Blockchain technology has been around for over a decade now, and its potential has been a topic of discussion among many industries and businesses. It has grown from a simple idea to a complex network of information and data that has revolutionized the way businesses operate. In this article, we will discuss what blockchain is, how it works, and what the web3 vision is all about.
What is Blockchain?
Blockchain is a decentralized, digital ledger that records transactions on multiple computers. It operates on a peer-to-peer network, which means that there is no central authority controlling it. This makes it a secure and transparent system that can be used to store and transfer information and data. The most popular example of a blockchain is the one used by the cryptocurrency Bitcoin, but it can also be used in various other industries such as finance, healthcare, and more.
How Does it Work?
A blockchain operates by creating blocks of data that are linked together in a chain. Each block contains information about transactions, and once it is added to the chain, it cannot be altered or deleted. This ensures that the information stored on the blockchain is tamper-proof and secure. When a new transaction is added, it is verified by a network of nodes, which are computers on the network. Once the transaction is verified, it is added to the blockchain and becomes a permanent part of the network.
What is Web3?
Web3 refers to the next generation of the internet, which is being built on blockchain technology. It is a decentralized network that operates on a peer-to-peer basis, allowing for greater security, privacy, and transparency. The web3 vision is to create a new type of internet that is not controlled by any central authority and that empowers users to have complete control over their data and information.
Key Characteristics of Web 3.0
While a universally agreed-upon definition of Web 3.0 is still in development, several distinctive attributes can be identified.
- Decentralization: At the heart of Web 3.0 lies the principle of decentralization. In the Web 2.0 era, computers utilize HTTP and unique web addresses to locate information stored in fixed locations, typically on single servers. In contrast, Web 3.0’s information retrieval is content-driven, allowing data to be stored across multiple locations simultaneously. This shift leads to a decentralized structure, challenging the dominance of massive databases controlled by internet giants like Meta and Google, thereby empowering users.
In the Web 3.0 landscape, data produced by diverse and increasingly potent computing resources, ranging from mobile devices and desktops to appliances, vehicles, and sensors, will be commodified by users via decentralized data networks, ensuring their ownership and control.
- Trustlessness and Permissionlessness: Web 3.0’s foundation in open source software fosters a trustless environment—enabling direct interactions among participants without intermediaries. Furthermore, it embraces permissionlessness, allowing anyone to engage without requiring approval from a governing entity.
As a result, Web 3.0 applications will be hosted on blockchains or decentralized peer-to-peer networks, collectively known as decentralized applications (dApps).
- Integration of Artificial Intelligence (AI) and Machine Learning: Web 3.0 introduces computer systems capable of comprehending information much like humans, employing technologies grounded in Semantic Web concepts and natural language processing. Additionally, Web 3.0 harnesses the power of machine learning—a subset of artificial intelligence (AI) that leverages data and algorithms to emulate human learning, progressively enhancing its accuracy.
These capabilities empower computers to deliver quicker and more pertinent outcomes across various domains, such as drug discovery and novel materials, transcending the prevalent focus on targeted advertising.
- Enhanced Connectivity and Ubiquity: Web 3.0 promotes heightened connectivity and ubiquity, rendering information and content more seamlessly intertwined across multiple applications. Simultaneously, a growing array of everyday devices will be linked to the internet, epitomized by the Internet of Things (IoT).
PRACTICAL COMPARISONS
| Web2 | Web3 |
|---|---|
| Twitter or Facebook can censor any account or message | Web3 messages would not be censorable because control is decentralized |
| Payment service may decide to not allow payments for certain types of work | Web3 payment apps require no personal data and can’t prevent payments |
| Servers for gig-economy apps could go down and affect worker income | Web3 servers can’t go down – they use Ethereum, a decentralized network of 1000s of computers as their backend |
In conclusion, blockchain and web3 are both innovative technologies that have the potential to change the way we live and do business. Blockchain provides a secure and transparent way to store and transfer information, while web3 is working towards creating a new, decentralized internet that gives users more control and privacy. With the development of these technologies, we can expect to see major changes in the near future.