Blog Technology What is Web3? The New Decentralized Internet

What is Web3? The New Decentralized Internet

date August 16, 2022 time 5 min read 283 views

The world has come a long way since the World Wide Web first became a thing in the mid-90s, and since then, it’s brought us everything from online forums to Amazon to Roblox. But the evolution hasn’t stopped yet, and Web3 is set to be the next big thing. But what is Web3 really, and how will it impact us and the way we use the internet in the decades to come? 

What is Web3? That’s a question on many people’s lips right now. The short answer is that it’s the next generation of the web. The longer answer is that it’s a decentralized form of the internet that uses blockchain technology and cryptocurrencies to take power from centralized companies and give it back to web users. Phew.

But what does it mean to you, and will it change the world as we know it? Buckle up, because it’s time to peel back the covers and see what Web3 looks like.

What is Web3 

The term “Web3” is often thrown about in thought pieces about the future, startup presentations, and anything related to the metaverse. As a result, many get scared off, assuming it’s something complicated that they need to be a genius to comprehend. But in reality, the explanation for the term couldn’t be simpler to understand—Web3 is simply the (predicted) third generation of the internet. 

A history of the web

The story of the modern internet started in 1989 with an idea from Tim Berners-Lee.

This first generation of the internet came into fruition in the mid-90s, and it was extremely rudimentary. There were a few isolated websites, but they produced minimal content, and there was practically no connection between them. It was therefore known as the “read-only” web, and it wasn’t the most interesting place to browse.

We’ve come a long way since the internet first began.
We’ve come a long way since the internet first began. (Source: Unsplash)

This changed with the second generation of the internet, which came when the focus shifted to social media. Not only did content from companies and websites increase, but internet users also began to create their own content and engage with each other. Web2 has been the dominant version of the internet ever since (roughly) 2004.

Back when Berners-Lee first pioneered the internet, he envisaged a decentralized tool that allowed people to freely share information from anywhere in the world.

Yet as the internet has evolved, the opposite happened: It became increasingly centralized by a few major companies. For many people, this is a huge concern—it means something as central to our daily lives as the internet has become a tool we can’t use without companies taking our data and profiting from it.

Introducing Web3 

Web3 presents an alternative vision: a truly decentralized internet that is managed and run by the people using it rather than a few tech companies. It first started to show up in 2014, around the same time that cryptocurrency was emerging. In fact, it was Ethereum co-founder Gavin Wood who is credited with the birth of Web3 after publishing this blog post in 2014.

What is Web3, and will it change the internet as we know it?
What is Web3, and will it change the internet as we know it? (Source: Unsplash)

Since it’s still the early days of Web3, it’s tougher to give a concrete definition compared to previous phases of the web. However, it is largely viewed to possess the following characteristics:

  • Ownership distributed among all users and developers instead of centralized by companies
  • Anyone can participate, no matter what (“permissionless”)
  • Doesn’t rely on third parties to mediate and manage everything and incentivizes its users instead
  • Payment is also decentralized instead of relying on banks and payment processors

Since it’s all about decentralization, Web3 has become associated with blockchain technology like cryptocurrencies and NFTs, which would both provide ideal ways to incentivize people to manage the web themselves. It could also become a powerful combination with the metaverse, although this could also go in a very centralized direction.

However, there are still many barriers that prevent it from becoming the next mainstream manifestation of the web, especially since it’s likely people would need technical knowledge to get involved.

Web3 visualized

Is Web3 the future, or are we headed to something darker?
Is Web3 the future, or are we headed to something darker? (Source: Unsplash)

When it comes to many of the next-generation concepts like Web3, you might read a paragraph and think you understand it—only to reflect for a second and realize you have no idea how such abstract concepts relate to reality. 

So, let’s take a moment to look at how Web3 could play out in reality.

DAOs

One of the most confusing parts of Web3 is how it will be owned by individuals instead of companies and third parties. This may happen using decentralized autonomous organizations (DAOs): A group of people who own a certain governance token and band together to make decisions and pass policies. Then, smart contracts are used to actually pass the decisions made. They’re kind of like a blockchain version of a cooperative, or the shareholders for a company.

This would replace the need for one company to oversee the internet and make decisions on behalf of all other users.

Data ownership

As mentioned, cryptocurrencies are likely to play a key part and be used as an alternative to banking and payment processors. But crypto wallets could also be used as a place to store our personal data since we own it ourselves instead of companies like Meta getting that privilege. Say you’re browsing YouTube (or a more futuristic, decentralized alternative) and a load of data is collected on how engaged you were on each website and what your interests are.

You’d have the choice to sell that on to the likes of Google or to keep it to yourself, instead of being passed on and sold without your consent—as happens with most sites on the web today.

Believe in Web3? Invest in MCT 

Overly idealistic dream or a realistic prediction of what the web could look like a few years from now? Not everyone thinks Web3 will be the future, but many think it could become a new form of the internet used favored its proponents—and if you want to be one of them, it’s time to start getting involved in crypto.

If you’re looking to build your crypto portfolio, why not take a look at our new native MCT token

It allows you to convert between multiple cryptocurrencies and access all kinds of other financial products, including investing and staking—all with a single coin. This way, you can experiment with different projects and ways to earn.

Perks include:

  • Up to 18% APR from staking
  • 20% more interest from MyConstant investing products 
  • 40% reduction in borrowing fees on MyConstant 
  • 50% discount on NFT fees through MyConstant 
  • 90% discount on crypto swap fees on MyConstant 

It’s now available on PancakeSwap for US users, and everyone else can access it directly through MyConstant
Sounds good? Sign up today to start benefiting.

Share this article

George Schooling

George Schooling

Buy MCT token with ease and enjoy the staking rate of up to 12% APR

Tags: web3

0 0 vote
Article Rating
guest
0 Comments
Inline Feedbacks
View all comments

Related Articles