Web3.0: Leading the Internet Towards Decentralization

The internet is being rebuilt.

If you've visited crypto communities on social media like Twitter, electronic game forums, or followed information related to the metaverse, you've likely encountered expressions like "Web3" or "Web3.0". Over the past few decades, both new and established companies have been "building bridges and paving roads" for the arrival of the next generation of internet. This involves technologies including blockchain and AI. It can be said that humanity is about to unveil a new chapter in the World Wide Web revolution.

Regarding Web3, as noted by well-known crypto blogger Ki Chong Tran: "The next major iteration of the internet allows users to take back power from the centralized companies that dominate the internet."

As for how blockchain will play a role in the Web3 wave, the Polkadot Lightpaper's preface clearly demonstrates the internet's important role in this transformation through its indictment of internet giants.

The current internet world looks like this: after users provide personal data for free to tech giants, they have no choice but to pray that their personal privacy is not leaked, stolen, or abused—these centralized world giants are like demons, swallowing us bit by bit.

With the continuous advancement of open source technology and decentralized technologies like blockchain, it increasingly points to a conclusion that it is entirely possible to build a completely new system where centralization no longer reigns supreme over individual sovereignty. In this new system, third parties will no longer be demons, and we will no longer live in fear.

——Polkadot Lightpaper

While it remains unclear who will lead this Web3 revolution, blockchain will certainly play an important role in this process. NFT/DeFi and other concepts currently flourishing in the blockchain industry will also play important roles in the Web3 wave.

1. Web1 and Web2

To understand why Web3 is significant, we must first examine the development history of the network, from when humans first used it as an online service platform to the present when it's considered an essential part of daily life.

First, let's look at Web1, a stage that began in 1989 and ended in 2005.

Web1 is also known as the static network, and was the earliest and most reliable internet of the 1990s. Because it only offered very limited information, there was almost no user interaction. Users could only browse HTML pages consisting of a limited number of articles and non-interactive content, primarily written by a small number of pre-selected editors.

Next, let's look at Web2, a stage that began in 2005 and continues to the present.

Social networks, or Web2, have made the internet more attractive. Thanks to advancements in internet technologies like JavaScript, HTML5, and CSS3, the internet during this Web2 stage has become interactive, programmable, and more entertaining. The internet has grown into an aggregator of content distribution, e-commerce, and entertainment. Today, the internet consists of companies like YouTube, Facebook, Twitter, Alibaba, and Tencent, which have created numerous interesting and interactive webpages.

Together they constitute Web2, which is our current internet world.

Finally, let's look at Web3, a future network, a network composed of blockchain and decentralized nodes.

Looking back at the 10+ years of blockchain development history, it can be said that it is precisely the flourishing of blockchain that has enabled people to kick open the door to the backend revolution. In this revolutionary wave, the network has transformed from a centralized network relying on servers from tech giants to a decentralized network supported by distributed nodes.

Data can be interconnected in a decentralized manner, which will be a huge leap from Web2, where the vast majority of data is stored in centralized media. Web3 is essentially a new way for individuals to use and own the internet without giving up privacy and valuable data. Just as described at the beginning of the article in the Polkadot Lightpaper, people can reclaim their data and value through blockchain.

Although there is still debate about how Web3 will develop, certain common characteristics of Web3 are unanimously recognized by the crypto community. So what will the future of Web3 look like?

2. Introduction to Web3

1. Characteristics of Web3

Let's look at some characteristics of Web3 that will drive Web3 innovation.

First, Web3 will be ubiquitous. With the popularization of mobile communication devices and continuous improvement of network infrastructure, you can use Web3 anytime, anywhere. Web3 won't be limited to your laptop like Web1, nor just on your phone like Web2. Web3 will be universal. When Web3 gets on track, the vast majority of things around you will be able to connect online (IoT).

Next, Web3 will be decentralized. Web3 provides a democratic and user-centric platform without centralized control—this will be a first in internet development history. Although Web2 allows information to be transmitted across borders, this information is often controlled by centralized third parties. In the Web3 world, users can conduct free information interaction without third-party intervention, which will also eliminate the risk of information censorship by large companies.

Second, Web3 is built on computer logic. Applying computer logic in networks will enable machines to decode meaning and emotions by analyzing data. Therefore, by enhancing data connectivity, internet users will gain a better experience.

Furthermore, artificial intelligence plays a huge role in the Web3 process. In Web3, by combining previous functions with natural language processing and computing power, computers will understand information like humans to provide faster, more relevant results. They become more intelligent to meet user needs.

Finally, Web3 excels in immersion and 3D graphics. Three-dimensional design is widely used in Web3 websites and services. Museum guides, computer games, e-commerce, geospatial environments, and more are all examples of using 3D graphics.

2. Core Content and Technologies of Web3

As mentioned earlier, the Web3 field is broad and rapidly evolving, mainly facilitating a decentralized internet through various technologies. Here are some core content and technologies in the Web3 field:

Blockchain Technology : Blockchain is the foundation of Web3, providing a decentralized, immutable data recording system that can be used to record trading, asset ownership, and other information.
Smart Contracts : Self-executing contracts running on blockchain that automatically execute contract terms according to encoded rules. Smart contracts are the foundation for building DApps and executing decentralized finance (DeFi) operations.
Decentralized Applications (DApps) : Unlike traditional internet applications, DApps run on decentralized networks, usually built on blockchain technology, providing various services from games to financial products.
Decentralized Finance (DeFi) : A set of decentralized financial services and products aimed at providing decentralized lending, trading, investment, and insurance services without relying on traditional financial intermediaries.
Non-Fungible Tokens (NFTs) : Tokens on the blockchain representing unique assets (such as artworks, collectibles, etc.). NFTs prove ownership and authenticity of digital or physical assets.
Cryptocurrency and Tokens : Digital or virtual currencies secured using cryptographic technology. Cryptocurrency can be a network's native currency (like Bitcoin or Ether) or tokens based on specific projects.
Decentralized Autonomous Organizations (DAOs) : An organizational form based on smart contracts that allows members to jointly manage resources and decision-making processes in a decentralized manner.
Privacy and Security Technologies : Including various technologies and protocols aimed at enhancing network trading privacy and security, such as zero-knowledge proofs.
Cross-chain Technology : Technology that enables different blockchains to exchange information and value, promoting interoperability between different networks and applications.

The Web3 vision is to create a more open, transparent internet where users have control over their data. This field is still rapidly developing, covering a wide range of content from infrastructure construction to application development.

3. Web3 and Crypto, NFT

For those active in the crypto circle, stories about Web3 and crypto network collaboration are familiar. In fact, crypto protocols are the foundation of Web3. Numerous related DApps like DeFi, NFT, GameFi, SocialFi, and others are pushing Web3 into the mainstream world.

The most critical role of crypto technology is placing users above companies, where every participant can earn returns from incentive mechanisms, provided you participate in creating something. Although blockchain technology is not perfect—for example, none of the consensus mechanisms including PoS/PoW/PoH (Proof-of-History) are flawless—PoW, while relatively fair to public chains, is extremely energy-intensive; PoS, while efficient, tends to lead to centralization—but regardless, blockchain is far superior to centralized companies in supporting user participation in project governance.

With the support of blockchain technology, Web3 proposes a series of methods to reclaim power from internet giants, including decentralized-based storage, data exchange, financial trading (DeFi), etc., enabling users to achieve data freedom and financial freedom (distinct from financial freedom). Web3 reintroduces ownership and verification methods in a decentralized manner, meaning no single individual in the network can control the entire network. Every network user and participant must follow the same hard code rules, namely consensus protocols, including founders, of course, provided no backdoors are left in the protocol.

Web3 is also distinctly different from Web2. In closed-source business models like Web2, users trust company operators to ensure funds are safe and various services are executed smoothly—that is, you need to trust someone 100%. In open source projects, users trust technology to execute these tasks—that is, trust mechanisms and code. In Web2, larger networks win; in Web3, any user who creates a large-scale network achieves mutual benefit.

In short, Web2 trusts people, Web3 trusts code—as a user, how would you choose?

Below, let's see how NFTs contribute to Web3 development.

Before understanding what role NFTs might play in Web3, we must first understand what characteristics NFTs have. NFT tokens are unique assets issued on blockchain used to uniquely represent physical artworks or digital artworks, commonly known as non-fungible tokens. Besides applications in art, NFTs can also connect with the real world without intermediaries.

NFTs give users the ability to own virtual things—they can be images, music, text, copyrights, secret keys, and anything else you own. For this reason, NFTs also democratize financial trading. NFTs are key to stopping Google/Apple/Facebook/Amazon from gaining ownership of user data assets.

4. The Future of Web3

The future of Web3 lies in increasing usage, usability, and scalability. Imagine a scenario where Web3 becomes reality—with the assistance of encryption technology, these applications can already update automatically. Scalability, user experience, and interoperability are some features prioritized by new protocols.

There are already some projects revolutionizing how people interact with people and networks. For example, Gitcoin is a platform that allows developers to earn cryptocurrency rewards by participating in and handling open source issues. Another example is the YGG guild born during the early development of Axie Infinity. Under DAO governance mechanisms, all participants can earn token rewards through token incentive mechanisms. Similar projects are too numerous to count, and these are all part of Web3's future development.

In short, the possibilities of Web3 are endless, and this is just the beginning.

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1. Web1 and Web2

2. Introduction to Web3

3. Web3 and Crypto, NFT

4. The Future of Web3