Web 3.0 (Web3): What will the next generation of the internet look like?

Question

Imagine an internet that delivers you information even before you realize you need it. This scenario is no longer just a fantasy – Web 3.0 could make it a reality. The new iteration of the network will bring a radically different digital experience, where artificial intelligence functions generally and data is organized semantically. Users will gain control over their personal data instead of being controlled by corporations. Banks might lose importance as people exchange digital value directly without intermediaries. Although the possibility of Web 3.0 fully materializing in its envisioned form remains uncertain, interest in this technological metamorphosis has reached an unprecedented level.

What is behind Web 3.0?

Web 3.0 represents the third phase of the evolution of the World Wide Web, a platform that enables access to documents, applications, and media content. Since this technology is still developing, there is no single definition yet. Sometimes you will also see it written as “Web3” without the slash and zeros. Analytical firms like Forrester or Gartner use both variants.

At its core, Web 3.0 will feature decentralized applications. Blockchain technology will play a key role, and web systems will be able to borrow from the potential of this technology. To give the web a smarter character and better adapt to individual needs, it will be powered by machine learning and artificial intelligence.

Where did Web 3.0 come from? A brief history of the web

If Web 3.0 arrives, it will follow two previous generations of the internet. English programmer Tim Berners-Lee invented Web 1.0 in 1989. He utilized the concept of hypertext, inspired by American pioneer Ted Nelson from 1963. Berners-Lee not only programmed the first browser but also developed the HTTP protocol and HTML language, which govern how web content is displayed.

From the beginning, he envisioned a semantic web that would connect information across different web locations. This idea was hindered by the technology of the time. Until 1993 and the release of the Mosaic browser, the public was largely unaware of the internet’s potential. This program was later renamed Netscape Navigator. Other graphical browsers, especially Microsoft’s Internet Explorer and later Apple’s Safari, followed. Search engines like Yahoo! Search, Lycos, or AltaVista appeared in the same period. Google gradually took dominance.

At the turn of the millennium, experts began talking about an improved, more interactive version of the web – Web 2.0. The predecessor was called Web 1.0. Berners-Lee expanded his idea of a semantic web in a contribution to Scientific American. Publisher Tim O’Reilly significantly supported the popularization of Web 2.0 through conferences. Social networks, especially Facebook, demonstrated the potential of interactive content.

Around this time, two technologies emerged that form the foundation of Web 3.0 – blockchain and cryptocurrency. Prominent figures like Gavin Wood, co-founder of Ethereum (a major blockchain platform), began popularizing the terms Web 3.0 and Web3 as labels for a decentralized, semantically enlightened internet.

Why should Web 3.0 matter to your business?

If decentralization delivers some of the promised benefits, it could dramatically change how people navigate the web and how companies profit from sales. Giants like Amazon, Google, or Meta (Facebook) grew thanks to centralization and monetization of petabytes of data. A decentralized Web 3.0 network could act as a balancer, limiting the growth of such players. Individuals would have a greater say in how their information is used.

Business opportunities will involve customizing web tools and services to meet specific customer needs. In marketing, Web 3.0 could help better balance privacy and personalization. On the other hand, high-quality data protection in Web 3.0 might make traditional digital advertising more difficult. Blockchain allows both sides of a transaction to see records – increasing transparency of services. Companies could better track supply chains using decentralized applications and real-time data sharing among actors. This would shorten delivery times.

Web 3.0 will also serve as infrastructure for the metaverse, a proposed 3D virtual space where digital personas (avatars) meet and do business. The metaverse, like Web 3.0, does not yet exist. For work, it will depend on blockchain or similar decentralized technology and artificial intelligence. Both concepts will evolve in parallel – one cannot easily realize without the other.

How will Web 3.0 work technologically?

In previous versions of the internet, HTML defined the layout and presentation of pages. In Web 3.0, HTML will still be the foundation, but the path to data will change. Web 2.0 applications rely on centralized databases that supply data. Web 3.0 applications will instead work with decentralized blockchains without a central authority. Theoretically, this internet should be much more democratic and give users greater control.

Here is the key difference: Web 3.0 gives AI and machine learning a more significant task – delivering relevant content to each person, not content that someone decided to present. Web 2.0 enables people to contribute and collaborate on content. Web 3.0 will rely more on the semantic web and artificial intelligence. The result will be a “smarter” web – data will be better understood, and AI will be able to interpret it more effectively.

Decentralized autonomous organizations (DAOs) will become tools for managing Web 3.0, transferring authority from central institutions to self-governing communities. Web 3.0 will operate with cryptocurrencies in markets, not government-issued currencies. Transactions will occur via decentralized blockchains, not through banking institutions.

Web 1.0 and 2.0 were built with IPv4 addressing schemes. Due to the massive expansion of the web, Web 3.0 will need IPv6, which provides significantly more addresses.

Main pillars of Web 3.0 technology

Several key features define what Web 3.0 will be:

Decentralization: Unlike previous web generations, which were centralized, Web 3.0 will offer applications and services distributed without a central authority.

Blockchain as a foundation: Decentralization originating from blockchain powers distributed applications and services. Data is managed and verified across a peer-to-peer network. Blockchain provides immutable transaction records, verifying authenticity and building trust.

Cryptocurrencies: These will play a key role and are expected to replace mainly government fiat currencies. They are anticipated to become standard for Web 3.0.

Semantics: The idea of the semantic web involves organizing information so that AI systems understand it. Web pages will interpret words in search phrases similarly to humans, enabling better content creation.

Automation and intelligence: Massive automation driven by AI is critical. AI-enabled pages will filter data so that each person receives the information they need.

While some blockchains are largely centralized, Web 3.0 will rely on decentralized blockchains.

Practical Web 3.0 applications in the real world

Use cases of Web 3.0 focus on AI’s ability to understand user interests and behavior patterns and to customize content based on data that users control themselves. Much content can be automated and delivered, saving time and money.

With blockchain at its core, Web 3.0 opens up new applications and services. Here are the most prominent:

NFT – Non-fungible tokens: Unique cryptographic assets verifying ownership of digital items. They will be essential in creating and exchanging value on Web 3.0.

DeFi – Decentralized finance: Blockchain technology that could underpin decentralized financial services in Web 3.0.

Cryptocurrencies: Digital currencies like Bitcoin, built on blockchain, use cryptography to secure transactions. Advocates believe they will become the currency of Web 3.0.

dApps – Decentralized applications: Open-source programs built on decentralized blockchains. They can be extended, with changes recorded on a distributed ledger. Thousands of applications exist for various purposes.

Smart contracts: A type of dApp already used in blockchain projects, playing a central role in Web 3.0. These are codes that trigger business logic based on events. They are not legal contracts but work better than traditional contracts in reacting to changing conditions. They enable trustworthy communication.

Cross-chain bridges: In Web 3.0, many blockchains will coexist. Bridges enable a certain level of interoperability among them.

DAO – Decentralized autonomous organizations: They can provide the structure and governance needed for the practical operation of decentralized Web 3.0 services.

What are the benefits of Web 3.0?

The benefits and risks of Web 3.0 are difficult to assess, as most components are new or still emerging. However, proponents mention these positives:

Power and privacy: Users regain control over their online identity and data from central providers.
Transparency: Web 3.0 will enable better insight into transactions and decision-making processes.
Resilience: Decentralized applications are less vulnerable to single points of failure.
Predictive AI and customization: AI-driven predictions and personalization will make the web more responsive.
Decentralized finance: It will allow transactions and borrowing without intermediaries’ approval.

Personalized content and commerce in Web 3.0 can bring businesses closer to consumers.

What challenges does Web 3.0 face?

Web 3.0 has serious drawbacks:

Complexity: Decentralized networks and smart contracts require significant learning and management.
Security: The complexity of these technologies makes Web 3.0 security a major challenge. Smart contracts have been attacked, and incidents on blockchains and crypto exchanges are common.
Regulation: Without a central authority, regulatory regimes are ineffective or nonexistent.
Resources: Blockchains and dApps are computationally intensive and require expensive hardware upgrades. The ecological and financial costs of energy are significant.

Choosing the right technology is another challenge. Alternatives like Solid, based on Berners-Lee, exist. They argue that blockchains are too slow, costly, and public for personal data, and have founded Inrupt to commercialize them.

When will Web 3.0 truly happen?

A large part of Web 3.0 already exists – blockchain and its applications are real. The transition from Web 1.0 to 2.0 took over 10 years. Experts expect that full implementation of Web 3.0 will take as long or longer. Some trends are already delivering results:

Tokenization of web assets is underway.
Gartner predicts that by 2024, 25% of enterprises will have decentralized applications, even if wrapped in centralized interfaces.
Social networks, especially Meta, offer user-generated metaverse content.
Brands like Starbucks or NBA have launched NFTs.

Semantic webs have existed for years in the form of search engine optimization. They focus on specific categories like products or employee knowledge.

Google, Meta, and Microsoft recently added blockchain features to some products and labeled them as “Web 3.0,” likely to capitalize on the buzz. However, predictions about the arrival of Web 3.0 have historically been unreliable. Some optimists expected it to be here 15 years ago. Given that the core technologies are still emerging, Web 3.0 is probably at least ten years away.

How to prepare for Web 3.0?

The first step is to acquire basic knowledge of Web 3.0 technologies. Then familiarize yourself with programming languages – JavaScript and also Rust, which is becoming popular for Web 3.0. It’s important to learn about leading blockchain platforms – Ethereum, Hyperledger Fabric, IBM Blockchain.

Developing frontend design and user experience for dApps will be among the key skills. There are several Web 3.0 tools:

Alchemy, Chainstack, and OpenZeppelin help developers create blockchain dApps, crypto wallets, and NFTs.
Chainlink and Fluree focus on data integration and management.
Casper, Ethernal, and Solidity concentrate on smart contract development.

The power needed to build something as ambitious as Web 3.0 will likely be spread among millions of contributors. If everyone does their part, the future of the internet could finally resemble a symbiosis between humans and a global digital “brain” of collective wisdom envisioned by visionaries like Nelson and Berners-Lee.

Frequently asked questions about Web 3.0

Are Web 3.0 and the semantic web the same?

The semantic web is one of the fundamental elements of Web 3.0, enabling AI systems to understand the content of web pages and user commands. This leads to better responses and personalization. However, Web 3.0 requires additional elements – especially blockchain.

Is it the same as the metaverse?

The metaverse can be thought of as a 3D augmented and virtual reality that transforms the internet into a single shared virtual space. The metaverse will need blockchain – the most important component of Web 3.0 – for decentralization and content security. Theoretically, Web 3.0 could exist earlier, but the reverse is unlikely.

What is the relationship between Web 3.0 and blockchain?

Blockchains form the infrastructure for the decentralized data model of Web 3.0. Blockchain-based technologies – cryptocurrencies, dApps, NFTs, and smart contracts – will play a key role.

Who invented Web 3.0?

No one specific or organization. If we had to name someone, it would be Tim Berners-Lee, who invented the web and promoted the semantic web. Creators of blockchain, cryptocurrencies, smart contracts, and DAOs also deserve recognition.

Can Web 3.0 be hacked?

Main blockchains and cryptocurrencies have been attacked from time to time. There is no reason to believe Web 3.0 will be inherently more secure.

What are Web 3.0 coins?

They are the same coins as the core cryptocurrencies of Web 3.0 – Bitcoin, Dogecoin, and others already in use.

How to invest in Web 3.0?

The first step is investing in a well-known cryptocurrency. Few Web 3.0 vendors are publicly traded, but there are ETFs that bundle Web 3.0 companies. There are also ETFs and funds focused on cryptocurrencies. For established companies like Google and Meta, it’s early to see them as direct Web 3.0 investments, as their Web 3.0 efforts constitute only a small part of their business.

Latest developments and trends

Distributed blockchain storage remains important even after the Web3 hype. Vendors continue building enterprise visions of the technology. Web 3.0 is often presented as the decentralized future of the internet, where machines understand information. Although Web3 faces scalability and interoperability challenges, solutions like multichain and Layer 2 technologies are helping address these issues.