Web3

For decades, the internet has been largely shaped by centralized entities – powerful corporations like Google, Facebook (Meta), Amazon, and Apple. These companies control vast amounts of user data, dictate platform policies, and often profit significantly from user-generated content without adequately compensating creators.

This model, dominant in what we know as Web 2.0, has raised significant concerns about privacy, censorship, data security breaches, and the concentration of power within a few key players. Web 3.0 represents a fundamental paradigm shift away from this centralized architecture, envisioning a decentralized internet built on blockchain technology where users regain control over their data, digital assets, and online experiences. It’s not simply an upgrade; it’s a reimagining of how the internet functions, moving towards a more equitable, transparent, and user-centric ecosystem.

Blockchain Technology: At its core, a blockchain is a distributed, immutable ledger that records transactions in a secure and transparent manner. This eliminates the need for intermediaries like banks or payment processors, reducing costs and increasing efficiency. Different types of blockchains exist (e.g., public, private, permissioned), each with varying levels of accessibility and control.

Decentralized Applications (dApps): Unlike traditional applications that run on centralised servers, dApps operate on decentralised networks like Ethereum or Solana. This makes them resistant to censorship and single points of failure. Smart contracts – self-executing agreements written in code – automate processes within dApps, further enhancing efficiency and trust.

Cryptocurrencies & Tokens: Cryptocurrencies like Bitcoin and Ether serve as the native currencies of many blockchain networks, facilitating transactions and incentivising participation. Tokens represent ownership or utility within a specific ecosystem, enabling new models for fundraising, governance, and access to services. Non-Fungible Tokens (NFTs) are a special type of token that represents unique digital assets like artwork, collectibles, or virtual real estate.

Decentralized Autonomous Organisations (DAOs): DAOs are community-led organisations governed by rules encoded in smart contracts. They allow for transparent and democratic decision-making, eliminating the need for traditional hierarchical structures. * **Semantic Web & AI:** While often discussed separately, these technologies complement Web 3.0’s goals. The Semantic Web aims to make data more machine-readable, enabling AI algorithms to understand and process information more effectively. AI can be used to personalise user experiences within decentralised applications while respecting privacy constraints.

Decentralized Storage: Solutions like IPFS (InterPlanetary File System) provide distributed storage networks that eliminate reliance on centralised servers for storing data, enhancing resilience and reducing censorship risks.