The internet, or worldwide web, has existed for three decades. It has come a long way, and although nobody believed in its success in the beginning, it has become one of the most influential inventions of all time. 

Using the internet now just feels, well, normal. It wasn’t always the case. In the past, computers weren’t so easily accessible to everyone. Web3 is the next step in changing the internet for the better, and finally, we can own part of this digital world—what has been impossible for so long.

Evolution of the Web

The internet has evolved from static websites to interactive platforms where people can govern communities with collective decision-making processes and own assets. Now that we’ve made such massive progress, let’s take a step back and see how everything began.

The birth of the internet

Many are unaware, but in the early origins of the internet, before the WWW even existed, accessibility was very limited to academic and military communication. Many technologies have been developed, such as TCP/IP protocols, which made it possible to exchange information across different networks.

Each version of the internet comes with new features relative to the previous one.

Web 1.0

The first iteration of the internet, now called Web 1.0, was rolled out in the 90s. It made it possible to create static HTML websites with no interactivity but visible to every internet user. The problem was with adoption—very few people actually had any computers to access the web. Also, the flow of information was one-way—from website owners to content consumers.

Web 2.0

Web 2.0 was the next generation of the internet with dynamic content, which allowed for user interactions. Many new technologies were created, such as HTML5, CSS3, and JavaScript, to enhance user experience. This is the period when the rise of social media, blogs, and wikis happened, encouraging content creation and collaboration. Although everything looked excellent on paper, there was a large problem with just a few entities centralizing control.

Web 3.0

This is where Web 3.0 transformed our perspective. We can’t really assign the date to its creation, but the launch of Ethereum was a key milestone. DeFi, NFTs, and DAOs becoming more mainstream marked another huge milestone and are perceived as a great leap towards a better internet.

What is Web3?

Now that we’ve discussed the origins and different phases of the internet, it’s time to answer: what is Web3 really? By definition, Web3 is the next generation of the internet, which aims to decentralize it. This new form is built on top of blockchain technology.

Web3 as the new era

Unlike the previous model, which had its flaws and made it possible for the creation of large centralized entities, this one aims to return control to users. It represents an important paradigm shift on a decentralized, transparent, and more secure internet.

It is also fundamentally different from the first iteration, where users couldn’t create and interact with each other. Thanks to Web 3.0, users can form decentralized communities, create valuable projects, and own what they believe in and what they associate with.

Core principles of Web3

Decentralization is the foundation of Web3. By removing the reliance on centralized entities and leveraging new technologies, we create a censorship-resistant and future-proof system. Users are the sole priority of the internet, and as individuals, they truly control their data, identities, and assets. Web3’s big bet is also on interoperability and transparency. Users using different blockchain networks and applications can interact and move their data freely. As for transparency, it’s a built-in feature of blockchain networks.

How does Web3 work?

Web3 has more components than any other internet generation and is much more complex. As a new creation, it gives the user limitless opportunities. Still, mass adoption is limited unless the knowledge and interactions can be simplified for an average person. Unless something drastically changes, only people who are either motivated by profits or a vision for the better internet will be onboarded.

Blockchain technology

A blockchain is a digital and decentralized ledger that records transactions in a transparent manner across a distributed network of computers. In simple terms, it is a chain of linked blocks, and each block contains a list of transactions. By design, blockchain technology is secure and immutable.

Cryptocurrencies

Cryptocurrencies are digital assets that incorporate—you’ve guessed it—blockchain technology. Since Web3 empowers ownership, there has to be something of value, and cryptocurrencies serve as decentralized financial assets used across different platforms in a new decentralized economy.

DeFi

DeFi is where it gets interesting. Now that we have cryptocurrencies, which can be used for peer-to-peer transactions, there is a need for a place where the value can be exchanged. This obviously digital place is a decentralized finance platform where users can borrow and lend, exchange, or stake their assets. In ancient Greece there was a place where people could meet, talk, and exchange information and value—decentralized applications fulfill this role.

Smart contracts

Smart contracts are just like normal contracts, but on the blockchain. They execute based on a predefined set of rules. On the blockchain, code is law, and there is no middleman. Smart contracts can be used in any decentralized application where any logic or user interaction, such as depositing funds, is required. Their use cases, however, also cover supply chain management or gaming too.

NFTs

Non-fungible tokens are unique digital goods that represent ownership of anything you can imagine. Contrary to cryptocurrencies, they are indivisible, which makes them perfect in representing art, but they perform poorly as a transactional asset. They can be used in different industries like art, gaming, or music. By using them, creators can immortalize their work and also benefit from different monetization features.

Web3 consists of many components, which you can learn about and explore on your own.

Challenges of Web3

Despite being so innovative, Web3 may suffer from a multitude of issues. Since it’s relatively new, all the apps operating right now may be subject to regulatory pressure—they will either have to comply with KYC and AML policies or close down. This next generation of the internet is like a hidden portal, and it takes a giant leap to comprehend what it’s really about. A large chunk of users and apps can also be hacked, but unlike the Web 2.0, the latest is based around ownership and money. Such a fumble would mean a large monetary loss. And even if you manage to stay safe, the market is very volatile, and it can drop just as quickly as it goes up.

Why you should get started with Web3?

I hope the risks haven’t scared you away. An immense potential lies in Web3, and it's worth exploring solely just to get an understanding of what it is about. You won’t be the first, but it is still early to get interested. Who knows? Maybe you will have some luck and experience face-melting gains. Or get a eureka moment and find the next blue-chip project. The land of opportunities is here, but they don’t last forever.

Diving into Web3

To dive deeper into the world of the free, all it takes is 3 steps. The first one is setting up a wallet. Understand whether you need a hot or a cold wallet and if you should go for a multi-coin wallet or a wallet native to only one network but offering a lot of features. Once you saved your seed phrase, it may be the right time to buy some cryptocurrencies. You can acquire them on a crypto exchange or use an onramp platform like Swapped.com with over 30 payment methods supported. Double-check the address and transfer the crypto to your wallet. Now you’re all set and can start exploring the Web3 world with apps like Uniswap on Ethereum or Jupiter on Solana.

Bringing Web3 to the masses will require improved accessibility and many brainstorming sessions.

What the future holds

As exciting as Web3 gets, it will be even better in the future. With the rapid development of quantum computing, most efforts will be placed on ensuring the entire ecosystem is safe and sound. Internet speeds will also increase beyond 5G, making more advanced applications possible.

It’s all just speculation, but it is a matter of time until every internet user has the access and sheer will to utilize the true potential of Web3. Mainstream adoption is just around the corner and should keep the developers going.