In short, it's the next generation of the internet, and it has the potential to change everything about how we use technology and interact with the online world.
In this post, we'll take a closer look at what Web 3.0 is and how businesses across all industries can take advantage of the opportunities it presents.
Web 3.0, or Web3, is a decentralised web where any central authority doesn't control data. This means that users control of their data, and can choose how they want to share it with others. Where Web 2.0 was driven by the advent of mobile, social and cloud, Web 3.0 is largely built on three new layers of technological innovation: edge computing, decentralised data networks and AI (artificial intelligence).
One of the most important aspects of Web 3.0 is that it's built on trustless systems. There's no need for third-party intermediaries like banks or governments to verify transactions.
Instead, Web 3.0 applications run on blockchains, decentralised networks that use cryptography to secure data. This makes them incredibly secure and much less vulnerable to hacks and data breaches.
These days, it feels almost impossible to imagine a life without the internet and websites. But while the internet as a whole has been around a little longer, the first website went live in 1991.
This first generation of the internet is now known as Web 1.0, and was defined by static websites and limited interaction between users.
Web 2.0 was a significant upgrade from Web 1.0. It introduced dynamic content, social media, and other features that we take for granted today. The rise of Web 2.0 was largely driven by three core layers of innovation: mobile, social and cloud.
However, even though Web 2.0 was an improvement over its predecessor, it still relied on central authorities to control data.
This is where Web 3.0 comes in; by decentralising data and putting users in control, and it can revolutionise how we use the internet altogether.
Some of the new technologies and sectors we're starting to see in these early days of Web 3.0 include:
- Decentralised finance. DeFi is a term used to describe financial applications that run on decentralised infrastructure without banks and payment processors. Instead, financial transactions are carried out peer-to-peer with digital currency, and data is stored on a blockchain.
- Non-fungible tokens. NFTs are digital assets that are unique and cannot be replaced by another asset of the same type. They're often used to represent ownership of digital artwork, music, or other collectables, and they can be traded or used as investments.
- Decentralised autonomous organisations. A DAO is a group controlled by its members, which breaks away from the traditional hierarchical structure of an organisation. Members can interact and make decisions using smart contracts without the need for a central authority figure.
These new technologies introduce many exciting opportunities for businesses — but also some unique challenges.
For example, businesses will be able to develop new ways to raise capital without relying on traditional financial institutions. This could be particularly beneficial for small businesses and startups that might not otherwise have access to the necessary funding.
Individuals and organisations also have the opportunity to invest in and use digital currencies such as Bitcoin or NFTs as a new way to generate revenue for future growth.
However, it's important to be aware of the risks involved in these new technologies, as they are still relatively new and their very nature means they are unregulated.
Bitcoin, for example, has proved to be highly volatile, and the jury's still out on whether NFTs are a sustainable investment.
Nonetheless, Web 3.0 and related future technology have the potential to completely change the way businesses operate, and those that are able to adapt and embrace these new technologies will be well-positioned for success in the years to come.
To get help and advice on how your organisation can finance upgrading your Web 3.0 technologies in a safe and sustainable way, get in touch with our team of experts today.