The possible future version of the internet is Web 3.0, which utilizes public blockchains for record-keeping, primarily for cryptocurrency transactions. The significant aspect of Web 3.0 is that it is decentralized, providing individuals with ownership and control over certain sections of the internet instead of relying on companies like Google, Apple, or Facebook for access. Web 3.0 eliminates the need for permission and trust, allowing virtual transactions to take place directly between parties, protecting user privacy better than other systems that rely on intermediaries for data collection. Decentralized finance (DeFi) is a rising trend within Web 3.0, which facilitates real-world financial transactions on the blockchain without bank or government involvement. Despite significant corporate and venture capital investment in Web 3.0, there is a risk of centralized power. This article explores the evolution of the internet, the rise of Web 3.0, its applications, and future developments, and why this is significant.

Unveiling the transformation of Web

The internet has become an essential medium for exchanging information, communication, and reading or writing content, with the World Wide Web being the primary tool utilized by billions of users. As time passed, the web underwent significant changes, rendering its present-day functions vastly different from its initial days. The web's transformation is typically classified into three phases, namely Web 1.0, Web 2.0, and Web 3.0.

The Early phase: Web 1

Web 1.0, often referred to as the initial stage of the internet, marked the beginning of online presence. It can be described as a read-only or Syntactic web. During this period, the majority of users were content consumers, while web developers predominantly focused on constructing websites featuring text and graphical content. Web 1.0 thrived from approximately 1991 to 2004.

Web 1.0 websites primarily delivered static material rather than dynamic content using hypertext mark-up language (HTML). Rather than relying on databases, data and content were sourced from a static file system, resulting in limited interactivity on web pages.

The Interactive and Social Web: Web 2.0

Web 2.0, also known as the social web or the interactive read-write web, enables individuals to be part of the creation process. Unlike Web 1.0, Web 2.0 allows you to share ideas, post videos, and interact with others globally. With HTML5, CSS3, and Javascript frameworks, developers can create new ideas that allow users to contribute to the social web. Popular apps like Twitter, Instagram, and YouTube have undergone significant changes since their early days, but all businesses typically follow a similar path. Initially, companies launch their apps and enroll as many users as possible before monetizing them. However, this approach can harm the user experience and life cycle of applications, as developers often focus on data sales and marketing, leading to data breaches. In Web 2.0, user data is frequently tracked and stored without consent, leading to the centralization of user data, which can be shut down or interfered with by governments. However, Web 3.0 attempts to address these flaws and revolutionize how we build and engage with apps.

The Future of the Internet: Web 3.0

Web 3.0, also referred to as the Semantic Web or read-write-execute, represents the next phase of the web, starting from 2010 onwards. This era embraces Artificial Intelligence (AI) and Machine Learning (ML), empowering computers to analyze data like humans, resulting in intelligent content generation and personalized distribution.

While Web 2.0 and Web 3.0 have some notable distinctions, both revolve around decentralization. Unlike Web 2.0, where apps run on a single server and data is stored in a centralized database managed by a cloud provider, Web 3.0 apps are constructed on blockchains or decentralized networks comprising multiple peer-to-peer nodes. These applications, called decentralized apps (DApps), play a pivotal role in the Web 3.0 landscape. Developers within the network are incentivized to deliver exceptional services, contributing to the establishment of a secure and robust decentralized network.

Web 3.0, Cryptocurrencies and Decentralization

Web 3.0, also known as the Semantic Web, is heavily associated with cryptocurrencies, which offer a monetary incentive to those who want to contribute to the project. Web 3.0 tokens are digital assets that encourage the creation of a decentralized Internet by providing various services that were previously offered by cloud providers. Protocols such as Livepeer and Helium incentivize users to contribute in technical or non-technical ways, eliminating unnecessary intermediaries. Nonfungible tokens (NFTs), digital currencies, and other blockchain entities will also play a vital role in Web 3.0. Reddit, for example, is exploring the use of cryptocurrency tokens to allow users to control parts of on-site communities in which they participate. These tokens, stored on the blockchain, give owners more control and are used to distribute ownership and decision-making authority more evenly in Decentralized Autonomous Organizations (DAOs).

Web3 is not based on a single central server, but instead it relies on a blockchain-based crypto network that stores data across various devices globally. These devices communicate with each other to facilitate the preservation, spread and storage of data, without requiring a trusted third party. This immutable record is an exceptional proof of ownership mechanism that offers decentralized ownership of our identity and data, known as "self-sovereign identity." In contrast, centralized systems like Facebook rely on third-party services such as AWS, requiring trust that these parties will use our data ethically. The Cambridge Analytica scandal illustrates the dangers of this trust, which can have global socio-political repercussions.

Attributes of Web 3.0:

The shift from Web 2.0 to Web 3.0 is taking place gradually and without much notice from the general public. While Web 3.0 applications appear similar to 2.0 applications, the underlying technology is fundamentally different. The future of Web 3.0 includes universal applications that can be accessed and used by a variety of devices and software, providing greater convenience for both business and leisure activities. The emergence of distributed ledgers and blockchain storage technologies will enable data decentralization and the creation of a transparent and secure environment, which will counteract Web 2.0's centralization, surveillance, and exploitative advertising. As decentralized infrastructure and application platforms replace centralized technology companies, individuals will have greater control over their data in a decentralized web. To better understand the intricacies and nuances of Web 3.0, it's important to examine its four core properties.

Digital Transformation through Web 3.0:

Web 3.0 is expected to bring about a significant change in the internet's landscape, as it shifts from a traditional flat two-dimensional web to a more immersive three-dimensional world. This new dimension of the web will play a crucial role in various online services such as e-commerce, real estate, and online gaming. Thousands of people are currently engaging in these virtual spaces, where they are more invested in the well-being of their online avatars than their real-life selves. Examples of such games include World of Warcraft and Second Life.

Role of Artificial Intelligence:

With the advancement of technology and the rise of Web 2.0 era, organizations are increasingly seeking customer feedback to understand the quality of their products or services. A popular example is the movie review website Rotten Tomatoes, where users can rate and review movies. Movies with a higher rating are generally regarded as better, and such lists help users filter out "poor data" and focus on "good data".

However, while peer reviews are one of the most significant contributions of Web 2.0, human recommendations are not always reliable. Sometimes, people may collude to give undeservedly positive reviews to raise ratings of a particular product or service. This is where artificial intelligence (AI) can play a significant role in improving the quality of data.

AI algorithms can learn:

1. To distinguish between good and bad data and provide users with reliable information.

2. By analyzing vast amounts of data, AI can filter out irrelevant or unreliable reviews and provide users with personalized recommendations based on their preferences and previous behavior.

In this way, websites can offer their users the best possible information and enhance their experience.

Universality:

This characteristic is already present in Web 2.0. For instance, consider social media platforms like Instagram, where users capture photos using their smartphones and then share and distribute them online, establishing their ownership. Once shared, the image becomes universal or available across various platforms.

With the advancements in mobile devices and internet connectivity, the Web 3.0 experience will be accessible from anywhere, at any time. The internet will no longer be limited to desktop computers as seen in Web 1.0 or restricted to smartphones as in Web 2.0. It will possess unparalleled reach. As the majority of objects around us become connected to the internet (Internet of Things), Web 3.0 could be referred to as the web of everything and everywhere.

Sematic Web

The Semantic Web plays a significant role in Web 3.0, and it pertains to a web of data that machines can analyze, which was introduced by Tim Berners-Lee.

The semantic web, along with artificial intelligence, is the foundation of Web 3.0, where it will teach computers to understand the meaning of data, leading to the development of real-world AI applications that utilize data more effectively. The primary goal is to create a web of knowledge across the internet, which will help understand the meaning of words and connect content through search and analysis. With semantic metadata, Web 3.0 enables greater data communication and improves the user experience by allowing access to all available data.

Web 3.0 Business Preparation

In preparation for the upcoming Web 3.0 revolution, it's important for business executives to understand the early-stage uses of the Spatial Web, and how it will impact their enterprises. This next era of computing is expected to produce new value as it develops, so it's essential to be prepared. It's also important to have a grasp on some of the more established and experimental Web 3.0 business models, and how they will accrue value in the coming years. To achieve this, it's necessary to examine existing and practical Web 3.0 business models, which are outlined in the following sections.

Native Asset Value in Networks

The native assets play a crucial role in the operation of the network and are responsible for providing security. These assets incentivize honest miners to contribute hashing power, making it expensive for malicious actors to launch an attack. The native asset's price and value increase in proportion to the added security, which further fuels the demand for the currency, leading to a rise in its price. Therefore, the value of these assets has been thoroughly evaluated and assessed.

Native Asset Strategy for Network Growth

In the early days of cryptocurrency networks, companies focused on a straightforward objective of increasing profitability. Their strategy was to accumulate the native asset and promote the network's growth.

Blockstream, for instance, relies on its Bitcoin Core holdings to generate value, while ConsenSys has built essential infrastructure for the Ethereum ecosystem to enhance the value of the ETH it holds.

Emergence of Payment Tokens

The token sale has given birth to a new wave of blockchain initiatives that rely on payment tokens within networks to form two-sided marketplaces, which require the use of a native token for all payments. As the network's economy grows, the demand for the restricted native payment token increases, leading to an increase in the token's value, as per the assumptions.

Token Burns to Create Value for Investors

In situations where companies or initiatives are unable to directly distribute profits to token holders, the concept of token burns has gained popularity. This has been observed with tokens such as Binance (BNB) and MakerDAO (MKR), where tokens are bought back from the public market and destroyed as revenue flows in through trading or stability fees. This leads to a reduction in the token supply and an increase in its value.

Financial Infrastructure for Native Assets

The upcoming business models have been focusing on building the financial infrastructure for the native assets, such as exchanges, derivatives suppliers, and custodians, to provide services to users who want to speculate on these risky assets. However, since the underlying networks are open and permissionless, companies like Coinbase cannot acquire a monopolistic position by offering "exclusive access." Nevertheless, their brand and liquidity create defensible barriers over time.

Benefits of Web 3.0

· Eliminates intermediaries and gives users control over their data

· Minimizes censorship and DoS attacks

· Algorithms provide more accurate and tailored information to users with extensive datasets

· Improved search engines for discovering semantically relevant results

· Potential benefits in various industries, such as currency exchange and social media

Decentralized exchanges and social media communities offer security, transparency, and user data privacy

Challenges of Web3

• User-friendly design is lacking, making it difficult for the average user to navigate and use Web3 platforms.

• Web3 is still the Wild West, with bad actors and a lack of centralized authority to rely on for security.

• Trustlessness means that transactions are slower and require more effort from users.

• Gas fees can soar to hundreds of dollars during peak times, making transactions expensive.

• Many Web3 services are currently controlled by a small number of privately held companies, creating concerns about centralization.

These problems and concerns remind us that Web3 is still in its early stages of development, but with the efforts of developers, these issues can be addressed, and the full potential of Web3 can be realized.

Future:

Web4.0 aims to establish comprehensive wireless communication connecting various objects and people in virtual or physical world while Web5.0 would be more emotive and connected web capable of communicating with humans

Conclusion.

In conclusion, the concept of Web3 represents a significant shift in the evolution of the internet, driven by technologies such as AI, blockchain, and 3D graphics. With the potential to offer greater transparency, security, and control over personal data, Web3 presents an exciting opportunity for individuals and businesses alike. The use cases of Web3 in financial services and governance, such as DEXs, DeFi applications, and DAOs, have already demonstrated the transformative power of this technology. Although there are challenges to overcome, such as scalability and user experience, developers are actively working to address these issues. To become a Web3 expert and stay ahead of the curve, consider obtaining the Certified Web3 Professional certification on 101 Blockchains. With the right knowledge and skills, you can be a part of shaping the future of the internet through Web3.