Why Some See Web 3.0 as the Future of the Internet | WSJ

Summary

Web3, the envisioned third generation of the internet, is a decentralized ecosystem built on blockchain technology. It promises a more democratic and user-controlled web, where data is not monopolized by tech giants. Despite skepticism from industry figures like Elon Musk and concerns over scalability, the concept is driving significant investment and development in decentralized services. Web3's potential to reshape the online world, including the metaverse, remains a topic of debate and speculation.

Takeaways

• 🌐 Web3 is considered the third generation of the internet, a decentralized ecosystem based on blockchain technology.
• 🤔 Web3 is a new philosophy for realizing technologies in a more distributed and democratic manner, but faces skepticism about its global scalability.
• 💡 The term Web3 was coined by Gavin Wood, one of the creators of Ethereum, who envisioned it as an open, decentralized internet without the need for intermediaries.
• 📚 Web 1.0 was characterized by static web pages and a more decentralized web, while Web 2.0 introduced interactivity and centralization with platforms like Facebook and Google.
• 🔑 Web3 aims to give users more control over their data, allowing them to sell it if they choose, in contrast to the current centralized data economy.
• 🏦 The concept of Web3 includes decentralized finance (DEFI), where virtual tokens or cryptocurrencies incentivize participation in its operation.
• 🤝 Web3 could potentially offer more transparency and autonomy for users, with anyone able to own the computers that perform computations or store data.
• 🤖 Critics argue that the underlying blockchain structures of Web3 are insecure and not as decentralized as promised, with some seeing it as a rebranded form of centralization.
• 🌌 Web3 is sometimes associated with the metaverse, an immersive online world, but the two are considered distinct concepts by some.
• 💭 Web3 is still an abstract concept with limited real-world application, and skeptics question its practicality regarding computing power, bandwidth, and storage.
• 💰 Despite the uncertainty, the philosophy behind Web3 is driving significant investment in the venture capital world, funding a range of decentralized internet services.

Q & A

What is the term 'Web3' referring to in the context of the tech industry?

Web3 refers to the third generation of the internet, which is envisioned as a decentralized online ecosystem based on blockchain technology.

What is the fundamental philosophy behind Web3?

The fundamental philosophy behind Web3 is to realize technologies in a more distributed and democratic way, giving users more control over their data and interactions online.

Why are some tech experts skeptical about Web3's ability to scale globally?

Some tech experts are skeptical about Web3's scalability because they believe its early expressions are primitive and it may not have the necessary computing power, bandwidth, or storage to work on a practical level.

What was the early internet, known as Web 1.0, like?

Web 1.0 was a more decentralized version of the web where most participants were content consumers navigating through individual static web pages, and only a small number of users with technical skills could create and publish content.

How does Web 2.0 differ from Web 1.0?

Web 2.0 introduced more interactive web technologies like JavaScript and HTML5, allowing anyone to publish content online, even without coding skills. It is characterized by a few large companies owning and managing user data, often using it for targeted advertising.

Who coined the term 'Web3' and what was their vision for it?

Gavin Wood, one of the creators of the Ethereum blockchain, coined the term 'Web3'. He envisioned it as an open, decentralized version of the internet where users could exchange money and information without the need for intermediaries like banks or tech companies.

What is the role of blockchain in the Web3 vision?

Blockchain plays a central role in the Web3 vision by providing a decentralized, distributed ledger technology that allows for transparency and autonomy, enabling users to have more control over their data.

How does Web3 aim to change the way users interact with online services?

Web3 aims to allow users to have a single, personalized account that they can use to move seamlessly between different online services, creating a public record of their activity on the blockchain.

What is DEFI and how is it related to Web3?

DEFI, or decentralized finance, is a central element of Web3 that involves the use of virtual tokens or cryptocurrencies to incentivize participation in the operation of Web3, allowing for financial transactions without centralized control.

What are some criticisms of Web3's underlying blockchain structures?

Critics argue that the underlying blockchain structures of Web3 are insecure and not as decentralized as promised. Some believe they are as centralized as previous technologies, and that the concept of Web3 is more of a marketing buzzword than a practical solution.

How is the concept of Web3 related to the metaverse?

Some see Web3 as a critical building block for creating the metaverse, an immersive online world where people can use avatars for various activities. However, others argue that Web3 and the metaverse are distinct concepts with different focuses.

What is the current state of Web3 in terms of real-world application and investment?

As of the script's recording, Web3 is still an abstract concept with little real-world foundation. However, the philosophy behind it is driving significant investments in the venture capital world, funding the development of a vast ecosystem of decentralized internet services.