles the early Web 1.0 phase rather than the present Web 2.0 phase. Web1 was the earliest version of the World Wide Web, dating back to the 1990s.

Understanding Web3 in Simple Terms

In simple terms, Web3 is a future, decentralized version of the internet in which users become owners. Users in the future Web 3.0 phase will be able to engage in the construction, operation, and governance of the protocols themselves, rather than relying on free apps and platforms that gather user data, as in the current Web2 phase.

Through decentralized networks known as blockchains, digital tokens or cryptocurrencies may represent ownership on Web3. For example, if you own enough digital tokens for a particular network, you may be able to influence its functioning or governance. This is analogous to how stockholder voting rights enable stockholders of record in a firm to vote on specific corporate activities.

What is the Difference between Web 2.0 and Web 3.0?

Web 2.0Web 3.0
Twitter has a right to censor any account or tweetTwitter cannot censor web3 tweets because control is decentralized
Payment services can decline payments for certain types of workWeb3 payment Weapps do not require personal data and can’t cancel payments
Servers for gig-economy apps could go down and affect worker incomeWeb3 servers can’t go down – they use Ethereum, a decentralized network of 1000s of computers, as their backend

Web3 was initiated by criticism of the big tech companies that dominate the internet industry, such as Google, Amazon, Facebook, and Twitter. Critics say that Web 3.0 can reclaim some of the power of these large companies.

Although Web 3 is theoretically possible, some see that Web3 is not something that can happen. According to Jack Dorsey, former CEO of Twitter, the fact is that these tech giant companies have been backed by venture capitalists (VC) and limited partners (LP).

Besides, Elon Musk also tweeted on his Twitter account, “I’m not suggesting web3 is real- seems more marketing buzzword than reality right now- just wondering what the future be like in 10, 20, or 30 years. 2051 sounds crazy futuristic!”

Do you think this web3 will be the future of the internet?

To read more about Islamic Finance related topics, please click here and visit our academy.

Besides, feel free to sign up for our free stock screening services at musaffa.com.