As the world evolves into the futuristic world that was depicted in the books that we read as kids, things are getting more and more towards what we only thought were fictional. From when we had to carry physical cash to carrying just wallet-sized cards to not even needing those just our mobile phones, we have come a long way. Similarly, we see Web3 becoming big right in front of us. In the past, the internet was just a source to pass information; now, it is a source to discover more and digs deeper into various economic use cases.
Along with many emerging brands, giant companies like Microsoft and Google have joined hands with Web 3 technology quite aggressively to prove their constant growth in the industry. However, what is Web 3, and how will its growth impact the paradigm shift from earlier usage? Let’s get in this together.
What is Web 3, and how is it different from the traditional forms?
Web 3 is an internet iteration, incorporating various technologies such as blockchain, metaverse, and mainly decentralization. Many have been confused between Web 3 and Web 3.0 differences. To call them identical would be inaccurate. However, the differences are not that vivid.
As mentioned, Web3 basically focuses on the decentralization of the web. Whereas Web 3.0, the initially developed Semantic web, was conceptualized by Tim Berners-Lee. It covered Artificial Intelligence, the Semantic web, and Natural Language Processing.
The earlier generation of the web, Web 1, claimed the credit for changing the whole idea of sharing and connecting. It was used to share information in the form of texts without much research. Security development was also not much considered. Then came Web 2, which brought in the idea of customization and personalization. Along with these, other features, like online gaming, social media platforms, web, and mobile applications, and many others, were added to the list. However, this upgrade still brought in many issues with data security, intermediaries, centralized control, and many others.
Mainly the users faced problems with the centralized part, where they were forced to settle with decisions taken by the authorities. This seemed to be put to rest with Web 3. The advent of Web 3 dragged the whole internet ecosystem to a decentralized space, providing many other use cases of this technology, like blockchain and the metaverse.
Main features governing the Web 3 space
Even though in its nascent stage, Web 3 has shown much potential for the future. With its much evident change in the decentralization of the web, other significant features are coming about with this development.
The most sought advancement with the introduction of Web 3 is the metaverse. It looks promising with several use cases in education to gaming. Combining several technologies like VR, AR, MR, XR, and blockchain creates a virtual space where users can access 3D rendering of real-life objects and scenarios. The total global economy of the Metaverse in 2021 was around $58 billion, making it pretty sure that it will increase in tremendous percentage in the span of 5 years. Experts predict that the CAGR by the end of 2030 will be almost 43% to reach $1525 billion.
By now, it is evident that whatever blockchain technology touch multiplies, and that’s precisely the feature Web 3 generation was looking for. Cryptocurrencies and NFTs are the most popular Web 3 products. While more celebrities and artists are getting on board with their personal NFT generation, the market is getting stronger every day, even though it is still in its infancy. The full potential of NFTs is yet to get unveiled. However, this did not stop its popularity in the field of gaming, arts, music, and even ticketing. Surveys and experts predict its growth by the end of 2030 and reach $231 billion.
A fusion of Web 3 and finance, SocialFi is an emerging market of decentralized social media platforms. Ex-twitter owner, Jack Dorsey, stated that his team is building a free-speech social platform that the users will solely control. This technology will be completely free from central control and supported by DAO- smart contracts recorded on the blockchain. Bluesky, a decentralized social platform, is set for a beta test and will soon be available to users.
- Smart Contracts
Smart contracts are the most imperial part of the decentralized autonomous organization. These are lines of code with conditions carefully recorded in the blockchain. These conditions, when met, execute a set of commands at the development duration. As these are built on blockchain, any action, once executed, cannot be amended.
Future of Web 3
The upgrade is still in the nascent stage and is going through significant transformations with the passage of time. Its infancy has not hindered its use cases from being unveiled and shows promising growth in the future as well. That being said, the web 3 advancement has also brought an intense discussion on the development side. With so many companies and well-known personalities getting their heads up with Web 3 development, the demand for Web 3 developers has increased rapidly. This has caused a thrill in the market. Currently, the market is dominated by Web 2 technology, and while this is changing, Web 2 professionals are less looked upon. Thus diminishing their demand.