A Comprehensive Guide to the Next Generation of the Internet

Since its inception, in the early 1990s, the World Wide Web has come a long way; from simple text-based pages to dynamic multimedia-rich experiences, the web has transformed the way we communicate, share information, and do business. As the web continues to evolve, so do the technologies that power it. In this article, we analyze Web3, the upcoming generation of web technologies that promise to advance the internet to new heights.

What Came Before Web3?

In the early 90s, when it was introduced to the masses, the World Wide Web (WWW) provided little to non-interaction and all the information was centralized – meaning people had access to it but didn’t produce any content. This changed with the web 2.0 revolution, which enabled users to interact through blogs, chats, and social networks. 

Despite the innovation, this stage brought with it a problem: now we provide our personal information to personalize our own experiences, becoming vulnerable to data leakage and sale.

According to a survey conducted by Synergy Research Group, Amazon, Google, and Microsoft control over 73% of the cloud data storage market, a sign of the centralization of the internet as we use it today.

Therefore, understanding this context is essential to have a more accurate notion of Web3 and its importance. After all, it’s an understanding of each era of the internet, which was shaped by technological conditions and user habits. To recap:

Web1: Considered the first presented to society, Web 1.0 was a revolution in access to information. It’s a network that allowed little interaction, and content production was fully centralized on portals and websites. In other words, the user consumed more information but didn’t create.

Web2: After the initial step taken by Web 1.0, processes evolved into the concept of Web 2.0. Its focus is on reading and creation and has been in use since 2004 to the present day. Interaction is greater, and users can create and share data, which gave rise to social networks, blogs, and others.

Web3: It’s a third era of the internet currently in place and aims to add transparency and control to the user. It has the purpose of connecting data in a decentralized manner and the intelligent interpretation of data by digital systems.

The revolution proposed by Web3 has the potential to change various aspects of our daily lives. The expansion of the metaverse, for instance, is expected to influence how we entertain and interact with each other, which has already been observed and capitalized on by companies to some extent.

What is Web3?

Web3 is the next frontier of the internet, offering a decentralized and secure platform for users to interact, transact and store data. It is built on the principles of blockchain technology and allows users to control their data, privacy, and assets. Web3 is a direct response to the centralization of the internet, offering users a more secure and transparent platform for data exchange.

Key Concepts of Web3

1. Tokenization: One of the fundamental concepts of Web3 is tokenization. This process involves the digital registration of data on a blockchain network. In other words, information is encrypted and stored in a database that can be publicly verified but cannot be altered without a new registration.
2. NFTs: From this process, new ways of conducting business and acquiring goods and services have arisen. One example is the popular NFTs (Non-Fungible Tokens), which represent specific and individual possession of works of art and rare objects that are traded through cryptocurrencies – another fundamental aspect of Web3. The crypto market, like the new phase of the internet, is based on the public record of mutually interchangeable data between users.
3. DAOs (Decentralized Autonomous Organizations): Another example is DAOs (Decentralized Autonomous Organizations). These entities operate as follows: a) the founders create a cryptocurrency, called a governance token; b) these digital assets are distributed among the users, supporters, and other stakeholders of the organization; c) each token corresponds to a defined amount of voting power within the DAO and can be bought or sold at the owner’s discretion.

The Impact of Web3

As the internet becomes more integrated into our routines, it is undergoing a continuous transformation. Since the popularization of home computers, the way we use and interact with the network has changed significantly, and the arrival of a new phase that offers more transparency and data security is expected to remodel technology and the economy as we know it.

In practice, the third phase of the internet, also known as Web3, is managed through blockchains, which are public access platforms that store the users’ data and transactions. Through them, Web3 promises to decentralize the network and limit the influence of large technology companies, allowing for greater privacy and security for users.

One sector expected to be greatly impacted by Web3 is finance. With the ability to store and transact assets on a decentralized platform, Web3 offers the potential for a more efficient and transparent financial system, with lower fees and fewer intermediaries. The rise of DeFi (Decentralized Finance) is already a clear example of this impact, with numerous platforms and applications being developed to provide decentralized financial services, such as lending, borrowing, and trading.

Another area where Web3 is expected to have a significant impact is the gaming industry. The expansion of the Metaverse, a virtual world that extends across multiple platforms, is already being seen as the future of gaming and entertainment. With the ability to tokenize in-game assets and offer secure transactions on a decentralized platform, Web3 offers the potential to revolutionize the way we play and interact with each other in virtual environments.

Web3 offers the potential to greatly impact various aspects of our daily lives, from finance to entertainment. While the full impact of this new phase of the internet is yet to be seen, it is clear that the decentralization and security offered by Web3 has the potential to change the way we interact with the network and each other. The future of the internet is exciting and holds great potential, and we can expect to see continued innovation and transformation as Web3 evolves and becomes more integrated into our daily lives.