Considering the amount of investment and the buzz that comes with it, then Web3 or Web 3.0 is clearly the future of the internet.
Based on Outstanding Researchthe global Web 3.0 market size reaches $3.2 billion by 2021 and is expected to register a Compound Annual Growth Rate (CAGR) of 43.7% to reach a whopping 81, 5 billion dollars by 2030.
Web 3.0 is considered the third version of the internet. A 2020 Twitter post described three iterations of the Web in these words:
Web 1: Read
Web 2: Read-Write
Web 3: Read-Write-Private
– him.eth (@himgajria) May 29, 2020
Web 1.0 is ‘read-only’, with a static web page with almost no user interaction. Web 2.0 today is a ‘read-write’, shaped by the proliferation of social media and user-generated content. Web 3.0 will be ‘read-write-private’, as it will help secure data.
Raj A Kapoor, founder and CEO of India Blockchain Alliance, explains in detail how data is secured on Web 3.0: “When we use a platform like Facebook, our data is ours. collected, owned and monetized by them.In Web 3.0 our data is stored on cryptocurrency wallets.We interact with Web 3.0 applications and communities through our wallets. I can also take my data with me when I log out.”
Data security on Web 3.0 will be possible due to blockchain technology. Blockchain will help information on Web 3.0 be organized in the form of blocks. These blocks are immutable and confirmed by consensus through asymmetric cryptography such as keys or digital signatures. As a result, users can access resources, applications, agreements, and content with greater security.
Mr. Kapoor added that Web 3.0 will enable data security because crypto wallets are not easily linked to someone’s real identity. “Although someone can see someone’s wallet activity, they won’t know that it’s yours.”
While Web 3.0 is expected to streamline ever-growing cryptocurrency transactions, newer use cases are likely to emerge from it.
Web3 can help people buy assets like virtual real estate through partial ownership, eliminate middlemen in media and entertainment transactions, and decentralize businesses by how to allow community to own companies like Decentralized Autonomous Organization, note a Chainalysis report.
If current Web 2.0 is about the virtual world, then Web 3.0 is about bridging the gap between the virtual and physical worlds. The ‘bridge’ between the two worlds are some 21st century technologies like Artificial Intelligence, Augmented Reality, Virtual Reality (all three are the foundation for the metaverse), etc., that Web 3.0 can save store.
Sharat Chandra, Vice President, Research and Strategy, EarthID said: “Brands across sectors are adopting Web 3.0 to deliver superior, personalized customer experiences in an immersive world.
If recently Chainalysis It is believed that metaverse, VR and NFT powered by blockchain (Non-Fungible Token) will dominate Web 3.0. In particular, as noted by the report, the game is likely to grow exponentially in the Web 3.0 ecosystem.
Powered by blockchain, Web 3.0 gaming is also known as play for money or play to own. In a Web3 game, NFT assets are owned by the player. They can also be sold – which is not possible in Web 2.0 Chainalysisciting a report by DappRadar, stating that blockchain-based gaming activity has increased by 2,000% since 2021.
In another major development that will change the way people play games and operate on Web 3.0, several Web 3.0 companies have teamed up to create Web3’s Open Metaverse Alliance or OMA3. The alliance aims for a “metaverse without walls, where individual platforms are interconnected and fully interoperable.”
The launch of OMA3 – a DAO with ‘comprehensive, transparent and decentralized governance’ – also signals the role of Web 3.0 in converging various elements of metaverse and blockchain technology.
Although Web 3.0 is positioning itself as the future of the Internet, there are also a few red flags. Chief among them is ‘decentralization’ – the main premise of Web3.
“True decentralization remains elusive as all leading blockchain protocols are controlled by a select few wallets,” said Mr.
Decentralized finance (DeFi), a byproduct of blockchain technology, is also a cause for concern. The Chainalysis The report states that DeFi protocols have become the target of the hunt for hackers looking to steal cryptocurrency by 2021.
Money laundering via DeFi is another matter. By 2022, DeFi protocols have become the largest recipient of illicit funds, accounting for 69% of all funds sent from addresses associated with criminal activity, the report said.