What is Web3? Many people are asking this question, so we wanted to dedicate an article to provide you with an answer. Here’s what you should know about the future of the internet.
What is Web3?
Web3 is a suite of decentralized technologies and protocols built on top of existing web infrastructure to create the decentralized web. Users will interact with Web3 interfaces and apps that can be installed and executed in a secure and consistent manner, without centralized attribution or monetization.
Web3 entails transitioning towards a decentralized internet. Decentralization means that there is no single governing entity responsible for the internet. It breaks up online activity into smaller pieces that are distributed among different people or processes, which has many benefits, including better security.
Does Web3 exist?
The Web3 mission calls for an internet composed of decentralized links, based on peer-to-peer principles. However, this mission has yet to be fully realized. As far as decentralized technologies are concerned, though, the potential is there.
Web3 is a conceptual successor to the current iteration of the internet and refers to the long-discussed third generation of internet technologies that utilize peer-to-peer data transmission techniques. The current internet infrastructure is centralized, which makes it difficult for people to share information securely. Web3 presents a possible alternative to this system.
In any practical sense, however, Web3 does not exist—at least, not yet.
Can I invest in Web3?
Yes, many companies have sprung up to take advantage of the financial future of this technology. The most important part about investing in Web3 is being able to analyze accurately where and when to invest.
Web3 is just emerging, but it could be a multi-billion-dollar industry in the near future. Perhaps the most direct way to invest in Web3 is to buy into companies developing the technologies during these early stages. There are currently companies offering cybersecurity, blockchain data storage for business apps, peer-to-peer content delivery network technology, and much more. If you want to get started learning more about Web3 technologies, start researching which companies are getting behind the future of the internet now so that you’ll be ahead of the curve when they start to show their potential.
Why This Is the Future
One word—decentralization.
Decentralization has opened new possibilities for what might happen to personal data, economies, infrastructure, and life in general. The internet of today is centralized with lots of government oversight and corporate ownership controlling how everyday users behave online. Websites are hosted on centralized servers, which means that these entities have enormous amounts of information on you already given to them by companies like Facebook and Google. Web3 is about breaking down this concentration of power and returning control to humanity as a whole.
Decentralization hinges on the idea that individuals should be self-empowered, which is enabled by technologies like blockchain. Decentralization mirrors this trend, eliminating the need for trust in intermediaries and empowering people to control their digital lives.