Although there is no universally accepted definition of the terms Web 3.0 or Web3, they are used to describe the next generation of the World Wide Web and are generally associated with the idea of a user-centric, decentralized, and even more open Internet built on blockchain technology and other distributed technologies.
The term Web 3.0 was popularized by Polkadot founder and Ethereum co-founder Gavin Wood in 2014 to refer to a decentralized blockchain-based online ecosystem. He argued that web 2.0 and its centralization is not socially sustainable in the long run and web3 is an evolution of the Internet where the concept of ownership is added to content creation and sharing. It aims to provide any participant on the Web with their autonomous power and control.
Web 3 focuses on the idea of decentralization, privacy, transparency, and user ownership. All user data will no longer be under the control of the big corporations and other central authorities but every connection will be made from user to user (P2P or Peer To Peer). This will remove the need for middlemen and regulators.
Web 3.0 is based on a set of technologies like blockchain, cryptocurrencies, and tokens to achieve such a decentralization model. All data are stored on a
distributed ledger that is not managed by a central authority.
Web 3.0 technologies
Web 3.0 is already here and we are starting to see many technologies implemented based on its principles.
DeFi: Decentralized finance
DeFi, which stands for decentralized finance, is one of the most intriguing and profitable domains.
DeFi is the evolution of the current financial services. It is based on blockchain and removes the necessity to have intermediaries or central authority, such as payment processors and banks, as happens in centralized financial systems.
There are multiple advantages to relying on DeFi. First, it is accessible to anyone having an internet connection and removes the need for documentation and third-party validations. It increases transaction speed, reduces fees, and guarantees greater transparency since all loan amounts will be available to anyone on a public blockchain. It supports all classical financial services such as loans and mortgages, bank deposits, insurance, and asset trading, among others.
Although the sector is relatively new, there are already numerous projects provided to the public. Some popular DeFi protocols are Chainlink (LINK), Aave (AAVE) and Uniswap (UNI).
NFT: Non-fungible tokens
Non-fungible tokens (NFTs) are a category of digital assets that exist on a blockchain.
Each NFT is unique (non-fungible) and cannot be replicated as they are identified with unique identification codes and metadata that distinguish them from one another.
An NFT can be an image, an audio, a gif, a tweet, and more.
They are called "non-fungible" because, unlike dollars and cryptocurrencies, they are unique and cannot be replicated. Only one can exist. On the other hand, dollars and ethereum are fungible. One dollar is the same as any other dollar, and one Ethereum is always equivalent to another Ethereum.
This makes dollars and ethereum to be used as a means of payment and NFTs to be considered digital assets that represent real-world objects such as art, music, gaming items, and videos, that can be bought and sold online.
In the future NFTs could also be used for intellectual property verification, document authentication, and various crypto-gaming features. As Giorgi Khazaradze, CEO of crypto trading platform Aurox said "NFTs could change multiple different aspects of our daily lives, such as tamper-proof identification, concert ticket sales, and much more. For now, though, NFTs remain extremely speculative."
DAO: Decentralized Autonomous Organization
DAO stands for Decentralized Autonomous Organization. The idea was developed by Ethereum co-founder Vitalik Buterin, who first called it "Decentralized Autonomous Corporations" (DAC).
DAO refers to a group of people working and collaborating with a common goal, using decentralized technologies, without any external interference.
DAO indicates a new method of managing organizations through the use of smart contracts and blockchain technology. In most cases, it operates based on a democratic structure, in which votes are given about the number of cryptographic tokens held by users. This way, all operations made in such organizations will provide very high security in terms of corruption and hacking.
What's next? Look for a job
Web 3.0 supporters claim that this will become the Internet of the future. If this becomes a reality, it would open up numerous opportunities for both investors and workers.
If you also believe that Web 3.0 could become something, now might be a good time to look for a job in this new area. Discover the top web 3.0 jobs today on ThatStartupJob.
