The web has come a long way in just a few years and has greatly improved how people communicate and do business. Tanks to continued innovations, the web has seen some significant evolutions.
Web1, which roughly dates between 1990-2005, was about open protocols that were decentralised and community governed. Most of the value were accrued to edges of the network, who are mostly users and builders. The following 15 years would see the of Web2 (2005-2020), which was siloed, and made up of centralised services run by corporations. In this version of the web, most of the value were accrued to a handful of companies like Google, Apple, and Facebook.
Web3 – This combines the decentralisation and community governed ethos of Web1 with advance, modern functionality of Web2. This new web is owned by the builder and users and orchestrated with tokens.
Why Web3 Matters?
To understand why this new web matters, we need to understand the problems with centralised platforms, for which there are many. For starters, centralised platforms follow a predictable life cycle. At first, they will do everything they can to recruit users and third-party complements like creators, developers and businesses. The goal is to strengthen their network effect. As these platforms move up the adoption S-Curve, their power over users and third parties steadily grows.
In web3, ownership and control are decentralised. This allows users and builder to own pieces of internet services by holding tokens that can be both fungible and not- fungible (NFTs). It is shaping to be token based internet where token holders get property rights such as the ability to own a piece of the internet. For example, NFTs allow users to own objects, such as art, music, code, photos, text game objects, governance rights, credentials, access passes and whatever else people can think of. NFTs live on blockchains such as Ethereum, a decentralised network owned and operated by its users. Most block chains are public, allowing anyone with computer to participate in a network. They are also decentralised, meaning no one owns them.
Disclaimer: The content in this report is from the open source and for educational purposes only, therefore should not be considered as financial advice. We all know that the cryptocurrency market is highly volatile. Therefore, all the financial decisions should be made after doing your wide spectrum research.