Web 3.0 is also called the semantic or spatial internet. It stands for decentralized, blockchain-based and open-source internet available for all. These features will make it possible to eliminate freeloading third parties, returning the ownership rights to creators. Instead of storing our data on centralized servers, we will own each piece of it independently. Mutual, fractionalized and NFT-based digital ownership brought by web 3.0 will lead to a trustless and common incentive-based macroeconomy.
In the third generation of the internet, all devices and databases will be connected in a network rather than relying on server-based mainframes. The decentralization will not only make transactions and secret sharing more secure but will also present new business opportunities. Such a system will turn each stakeholder into a partial owner of a company, thus making them ownerless and more resilient to economic turbulence.
The internet before
The internet was created back in the 1960s for military and scientific purposes. The general public got access to it only in 1990, starting the history of the internet as we know it.
The first generation was called web 1.0, and it had basic protocols such as HTML and HTTP with just basic pages. But even at the dawn of the World Wide Web those pages were actively used and commercialized. First browsers allowed you to connect and communicate with people via dial-up modems, but exchanging large quantities of data was hardly possible.
Web 2.0 or the second generation of the internet started in 1999. Originally it was more of a cultural rather than technological phenomenon. More people got access to it, and so the content started to flow, eventually leading to the web we know today.
Naturally, technological advancement has led to a shift in the way we access the internet. Now we can access all social media and apps through our phones, with their cameras allowing anyone to become a content-maker.
Almost four billion people have access to the web today, compared to just one billion in 2005. Unfortunately, on this scale, data leaks, copyright ownership misappropriation and fraud have become the norm on the present-day internet. Web 2.0 has lost touch with its original idea — a decentralized network with no central control and equal participants. Web 3.0 will help the internet remember what it was meant to be.
Decentralization, tokenization and blockchain
Web 3.0 is all about the decentralization of ownership and control. Users, creators, designers and developers can now own pieces of the internet in the form of blockchain-based tokens. They can be both fungible and non-fungible, the latter is known as NFTs.
You may interchange your fungible tokens for something else, but you can’t do the same with the non-fungible ones. NFTs use blockchain technology to store anything digital on it: pieces of art, music, and most importantly, proof of ownership of physical items. The problem is that the tokens are not regulated by the law and thus only work when all participants agree to the rules of the game.
But if people ever manage to reach any kind of consensus on NFTs, that would mean users getting property rights on the internet.
The tokens may be used to mark and timestamp objects, making it impossible for malicious actors to fraud a document. This is especially important for manufacturers, as they deal with CAD files that may be easily modified. But signing data with an NFT makes changing it useless, as the time when it was marked is secured on the blockchain.
This feature has practical use for brands, as it can easily prevent counterfeiting and unfair use. Many modern companies, such as Meta, Spotify, McDonalds, NBA, and Nike are preparing to use the technology in their operations.
Another thing in terms of ownership web 3.0 presents is decentralized autonomous organizations (DAOs).
Inspired by NFTs and blockchain those organizations exist in a form of a venture capital fund, based on an open-source code and without a management hierarchy. It is designed to be automated and decentralized, unaffiliated with any particular nation or person. This makes it free from any sort of political pressure, as a DAO actively exploits blockchain, allowing investors to fund it from anywhere in the world, thus buying ownership in it.
The DAO provides owners with NFTs, allowing them voting rights on possible projects. There are still many concerns regarding the legality, security and structure of such a business system, but the concept of collective ownership is very appealing.
The move to web 3.0 means more security, privacy and transparency for both business owners and customers. The third generation of the internet will make it possible to eliminate counterfeiting and copyrights infringements while giving ownership over content back to the creators.