What is Web3?
In simple words, Web3 is the decentralized avatar of the Internet which allows users to own their content, create value, and monetize it. Web 1.0 came in 1989 with the invention of the Internet. It was just a collection of static web pages with no interactivity. You could just read those pages like you read a newspaper or a magazine. Then came Web 2.0, which allowed users to not only consume content but also create it. The term User-Generated Content (UGC) is associated with Web 2.0. Stuff like social media, blogs, video streaming sites, and online forums are some of the features of Web 2.0. This version of the Internet is dominated by large corporations like Meta (owner of Facebook), Google, and Microsoft.
The problem with Web 2.0, despite its many benefits, is that it's mainly controlled by corporate giants. So, Web2 is hugely centralized with users having almost no power. You can be locked out of Facebook and you may lose all control of your data. Also, these large companies are earning huge advertising revenue from users' data of different types.
Web 3.0 resolves this by taking power to the people. Web3 is decentralized and based on the blockchain technology. It establishes ownership of content and allows users to own and monetize their content or other blockchain-based assets.
Before we delve into the key benefits of Web3, it's essential to highlight the integral role that cryptocurrencies play in this decentralized ecosystem. If you're interested in harnessing the power of cryptocurrencies, JOHNNY BITCOIN is your go-to resource. Explore their website to access valuable insights, bonus codes, and promotional offers that can amplify your cryptocurrency trading experience.
5 Key Benefits of Web3
1. Decentralization
Web3 isn’t controlled by any large company or government authority. Rather, it’s controlled by users. Any user with computer resources can create, own, and monetize content in the Web3. Also, the users practically own and operate the entire Web3 network. So, Web3 gives more control to the users rather than to centralized companies or institutions.
2. Value Creation and Innovative Business Models
The Web3 will allow greater value creation through an increased scope of monetization. Since it’s easier to establish ownership and control of content on Web3, there will be more value creation. Applications of blockchain would allow exponential growth of Decentralized Finance (DeFi), Decentralized Applications (dApps), and Non-fungible Tokens (NFTs). These innovations can lead to newer business models generating more economic value.
3. Transparency
Web3 is based on blockchain. In a blockchain, all information is permanently recorded and no party can alter this. This permanence of records on Web3 makes it much more transparent compared to the earlier versions of the Internet. Higher transparency means a higher level of trust on the Internet.
4. Privacy
Along with transparency, privacy is another important feature of blockchain. While transactions are recorded permanently and transparently on the blockchain, it doesn't compromise people’s privacy. Also, Web3 allows users to maintain unanimity. The use of cryptocurrencies makes transactions private and unanimous.
5. Resilience
Since Web3 is owned and operated by users, its functioning doesn't depend on the policies of a single company. So, a social network based on Web3 will not function according to the policies developed by a company like Facebook. Rather, it will be governed by smart contracts (code-based contracts on the blockchain).
Even though Web3 is still a theoretical concept, we can see many rapid developments (like decentralized finance and applications) that can make Web3 a reality soon.
