Web3 has recently burst into the mainstream consciousness, with industry leaders across the traditional tech sector and blockchain ecosystem weighing in with a wide range of perspectives on the past and future of the Internet.
Before we dive in, a brief history of the term.
The question arises What is Web3? was first used during the dotcom era by HTTP pioneer Tim Berners-Lee to describe an integrated communication framework in which Internet data is machine-readable across different applications and systems—a concept he also referred to as the Semantic Web.
Later, in his 2014 blog post DApps: What Web 3.0 Looks Like, Ethereum Co-founder Gavin Wood repurposed Berners-Lee’s expression, using it to refer to the ability of blockchain technology to define a “fundamentally different model for the interactions between parties” based on “a zero-trust interaction system.”
Wood’s writing focused not on cryptocurrencies but on protocols and technologies, such as consensus engines and cryptography, that could facilitate a stronger social contract across the web. He later described the aim of Web3 as “Less trust, more truth.”
Now, the term is the subject of much debate, with both the tech giants of today and the vanguard of the blockchain industry continuing to reckon with Web3’s core propositions and protocols, and its implications for the trust models of the future.
In this deep dive, we’ll define Web3 in relation to earlier iterations of the Internet, walk through the key technologies of the Web3 stack, and explore the current and future state of the Web3 landscape.
A note on terminology: We’ll use the term “Web3” as distinct from “Web 3.0”, which is often associated with Berners-Lee’s vision of the Semantic Web.
The Evolution of the Internet: From Web 1.0 to Web 2.0 to Web3
To truly grasp the meaning of Web3, it’s important to understand the history of the Internet and how Web3 differs from the versions of the web that preceded it.
Web 1.0 (1994-2004)
Web 1.0 was the first iteration of the Internet we’re familiar with today, emerging in 1994 and ending around 2004 with the rise of social media giants like Twitter and Facebook. While the general public came to learn about the Web 1.0 Internet around 1994, Web 1.0 actually started as a U.S. government program called ARPANET, or Advanced Research Projects Agency Network, in 1968. ARPANET began as a small network of military contractors and university professors who exchanged data with one another.
The Web 1.0 Internet was mostly a collection of static HTML pages and afforded users limited ability to interact with each other. Although Internet gateways such as America Online (AOL) and discussion forums such as Usenet permitted private chat and discussion boards, for most the Internet remained a space where few interactions or financial transactions took place.
Where interactions and financial transactions did take place, they were limited in scope because there was a lack of secure infrastructure for transferring money. One of the most innovative Web 1.0 companies in this respect was Pizza Hut, which in 1995 created an order form for its customers that they could use to place an order and pay in cash once this order was delivered.
Despite America Online’s claim in a 1995 commercial that users could order flowers for their mom, buy tickets to a sports game, or write a research report on dinosaurs with AOL, exchanging money online required speaking with an operator since financial transactions were generally unsafe and had limited encryption.
Web 2.0 (2004-The Present)
The web evolved around 2004 as user demand for social interactions, music, video sharing, and financial transactions grew dramatically due to improved Internet speed, fiber optic infrastructure, and search engine improvements.
This demand for greater interactivity gave rise to many of today’s Internet institutions and companies. Social media platforms like Facebook, MySpace, and Twitter facilitated social interaction; data-sharing applications such as Napster met the demand for online music and video; Google provided an effective means for users to navigate the huge quantity of online information. Traditional institutions such as Bank of America met the demand for financial interactions and electronic fund transfers, enabled by new encryption standards such as 256-bit AES.
This new, more interactive Internet improved users’ experiences of the web tremendously by adding new functionality. But it also presented a tradeoff that continues to define our online lives to this day: To benefit from these new functionalities and interactions, users have to delegate a large quantity of information and responsibility to siloed third-party platforms, granting these centralized entities a considerable amount of power and influence in terms of data and content ownership.
This is, for the most part, how the Internet operates up until the present day. In the United States alone, Google, YouTube, Facebook, and Amazon combined received 23.56 billion visits in October 2021—roughly double the traffic of websites ranked 5-20.
Web3 (2008-The Future)
In 2008, Satoshi Nakamoto published the Bitcoin whitepaper, which outlined the fundamentals of blockchain technology and a peer-to-peer digital currency, setting a course to change the Web 2.0 paradigm. Bitcoin transformed how we think about digital transactions and provided the first secure means of exchanging money over the Internet that didn’t require a trusted third party. “What is needed,” Satoshi wrote, “is an electronic payment system based on cryptographic proof instead of trust.”
It was not until the invention of smart contracts that a decentralized model of the Internet truly came into focus. If Bitcoin enabled secure peer-to-peer payments and smart contracts could expand this idea of programmable agreements to more advanced use cases—insurance, gaming, identity management, supply chains—how would the nature of web experience and digital interaction evolve? By enabling users to directly and securely transact with one another, smart contracts created a fresh vision for an Internet that is fair, transparent, and powered by cryptographic truth.
Gavin Wood described this reimagined Web3 as a “Secure Social Operating System.”
Put simply, Web3 is a decentralized vision of the Internet that aspires to create an entirely new system of contracts and change the way that individuals and institutions reach agreements. Web3 brings back the decentralized architecture of Web 1.0, the first version of the Internet, which was replete with user-hosted blogs and RSS feeds, and combines it with the rich, interactive experience of Web 2.0 web applications like social media platforms to provide a digital ecosystem where data is user-owned and transactions are backed by cryptographic guarantees. Rather than having to trust brand-based paper promises, users can rely on deterministic software logic to execute agreements exactly as programmed.
What is Web3? Unraveling the Next Phase of the Internet
Web3 has recently burst into the mainstream consciousness, with industry leaders across the traditional tech sector and blockchain ecosystem weighing in with a wide range of perspectives on the past and future of the Internet.
A Brief History of the Term
The term “Web 3.0” was first used during the dotcom era by HTTP pioneer Tim Berners-Lee to describe an integrated communication framework in which Internet data is machine-readable across different applications and systems—a concept he also referred to as the Semantic Web.
Later, in his 2014 blog post DApps: What Web 3.0 Looks Like, Ethereum Co-founder Gavin Wood repurposed Berners-Lee’s expression, using it to refer to the ability of blockchain technology to define a “fundamentally different model for the interactions between parties” based on “a zero-trust interaction system.”
Wood’s writing focused not on cryptocurrencies but on protocols and technologies, such as consensus engines and cryptography, that could facilitate a stronger social contract across the web. He later described the aim of Web3 as “Less trust, more truth.”
Now, the term is the subject of much debate, with both the tech giants of today and the vanguard of the blockchain industry continuing to reckon with Web3’s core propositions and protocols, and its implications for the trust models of the future.
Defining Web3 in Relation to Earlier Iterations of the Internet
To truly grasp the meaning of Web3, it’s important to understand the history of the Internet and how Web3 differs from the versions of the web that preceded it.
The Evolution of the Internet: From Web 1.0 to Web 2.0 to Web3
Web1.0 was characterized by static web pages and limited user interaction. Web2.0 introduced dynamic content and user participation, marking the era of social media and interactive platforms. Web3, however, takes this evolution further.
Key Technologies of the Web3 Stack
The Web3 stack is built on the foundation of blockchain technology, which ensures transparency and immutability of data. Consensus engines and cryptography play pivotal roles in shaping a decentralized and secure environment. This, according to Wood, facilitates a stronger social contract—a shift from centralized trust to decentralized truth.
Implications for Trust Models in the Future
Gavin Wood’s vision for Web3 is succinctly captured in the mantra of "Less trust, more truth." This not only challenges existing models but also sparks debates among tech giants and blockchain industry players on the future dynamics of trust in online interactions.
The Current State of the Web3 Landscape
Exploring existing Web3 projects reveals a diverse landscape. From decentralized finance (DeFi) to non-fungible tokens (NFTs), Web3 is making its mark. However, adoption is not without challenges, including scalability and regulatory concerns.
The Future of Web3
Speculating on the trajectory of Web3 leads to exciting possibilities. Innovations in decentralized applications (DApps) and smart contracts, coupled with increased user education, could drive widespread adoption. The potential disruptions to traditional business models also warrant attention.
Terminology Clarification: Web3 vs. Web 3.0
Addressing confusion between "Web3" and "Web 3.0" is crucial. While Web3 signifies a decentralized future, Web 3.0 is often associated with Berners-Lee’s vision of the Semantic Web, emphasizing machine-readable data.
Comparing Web1.0, Web2.0, and Web3
Understanding the evolution of the Internet provides context for Web3. Web1.0 was the static web, Web2.0 introduced interactivity, and Web3 now pioneers decentralization. Each phase brought unique characteristics and transformed how users engage with the online world.
Challenges and Criticisms of Web3
No technological advancement is without criticisms. Web3 faces challenges, including energy consumption concerns in blockchain networks and regulatory uncertainties. Addressing these issues is crucial for the wider acceptance of the decentralized paradigm.
Web3 and the Social Contract
The impact of Web3 on user interactions is profound. It questions established norms and introduces a paradigm shift in how trust is established online. This shift may strengthen societal norms or challenge them, leading to a redefined social contract in the digital age.
Regulatory Considerations for Web3
Navigating the current regulatory landscape is essential for the sustainable growth of Web3. Anticipated changes, including regulatory frameworks for cryptocurrencies and decentralized applications, will shape the future landscape.
Web3 in Practice: Real-world Examples
Examining successful implementations of Web3 showcases its potential. Projects like Ethereum, Polkadot, and decentralized finance platforms highlight the versatility and transformative power of decentralized technologies.
User Experience in the Web3 Era
The user experience in the Web3 era is evolving. Changes in user interaction, interface designs, and accessibility considerations redefine how individuals engage with online platforms. Usability becomes a key factor in the success
Conclusion: Unveiling the Significance of Web3
In conclusion, the journey through the intricate landscape of Web3 has been nothing short of fascinating. We embarked on this exploration by delving into the history of the term, tracing its roots from Tim Berners-Lee's vision of a machine-readable Semantic Web to Gavin Wood's paradigm-shifting perspective on a decentralized, trust-redefining Web3.
The debates and perspectives from both tech giants and blockchain pioneers showcased the complexity of Web3's core propositions and protocols. It became evident that Web3 is not just a technological upgrade but a catalyst for redefining how trust operates in the digital realm.
Web3 stands at the crossroads of technological evolution, challenging the norms established by its predecessors—Web1.0 and Web2.0. It introduces a decentralized paradigm, powered by blockchain technology, consensus engines, and cryptography, fostering a stronger social contract. Gavin Wood's vision encapsulated in "Less trust, more truth" echoes loudly as a revolutionary call to reshape the foundations of online interactions.
As we assessed the current state of the Web3 landscape, it became apparent that the decentralized future is not without hurdles. Scalability concerns and regulatory ambiguities pose challenges, yet the diversity of projects, from DeFi to NFTs, paints a vivid picture of innovation and potential.
The future of Web3 is speculative but undoubtedly promising. Innovations in DApps, smart contracts, and increased user education could propel widespread adoption, disrupting traditional models and ushering in a new era of digital interactions.
In clarifying the terminology, we distinguished Web3 from Web 3.0, emphasizing the former's focus on decentralization and the latter's association with the Semantic Web. Understanding this distinction is crucial for navigating the evolving landscape of the Internet.
Comparing Web1.0, Web2.0, and Web3 provided a historical context, showcasing the transformative journey of the Internet. Each phase brought unique characteristics, and Web3 emerges as the frontier of decentralization, challenging conventional norms.
Addressing challenges and criticisms, including energy consumption and regulatory uncertainties, is imperative for the broader acceptance of Web3. Navigating regulatory considerations and learning from real-world examples, such as Ethereum and Polkadot, will shape the sustainable growth of this decentralized ecosystem.
The user experience in the Web3 era undergoes a paradigm shift, redefining how individuals interact with online platforms. Usability becomes a key factor, emphasizing the need for seamless, accessible, and user-friendly experiences.
In essence, Web3 is not merely a technological advancement; it is a philosophy that questions, challenges, and reshapes the very fabric of our digital existence. Embracing the principles of decentralization, trust redefinition, and innovation, Web3 emerges as a beacon guiding the Internet towards a future where truth prevails over blind trust.
As we conclude this exploration, the significance of Web3 becomes undeniable. It is not just a buzzword or a fleeting trend; it is a transformative force shaping the future of the Internet. The evolution from Web1.0 to Web2.0 led us here, and Web3 invites us to imagine and build a decentralized, truth-driven digital world.
