Web3: all about the 3rd generation internet, based on the blockchain and the metaverse

Web3 is the third generation internet, based on new technologies like Blockchain and metaverse. Its main advantage is decentralization, unlike the current web dominated by GAFAM. Find out everything you need to know about this revolution… 

Times have changed since the invention of the internet . In the eyes of many experts, it is time for a new model. The term “Web3” refers to the third generation of the web.

Contents

  • What is Web3?
  • Web3’s story
  • What is the relationship with cryptocurrency?
  • Web3 and the metaverse
  • How is the “hype” around Web3 explained?
  • Web3 detractors
  • Jack Dorsey accuses investors of owning Web3
  • Elon Musk: Web3 is “more marketing than reality” 

What is Web3?

The term Web3 refers to a potential new iteration of the internet , based on the public blockchain . As a reminder, blockchain technology is particularly known thanks to cryptocurrencies .

The advantage of Web3 would be its decentralization . Rather than accessing the internet through the services of giants like Apple, Google or Facebook, individuals could control and own the web themselves.

The central authority of GAFAM would no longer be necessary to determine who can use which services. There would also no longer be any intermediary for the transactions. The confidentiality of Internet users would be better protected, because these intermediaries and the authorities are the source of a major part of the data collection.

One of the elements of Web3 getting a lot of attention is decentralized finance or “DeFi”  . It’s about conducting financial transactions on the blockchain in the real world, without the assistance of banks or the government.

However, several large companies and investors are already investing large sums in Web3. We can therefore fear a form of centralized power reigning despite everything on this new version of the Internet.

Web3’s story

Before Web3, there was Web1 and Web 2 (also called Web 2.0). Web1 covers the 1990s and early 2000s, when the internet was decentralized and based on open source protocols.

Back then, it was common to see static pages, websites that you could n’t really interact with , and that weren’t updated regularly.

Web2 covers the entire period from the early 2000s to today. This period is characterized by the hegemony of Big Tech companies over the main hubs of Internet activity.

It is also the rise of social networks , and content generated by Internet users on platforms such as YouTube and Facebook. In the age of Web2, passive consumption has given way to active participation on the internet.

The term Web3 or Web 3.0 was coined by Gavin Wood in 2014 . This man notably contributed to the development of Ethereum, considered the second most important cryptocurrency after Bitcoin .

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He now manages the Web3 Foundation , supporting decentralized technology projects. He also leads the company Parity Technologies, whose objective is to develop a blockchain infrastructure for Web3.

What is the relationship with cryptocurrency?

Cryptocurrencies, NFTs and other blockchain-based entities will take center stage on the Web3. For example, Reddit wants to set up a system of cryptocurrency tokens allowing users to hold portions of the communities they are part of.

These tokens would be “community points”  obtained by posting on a subreddit. The user would earn points based on upvotes or downvotes received by their posts. Thus, users who have made quality contributions would gain a form of influence and decision-making power within their communities.

This is just one example of a use case for the concept of  “Decentralized Autonomous Organizations” (DAOs) . DAOs are at the heart of Web3 and use tokens to make ownership and decision-making power fairer. Another example of a DAO is the decentralized betting platform Augur.

NFTs also occupy a major place on the Web3. Each is unique, and can be used as a certificate of ownership of virtual items like artwork or clothing for your avatar in the multiverse. They can therefore be defined as cryptocurrency tokens, with the difference that it is impossible to interchange them.

Web3 and the metaverse

The metaverse refers to the future of the internet : a virtual reality world in which users can interact. This concept is developing at lightning speed, and tech giants are investing heavily. So much so that Facebook recently changed its name to “Meta”  .

However, Web3 could serve as an incubator for the metaverse based on the blockchain and on open standards. This virtual universe would be based on a network of computers around the world, rather than a handful of large companies.

NFT could facilitate the trade of objects in virtual reality. It would also prevent placing limits on the metaverse. In October 2021, Mark Zuckerberg himself claimed in a public letter that the metaverse would not be “created by a company” and that it would establish “a broader creative economy than that limited by current platforms and their rules”.

How is the “hype” around Web3 explained?

For the time being, Web3 is mainly of interest to the cryptocurrency community . The latter would greatly benefit from an internet based on the blockchain.

However, the buzz around Web3 is also linked to the investment of renowned companies such as Reddit. These companies are developing Web3 services and platforms to get ahead of the game, and are therefore drawing attention to this innovation.

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At the end of October 2021, GameStop published an announcement to recruit a “Web3 gaming director” and software engineers for a new NFT platform. Web3 could transform the video game sector, for example by allowing players to buy and sell virtual items in games or earn tokens giving them more power over the evolution of their favorite games.

Similarly, the investment firm Andressen Horowitz is very interested in Web3. In early October, the company sent executives to Capitol Hill and the White House to promote Web3 as a solution for the consolidation of Silicon Valley and to propose regulations for this emerging ecosystem.

Likewise, Twitter is working on Project Bluesky : a decentralized social networking platform that would represent a big step towards Web3. In November 2021, the American firm also announced the launch of a crypto team entirely dedicated to blockchain and Web3.

Web3 detractors

However, Web3 also has its detractors. The famous CEO of Tesla , Elon Musk, believes that this is a mere fad .

Similarly, Niels Ten Oever of the University of Amsterdam believes that “ Web3 introduces friction, without solving any real problem ”. Skeptics believe that Web3 promises like distributed architecture and decentralization will be easier to achieve without blockchain.

Also according to Ten Oever, “  if you build a distributed architecture on a centralized infrastructure, you don’t suddenly decentralize the infrastructure ”. So even though the infrastructure is theoretically decentralized, in practice most of the internet still relies on servers hosted by a handful of companies like Amazon.

Google also preferred to avoid rushing on the Web3. While the firm is used to following trends, such as VR / AR glasses, chatbots or social networks, it has chosen to be more cautious about this innovation.

Unlike Meta and Twitter, Google does not have a crypto division . It does not accept cryptocurrency payments for advertising, its app store, or its services. Until recently, the firm had even banned several categories of ads for cryptocurrencies. She never got into NFTs.

Several factors may explain this reluctance. One might think that Google has no interest in promoting a decentralized web , whereas it currently rules the internet alongside Facebook and Amazon. Advertising, the Big G’s primary source of income, would probably no longer have a place on the Web3. However, it is still possible that Google is waiting for the real boom of this new form of the Internet to invest massively in it.

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Even the staunchest supporters of Web3 are aware that many people will attempt to ride this fad to run scams and scams. This phenomenon occurs with each new technology…

Jack Dorsey accuses investors of owning Web3

On December 21, 2021, Twitter founder Jack Dorsey criticized Web3 on his social network. His remarks annoyed the defenders of this new technology.

According to him, contrary to the beautiful initial promises of decentralization, Internet users do not own the Web3. In reality, he believes that investment firms like Andreessen Horowitz will control the third era of the internet. The latter has spent more than $3 billion in this emerging field, alongside dozens of cryptocurrency companies like OpenSea and CryptoKitties.

Also, Jack Dorsey criticizes the Wall Street Journal for using it as an example in an article about Web3 fans. He claims  to “have nothing to do with Web3”  and accuses the newspaper of using his name to generate clicks.

These criticisms are far from unfounded. There is a risk that this new system will centralize power around certain people and groups, be they frontrunners or investors.

We see this phenomenon with NFTs . The lucky ones who had the chance to buy Ethereum early enough were able to buy a Bored Ape, then buy an Adidas NFT whose value has tripled since its launch. Power therefore remains centralized.

Following these criticisms, Marc Andreessen simply decided to block Jack Dorsey on Twitter. He then declared himself to be “  banned from Web3 ”  , again emphasizing the grip of investors on this new internet.

Other personalities opposed Jack Dorsey’s observation. Former Coinbase CTO Balaji Srinivasan explained that Web3 offers “ the possibility, not the guarantee, of something better . ” He also noted that Twitter itself betrayed its initial free speech promises out of self-interest.

Elon Musk: Web3 is “more marketing than reality” 

Like Jack Dorsey, Elon Musk has reservations about Web3 . In an interview with Babylon Bee, the CEO of Tesla and SpaceX believes that Web3 is “  more marketing than reality ”.

He doesn’t understand the hype around this new concept, and admits he is possibly “too old”  comparing himself to people who didn’t see the value or potential of the internet in 1995.

Also, Elon Musk does n’t see a relevant use case for the metaverse . He feels that VR provides a disappointing experience for users.

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we are passionate about science, new technologies, and web development and how to make money on the internet, we share with you tips, tutorials, guides, concerning the creation of blogs and everything related to Web 3.0 and of course the world of Cryptocurrency

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