Web 3.0 & its impact on the security of the crypto ecosystem
Web 3.0 is an expansion of the Internet introducing elements such as integration of blockchain and virtual reality. It is another anticipated revolution of the web network, replacing Web 2.0. The latter was represented by interactive applications such as social networks. Today we're going to break down what Web 3.0 actually is and how it will impact
the crypto industry as a whole.
Where did the idea come from?
The Internet as we know it is about to undergo technological and philosophical evolution. Web 1.0 could be simply described as a library. You will find a whole lot of information, though you still won't be able to really interact with anyone out there.
Web 2.0 is about communication between users. A prime example of sites embodying this idea is social networks such as Facebook, Twitter, LinkedIn and many others.
The first mention of Web 3.0 goes back to the year 2014. Coming straight from the co-founder of Ethereum and head of the Polkadot project - Gavin Wood. It is supposed to be an internet concept into which the blockchain will be perfectly integrated.
What is Web 3.0?
The year 2021 has drawn great interest in the future of the web. A notable impulse for CEOs of major tech companies was the exponential growth of cryptocurrencies, which at certain moments felt even unheard-of. Apart from the prospects of capitalization, the newly discovered possibilities offered by the blockchain played a key role in the immense increase in its publicity.
Also... One of the biggest players in the game - Meta - has decided to enter the field of virtual reality. This somewhat forced an awakening within the industry and finally ignited the discussion regarding the direction which the world information network will take.
The definition itself is described by the news agency Bloomberg as "hazy". However, the key concepts are decentralization and freedom of expression, mostly realized through an avatar, customization of the environment, etc.
In addition to virtual reality and blockchain, Web 3.0 will also include a system of decentralized finance (DeFi). Some visions also emphasize joint community management through "decentralized autonomous organizations (DAO)".
We recently wrote about DeFi on our blog. Read more about this issue here.
What advantages will Web 3.0 bring?
The reception of the concept was mixed. Many consider it an important step in the development of the world's Internet infrastructure, though there is certainly no shortage of critics.
The main advantages introduced include:
Decentralization of the Internet in terms of services: The vast majority of services operating on the Internet are in the grasp of a few technology giants. Decentralization can bring a new impulse to the development and return competitiveness to the market.
Infrastructure security and scalability: According to its backers, Web 3.0 will bring more secure data management and overall privacy protection. They consider infrastructure growth through decentralized solutions to be more scalable.
Merging with reality: The ultimate goal of the concept is to create a perfectly connected, intelligent, and open world that spans from reality to digital.
'Dangers and criticism of Web 3.0
The new concept is by no means universally accepted. On the contrary, it has many opponents within the mainstream.
It lacks utility: Bloomberg argues that "Web 3.0 lacks precise applications that transcend the boundaries of the cryptocurrency world." Billionaire Elon Musk echoes this. Today, he sees Web 3.0 as just an empty phrase.
Regulatory issues: Some legal experts believe that a fully decentralized web will be a problem in terms of regulations and proper governance. This may lead to an increase in crime, bullying, and hate speech - reducing general safety. Twitter founder Jack Dorsey sees this as the biggest mistake, although he admits that the idea of democratizing the Internet is indeed tempting.
Environmental Impact Concerns: Cryptocurrencies, especially those operating on Proof of Work consensus, have attracted criticism regarding their impact on the world around us. Expanded blockchain through Web 3.0 would inevitably be forced to tackle this issue before gaining considerable approval from the wider public.
Read more about the topic of regulations. Specifically, we wrote about the MiCA regulation and its introduction by the European institutions.
What to expect in the future?
The best summarizing characteristic of this new concept is, as always, that no one really knows what it will bring. One thing is certain - some elements will stick around, like virtual reality. However, if we are about to witness the total adoption of the blockchain, that remains unsettled.
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