What You Need to Know About Web 3.0

First announced in 2014 by Ethereum co-founder Gavin Wood, today, the concept of the next-generation internet, called Web 3.0, opens up a whole niche for startups. Below, we will look at its basics, describe its advantages and disadvantages, and also find out what technologies can be used to implement Web 3.0 solutions.

What Is Web 3.0?

The Internet that we are used to is defined as Web 2.0. It allows all users to upload content themselves, making it publicly available. This became possible thanks to the emergence of social networks, which over time, instead of providing users with the desired freedom, began to limit them with all sorts of rules and censorship. This, in turn, has become the main reason for looking for new, alternative concepts that would go against these restrictions, giving users more control over their publications.

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In this regard, instead of centralized networks, the operation of which was tied to central servers, decentralization was proposed. It had to provide a “smart” distribution of content to servers located throughout the world. Thanks to this approach, widespread availability of user content would be ensured. With this approach, to block specific publications, the consent of all network nodes is needed – instead of just one, as was the case with Web 2.0.

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As for technologies capable of implementing a decentralized network architecture, these include, first of all, blockchain, which would transform the centralized Internet into a distributed content database. Actually, this radical transformation would give the world the Web 3.0 Internet.

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Today the simplest Web 3.0 formula looks like this: "read + write + own".

Why Is Web 3.0 Important?

Due to its undeniable value for ordinary Internet users, Web 3.0 can be of particular interest to businesses that are constantly developing in the digital plane.

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Specifically, by increasing content accessibility, reclaiming ownership of user-created content, and overall end-to-end user centricity, businesses can benefit from launching personalized Web3 websites, apps, and services that aim to increase trust and engagement among their users, as well as providing advertising based on their behavioral patterns.

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This way, businesses can strengthen their relationships with consumers and, therefore, increase their profits.

How Web 3.0 Works

As you can already understand from the above, Web 3.0 is based on decentralized networks, but this description is not complete. In particular, Web 3.0 also implies that any Web3 website or application must be able to process information like the human brain, that is, as artificial intelligence and machine learning already do today. This is how an alternative name for the 3rd generation of the Internet has appeared – the semantic web.

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This requirement for the “intelligence” of the Internet arose for a reason: since, due to decentralization, users and machines interact with data directly, this data must be recognized by the network not only using predefined algorithms – now, its context has become no less important.

Benefits of Web 3.0

With the right approach, virtually any company that continually grows its online presence can reap a number of benefits from Web 3.0 software development. These include the following:

• Increasing customer loyalty achieved through the AI and smart chatbot introduction aimed at completely personalizing digital content and services;
• Improved analytics thanks to more complete and accurate sets of user data obtained from disparate sources (and, as a result – the ability to create more accurate marketing strategies);
• Automation of a wider range of tasks provided by blockchain, ML, and AI;
• Increased security that only distributed registry technologies can guarantee;
• New partnership opportunities without the involvement of third parties thanks to blockchain and smart contracts;
• Supply chain optimization, also enabled by blockchain that provides full control and transparency of supply chain operations;
• Copyright protection provided by giving users full control over their data (also thanks to blockchain).

Challenges of Web 3.0

Despite the existence of decentralized solutions, it is too early to say that the 3rd-gen Internet already exists. To make this thesis true, developers have to implement connectivity between Web3 solutions so that the data they collect and process become globally accessible.

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For example, if we are talking about Web 2.0, in it, data exchange occurs via the HTTP protocol. In this case, there is an intermediary between the participants (namely, the server) on which information, databases, applications, etc. are stored. The concept of Web 3.0 implies the organization of a new level of network interaction, without a server. So far, such technologies do not exist – it can be explained by the limitations of physical equipment and infrastructure in general. 

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An equally serious challenge is to ensure proper speed of data transfer and processing in the Web 3.0 development solutions. In a more global sense, this means a scalability problem since the need to maintain a proper balance between decentralization and security is most often achieved by limiting throughput, as we can see in the examples of Bitcoin and Ethereum.

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At the same time, options to circumvent these obstacles are already being considered – a potential way out of the situation could be the creation of a cross-chain infrastructure to integrate all blockchain networks. Similar solutions (though not so large-scale as to replace the whole Web 2.0) have already been implemented in the Polkadot and Cosmos projects.

Technologies that are powering Web 3.0

Earlier we talked about the need to use AI and ML in Web 3.0, but let's take a look at the full list of technologies that will be relevant for each Web 3.0 developer.

Artificial Intelligence and Machine Learning

Together with machine learning, artificial intelligence in Web 3.0 provides better analysis of user data and creates a personalized user experience based on it. Thanks to this, users get the content they need faster, without getting confused by colossal volumes of useless or only partially useful information. These technologies can also be responsible for automating resource-intensive processes such as data sorting and forecasting. Finally, we should not discount natural language processing – one of the areas of AI that ensures more accurate and context-sensitive recognition of user queries by machines.

Blockchain and other distributed ledger technologies (DLT)

In Web 3.0 application development, blockchain and other DLTs provide better security when storing user data by eliminating centralized control over it. These technologies also make it possible to create tokens (including non-fungible ones, NFTs), which are decentralized digital assets stored on the blockchain. They define ownership of real or virtual objects and, in the future, can be used to protect copyright.

3D graphics and animation

With the faster content delivery typical to Web3, 3D graphics and animation solutions will become commonplace. In particular, Web 3.0 opens up new opportunities for creating realistic three-dimensional objects to ensure an immersive experience that was previously unavailable with any other digital technologies. Supplemented with reality-like animation, these objects can act as avatars of living users and thereby make them full-fledged participants in meta universes.

The future of Web 3.0

Given all of the above, it is unlikely that Web 3.0 will be a single system – we are sure, it will be a comprehensive solution that goes beyond the traditional web. This approach will ensure the management of the Internet by the user community and exclude content monopolization.

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As for specific areas of development, the most promising are considered to be meta universes that combine physical, augmented, and virtual realities with their own blockchain-based tokenomics. At the same time, it is important to understand that despite the many points of contact, currently, metaverses and Web 3.0 are different things since those that exist today are still products from centralized IT companies, with their typical problems. Therefore, the solutions that will mark the emergence of Web 3.0 will differ significantly both from the point of view of technical implementation and the very concept of interaction with users as well.

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If you, like us, consider the Web 3.0 direction to be promising for your business and already have an idea that will bring this concept closer to reality, you can contact our Web 3.0 development company. We will advise you on the implementation of your project and also select specialists who will guide you from collecting project requirements to its launch.