The development of the internet has witnessed profound changes over the years. Now, we have more interactive applications such as web2 and web3. These segments diverge in who controls the internet and how data is managed.
The internet is classified in two major segments web3 and web2. Each segment possesses its own features about functional control and data regulation.
What is web2?
Overview of web2
Using the web2 nomenclature, people unanimously refer to the internet in its current form. Big organizations control the data, services, and content of the internet. Now, we have features such as ecommerce and social media in addition to non interactive services available.
Key Characteristics of web2
- Centralization: In web2, data is collected and governed live at central terminals; Google, Facebook, and Amazon have proven to be the biggest data handlers. The rules of data control and its governing structure are at the hands of these companies.
- Content Creation: Web2 has provided the means for the establishment of Facebook, Instagram, YouTube, and Wikipedia, and is powered by content created and uploaded by users.
- Advertising-Driven: The business model of collecting data and doing advertising on Web2 advertises on user data. Businesses pay for targeted advertisements based on user data.
- Interactivity: Through Web2, users can engage with websites and applications, comment, add content, and create profiles.
Advantages of Web2
Challenges of Web2
- Established Infrastructure: A wide variety of Web2 services and applications offer a good infrastructure, which makes Web2 more advanced.
- User Friendly: Web2 services are more advanced, which makes their use easy, along with having user friendly interfaces.
- Global Reach: People can now communicate and share information with each other at a global scale, which was not possible before.
User Data Privacy too is a growing concern for people, along with set control policies, and information not being easily available. Concerns on set privacy restrictions in collecting user data, selling that information off, and not having a clear user agreement has become commonplace in Web2.
Control on user information too is a major focal point, along with user content moderation, which leads Web2 users to privacy and censorship.
What is Web3?
Overview of Web3
Web3 is the upcoming stage of the internet and is being built on blockchain and cryptocurrency tech. With Web2 being in a more centralized location, users can now control their data, content, and virtual identities more with Web3, the Decentralized Web.
Main Features of Web3
- Decentralization: The data in Web3 is stored and managed using blockchain technology, which allows data to be decentralized. There is no central governing body for the data or the services, rather control is shared among users and nodes in the network.
- Ownership and Control: Web3 allows users to fully own their data, digital assets and their identities. Unlike in Web2, where users provide data and digital assets to companies who in turn control and own the data, in Web3 users control their information.
- Cryptocurrencies and tokens: Web3 utilizes blockchain technology, and as such, cryptocurrencies such as Bitcoin and Ethereum, as well as tokens, are used to power decentralized services and incentivize network engagement.
- Smart Contracts: The use of smart contracts, which are self-executing contracts with the terms set in code, allows Web3 to function. These contracts remove the need for middlemen and can handle automized tasks, such as sharing content or transferring funds.
Finally, Users are now able to Web3 do away with middlemen. Users can choose to communicate with each other directly and thus eliminate the chances of being silenced.
Benefits of Web3
- Empowering users: With Web3, users have the power to own, track, and manage their data and digital assets at their discretion.
- Privacy and Security: Web3 improves privacy and security of data by using blockchain encryption and decentralizing where data is stored.
- Transparency: With the use of smart contracts, blockchain based transactions and services offer visibility to their users on which services have been provided and how data has been utilized, thus ensuring transparency.
- Incentives and Rewards: Active participation is rewarded using tokens and DeFi in Web3, unlocking new opportunities for users to monetize their digital engagements.
Challenges of Web3
- Scalability Issues: Web3 is still in the early stages of development, and scalability is still a major problem. During peak usage periods, Ethereum-based blockchain networks often suffer from congestion and exorbitant fees.
- Usability: Web3 services and applications tend to be more complicated than their Web2 counterparts, posing a significant barrier to mainstream user adoption.
- Legal Issues: The use of cryptocurrencies and decentralized systems puts Web3 in a legally sensitive area as countries attempt to create legal frameworks for blockchain technologies.
Web3 vs Traditional Web: Key Differences
| Features | Web2 (Traditional Web) | Web3 (Decentralized Web) |
|---|---|---|
| Control | Centralized (controlled by large corporations) | Decentralized (controlled by users) |
| Data Ownership | Companies own user data | Users own and control their data |
| Privacy | Limited user control over data privacy | Enhanced privacy and user control |
| Monetization | Advertising-driven (data monetization) | Token-based (cryptocurrency rewards) |
| Transparency | Limited transparency (closed-source platforms) | High transparency (blockchain-based) |
| Security | Vulnerable to data breaches and hacks | Improved security through blockchain encryption |
| Interactivity | User-generated content (social media, blogs) | User ownership of content (NFTs, decentralized apps) |
| Infrastructure | Well-established, vast network of services | Emerging, with evolving platforms and applications |
How Web3 is Changing the Future of the Internet
Decentralized Finance (DeFi)
Web3 introduces the DeFi sector of the blockchin ecosystem which permits users to directly borrow, lend, and trade on blockchain eliminating the need for banks and other financial institutions.
NFTs (Non-Fungible Tokens)
NFTs, a primary feature of Web3, are unique digital assets stored on the blockchain. Ownership and tradeable characteristics of digital assets through blockchain is changing the landscape of art, gaming and the entertainment sector.
Decentralized Applications (dApps)
Web3 enables brands to build decentralized applications (dApps) as they do not have a governing intermediate. dApps are dependent on smart contracts and function on blockchain networks. dApps are transforming industries such as social media, finance, and gaming as they empower users to have greater control over their information and how they engage with these applications.
Digital Identity and Data Sovereignty
Web3 eliminates the need for a centralized platform for users to have a digital identity. This empowers users over their information, and reduces the chances of privacy infringements and data theft.
FAQs: Web3 vs Traditional Web
Q1: What is Web3?
Web3 is the subsequent iteration of the internet, built on the blockchain, which seeks decentralization, privacy, and user control over data.
Q2: How does Web3 differ from Web2?
Web2 is centralized and controlled by corporations. In contrast, Web3 is user-driven and decentralized.
Q3: What are the benefits of Web3?
Web3 offers improved privacy, security, user control, as well as monetization of digital assets via cryptocurrencies and tokens.
Q4: What are the main challenges of Web3?
Some of the prominent challenges of Web3 development are scalability, complexity, and regulatory uncertainty.
Q5: Is it possible for Web3 to substitute Web2?
Although Web3 has numerous benefits, it is still developing. Web2 and Web3 will most probably exist alongside each other, with Web3 eventually assuming a larger role.
