The evolution of web 3.0; History has taught us that the only constant changes and extreme shifts are not uncommon in technology — notably, Web Development. Over the previous two decades, the web has developed enormously, and we are now experiencing a new revolution in this space: Web 3.0. This article will define web3 and discuss how it will affect web architecture.
What are Web 1.0 and Web 2.0, and Web 3.0?
Let me give you a quick rundown of Web 1.0 and Web 2.0 before explaining what Web 3.0 is. If you’ve ever visited Wikipedia as a child or perhaps surfed these news channels — CNN.com — you’ll recall that you could only view the data on the website — you couldn’t transmit any data back, and you couldn’t do much with it. That was Web 1.0. In Web 1.0, a user could only read data from static web pages.
Then came the birth of Web 2.0. In this version of the web, users could interact with web pages. Most of the websites we see now, such as Facebook and YouTube, laid the groundwork for Web 2.0, where the user may interact with the website and provide data from their end. There was a tech boom, which transformed the way we utilized the internet. Some say that the introduction of Cloud Computing (using someone else’s resources in exchange for money) changed the web, and thus Web 2.5 was born. Then there’s Web 3.0, the most recent version of the internet.
The foundation of all things Web3 is a community, which is how networks scale. Let’s take a look at where we came from using web2. In web2, social networks and other digital platforms are greatly incentivized to collect as much information as possible to target better adverts for what they believe we want, which has polarized information. The distinction between Web2 and Web3 is that the incentives in Web3 have nothing to do with gathering our data for ad targeting. The basic ideas and mechanics of Web3 also optimize transparency and decentralization of decision-making.
It’s safe to state that the entire Web3 platform is based on “Blockchain” technology. Blockchain is a distributed, unchangeable ledger that makes recording transactions and managing assets in a corporate network much more effortless. A tangible asset (a house, car, cash, or land) can be intangible (intellectual property, patents, copyrights, branding). On a blockchain network, virtually anything of value may be recorded and traded, lowering risk and cutting costs for all parties involved.
Information is the lifeblood of business, and the faster and more accurate it is received, the better. Blockchain is excellent for providing information because it delivers immediate, shareable, and entirely transparent information kept on an immutable ledger that consenting network users can only view. Blockchain networks effectively track orders, payments, accounts, production, and much more. You can see all facts of a transaction end to end since members share a single view of the truth, providing you greater confidence and additional efficiencies and opportunities.
Distributed Ledger Technology: Key Elements of Blockchain
The distributed ledger and its immutable record of transactions are accessible to all network participants. Transactions are only recorded once with this shared ledger, eliminating the duplication of effort common in traditional corporate networks.
A smart contract is a collection of rules kept on the blockchain and performed automatically to speed up transactions. A smart contract can specify requirements for corporate bond transfers and payment terms for trip insurance.
Once a transaction has been logged to the shared ledger, no one can edit or tamper with it. If a mistake is found in a transaction record, a new transaction must be made to correct the error, and both transactions must then be visible.
Web3’s use case
With the evolution of the web, Finance is one of Web3’s use case
Decentralized finance is characterized as a massive decrease in fees, time, and the elimination of intermediaries that let anybody partake in transactions.
NFTs (Non-fungibe Tokens)
Non-fungible tokens, or NFTs, are one-of-a-kind and cannot be exchanged with anything else. These are blockchain-based cryptographic tokens that are one-of-a-kind. Unlike physical money, which is fungible, cryptocurrencies cannot be bought or exchanged for one another. NFTs are referred to as irreplaceable new decentralized virtual assets. NFTs eliminates the need for content streaming and copyright cartels like giant production firms and instead empowers creators and contributors to establish value and ownership for their work.
DAOs (Decentralized Autonomous Organizations) are a type of decentralized autonomous organizations
A “Decentralized Autonomous Organization,” or DAO, is a community-run organization with no central authority. It is entirely self-contained and transparent, and Smart Contracts establish the ground rules and carry out the agreed-upon decisions. DAO is administered by its members, who collectively make crucial decisions regarding the project’s future, such as technical improvements and treasury allocations.
Smart contracts are used to construct the DAO’s rules, established by a core team of community members. These smart contracts lay the groundwork for the DAO’s operations. They are apparent, verifiable, and publicly auditable, allowing any potential member to comprehend how the protocol will operate at all times fully. The next step is for the DAO to work out how to receive financing and impart governance once these rules have been formally inscribed onto the blockchain.
This is usually accomplished through token issuance, in which the protocol sells tokens to raise funds and replenish the DAO’s treasury. Holders of tokens have voting rights proportional to their holdings, and the DAO is ready for deployment once funding is completed. Once the code has been deployed into production, it can no longer be altered without a consensus obtained through a member vote. Meaning, no specific authority has the power to change the DAO’s rules; it is entirely up to the DAO’s token holders to decide.
There are a few different ways to get actively involved once you’ve chosen a project that interests you. It’s vital to remember that not all DAOs serve the same goal. Thus, the first step is to determine each DAO’s primary function. It’s critical for DAOs focused on technical governance to understand what voting rights token holders are provided and what proposals are at stake. In other cases, such as Uniswap, token holders can vote on how a portion of the fees collected by the protocol should be distributed. Token holders in other protocols, such as Compound, can vote on how these protocol fees are distributed, such as bug patches and system updates. This model also allows freelancers and others who are simply interested in the project to join on the fly and be compensated for their efforts through DAO grant-funded programs (DAOs regularly post these sorts of ad hoc projects on their Discord server).
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The emergence of Bitcoin introduced the world to a plethora of Blockchain concepts like the Web 3.0 and Bitcoin was the first successful blockchain application. Today, blockchain technology is being employed in various industries where trust is sought without the involvement of centralized authority that is why an article like this explaining the evolution of Web 3.0 is timely. So, hello and welcome to the Blockchain world.