In the next decade almost every sector, from retail and e-commerce; media and entertainment, to healthcare, technology, and energy – almost every sector is expected to adopt Web3.0 blockchain technology in their operations. Web3.0 depends heavily on blockchain, but it does not necessarily depend on cryptocurrencies.
It is only so, that
cryptocurrencies provided a boost for blockchain technology development.
According to numerous research studies, Web3.0 tech will soon reach its
adoption tipping point and industries from aircraft maintenance to food safety
will tokenize their applications. Blockchain has been a proven technology that
ensured the security of the crypto and NFTs to the next level — now, it is
ready to ultimately transform the next generation of web technologies in other
sectors.
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In our view, Web3 blockchain
will completely transform the existing conventional processes of the different
sectors. Some experts at Market Research Future predict that in 2023, the
Web3.0 blockchain technology sector will be worth more than six trillion
dollars. Web3.0 will continue to grow at a CAGR of 44.6% from 2023 to 2030. So,
it will be one of the fastest growing sectors for the next decade.
According to research studies at
analytics insights, development of the following trends will be observed in the
next year 2023.
Why is Web3 called Web3?
Web3 proponents see it as the evolutionary leap of the world wide web. The early web of the 1990s and early 2000s is referred to as Web 1.0, it was revolutionary but mainly involved static web pages and end-users were consumers of the content, producing content required setting up and hosting a website. Web 2.0, which started around 2004, brought with it a radical change allowing users to create and publish content using platforms such as social networks, blogs, wikis, etc.
This empowered
users to be creative and innovate but also led to large corporations
controlling the internet, the data, the flow of content, and the digital
economy. In recent years, there has been a push against this hegemony by users,
small businesses, innovators etc. The increasing popularity of blockchain
technology and decentralization has led to the reimagining of the internet
as a truly decentralized internet or Web3.
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It is pertinent to note here that though used interchangeably by some, Web3 is quite distinct from the term Web 3.0 coined years back by the inventor of the World Wide Web, Sir Tim Berners-Lee. The latter is also called Semantic Web as it envisioned a web with machine-readable language so data could be “understood” by machines based on the context or metadata provided.
Some of the ideas are still part of
it but the nascent Web3 is considerably different from the Semantic Web
concept. Web3 seems in line with Berners-Lee’s vision of taking the web back
from the control of big tech giants but blockchain technology remains at the
core of the idea with backing from the crypto communities. In fact, the term
Web3 was coined by Ethereum blockchain co-founder Gavin Wood.
Importance of Web 3.0
The most critical piece of
information you need for the answer to “How important is web3?” would point at
how it resolves the problem visible with web3. You can think of the scale of
the problem with web2 when you think of the industries and solutions associated
with web2 right now. For example, over 2.5 billion gamers all over the world
believe that the in-game assets are under their ownership, which is not
actually the case.
Web3, on the other hand, provides
an open ground for creating content alongside exercising control, ownership,
and monetization privileges. How? Blockchain and cryptocurrencies are
prime drivers of the developments in web3 alongside facilitating the foundation
for NFTs.
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You can develop a solid overview
of the future of web3 by understanding how blockchain technology serves
an important role in defining web3. Blockchain technology can help users
interact with different online services under the governance of peer-to-peer
networks. Peer-to-peer networks are basically decentralized networks of
computers rather than centralized servers of a specific entity. In such
environments, users have complete ownership of their data and can enjoy the
privilege of peer-to-peer, permissionless transactions.
Therefore, blockchain can easily
remove the need for intermediaries. If you have an internet connection along
with cryptocurrency wallets such as Metamask, you can connect to
world of web3. As a result, users would receive full control of their digital
identities alongside the methods and timing of sharing data by using different
online applications. Users can capitalize on their private keys to maintain
security of their data and identity.
The plausible improvements
offered by web3 over the existing web2 landscape showcase significant details
about its working. As of now, the world is gradually moving faster towards
web3. Who would avoid a decentralized network which can offer decentralization,
transparency, and immutability for safeguarding your data? The web3 would spell
some notable changes and different implications of data sharing and ownership
alongside control over the digital identity.
Among the major development trends for Web3.0 will be:
Decentralization: Decentralization is a core concept of Web3 and a fundamental departure from its predecessors in terms of architecture and infrastructure. While Web 1.0 was all about static pages and Web 2.0 saw more dynamic and user-generated content and interactivity, the platform is provided by third parties and in most cases owned by tech giants such as Meta (formerly Facebook), Twitter, and Microsoft. However, in Web3, with blockchain technology, data can be stored in a distributed mechanism. In the blockchain, information is encrypted and stored over a network of computers with no central oversight.
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This means that data
can’t be changed arbitrarily since its copies exist across the network, if a
copy doesn’t match with the rest, it becomes invalid. This adds an extra layer
of security which is built into the architecture. So, it doesn’t really matter
where the server with data is physically located and who owns it, unless the
owner of the data gives consent or there is a network-wide consensus, this data
can’t be accessed or modified by anyone other than the owner. Furthermore, it
is permissionless which means no permission is required from a third party to
carry out a transaction and likewise the transacting parties don’t require an
intermediary for ensuring trustworthiness as the blockchain algorithm and
encryption make every transaction secure.
3D Interactive Web Technology:
Web 3D refers to interactive 3D technology that one can use through a web
browser. 3D interactive web technology in Web 3.0 will include virtual identities,
interactions, and many more, which will grow in use.
Artificial Intelligence: Two of
the most significant aspects of Web 3.0 are artificial intelligence and machine
learning algorithms. In recent times, ML and AI have become powerful enough to
improve simple tasks in our daily lives, such as controlling self-driving
vehicles and powering voice-controlled virtual assistants. But developments in
Web 3.0 could see AI and ML used in more complex applications, such as drug
design and climate modeling.
2023 will also probably see more
organizations utilizing aspects of Web 3.0 to enhance their digital products
without deploying their own AI or ML engines. In the same vein, 2023 should
also see businesses using Web 3.0 to link their customer data to the internet
of things (IoT) devices, connected to blockchain services, to deliver an
immersive, user-driven experience to clients.
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Brand-as-a-Service: BAAS, which
stands for Brands as a Service, is a brand-new trend in blockchain technology.
It is a cloud-based service that enables customers to work with the blockchain
to create digital products. It is a regulated industry and for businesses and
consumers to interact with these financial services they need to gain access to
banks. With the increased use of Web 3.0, blockchain technology is poised to go
beyond cryptocurrencies and NFTs, to become a conduit for all kinds of secure
transactions. As a result, there will be a marked increase in demand for
blockchain-hosting services from businesses wishing to leverage blockchain
technology but lacking the capacity to handle the complex and expensive
undertaking of building their own from scratch.
Flux: Flux is the new generation
of scalable decentralized cloud infrastructure. Flux is the trustless data
layer for web3. Flux is a cross-chain oracle that provides smart contracts with
access to economically secure data feeds on anything. With the help of Flux,
one can develop Web 3.0 applications and decentralized projects.
The Semantic Web: The term
“Semantic Web” refers to W3C’s vision of the Web of linked data. Semantic Web
technologies enable people to create data stores on the Web, build
vocabularies, and write rules for handling data.
Low Code Application Building
Software: Low-code development is a visual drag-and-drop technique for
development that enables enterprises to build applications considerably faster
and with less hand-coding. As Web 3.0 has stepped in, the trend of wiping out
the low-code or no-code app creations has sprung up.
Cloud Technology: Cloud
technology allows organizations to work from anywhere in this world. As
companies have started to open after lockdowns, they are likely to shift away
from the hastily constructed cloud services, toward cloud-native systems, as
they are prepared for this uncertain future.
There are a few people who do not
support the transition to Web 3, believing that technologies:
· Imperfect
and expensive.
· Difficult
to understand for the average user.
· They
harm the environment because for transactions and calculations, miners need
powerful equipment that creates blocks in the blockchain.
· They
do not provide complete security and safety of personal data, like Web 2.0.
· They
are focused only on money and profit, which can turn the future network into a
large marketplace.
We support the view of the Web3.0
proponents, who see the upgrade as something more than cryptocurrencies and
money. We believe that it will be possible to create a world where the focus
will be on people and their relationships with each other, and this will
positively affect business, technological development, and private ideas. Today
and in the future in 2023, many projects are developing that are intertwined
with Web 3.0 and it is necessary to start studying the field to understand it,
its benefit, and its profitability.
Web 3.0 is becoming attractive to
many startups and investors. Many solutions have been related to the
blockchain. There are many niches for investing:
· Digitalization
of business and its processes.
· Creation
of distributed systems.
· Working
with multi-blockchains.
· Any
solutions and projects related to tokenization.
Cryptocurrency, NFTs and DAOs
The fact that Web3 is heavily backed by the cryptocurrency community implies that cryptocurrencies like bitcoin and NFTs (non-Fungible Tokens) will play a key role in the new internet economy. The concept of Decentralized Autonomous Organizations (DAO) refers to a collective or company without a traditional management structure.
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The DAO
functions according to the rules encoded into the blockchain could boost
innovation and entrepreneurship. These organizations would be collectively
owned by shareholders and would be autonomous and transparent in nature paving
the way for creating companies faster and without bureaucratic hurdles or
relying on platforms owned by big tech. This would facilitate the creation of
decentralized apps (Dapps) where fees are paid in tokens which in turn plays a
key role in operating the DAOs.
AI and Metaverse
Artificial intelligence (AI)
is an important component of Web3 as the concept involves a lot of
machine-to-machine interactions and autonomous decision-making. AI algorithms
can substitute humans for the performance of various tasks which is very much
in sync with Web3 trends. Like Web3, the metaverse is being predicted
as the next iteration of the web, a network of virtual worlds where users can
interact using 3D avatars for most collaborative and social activities. While
technologies like Virtual Reality (VR), Augmented Reality (AR) can provide an
immersive and persistent internet, Web3 technologies such as blockchain,
cryptocurrencies, and NFTs can form the bedrock as well as facilitate
interoperability. In many ways, the metaverse is the front-end while Web3
technologies and AI provide the infrastructure and applications.
Will Users Welcome Web 3.0?
The inevitable nature of change
in the working of internet and how users interact with it is one of the
foundation pillars of web 3.0. The answers to “How will web3 change the world?”
are important for every internet user. Web3 not only guarantees
ownership of your own data, assets, and digital identities but also enables the
benefit of data privacy.
The existing web2 environment
cannot guarantee complete data privacy, especially when centralized agencies
have control over user data. You have to register for a particular service before
you can use it, and in the process, you offer your private data to access its
functionalities. Remember the “terms and services” in almost every application
on which you click “I Agree” without reading them in most cases.
On the contrary, you can find affirmative
responses for “Is web3 the future of the world?” on the grounds of
decentralized data storage. You don’t have to worry about any single
organization or entity taking control over user data. Web 3.0 presents the
foundation of an open internet, accessible to everyone, with the advantages of
transparency and security.
You don’t have to register for
any service and can exercise complete control over your personal data. On the
other hand, web3 imposes the necessity of safeguarding your own data and assets
as custodians. Interestingly, some of the renowned players in the web2 domain
have been incorporating elements of web3. For example, Twitter has already
introduced NFT profile pic verification.
Above everything else, new consumer behaviors associated with web3 showcase how users are gradually adopting web3. The new initiatives such as growth of NFTs, DAOs, and play-to-earn games show that users are opening up to web3 applications. The most probable explanation for “How important is web3?” is evident in how web3 would find acceptance by users. Web 3.0 would redefine the new generation of internet, governed by a specific set of standards, rules, and guidelines for all internet users. The impact of web3 would not be restricted only to specific applications as it would define the complete internet.
Stepping Into the Future with Metaverse
The most plausible explanation
for web3 showcases it as a set of standards for the new internet. Where do you
see web3 going forward? As a matter of fact, the discussions on future of
web3 often revolve around the scope of its applications. The most notable
example for proving the same points at the metaverse. Virtual worlds
accessible through VR and AR gadgets offering a shared and persistent
environment define the metaverse.
It is a seamless virtual world
that would function just in parallel to real-world activities. Although the
concept of the metaverse is building up gradually, it would open up many
opportunities for the future. The metaverse would develop as a massive virtual
world that allows facilities for different tasks and activities such as
working, learning, socializing, and entertainment.
The metaverse draws the best of
virtual experiences such as social media and gaming along with virtual reality
and augmented reality. You can find answers for “How will web3 change the
world?” in the description of the metaverse. It would serve as the
three-dimensional internet. The content on web3 is presented in the form of
three-dimensional objects, thereby providing a new type of user
experience.
For example, online gaming is possible by playing games in three-dimensional spaces, which allow users to interact with ease other as the in-game avatars. Users could engage with web content and the internet virtually along with an immersive experience of the virtual spaces. The integration of virtual reality headsets could enable users to enjoy physically and visually immersive experiences. As of now, the possible applications of the metaverse are targeted at social media, education, work, and entertainment.
Will Metaverse Be the Future of Web 3.0?
Web 3.0 refers to standards, and
the metaverse is a technology solution. The metaverse would obviously play a
crucial role in the future of web3, owing to its practical value
advantages. Most important of all, any single entity does not have control over
the data and assets of users. Many of the early-stage metaverse platforms are
under the ownership of different service providers.
The example of Facebook and its
transition to Meta is the best highlight for the future of the metaverse.
The tech giant has hired a team of 10,000 people to work on its metaverse
development project. Most important of all, the influx of capital with around
$50 million USD and creation of new jobs offer a solid boost to the growth of
metaverse. Companies like Facebook would still remain centralized owners of
every interaction and experience on the metaverse.
In such cases, data custody and
safeguards for digital identities become an important concern. New
players in the domain of metaverse serve as an effective outline pertaining to
the future vision for the metaverse. Therefore, the web3 future with
metaverse would only serve some actual change if they help in decentralization and
focus on user ownership.
The different rules and
guidelines with web3 for implementing decentralization would develop the trust
of users regarding decentralized control over user experiences and data
identity. The metaverse is a virtual space, and web3 provides the opportunity
for a decentralized internet and can offer one of the foundation elements for
connectivity in metaverse.
In addition, the creator economy
concept in metaverse would offer an ideal route for supplementing the vision of
web3 in creating a financial ecosystem with decentralized solutions. The
transition towards decentralized web3 would also imply the bridging of gaps
between the virtual and physical worlds.
At the same time, the future of
web3 would also revolve around the factors of interoperability,
open-source verification, safe data storage, and exchange. It can only help in
assuring users that they can use and interlink assets alongside transferring
them from one world to another seamlessly.
Other Use Cases of Web 3.0
The important applications of
web3 don’t revolve around the metaverse only. You can find many
important use cases of web3 building up, such as web3 social media.
The future of social apps on web3 would be more similar to the normal social
apps of today with a focus on simplicity. Web3 social apps may also fetch the
attention of crypto enthusiasts and the younger generation of internet users in
future.
Web3 can gain a lot of traction
in the future with play-to-earn gaming. The massive surge in popularity
of play-to-earn games such as Axie Infinity has shown the
way forward for web3 gaming platforms. Decentralized storytelling
would also emerge as one of the significant use cases of web3 in the
future.
It focuses on resolving the problems of community involvement in storytelling. Another notable highlight in “How will web3 change the world?” would point at wallet-aware sites and data ownership. The developments in blockchain technology, such as DAOs and zero-knowledge proofs, serve as an effective boost for the future of web 3.0.
Bottom Line
Web3 applications are already
here but whether or not the concept becomes mainstream in its current form
remains a matter for speculation. Autonomy and decentralization form the core
of the vision, but the burning question is whether governments and regulatory
bodies will allow them. Lack of oversight and control would always entail
safety, security, and legal issues which is already a major concern.
Furthermore, Elon Musk and former Twitter CEO Jack Dorsey have
expressed apprehensions of Web3 being truly decentralized and not just a
marketing buzzword to transfer control to venture capitalists (VCs). Yet
another argument against Web3 is that blockchains are known to be energy
guzzlers adversely contributing to climate change, further adoption of the
technology can negatively impact the climate.
In the end, every paradigm shift
has its own set of challenges that are tackled as it evolves. Several
businesses are already adopting Web3 technologies to remain ahead of the curve
while many are still exploring the opportunities. Forward-looking business
leaders must prepare themselves and their organizations to embrace Web3 when it
arrives.