What is Web 3?
Web 3.0 (Web3) is the third generation of web technology evolution. The Web, also known as the World Wide Web, is the foundational layer that provides website and application services on the internet.
Because Web 3.0 is still evolving and being defined, there is no canonical, universally accepted definition. But one thing is certain: Web 3.0 will place a strong emphasis on decentralised applications and will make extensive use of blockchain-based technologies. AI (artificial intelligence) and machine learning will also be used in Web 3.0 to help make applications smarter and more flexible.
The concept of a semantic web is another component of the emerging definition of Web 3.0. Tim Berners-Lee, who made the web, is one of the people who has pushed for semantic technology to be added to the web.
Several key Web 3.0 features, including the following, help to define what the third generation of the web will likely be all about:
Decentralized. Web 3.0 will be decentralised, as opposed to the first two generations of the web, where governance and applications were largely centralised. Applications and services will be enabled in a distributed manner, with no centralised authority.
Blockchain-based. Blockchain enables the development of decentralised applications and services. Data and connections between services are distributed differently with blockchain than with centralised database infrastructure. In a world without a central authority, blockchain can also be used to create an immutable record of transactions and activities. This helps to prove the authenticity of things.
Cryptocurrency-enabled. The use of cryptocurrency is a key part of Web 3.0 services, and it has mostly replaced the use of fiat currency.
Self-sufficient and artificially intelligent. More automation in general is a key feature of Web 3.0, and this automation will be largely powered by AI.
What is the relationship between web3 and consumers?
Web3 will lay the groundwork for decentralized finance.
So … What is the relationship between web3 and consumers? In many ways, web3 is creating new possibilities for how people will ultimately spend and sell.
In the end, web3 could help build a safe and secure digital economy on a solid foundation.
Decentralized finance, for example, is a critical component of web3.
Decentralized finance, which employs the same blockchain technology as cryptocurrencies, seeks to accomplish the same goal as web3: to empower people to control their own money through a digital wallet, rather than relying on major financial institutions and banks. (This is similar to how web3 aims to give people control over their data rather than relying on large tech corporations.)
Many brands already accept consumers’ digital currencies. For example, Microsoft allows customers to buy products from the Windows Store using bitcoin; AT&T accepts cryptocurrency for bill payments; and even retailers such as Overstock.com accept bitcoin on their website.
Decentralized finance could be the next step in getting people to do more digital transactions by giving them reasons to store their money online.
Three components that could thrive on web3 are cryptocurrency, bitcoin, and a decentralised financial system. However, all three exist in the same way that the dollar does: as a fungible token. In other words, one dollar of bitcoin can be exchanged for another dollar of bitcoin. They can be used interchangeably.
Benefits of Web 3
Because of Ethereum’s inherent decentralisation, many Web3 developers have chosen to build dapps:
In other words, anyone on the network has permission to use the service; no consent is required.
No one can prevent you from using the service.
Payments are made using the native token, ether (ETH).
Ethereum is Turing-complete, which means it can be used to program almost anything.