What is Web3 and why is it a revolution?

For the past few months, the term Web3 has become massively popular to describe what is being built in the cryptocurrency industry. Although it is still a somewhat vague concept, the ambition is well-defined: to construct a decentralized version of the Internet using blockchain technologies. In this article, we will delve deeply into what Web 3.0 is, what it brings compared to Web 2.0, and how it could reshape the future of the Internet.

Understanding Web3

Definition of Web3

Web3, also known as the "decentralized web," refers to a vision: that of building a new version of the Internet, transcending the limitations and issues of the current web. The ambition of Web3 is to break free from the domination of tech giants and allow users to regain sovereignty over their personal data and control over their online interactions.

At the heart of this revolution lies blockchain technology. Beyond enabling cryptocurrency issuance, this massive, secure, and transparent database facilitates the creation of so-called decentralized applications and platforms. Thus, Web3 would be an Internet without intermediaries, open to all, and built on open-source and decentralized infrastructures.

📎 Want to learn more about cryptocurrencies? Check out our entire blog article collection.

Why the Name Web3?

To fully understand the concept of Web3, let's go back to the early days of the Internet. In its initial stages, the Internet consisted mainly of static websites, and user interaction was virtually non-existent – this was Web1.

In the mid-2000s, the first social media platforms emerged, enabling users to interact with each other and produce content – this was Web2. In short, this is the version of the Internet we all know.

However, it is a centralized Internet controlled by a small group of companies known as "Big Tech" or the "GAFA" group: Google, Amazon, Apple, Facebook, and a few others. They facilitated the democratization of the Internet but took advantage of it by trading their platforms' services for users' personal data. If you didn't know, social media is free because your data is sold at a premium to companies eager to target you with advertisements.

Now, back to our topic. The name Web3 was coined by Gavin Wood, known for co-founding Ethereum. He was the one who put a name to a major issue: the centralization of the Internet. This is the core ambition of Web3, to build a decentralized Internet where the cards are reshuffled among all users.

📎 Go further and discover what Tezos blockchain and its XTZ token are all about!

The Pillars of Web3

Are you still with us, dear readers? Great, because now that we have a rough understanding of what Web3 is, its origins, and the problems it aims to address, let's explore the fundamental principles on which Web3 is built.

Decentralization

Unlike the current model where data flowing on the Internet is stored on centralized servers owned by a single entity that can do as they please with it, Web3 proposes to decentralize data storage. In other words, data is stored on a network composed of numerous nodes (mini-servers) owned by its users: the blockchain.

Note that the main blockchains dedicated to development at present are Ethereum, Bitcoin (to a lesser extent), and Tezos. It's Tezos that we've chosen to develop Stables, our beloved fantasy horse racing game that you all enjoy so much!

📎 Want to know what Stables is? The answer is in this article!

Digital Sovereignty

Beyond enhancing security and reducing the risk of censorship, blockchain can enable users to regain control over their personal data. This reclamation of digital sovereignty is one of Web3's core principles, with the goal of eliminating privacy violations and abuses by major tech companies.

New Economy

Blockchain is also designed to be a payment infrastructure, carrying digital currencies like XTZ for Tezos. This allows users to bypass network operating fees and pay for goods and services. Thus, Web3 can redefine the digital economy by rewarding creators and users for their contributions.

These are the key pillars of Web3, but there are other aspects to mention: protection against censorship, disintermediation, and technological innovation, to name a few. It's important to understand that many facets of our world can be reimagined and improved with blockchain technologies, smart contracts, and NFTs.

📎 Are you convinced? Here's how to buy XTZ and start your Stables adventure!

Challenges of Web3

Scalability and Speed

Currently, adoption is hindered by the development of technologies that support Web3 applications, particularly blockchains. They are still in their infancy and cannot yet support mass adoption. Most blockchains are limited by the number of transactions they can process. Solutions are emerging, especially with layer 2 networks, but we are still witnessing their emergence.

Accessibility

For widespread adoption of Web3, accessibility and resistance to change must be overcome. Technical barriers remain a hurdle to entering the Web3 realm. Imagine asking your uncle to hold a crypto wallet on Tezos and buy an NFT Stables on a marketplace... He's likely to stop before even trying. Similarly, changing usage habits is not easy and will likely require education, which is why we aim to provide you with ever more educational content!

Regulation

As you've probably gathered, Racers, the technological aspect is a real challenge for the industry, but there's no doubt it will be overcome sooner or later. However, there's a challenge that doesn't solely rely on Web3 actors: regulation. In recent years, regulators in different countries have been tasked with establishing a regulatory framework for Web3. Nevertheless, if it's not constructed correctly, technological development could be hindered.

Conclusion

Web3 is a vision: that of building a new, more decentralized Internet, virtuous, and where every user could be rewarded for their contribution. The emergence of Bitcoin has helped enough individuals understand the magnitude of the technological revolution that blockchain represents.

Thanks to this public, auditable, and immutable infrastructure, along with smart contracts, cryptocurrencies, NFTs, and decentralized applications, new horizons are unfolding for the Internet and our world. These horizons are embodied by this concept, now clearer to you: Web3."

‍