Is Web3 Lost in All This Hullabaloo Around AI?
No, definitely not. Web3 is not lost in all the Hullabaloo around AI because comparing Web3 with AI would be like comparing apples and oranges.
It’s just that the AI has caught the imagination of the people and hence grabs the major space in all the discussions around the latest tech trends. Those working on Web3 continue to do so diligently.
So here is a quick primer for you in case you are still clueless about Web3. And don’t be ashamed about it; almost 70% are clueless as this Harvard Business Review survey reveals.
So let’s dive in.
What the heck is Web3?
Web3 is a new decentralized (i.e. no single entity is in total control) internet structure, relying on blockchain technology, looking to transform the way users interact with online content, control personal data, and trust internet transactions.
When implemented fully, this could decentralize power from current tech giants, redistributing control to user and community-run structures.
Taking a step back: Web1 and Web2
Understanding this shift to decentralization requires looking back at its predecessors: Web1 and Web2.
In Web1, users primarily consumed content put out by websites and file servers. Web2 introduced interactive platforms and social media but data got centralized in the hands of a few corporations. These corporations capitalized on user data, creating revenue streams by selling information to advertisers. This further raised concerns over privacy and data ownership.
We are currently in the Web2 phase.
Three Pillars of Web3
Web3, a term coined by computer scientist Gavin Wood, is poised to change this dynamic, offering a more secure, user-empowered internet experience.
The central idea of Web3 is to give users control and security, removing the need for intermediaries (like tech companies in Web2) and creating trust through technology itself.
For instance, blockchain-based services can ensure authenticity without requiring a central authority, which could revolutionize fields like e-commerce, content creation, and social media.
Web3 relies on three critical technologies to do this and much more:
- Blockchain: This technology allows for the distribution of digital information across a network, securing data from being controlled or corrupted by any single entity.
- Smart contracts: These self-executing contracts with the terms directly written into code enable transactions without the need for intermediaries.
- Digital assets and tokens: Unique digital representations of value, can range from cryptocurrencies to NFTs (nonfungible tokens), providing a secure, verifiable method of representing ownership and value online.
Web3 is still a work in progress
However, despite its potential, understanding and adoption of Web3 remain in the early stages.
As mentioned earlier, a 2022 Harvard Business Review poll revealed a significant lack of awareness among the public, with 70 percent of respondents unfamiliar with Web3.
Moreover, the technology faces hurdles, particularly in the financial realm, where cryptocurrencies (a significant aspect of Web3) experienced market setbacks.
But several Web3 areas continue to advance
NFTs, digital assets offering authentication of unique digital items, have seen substantial growth. The gaming industry, too, is experiencing a rise in Web3 adoption, indicating a growing user base for decentralized services.
Real-world applications of Web3 are emerging, as seen with JPMorgan Chase’s blockchain transaction initiative and Nike’s Web3 platform, Swoosh. These examples not only illustrate the practical uses of Web3 technologies but also indicate mainstream acceptance and integration into commercial activities.
Challenges in Web3
Despite the promise of a more decentralized and user-controlled internet, Web3 is not without its challenges.
Regulation, user experience, and consumer protection are significant concerns. Regulatory bodies are still grappling with issues like contract legality, customer protection, and standards for anti-money laundering.
Compared to Web2’s mature platforms, Web3 services currently lag in user experience, and the actual benefits of products like NFTs remain nebulous for many.
Looking ahead with Web3
Web3 represents the next significant shift in internet use and structure, driven by the desire for greater user control, enhanced security, and decentralized governance.
However, it’s not an immediate solution to current internet-related issues, but a work in progress, poised to redefine digital interaction, ownership, and trust.
Women professionals in tech should monitor this evolving landscape, as understanding and leveraging Web3 could be pivotal in shaping a future where users reclaim control over their digital lives.
-Shweta is a freelance writer. She writes about the impact of technology on people, businesses, and society at large. She also writes about entrepreneurship, business, and positive productivity. You can read her work in Forbes Advisor, Newsweek, Huffington Post, and Thomson Reuters Insights blog.
