Web3 or Web 3.0 is clearly the future of the internet if you consider the amount of investment and the buzz that comes with it.
according to Emerging Researchthe global Web 3.0 market size will reach $3.2 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 43.7% by 2030, reaching a staggering $81.5 billion.
Web 3.0 is considered the third version of the Internet. A 2020 Twitter thread describes three iterations of the Web in these words:
Site 1: Reading
Web 2: Read and Write
Web 3: Read-Write-Own
— he.eth (@himgajria) May 29, 2020
Web 1.0 was “read-only” and static websites had almost zero user interaction. Today’s Web 2.0 is a “read-write” paradigm, reflected in the rise of social media and user-generated content. Web 3.0 will be “read and write itself” because it will help protect data.
Raj A Kapoor, founder and CEO of the Indian Blockchain Alliance, elaborated on how to protect data on Web 3.0: “When we use platforms like Facebook, our data is collected, owned and monetized by them. In Web 3.0 , our data is stored” on a crypto wallet. We interact with applications and communities on Web 3.0 through wallets. We can also take our data with us when we log out. ”
Data security on Web 3.0 will be possible thanks to blockchain technology. Blockchain will help organize information on Web 3.0 in blocks. These blocks are immutable and verified by consensus through asymmetric cryptography such as keys or digital signatures. As a result, users can access resources, applications, protocols and content more securely.
Mr. Kapoor added that Web 3.0 will enable data privacy, as crypto wallets cannot easily be linked to someone’s real identity. “While someone might be able to see activity on someone’s wallet, they wouldn’t know it was your wallet.”
While Web 3.0 promises to simplify the growing number of crypto transactions, new use cases may emerge.
Web3 can help people buy assets such as virtual real estate through fractional ownership, eliminate intermediaries in media and entertainment transactions, and decentralize business by enabling community ownership of companies such as decentralized autonomous organizations, noting chain analysis Report.
If Web 2.0 is currently about the virtual world, Web 3.0 is about bridging the gap between the virtual and physical worlds. The “bridge” between the two worlds is several 21st century technologies that Web 3.0 can carry, such as artificial intelligence, augmented reality, virtual reality (all three are the cornerstones of virtual reality), and more.
“Brands across industries are adopting Web 3.0 to deliver personalized, superior customer experiences in an immersive world. Gamification and marketing are two prominent cross-cutting Web 3.0 use cases,” said Sharat Chandra, VP of Research and Strategy at EarthID added.
if recently chain analysis It is believed that the blockchain-powered Metaverse, VR and NFTs (Non-Fungible Tokens) will rule Web 3.0. In particular, as the report points out, gaming is likely to grow exponentially in the Web 3.0 ecosystem.
Backed by blockchain, Web 3.0 games are also known as “play to earn” or “play to own” games. In Web3 games, NFT assets are owned by the player.They can also be sold – which is not possible in Web 2.0 chain analysisCiting a DappRadar report, blockchain-based gaming activity has increased by 2,000 percent since 2021.
In another major development that will change the way people play and operate on Web 3.0, several Web 3.0 companies have joined forces to create the Open Metaverse Alliance for Web3 or OMA3. The alliance’s goal is to create a “virtual world without walls, where platforms are connected and fully interoperable”.
The launch of OMA3 – a DAO with “inclusive, transparent and decentralized governance” – also marks the role of Web 3.0 in merging different elements of Metaverse and blockchain technology.
While Web 3.0 positions itself as the future of the Internet, there are some red flags. Chief among them is “decentralization” – the main premise of Web3 itself.
“True decentralization remains elusive as all leading blockchain protocols are controlled by a few select wallets,” Mr Chandra said.
Decentralized finance (DeFi), a by-product of blockchain technology, is also a concern.This chain analysis The report states that DeFi protocols are the top targets for hackers looking to steal cryptocurrencies in 2021.
Money laundering via DeFi is another issue. “DeFi protocols have become the largest recipients of illicit funds by 2022, accounting for 69% of all funds sent from addresses associated with criminal activity,” the report said.