What is Web3?

The internet has evolved massively since the days of clunky websites and dial-up emails. Now, we’re standing at the edge of a new era—Web3. But what is it, really? And why’s everyone talking about it?

In this article, we’ll answer questions such as ‘what is Web3 technology?’ and ‘what is Web3 in crypto?’, explore the differences between Web1, Web2 and Web3, and discuss the key concepts, benefits, and challenges of Web3.

Web1 vs. Web2 vs. Web3: What’s the difference?

Web1, 2 and 3 mark the three different iterations of the internet. The differences between them showcase the development that the World Wide Web has gone through to reach what we know today. Let’s explore the definitions of each to gain a better understanding: 

What is Web1?

Web1 is the earliest version of the internet, created in the early 1990s. It heavily consisted of static web pages with minimal interaction, interconnected with hyperlinks. This lack of user engagement and UGC has led to it often being referred to as the “read-only web”.

There were no social media platforms, video streaming services, or dynamic content – most sites were informational, and businesses used them primarily for sharing brochures or contact details.

Despite these limitations, Web1 laid the groundwork for the internet’s evolution by connecting users across the world. As technology improved, the need for a more interactive and engaging web gave rise to Web2, marking the transition to the internet we know today.

What is Web2?

According to NordVPN, Web2 is the ‘current version of the web’, characterised by interactive, dynamic elements, the rise of social media platforms and online shopping sites. It emerged in the mid-2000s and created a dramatic shift in how people used the internet. Key features of Web2 include:

• User-Generated Content (UGC): Websites became interactive spaces where users could contribute content, such as blogs, reviews, and social media posts.
• E-commerce: Online shopping platforms like Amazon and eBay revolutionised how people buy and sell products.
• Mobile web: The rise of smartphones made Web2 accessible anywhere, leading to the creation of mobile apps and responsive websites.

Although Web2 revolutionised the way we interact with websites, it also allowed a few tech giants to monopolise the web, owning the majority of the websites, controlling the spread of information and collecting user data to exploit for monetary gain. The centralised servers that store user data also cause security concerns, as hackers only need to breach one system to gain access to huge amounts of data. These issues have paved the way for the development of Web3.

What is Web3?

Web3 is the next generation of the internet. It is a decentralised web that allows users to have more control over their data and was built out of concerns about privacy and security that come with Web2. The primary function of Web3 is to take control away from a single governing body to distribute it across multiple participants.

This decentralisation creates a more democratic internet, where users can interact with platforms and services without relying on centralised authorities that often dictate terms and conditions. This shift not only enhances user privacy but also significantly reduces the risk of data breaches and misuse of personal information that has become prevalent in the Web2 landscape.

What are the core concepts of Web3?

Web3 is characterised by a number of key technologies and principles. Let’s explore the core concepts of Web3:

• Decentralisation: The main concept of Web3 is an internet that is owned by a network of participants, rather than a single centralised authority. This allows users to gain more control over their data and interactions.
• Blockchain technology: Blockchain technology is a database that stores data in blocks that are linked together in a chain. It enables transparent record-keeping and allows secure transactions between parties without the need for an intermediary, enhancing privacy.
• Smart contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code on a blockchain. They automatically execute the agreed-upon actions, without relying on third-parties. 
• Cryptocurrencies: Cryptocurrencies are digital currencies that enable transactions within decentralised networks. 
• Non-Fungible Tokens (NFTs): Unique digital assets that represent ownership of specific items or content, such as art, music, or virtual real estate. 
• Interoperability: Interoperability is the ability for different platforms to communicate and work together, enabling browsers to use their assets across multiple services. 
• Tokenisation: The process of converting assets into digital tokens on a blockchain, which can represent ownership or value. 

These core concepts work together to create a more user-centric landscape, setting the stage for the next evolution of the internet.

What are the benefits of Web3?

As we’ve already mentioned, the aim of Web3 is to create an online environment where creators own their data and have more of a say on how it is used and distributed. It has a number of different benefits, including:

• Users have control over their data, reducing reliance on tech giants.
• Blockchain-based systems are open and verifiable, reducing fraud.
• Web3 enables new business models, such as Decentralised Finance.
• Decentralised systems offer enhanced security and privacy protections.

What are the drawbacks of Web3?

Despite the advantages of Web3, there are a number of concerns around the full implementation of the technology. Let’s run through some of the main criticisms of Web3:

• Scalability: Many blockchain networks struggle to handle large volumes of transactions simultaneously. As user demand increases, network congestion can lead to slower transaction times and higher fees.
• User experience: Using decentralised applications and managing cryptocurrencies can be daunting for non-technical users, limiting widespread adoption.
• Regulatory challenges: Governments are still trying to decide how to regulate cryptocurrencies and decentralised platforms, leading to uncertainty.
• Security risks: While blockchain technology is secure, Apps and smart contracts can still be vulnerable to bugs and exploits. 
• Environmental concerns: With growing concern for the planet, the substantial ecological impact of mining and maintaining these networks is causing scepticism. 

How Plexus RS Can help

Web3 can be a challenging sector to navigate, especially if you aren’t fully clued up on it. If you want to hire some web3 talent, but don’t know where to start, we are here to help! On the hunt for a specialised Web3 recruitment agency to connect you with top talent? Looking for a job within the Web3, crypto or blockchain space? Contact Plexus RS today!