In my previous post, I explained what web3 is and gave a brief synopsis of the evolution of the web.
If you haven’t read it, click on this link https://medium.com/@MattiJeremiah/what-is-web3-0-de33e9964fa3
Let us take a deep dive into understanding Web3.
Web 3.0 is the next iteration of the web, which includes a couple of new features that make it different from the current one (Web2). While the first version (web1) was based on hypertext and information retrieval (read-only), Web 2.0 is focused on social interaction and communication (read and write).
Web 3.0 will be based on open source technology (blockchain), also called distributed ledger technology (DLT), which means anyone can see and verify data state. This makes it trustless and permissionless, as there is no need for a third party to carry out transactions or verify a data state since it’s all open source and available to everyone in the network.
Web3 is a decentralized form of the internet based on these three premises;
- The Backend evolution powering it (blockchain technology)
- Token economy (coins, tokens, and NFTs)
- Autonomous governance (DAO)
The Backend powering it: Web3 is a paradigm shift from how we interact and store data from a central mode to a decentralized one anchored on blockchain technology. It reduces reliance on a third-party entity that owns and keeps users’ information to a technology that gives users the power to control their data and identity.
What is blockchain?
The blockchain is a distributed network of computers (nodes) that maintains a continuously growing list of information (data) in batches (blocks) that are cryptographically connected to each other (chains).
Simply put, blockchain is the instant and persistent storage of data and information on different computers connected in a network without the interference of a central authority.
These stored data are open source which allows for easy verification and access.
Blockchain technology enables us to govern a network without a ruler.
Blockchain has several characteristics; here are some of them:
- It’s open source: Anyone can see and verify the data state.
- Permissionless: Data can be verified without any central entity or anyone asking permission.
- Trustless: Transactions are carried out between peers without needing third-party intermediaries.
- Ownership: It is owned by everyone participating in the network and doesn’t belong to a central entity.
- Immutable: Transactions or data stored on the network cannot be altered, as data are distributed across all computers on the network, making it impossible for anyone to tamper with information within this system.
- Meritocratic: Network system encourages honesty through a consensus mechanism.
Token Economy: Tokens are digital currencies that turn networks or web3 platforms (dApps) into functional economies.
They align the incentives of participants in the network to come together, pool resources, and build and self-govern each other.
Tokens allow users to be part owners of a network or a web3 platform and give rights.
To drive this home, let me use a typical example you can easily relate to. I am sure you belong to at least one social media platform. So imagine that for every activity you perform on the platform, you can be rewarded with a token that can be converted to money or used to perform other activities on the platform.
This is possible because, on a web3 social media platform, you are not just a user but also an owner.
Hmmm, interesting, you say!
This is one of the things that makes web3.0 a game changer.
Autonomous governance: This has been termed decentralized autonomous organization (DAO) in web3 parlance.
A decentralized autonomous organization (DAO) is a virtual entity with a specific set of members coming together with the same objectives and aligned incentives to dictate how a network or web3 platform runs its operation.
Web3 platforms are called decentralized applications (DAPPs).
Now that you understand web3 and all the features that drive it. My next post will be about blockchain.