What is Web3.0?
Web3.0, also known as the "third generation Internet", is generally considered to be a "decentralized network architecture". It was first thought to be developed by the "World Wide Web" Tim Berners-Lee, known as the father, proposed the extended concept of Semantic Web in 1998.
The initial definition of Web3.0 was relatively vague. Later, Gavin Wood, the co-founder of Polkadot and Ethereum, re-proposed it in 2014, emphasizing the use of blockchain technology to complete the flow of information and funds, rather than relying on traditional centralized enterprises. , trying to break the existing Internet monopoly caused by the five major GAFAM companies (Google, Amazon, Facebook, Apple, Microsoft), so that users can take control of their own data and content.
How does Web3.0 change the future? From historical evolution to practical applications, gain an in-depth understanding of its importance, future trends and investment potential, and answer frequently asked questions to help you fully grasp this technological revolution.
The History of the Web: The Differences between Web1.0, Web.2.0, and Web3.0
To mention Web3 3.0, we must first mention the traditional concepts of Web1.0 and Web2.0.
Web1.0
Web1.0 is often called the "first generation of the Internet" and is generally considered to describe the Internet from the 1990s to the early 2000s. At that time, Web1.0 websites were mainly static and unilateral in providing user information. Internet users can basically only passively browse and consume content. Not only does it lack interactivity, but information updates are also very slow.
To give an example, Web1.0 is like a personal business card or resume, but it does not provide any contact information, and the person who gets it can only browse the information on it in one direction.
Web2.0
Web2.0 is the "second generation of the Internet." As interactivity, social media, and user-generated content began to become mainstream in the mid-2000s, many social platforms such as Facebook, YouTube, and Twitter started the process we know today. In the "Age of Creators", users can also act as creators while acting as recipients.
However, the biggest problem with Web2.0 is that a large amount of user data and traffic are monopolized by large technology companies. While users cannot own the content they create, they may also face uncontrollable privacy issues and data leaks.
Web3.0
Web3.0 is the current and future progress. With the rapid development of blockchain technology, it emphasizes decentralization and a new generation of user-led network architecture, allowing users to have complete control over their data and digital assets. control and allows direct peer-to-peer transactions.
This generation of the Internet places more emphasis on privacy, transparency, decentralization, and content ownership. Through blockchain technology, smart contracts, DApp (Decentralized Application), etc., data no longer needs to be interacted with through centralized institutions. , but can automatically complete interactions through open algorithms and protocols.
Understand the differences between Web1.0, Web2.0 and Web3.0 with one picture:
Features Web1.0 Web2.0 Web3.0 Data control Controlled by websites Controlled by large technology companies Controlled by users Network architecture Centralization Partial centralization Decentralization Interactivity Low interactivity High interactivity High interactivity and autonomy Main technology HTML and static pages Dynamic websites, social media, APIs Blockchain, smart contracts, decentralized applications Privacy and security Low privacy, high risk User data is controlled by centralized platforms High privacy, data is controlled by users and protected by encryption
Image source: (Encrypted City) Cartography The differences between Web1.0, Web2.0 and Web3.0
Why is Web3.0 important? X Web3.0 features you should know
There are currently divergent opinions on the definition of Web3.0. Different experts have different perspectives on Web3.0 and the specific vision they hope to achieve with Web3.0. However, the same thing is that most of these views revolve around "decentralization." "Concept", which is also the biggest feature of Web3.0.
Liu, Zhuotao and others published an academic report at the Society of Electrical and Electronics Engineering in 2021, emphasizing that the three basic architectures of Web3 are composed of decentralization, secure interoperability, and distributed ledger technology.
The well-known investment website investopedia has given functional definitions, namely decentralization, trustless and permissionless, artificial intelligence (AI) and machine learning technology, as well as connectivity and Ubiquity.
Decentralization
Decentralization is the core principle of Web3.0. Unlike the Web2.0 era, which used the HTTP protocol to find information based on a unique URL (stored on a single server), Web3.0 information is distributed and stored according to its content. Not only can it be stored in multiple locations, but it can also maintain efficient retrieval capabilities at the same time.
The data access method of Web3.0 breaks the centralized database controlled by large technology companies such as Meta and Google, giving users greater data ownership and control, and returning the value of data to the users themselves.
Trustless and Permissionless
All transactions and interactions in Web3.0 are conducted through open source software. Trustless allows users to interact directly without intermediaries, while permissionless allows anyone to interact without intermediaries. After being reviewed by a third party or authorized by a management agency, you can freely participate in online activities.
Web3.0 applications, also known as decentralized applications (dApps), run on blockchains or decentralized peer-to-peer networks. These dApps have a high degree of autonomy and transparency, and are in line with the spirit of decentralization.
Artificial intelligence (AI) and machine learning technology
In recent years, artificial intelligence (AI) and machine learning technologies will be widely used in Web3.0. Just like the Semantic Web concept proposed by Tim Berners-Lee, computers will continue to learn from data and have the ability to understand information closer to humans. ability.
Connectivity and borderlessness (Ubiquity)
Finally, the connectivity and borderless nature (Ubiquity) of Web3.0 are also significantly improved. In the future, information and content will be more interconnected and accessible through a variety of applications. With the popularization of technologies such as the Internet of Things (IoT), More daily devices will be able to access the Internet, expanding the application scenarios and coverage of Web3.0.
What are the practical applications of Web3.0?
According to a report by development firm Calibraint, Web3 is expected to be worth $1.4 trillion by 2030 and is expected to revolutionize fields ranging from finance to healthcare. For now, real-world use cases for Web 3.0 include:
Decentralized Finance (DeFi): Through blockchain technology, Decentralized Finance (DeFi) provides financial services without intermediaries. Users can directly borrow, trade and invest without going through banks and other financial institutions, which can effectively reduce costs. transaction fees and increased transparency.
Non-fungible tokens (NFT): Non-fungible tokens (NFT) are digital assets verified on the blockchain. Each NFT is unique, from digital artworks and collectibles to real estate, tickets, etc. Assets can use NFT technology to allow users to have ownership of virtual or physical items.
Decentralized Autonomous Organization (DAO): Decentralized Autonomous Organization (DAO) is a community-led organization managed by smart contracts. It has no traditional class system and makes decisions through voting and consensus, which can effectively improve transparency and efficiency. manage.
Supply chain management: From an enterprise perspective, blockchain can improve the transparency, traceability and efficiency of the supply chain. By recording data on the immutable ledger of the blockchain, enterprises can track products from their origin. Reduce fraud and counterfeiting throughout the entire process to the consumer.
Identity management: Web3.0 provides the potential of decentralized identity management, allowing individuals to control their personal data, enhancing privacy, data control and simplifying verification, and reducing identity theft and data leakage.
Games: Blockchain technology allows players to own in-game props, tokens and other assets in the form of non-fungible tokens (NFTs). While ensuring player ownership, the combination of games and decentralized finance (DeFi) , and also created a new income model for players-play to make money (P2E).
Healthcare: Web3.0 can improve healthcare data management by providing secure and tamper-proof records. In addition to promoting interoperability between different healthcare systems, it can also improve patient privacy, efficient data sharing and personalization. chemical medicine.
Voting system: By recording the voting process on the blockchain, the security and transparency of the voting system can be enhanced, preventing vote manipulation, improving election security, and increasing voter confidence.
Intellectual property rights: Web3.0 can help protect intellectual property rights by providing transparent and verifiable ownership records. Through the use of non-fungible token (NFT) technology, it can more easily track and protect copyrights and strengthen the control of creation. protector.
The future trend of Web3.0: development potential and investment risks
The future of Web3.0 is full of opportunities. We have already seen many use cases including decentralized finance, digital identity authentication, privacy protection, etc. In the future, the addition of technologies such as artificial intelligence and machine learning may significantly increase the number of new areas of Web3.0. applications and significantly improve user interaction.
However, investors should also be aware of the risks of Web3.0. Although Web3.0 has brought many innovations, the technology has not yet fully matured, and the legal framework for Web3.0 has not yet been determined in many countries.
In addition, one of the core assets of Web3.0 is cryptocurrency, and the cryptocurrency market is known for its volatility. Investors need to pay attention to possible risks before buying.
Finally, due to the current lack of unified supervision and security standards in Web3.0, fraud and hacker attacks are common. Whether it is the exploitation of vulnerabilities in the DeFi platform or fraud in the market, these security issues have not yet been effectively solved. , investors need to be extra cautious.
Before investing in Web3.0, you must know the Web3.0 fraud cases
With the popularization of Web3.0 technology, fraud activities have also increased, such as "fake ICO" (initial coin offering) and "DeFi Rug Pull" (DeFi project sudden withdrawal of capital), becoming common fraud methods.
In addition, there are also many unscrupulous gangs that will create new tokens, trick investors into buying them, and then pump them up, taking away all the liquidity, and eventually causing the token price to return to zero overnight. (Crypto City) Previously Several similar fraud cases have also been reported:
The currency price dropped to zero overnight! Revealing the scam technique of “pumping and dumping” in the currency circle: How to detect and escape early?
The reality is cruel! Chinese media interview trader: Maybe the 10 meme coins you bought were all issued by the same team?
