What is Web3? Understanding the Future Trend: Decentralized Networks

Web3, also known as the decentralized web, represents a crucial vision for the future development of the internet. It is an entirely new model for constructing and accessing distributed network systems and applications, with its core characteristic being independence from a single point of control or centralized authority. Instead, Web3 relies on a network of computers and users to verify and confirm information, thereby achieving higher security, transparency, and inclusivity. This revolutionary network architecture is receiving widespread attention from technology companies, industry experts, and global web users.

The Evolution of the Internet

The development of the internet can be clearly divided into three important stages, each with its unique characteristics and functions.

The Web 1.0 era began in the late 1980s, marking the initial phase of the web's birth. The internet at that time consisted merely of a collection of static HTML pages, where users could only read and browse content without any interactive capabilities. Content creation rights were held by a small number of participants, while the masses could only passively consume this information, hence being called the "read-only web."

Entering the early 2000s, the internet underwent a major transformation toward Web 2.0, ushering in the new era of the "read-write web." The internet in this stage became more dynamic and interactive. The rise of social media platforms, along with service-based applications like Uber and Netflix, greatly simplified human communication methods. People could suddenly engage in meaningful interactions and collaboration with users worldwide. However, Web 2.0 also brought the problem of data centralization. With increased digital interactions, centralized platforms such as Facebook, Twitter, Google, and Amazon gained access to vast amounts of user data, creating network effects in an advertising economy dependent on user data, leading to unequal distribution of power and revenue.

Web 3.0, as the next stage of web development, represents the "read, write, trust web." This is a conscious effort to build a more equitable and democratic web environment. Web3 provides services for everyone through peer-to-peer transactions, user-controlled data, relevance, privacy protection, and monetization mechanisms. Advances in blockchain technology, machine learning algorithms, and the Internet of Things play key roles in realizing this vision, making it possible to connect data, understand relationships between data points, and make autonomous decisions.

The Vision Behind Web3: Consensus of the Majority

The core vision of Web3 is built upon several important pillars, aimed at creating a more democratic and equitable web environment.

Data democratization is Web3's primary goal. It proposes a transition from the current centralized computer architecture to decentralized data structures. In decentralized data structures, a group of interconnected computers each plays a specific role, whether as nodes, validators, developers, or network participants. All computers in the network have equal access to information, data is transparently visible to the entire network, and features secure timestamps and immutability.

Security and privacy protection are another important aspect of Web3. Through cryptographic technology, Web3 effectively addresses privacy concerns that may arise from distributing data across multiple computers. Data stored on the network is encrypted, and only nodes with the correct keys can access it. Furthermore, the introduction of secure digital identities further promotes data privacy; these digital identities are anonymous, fully encrypted, and cross-platform. Advertising will also be based on user consent related to these digital identities, giving users more choice. The application of blockchain technology can also enhance data security because there is no single point of failure, and copies of the data ledger exist on all nodes in the network, making hacker attacks extremely difficult and costly.

Innovation in verifiability and governance mechanisms is also an important feature of Web3. Traditional governance systems use legal contracts to ensure the delivery of goods and services, but the enforcement process is lengthy and expensive. Web3 provides a trustless governance system solution through smart contracts. Smart contracts are open-source code whose conditions are jointly agreed upon by both parties at initiation, and once predefined conditions are met, the contract executes automatically. For example, by integrating blockchain technology and IoT-enabled sensors, asset transfers in supply chains can be verified, or services can be received from anywhere in the world with automatic payment based on contractual milestones, fundamentally reducing monitoring costs for protocol and transaction audits.

Economic model restructuring is Web3's long-term goal. It aims to build a sustainable and scalable new global economy by eliminating the gap between users and service providers. Blockchain-based technology will allow users to manage and settle transactions instantly without intermediaries, while economic incentives and penalty mechanisms ensure that all computers in the network behave correctly and remain honest.

Advantages of Web3

Web3 technology brings significant advantages in multiple aspects, laying a solid foundation for the future development of the internet.

In terms of security, since Web3 systems do not rely on a single point of control, they are less susceptible to hacker attacks, breaches, and other cyber threats, making them a safer choice for storing and sharing sensitive information. Improved transparency is also an important advantage; decentralized systems allow all users to access the same information, making it easier to verify data accuracy and authenticity, thereby increasing trust and accountability in online transactions and interactions.

Privacy protection has been significantly enhanced. Web3 systems typically use encryption technology to protect users' personal information, providing an additional layer of privacy compared to traditional web systems. Regarding inclusivity, decentralized systems allow all users greater participation and access, regardless of their location or resources, helping to create a more equitable and inclusive online environment.

Scalability improvements are also noteworthy. Since decentralized systems rely on computer networks to verify and confirm information, they can handle larger volumes of transactions and interactions than traditional web systems, laying the foundation for future large-scale applications.

Criticisms of Web3

Despite Web3's many advantages, it also faces some important criticisms and challenges.

Complexity is the primary issue. The setup and usage process of decentralized systems can be quite complex, making it more difficult for ordinary web users to access and use them, potentially limiting their adoption and promotion. Functional limitations are also a consideration factor; some decentralized systems may have limited functionality compared to traditional web systems, which may hinder their practicality and appeal.

The lack of regulation brings uncertainty. Since no single entity can control decentralized systems, they may not be subject to the same regulations as traditional web systems, which could create uncertainty and potential risks for users. Performance issues cannot be ignored either; due to increased complexity and reliance on computer networks, decentralized systems may perform slower than traditional web systems.

Lack of awareness is another important challenge. Many web users are unfamiliar with decentralized systems and their benefits, which may limit their adoption and use, requiring more education and outreach efforts.

Tools for Using Web3

Several tools are currently available for accessing and interacting with Web3, providing users with rich choices.

Web3 browsers are tools specifically designed to access decentralized applications (dApps) and interact with decentralized networks, such as Brave, MetaMask, and Cipher. Decentralized exchange platforms allow users to buy and sell cryptocurrencies and other assets in a decentralized manner without the intervention of a central authority.

Decentralized storage solutions like IPFS and Storj allow users to store data in a distributed manner, using computer networks to verify and secure data. Decentralized identity solutions like uPort and Civic enable users to securely store and manage their digital identities in a decentralized manner.

Smart contract platforms like Ethereum and EOS allow users to create and execute self-executing contracts using blockchain-based technology, providing infrastructure support for various decentralized applications.

Major Challenges of Web3

Web3 faces several key challenges in its development process, requiring joint efforts from technology and community to overcome.

Scalability is the primary challenge. Decentralized systems may struggle to handle large volumes of transactions and interactions, leading to performance issues and reduced speed, which poses obstacles for large-scale application promotion. Regarding user experience, decentralized systems may be complex and difficult for general users to understand and use, thereby hindering adoption and requiring more intuitive interface design and better user education.

Regulatory issues bring uncertainty. Decentralized systems are not subject to the same regulations as traditional web systems, which may create uncertainty and potential risks for users, requiring the establishment of appropriate regulatory frameworks. Integration with traditional systems is also a challenge; decentralized systems may find it difficult to integrate with existing traditional web systems, which may limit their potential impact and adoption speed.

Regarding the future development direction of the web, several important trends are worth noting: strengthening decentralization, better integration with the physical world, increased use of artificial intelligence, greater emphasis on privacy, and continued globalization processes.

Web3 is the Future of the Internet

With the emergence of DeFi protocols, Web3 wallets, blockchain domains and browsers, the internet as we know it is undergoing rapid and profound transformation. Today, many aspects of Web3 are in their first iteration stage, including areas such as cloud computing, augmented reality, blockchain technology, and the Internet of Things.

However, as the development history of Web 2.0 has shown, the maturation of Web3 may take decades rather than years. The transition between Web 2.0 and Web3 will not be fully realized until all major building blocks are in place. This process requires technological innovation, community collaboration, establishment of regulatory frameworks, and enhancement of user awareness.

Nevertheless, users can now begin using and experiencing some Web3 technologies, standing at the forefront of this paradigm shift. By participating in decentralized applications, using Web3 tools, and learning blockchain technology, everyone can become part of this web revolution, jointly shaping a more democratic, transparent, and inclusive digital future.

Conclusion

Web3 represents an important milestone in web development; it is not only a technological evolution but also a fundamental transformation of web governance models and value distribution mechanisms. Through decentralization, blockchain technology, and smart contracts, Web3 is committed to building a more equitable, transparent, and secure web environment. Despite currently facing challenges in scalability, user experience, and regulation, Web3's vision—returning data control to users and achieving true democratization of the web—is gradually becoming reality.

FAQ

What is meant by Web3?

Web3 is the next evolution of the internet built on blockchain technology, enabling decentralized and community-controlled networks. It replaces the centralized Web2 model, giving users greater autonomy, ownership, and control over their data and digital assets.

How to make money in Web3?

Earn through staking rewards, yield farming, NFT trading, DAO participation, airdrop farming, and freelance work. Build skills and leverage decentralized opportunities to generate consistent income streams.

Is Web3 just crypto?

No. Web3 is a decentralized internet framework that goes beyond cryptocurrency. While crypto is a key component, Web3 also includes decentralized applications, smart contracts, and data ownership. Crypto enables Web3, but they are not synonymous.

What is Web3 for dummies?

Web3 is the next internet generation powered by blockchain technology, giving users control over their data and digital assets. It eliminates intermediaries, enabling peer-to-peer transactions and decentralized applications on a transparent network.