The term Web3 is not necessarily new. However, we have seen an explosion in its use throughout 2021, although not everyone understands for sure what it is. By name, many assume that it is the evolution of Web 2.0, which is the internet as we know and use it today, and they are not wrong in their appreciation. But the implications of its adoption are much broader, and for this reason we want to take advantage of the following lines to try to explain what are its advantages and disadvantages , and why some are still skeptical about the philosophy behind its implementation.
The simplest – and most widely accepted – definition of the Web3 is that it is about the decentralized internet . If the term “decentralization” is familiar to you, it is because you have surely read or heard it in content related to cryptocurrencies, NFTs, decentralized finance (DeFi) and the blockchain. But beyond specific implementations of this technology, the vision about Web3 is that it comes to break with the hegemony of big technology such as Google, Facebook and Amazon, which since the mid-2000s have centralized their power over data and the content.
We could say that we are in a process of transition to the Web3. Decentralized applications (or dapps) already exist, but there is still a lot of work to be done, both in scalability, as well as in costs and user experience. However, the first step has been taken and it seems that it will only be a matter of time until the issues that still do not allow its massive implementation are addressed.
Web3 promises to restore power to the user
As I mentioned earlier, the decentralized internet proposed by Web3 entails escaping the solutions we know today. For this reason, blockchain technology plays a fundamental role, since it is precisely this chain of blocks that allows information to be mobilized through endless computers around the world and does not depend on centralized servers . We could say that it is a vitaminized P2P network.
It is worth noting that there is no single blockchain, but different types such as public, private or hybrid. In the case of Web3, many of the existing developments are carried out on the Ethereum network ; This is because today it is possible to program basically anything on it. Thus, for example, it is possible to run software independently through decentralized databases using thousands of computers simultaneously. And that information is also validated in a decentralized way through an economic incentive, such as with Gas, which is the fee paid for using the Ethereum network.
And at the same time No longer depending on centralized servers, one of the most important problems of Web2 is addressed: data collection. The Web3 promises users a private way to handle themselves , without the need to provide their personal information in exchange for accessing a product or service. On the other hand, as information spreads in different ways through the network, it is less susceptible to censorship. But this is not all, since the users of the protocols that run on the blockchain can also have small fragments of them, since these software systems are capable of issuing tokens (which can be exchanged for an economic benefit) to reward mode. And since the governance of these protocols is also decentralized, the tokens allow voting on the changes that are applied to the system.
Image: Fabric Ventures
There is also another term related to Web3 which is of the DAO , or decentralized autonomous organizations . It is a type of body that does not have a leading figure such as the CEO in a company. On the contrary, it is governed by the code through smart contracts, or smart contracts, that are executed on the blockchain. As in everything related to the decentralized internet, this tool can be used for multiple purposes. From creating and maintaining one of the most important stablecoins in the world, such as MakerDAO with Dai, or for a group of enthusiasts to pursue the dream of buying a valuable historical document. No two cases are the same and therefore not all have the same level of success, but it is one more demonstration of the power of the blockchain and Web3.
What are they? the main problems of the Web3?
In the initial part of the article I mentioned three elements on which the Web3 still needs to evolve a lot before reaching a massive reach. In the first instance there is the case of the scalability . A counterpart to decentralization is a lack of speed; The Ethereum network, for example, is very slow in terms of the number of transactions it can process per second. So, the next few years will be key for said blockchain to optimize its performance and not lose its characteristic decentralization.
Another of the great disadvantages of Web3 is related to the experience of user. Developers must succeed in moving UX from centralized to decentralized services to make public migration easier. Today, interacting with decentralized applications is not particularly simple; in fact, it takes a lot of research time and the use of extra software and additional steps. While the last major drawback is that of the high costs that must be faced to bring your code to the blockchain.
Voices that raise doubts
Not everything is rosy in the world of the Web3. The voices against some of the concepts behind a decentralized internet have not been long in coming. And the fact that dissenting comments come from personalities like Elon Musk and Jack Dorsey is not a minor detail.
In the last hours the CEO of Tesla and SpaceX published a tweet like a dart against Web3 (or its promoters). “Has anyone seen Web3? I can't find it,” wrote the businessman. And to the response from Billy Markus, the creator of Dogecoin, with a GIF of a person with his head on a toilet, Musk's response was even less subtle: “Keep looking, it's there somewhere.”
In the case of the former CEO of Twitter, meanwhile, there was also a clear attack on the Web3. “You don't own the 'Web3.' Venture capitals and their limited partners do. You will never escape your incentives. Ultimately it is a centralized entity with a different label. Know what you are getting into, “he said, and caused a heated debate in the responses.
It is possible that the breadth of Web3 itself will end up playing against at this time . It is a lot of information on varied (but related) topics that is contained under the same roof; and with the latent ignorance about most of the terms involved – read cryptocurrencies, blockchain, NFTs, decentralization, metaverse—, it takes time and effort to investigate. That said, thinking about a decentralized internet that returns control to users is not bad; but it is also a reality that the large corporations that today manage information and content will not sit idly by waiting for the power to be taken away from their hands .
Information of interest
If you want to know more about Web3, here are some links with a lot of detailed information about it . This is just a sample Stra of the countless amount of additional content on the subject that you can find on the internet. Everything is a simple search away:
Web2 vs. Web3 (Ethereum.org) What Is Web 3.0 & Why It Matters (Fabric Ventures) Why Web3 Matters (Chris Dixon) Notes on Web3 (Robin Sloan)
