Today we’ll look at what #Web2 and #Web3 are, the pros and cons, what the difference is, and we’ll give many examples! Let's go 😉
WEB2
Web 2.0 is the current version of the Internet that everyone is familiar with. It includes almost all web resources: online stores, social networks, streaming platforms
Today, Web 2.0 is an integral part of everyday life, providing Internet users with everything they need - from video content to messaging tools.
WEB3
Web 3 is the next generation of the Internet. It is based on blockchain technology - a set of decentralized networks closely related to cryptocurrencies. With Web3, users can freely manage their personal data and protect it from third-party interference.
ADVANTAGES AND DISADVANTAGES :
Web2 advantages: easy to manage data, proven profit models (advertising, subscriptions, etc.), fast application development.
Web2 disadvantages: high probability of data leaks, centralized data management, susceptibility to censorship.
Web3 advantages: increased degree of protection, users manage their data themselves, scope for experimentation in development.
Web3 disadvantages: financial instability, low accessibility, lack of generally accepted standards.
Web 2.0 and Web 3.0: what's the difference for business?
Let's summarize the differences between Web 2.0 and Web 3.0 based on the most important business factors.
Third party influence
Each resource in Web 2 is controlled by a separate structure that stores and processes data on the network. These could be search engines like Google, technology corporations like Microsoft and Apple, or government agencies.
Google collects a lot of personal data, the company has even been accused of illegally spying on users. Web3 will help you protect your business from outside influence.
User Engagement
The third version of the Internet will help increase user engagement. Many platforms include gamification elements that help retain existing audiences and attract new ones.
For example, many applications on Web3 operate on a play-to-earn model. Users participate in activities on the platform and receive cryptocurrency as a reward. This approach allows Web3 platforms to retain user interest through interactive elements.
For example, as in our case of a crypto wallet with a built-in game 2048.
The puzzle motivates users to register in a crypto wallet. Each player receives a daily reward, and this prize can only be withdrawn after creating an account.
Some platforms in Web2 often struggle to retain audiences due to outdated engagement strategies, and this is where Web3 offers more options. This technology allows businesses to build an active community of users and reward them for their attention to the platform.
Security and privacy
Some Web 2 platforms still store data on a single server network. As a result, hackers can gain access to the entire centralized system even through a small vulnerability. In the case of Web 3, this will be difficult to do due to the decentralized structure of the blockchain. Finding vulnerabilities in this network is more difficult because it is not tied to a centralized server.
Monetization
Web 2 is best for making regular profits. Monetization in Web 3 is a little more complicated, as it relies on cryptocurrencies, which open up new earning opportunities for businesses.
For example, companies on Web3 could sell their own virtual coins or provide staking services, inviting users to store cryptocurrency on the platform in exchange for rewards. Some companies even sell ready-made kits for creating blockchain applications. Overall, there are a lot of monetization options out there, and more and more trends are emerging every day.
Web 2.0 and Web 3.0: how to make a choice?
Now let's look at a cheat sheet that will help you choose the right technology for your project.
Web 2.0
Main goal: Reach the widest possible audience and receive stable revenue. Attract customers with accessibility from any device and ease of use.
Project budget: Starting investments are lower, but scaling the application may cost more. To save money, you can outsource the project to professional developers.
Development complexity: Simplified development process based on standard approaches and tools.
Target Audience: Wide range of users, which varies depending on the product niche
Web3.0
Main objective: To occupy an untapped niche and explore new approaches to application development. Use non-standard monetization strategies.
Project budget: Start-up costs are higher, but scaling the application may cost less. You don’t have to pay centralized platforms to rent servers and cloud storage.
Development Complexity: Development is overly reliant on new and evolving technologies, which can add complexity and cost.
Target audience: Tech-savvy people, lovers of cryptocurrencies and new technologies.
Best Application Examples in Web 3.0
We have looked at the difference between versions 2 and 3 of the Internet, their pros and cons, and how to choose which one is more suitable for your business. But, due to the fact that Web 3 appeared recently, many still have not had time to use projects based on this version.
Let's look at examples of applications and services that have already managed to use the third version of the Internet.
Decentralized Finance (DeFi)
Finance is the main business segment in a decentralized network, but the main application of blockchain remains trading and exchanging cryptocurrencies.
Uniswap is a blockchain-based cryptocurrency exchange. The platform uses smart contracts - automated digital agreements that facilitate transactions.
Uniswap is different in that they have grown from a simple exchange into an entire ecosystem. Uniswap has hundreds of integrated DeFi applications, allowing them to cover the needs of a wide range of clients.
Uniswap boasts big numbers: 489+ billion in trading volume and 71+ million transactions
The exchange did not stop there, continuing to actively invest in the development of blockchain and Web 3, they even have their own grant. The Uniswap Foundation invests in startups and research to make the financial world safe and open for everyone.
Logistics
Web 3.0 technology is a useful tool for supply chain management and even digital giant IBM is already making full use of it in its processes.
IBM Food Trust simplifies the supply chain for food companies. It is built on blockchain, which helps track products throughout the supply chain, securely exchange documentation with business partners and build consumer trust.
The company's website has all the information you need to get started. From a general description of technology and statistics, to prices and additional materials
Healthcare
Decentralized applications are gaining popularity even in medicine.
Medicalchain is a decentralized platform for storing and accessing electronic medical records. It uses blockchain to securely, quickly and transparently share and use medical data.
Using blockchain, a user's electronic medical record is created and a single version of truth is maintained. Users may provide access to certain information at their discretion.
Moreover, every interaction is recorded as a transaction in the blockchain system, which means that even if someone gets hold of users’ private data, it can be easily tracked.
What does the future hold for Web 3.0?
Today, many are talking about the prospects that the widespread use of Web 3 can provide. Over the past 5 years, this technology has made great progress, and even the largest companies are already using it in practice.
The decentralized structure of Web 3.0 gives companies more freedom to manage data and interact with users. It allows you to communicate directly with your audience and protect user data.
At the heart of Web 3.0 is the democratization of data, a concept that is becoming more relevant every year. As large centralized platforms gain ground in the global marketplace, it is important to ensure equitable access to information. Web 3.0 can help meet this challenge. This technology can weaken the influence of centralized structures, allowing users to freely manage their own data.
