What is Web 3.0?
Web 3.0 is the decentralized Internet. It is built on distributed technologies such as blockchain and Decentralized Autonomous Organizations (DAO), rather than being centralized on individual or company-owned servers.
The goal of Web 3.0 is to create a more democratized Internet. No single entity can control the flow of information, users can truly own their data, and transactions are secured by encryption technology. Users no longer need to trust brand endorsements but can rely on defined software code logic to strictly enforce protocols.
Why is it called Web 3.0? Web 3.0 replicates the decentralized infrastructure of the first version of the Internet (Web1) and combines it with the rich interactive experience of Web2, such as social media platforms. It is the third major change in the Internet, following the global Web (Web1) and the user-generated Web (Web2, social media).
Core Elements of Web 3.0: Blockchain, Cryptocurrency, Smart Contracts, and Wallets
Blockchains are networks with extremely high levels of security and decentralization, where people can store data, exchange value, and record transactional activity in a shared ledger that is not controlled by any centralized entity. The blockchain network is the backbone of Web 3.0, providing a secure execution layer in which cryptographic assets can be created, issued, and traded; it is also where programmable smart contracts can be developed. The blockchain is the settlement layer of Web 3.0.
Cryptocurrencies are digital pass-throughs that leverage a decentralized and tamper-proof blockchain network environment that fully secures transactions. Cryptocurrencies are the native currency of Web 3.0 decentralized applications (dApps), which can also be used to pay for Web 3.0 services and participate in Web 3.0 governance.
Smart Contracts and Decentralized Applications (dApps)
Smart contracts are tamper-evident programs on the blockchain. Programmable smart contracts can create decentralized applications, or "DAPPs". Decentralized applications are protocols based on the cryptocurrency economy that laid the groundwork for the development and delivery of Web 3.0 to its users.
In the Web 3.0 world, your identity consists of a so-called "keypair", or wallet. The only condition that allows you to control your own identity (and your wallet) is that you actually or virtually hold the "private key" in that keypair. If you hold the private key, you can prove to anyone that you have the "public key" associated with it, i.e., your wallet address.
This opens up all kinds of possibilities because only you (the holder of the private key) can prove that you have that identity.
There will be no need to create a new account for every website or App that you use. There will be no need to rely on Facebook, Google, Apple, etc. to prove your identity or sign any type of message, such as voting online and signing a contract.
You can enjoy an anonymous, one-time identity if you want or you can create a new identity (new public key/wallet address) for each website or each interaction. It also provides ownership or custody of funds or assets and the ability to unlock an identity with multiple signatures (multi-sig).
You can associate any type of data with your encrypted identity, such as driver's license, video game loot, etc., and allow it to be used across any application. You own all this data, rather than having it on some company's servers.
In short, Web 3.0 includes more than just cryptocurrencies, blockchains, and other products based on crypto-economics. It includes any technology that facilitates the transformation of the centralization of the Internet and gives users control over their digital lives.
Trends of Web 3.0:
The vision of Web 3.0 is to achieve a serverless, decentralized Internet, i.e. an Internet where users control their own identity, data, and destiny. Web 3.0 will launch a new global digital economy system, create new business models and new markets, break platform monopolies and drive broad, bottom-up innovation.
Although Web 3.0 still seems to be a prototype, the introduction of this concept has brought a very big leap to the blockchain industry, especially at the application level as well. The vision of Web 3.0 has given birth to many solutions and protocols that carry the concept.
In Web 3.0, there are distributed storage protocols such as Sia, Filecoin, and Arweave, data processing protocols such as Ocean protocol, Streamr, and Erasure, more mature domain name systems such as ENS, TNS, and Handshake, payment tools such as Metamask, content distribution platforms such as Mirror, decentralized social tools such as Telegram and Discord, etc. It can be considered that Web 3.0 protocols have already taken shape.
In the era leading to Web 3.0, everyone recognizes that Web 3.0 is the revolution, the future, and the trend.