Web3: What Is It & Why Should I Care?
Why is everyone talking about Web3? You’ve probably seen it mentioned on social media or online, but what’s it all about – and why does it matter? These are good questions…let’s dive in!
So, what is Web3? Well, basically, it’s the third generation of the internet – but it’s actually so much more than that, as it represents a ton of exciting possibilities for the future. Is Web3 a blockchain?! Yes, it’ll use the blockchain, but that’s only part of this new and exciting internet. While it doesn’t really exist yet, it’s coming…and it could completely change how we use the internet.
Web3 is the buzzword of the moment, as this new version of the internet offers a whole lot of intriguing potential. Here’s Web3 explained in a nutshell.
What is Web3, exactly?
If we imagine the internet in three phases, Web3 is – no prizes for guessing – the third. It all started with what we now call Web1, the earliest version of the internet. This was fairly static – users could read HTML websites, but that was about it.
In the early 2000s, we moved onto Web2, which is the era we’re still in today. In Web2, we see much more interaction; the internet is heavily dependent on user-generated content, from social media to video. However, Web2 also saw the creation of such giant tech conglomerates as Facebook, who’ve made billions off of your content and have a *mildly terrifying* control over your data, which is…yeah, not great.
Enter Web3: a new version of the web that’s all about decentralization. It’s open and free, and – this bit’s important – not controlled by big tech. Instead of being fueled by corporations, Web3 will be backed by blockchain – a public recordkeeping system that’s extremely secure.
So, who is behind Web3? The term Web3 was coined in 2014 by Gavin Wood, the co-founder of Ethereum, based on the concept of a new form of internet that was more secure and scalable, and offered more privacy than our current internet. But is Web3 built on Ethereum? Not necessarily, as the nature of Web3’s decentralization means multiple cryptocurrencies are likely to be used.
What is Web 3.0 also known as? As well as Web3, it might also be called the Semantic Web – a term to describe an autonomous, open internet.
And those who are sitting at the front of the class might be wondering what comes next – is Web 4.0 a reality?! Not yet, as it’s only conceptual at this point, but experts theorize it could be an autonomous, AI-driven space, big on virtual reality and computer-generated content. Strap yourselves in, it’s gonna be a wild ride!
What are the possibilities of Web3?
So that all sounds pretty cool, but what is Web3 used for in reality? Again, it’s not yet fully realized, but there are so many exciting possibilities for Web3 – especially in the worlds of gaming, NFTs, and the metaverse.
Imagine being able to open your own online business in the metaverse, selling goods via the blockchain using your avatar. Or enjoying an afternoon of gaming with friends without being dependent on Facebook’s VR headset. In theory, you can set up your own corner of the internet in your own way, without concerns about privacy, data mining, or corporate greed.
On a more theoretical level, people are excited about Web3 because it’ll give the power back to the people, turning the internet into a more egalitarian space and less of a corporate entity.
Are there any downsides to Web3?
Does a utopian Web3 metaverse sound too good to be true? While we’re super pumped about the concept, we’ll also be the first to admit that it’ll face some big hurdles before becoming mainstream.
The first comes down to construction. If Web3 is free, who will come up with the infrastructure to build it? And who will bring it to life and maintain it? The idea of a decentralized internet appeals to many, but the nature of decentralization also means there won’t be any overarching entity to keep it secure and safe.
On that note, Web3 also faces concerns about cybersecurity and privacy. If Web3 is anonymous, it’s at risk of all sorts of compliance issues, especially regarding illegal bitcoin use, the safety of minors, and consumer liabilities.
In short, there’s still a wide range of issues to be worked through before we’re ready to completely jump into Web3. The biggest question at present is probably, “Is Web3 secure?” It will certainly have to be in order to be successful – but whether it is will all come down to how it’s built and administered.
Sounds exciting! Can I invest in Web3?
If you’re keen to get involved, now is the perfect time. Wondering how to invest in Web3? Well, while it technically doesn’t exist yet, you can still get involved by investing in key components of Web3, including space within the metaverse, NFTs, and digital IPs that you can wear, collect, or display in the new digital world.
NFTs are experiencing a huge amount of growth at the moment, so if you can buy a desirable piece at launch, you’re likely to be able to sell it in the future for a hefty profit. Of course, every investment comes with risk – but if you’re interested in this field, getting in at the ground level of a new project always provides the most opportunity for growth.
Unlike crypto, each NFT is unique. Like a piece of original artwork, one NFT is always going to be different from every other, meaning its value isn’t fixed. While one ether is always going to be worth the same as another ether, each NFT has a unique value that can skyrocket depending on demand. This is particularly true in the Hollywood film and memorabilia space – we’ve all seen the incredible demand that one-of-a-kind pieces can generate, whether physical or within the digital NFT community.
Want to find out more about getting involved in the exciting new Web3 or NFT space? We’ve got some incredible opportunities! Grab some popcorn and browse our latest offerings – we’re the place where Hollywood meets Web3.
Featured image by Andrea Piacquadio on Pexels
