This is Part 2 of our series on the evolution of the World Wide Web For further insights, check out Part 1 and Part 3.

Key Takeaways:

• Web3 is the latest phase in the internet’s evolution, characterized by its decentralized nature and blockchain technology foundation.
• In contrast to the static nature of Web 1.0 and the interactive platforms of Web 2.0, Web3 focuses on decentralization and enhancing user data privacy.
• Its defining characteristics include blockchain-based decentralized data storage, permissionless ecosystem, and enhanced security through cryptographic trust minimization.
• Web3 offers enhanced user privacy, transparent and secure transactions, decentralized control over data, and the integration of cryptocurrency for financial exchanges.

Web3 represents the next evolution in the digital realm, offering a decentralized internet experience. But what exactly is Web3, and why is it gaining so much attention? Let’s start by diving into the history of the internet.

The Evolution of Web 3.0

The internet has undergone significant transformations since its inception, evolving from a static repository of information to a dynamic and interactive platform. This evolution can be characterized by three distinct phases:

1. Web 1.0 (The Static Web, 1990s): The early days of the internet were dominated by static web pages, primarily serving as repositories for information. Users had limited interaction with these pages, primarily consuming rather than creating content.

2. Web 2.0 (The Social Web, 2000s): With the arrival of social media platforms like Facebook, Twitter, and YouTube, the internet transformed into an interactive landscape. Users gained the ability to create, share, and engage with content, fostering online communities and shaping the internet’s trajectory.

3. Web 3.0 (The Decentralized Web, 2020s): This latest phase of the internet focuses on decentralization, aiming to distribute power and ownership away from centralized entities. Utilizing blockchain technology, Web3 promotes user autonomy over their data and transactions, empowering individuals to have greater control over their online experiences.

Distinguishing Web 3.0 and Web3

While the terms Web 3.0 and Web3 are often used interchangeably, they represent distinct aspects of the internet’s evolution.

Web 3.0: This is a more general term that refers to the vision for a more intelligent and user-centric internet. It encompasses a number of different technologies, including blockchain, artificial intelligence, and machine learning. Web 3.0 aims to create a web that is more personalized, relevant, and secure for users.

Web3: This term specifically refers to the next generation of the internet built upon blockchain technology. Web3 applications are decentralized, meaning they are not controlled by any single entity but rather by a network of users. This decentralized nature promotes transparency, security, and user ownership of data, addressing some of the limitations of Web 2.0.

What Is Web3?

Key features of Web3 include the following:

1. Decentralization

Web3 seeks to break away from the centralized control of Web 2.0 platforms, where data and applications are primarily managed by a few tech giants. Instead, Web3 embraces decentralization, utilizing blockchain technology to distribute power and ownership across a network of users. This decentralized architecture aims to eliminate the risks associated with centralized control, such as data breaches, censorship, and biased decision-making.

2. Blockchain-based

Blockchain technology serves as the backbone of Web3, providing a tamper-proof and distributed ledger for storing and managing data. Blockchains facilitate the operation of decentralized applications (DApps), enabling users to interact with web services without intermediaries. This decentralized infrastructure ensures transparency, immutability, and security for user data and transactions.

3. Permissionless Access

Web3 embraces permissionless access, eliminating the need for central authorities to grant permission for participation. This open-access nature empowers users to engage with the web freely, without the limitations imposed by gatekeepers. This permissionless approach aligns with the democratic principles of the internet and fosters innovation and creativity.

4. Cryptocurrency Payment System

Before Web3, payments for goods and services had to be processed by credit payment systems. Now, with Web3’s crypto payment services, users can pay using crypto coins or native tokens of different applications. However, to make these crypto payments, users need a blockchain wallet to store and manage their digital assets, and to sign transactions securely.

5. Trust Minimization

Web3 leverages cryptography and smart contracts to minimize the need for trust between users and participants. Smart contracts, self-executing agreements embedded in the blockchain, automate transactions and eliminate the need for intermediaries. This trustless approach promotes security, transparency, and efficiency in online interactions.

6. Decentralized Autonomous Organization (DAO)

DAOs represent a unique governance structure in Web3, where decisions are made collectively by the community of users rather than a central authority. DAOs operate through smart contracts that automate decision-making processes. They enable users to vote and participate in the governance of decentralized platforms.

7. Artificial Intelligence (AI)

Web3 integrates AI to enhance personalization, personalization, and efficiency. AI algorithms can analyze user data and preferences to provide tailored content, recommendations, and experiences. This personalized approach can improve the user experience and make the web more relevant and engaging.

These are just a few of the features and characteristics of Web3. However, this disruption to the present state of the web is still under development, and things will unravel with greater clarity in the next few years. It took roughly ten years for Web 2.0 to develop from the previous version. Similarly, Web3 is expected to take a similar amount of time. For a deeper dive into how artificial intelligence plays a role in enhancing digital identity security, especially in the context of Web3, you can refer to this article.

The Benefits of Web3

Web3 offers a number of benefits over Web 2.0 including:

• User transparency: Web3 applications operate on a transparent and auditable blockchain, ensuring the immutability and visibility of transactions and data interactions.
• Privacy: Web3 places ownership of personal data directly in the hands of users. Unlike Web 2.0 platforms that often collect and monetize user data, Web3 applications enable individuals to control how their information is used and shared.
• Greater User Control: Web3 empowers users to make informed decisions about their online experiences. Users can choose the apps, websites, and services they engage with and opt out of data collection and targeting practices, regaining control over their digital footprints.
• Personalization: Web3 applications can be tailored to individual user preferences and needs, creating more immersive and engaging experiences. AI and machine learning techniques analyze user data to provide relevant recommendations, content, and services.
• Decentralized Governance: Web3 introduces a new model of governance, enabling users to actively participate in decision-making processes. Decentralized autonomous organizations (DAOs) use smart contracts to automate governance and empower users to vote on proposals, influencing the direction of decentralized platforms.
• Identity Management: Web3 revolutionizes digital identity management by shifting ownership from centralized systems to users. Users control their own digital identities, with the ability to prove ownership of their data and assets.

While Web3 presents a promising vision for a more empowering and user-centric internet, it remains in its early stages of development. Let’s take a closer look at Web3 and explore some of the potential disadvantages to watch out for.

Potential Disadvantages of Web3

Web3, the. next generation of the internet, offers many benefits. However, as with any new technology, it’s important to consider potential drawbacks and challenges. These include:

1. Device barrier 

2. Steep Learning Curve

3. Difficulty in Regulation

The decentralized nature of Web3 poses challenges for regulatory bodies. Due to the immutability of information and the absence of central control, addressing issues like fake news, cyberstalking, and other internet-based vices may be challenging.

4. Ownership Concerns

The ownership of user data in Web3 remains a controversial topic. While Web3 advocates emphasize its focus on data privacy and user control, concerns persist about who ultimately holds ownership of user information. Jack Dorsey, the co-founder and former CEO of Twitter, has expressed skepticism about the true extent of user ownership in Web3. He suggests that venture capitalists and their investors may ultimately retain control.

In response to these concerns, Dorsey has proposed a new phase of the internet called Web5. He believes it will address the perceived shortcomings of Web3. While Web5 is still in its early stages of development, its core concept focuses on decentralized identifiers (DIDs) and decentralized data storage (DIDs). It aims to provide users with greater control over their data and online identities. In this Web5 article, you will discover what Web5 is and how this new web differs from the previous Web 1.0 to Web 3.0.

How Is Web 3.0 Better Than the Present State of the Web (Web 2.0)?

Without being distracted by Jack’s Web5 yet, a side-by-side comparison of Web 3.0 and Web 2.0 will demonstrate how Web 3.0 is superior to Web 2.0. Web 3.0 promises decentralization, but is that all it can offer over Web 2.0? Web 2.0 revolutionized web technology and changed how we interact and communicate with the internet. It moved the users away from consumers to creators. A number of achievements have been made by Web 2.0.

Considering these great fits, what are the differences between Web 2.0 and Web 3.0?

Web 2.0 vs. Web 3.0: A Table Comparison

Criteria	Web 2.0	Web 3.0
Servers/Storage	Centralized databases and servers govern applications, services, and users’ data.	Operates on decentralized databases via peer-to-peer protocols.
Data Ownership	The platforms own the data, which can be sold for marketing purposes.	The users own their data and have control to share it with services or platforms they like.
Goal	The goal is to develop a community of people with seamless interactions.	The goal is to give power to users. This empowers them to monetize their content while having full control over their data.
Payment Systems	Fiat currencies serve as the primary means of payment. These currencies depend on central banks and are fully subject to the government, such as USSD, EUR, and GBP.	Means of exchange aren’t subject to the government. Different types of cryptocurrencies serve as payment between users, such as Bitcoin, Ethereum, and Solana.
Personalization & Ownership	Cookies help to track users, which helps to provide personalized content or behavior.	Non-Fungible Tokens are users’ own proof of ownership of digital assets or activities through NFTs, which also attach values to them.
Social Networks	Social media platforms, such as Facebook, Twitter, and Instagram, are the means of socialization.	The Metaverse will merge physical, virtual, and augmented reality, creating a social community.
Technologies and programming languages	Progrmming languages such as HTML, CSS, JavaScript, and Ajax.	Technologies such as AI, Decentralized Protocols, and Machine Learning.
Features	Improved interactions, better acceptance on mobile devices, and the introduction of web applications.	Human-like smooth interaction app experiences powered by AI and machine learning.
Backend Data Intelligence	Relational databases where queries are sent to fetch data.	Blockchain immutable ledger technology.

Future of Web3

We are on the brink of a transformative era in the digital world, led by Web3, which is set to redefine our internet usage as we transition from Web 2.0. Web3, driven by blockchain technology, brings a new age of transparency and enhanced user control through its decentralized framework.

As a result, we can anticipate the emergence of more sophisticated and capable Decentralized Applications (DApps) catering to a wider array of user needs. Moreover, as Web3 integrates further into our everyday lives, we can expect regulatory frameworks to adapt, ensuring user protection and promoting innovation.

Conclusion

Web 2.0 has made a significant impact to all sectors of development, making the internet more interactive and engaging. It boosted industries like eCommerce in a massive way. In addition to creating thousands of eCommerce millionaires, it has also created millions of jobs worldwide.

As the next phase of the web, Web3, promises to increase these transformations and interactions between the users and the web. However, here is the salient question: is users’ privacy really private? Or does Jack Dorsey’s accusation have some elements of truth? As Web3 is still a work in progress, the truth will be known along the way. In the meantime, it’s worth checking out what Web5 is all about.

Identity.com

Identity.com aligns with the central theme of Web3: decentralization. One of our pursuits is a user-centric internet, where users have control over their data. More reason why Identity.com doesn’t take the back seat in contributing to this future via identity management systems and protocols. In fact, we are a part of the World Wide Web Consortium (W3C), the standards body for the World Wide Web. 

Through our work, Identity.com is helping many businesses by giving their customers a hassle-free identity verification process. Our open-source ecosystem provides access to on-chain and secure identity verification solutions. These solutions improve the user experience and reduce onboarding friction through reusable and interoperable Gateway Passes.

Therefore, if you’re interested in learning more about how we can help you with identity verification and general KYC processes, please don’t hesitate to get in touch.