"The Decentralized Internet" is an amalgamation of a plethora of trends that "Web3" covers. Quite simply, the vision is to carve out an internet that isn't controlled by huge multinational corporations like Amazon, Google, Baidu, Facebook, etc. Which set the rules for anything and everything we could or couldn't do online in today's times.
The vision behind "Web3" was to have a consortium of tools required to create online spaces that we own and to democratize digital economies through futuristic technologies like blockchain, cryptocurrencies, and non-fungible tokens (NFTs) as well as other decentralized autonomous organizations (DAOs).
What makes Web3 so significant?
To outline the importance of Web3, a brief detour to cover the emergence of the Web is needed. Web1 was the first outline and iteration of the internet - a collection of read-only static web pages. Web 2 (aka web 2.0) refers to the user-generated web that was curated with the arrival of social media sites. Like Myspace/ AOL etc. Facebook/ Google which brings us to Web3 - the decentralized web!
An idea without criticism isn't a valid idea. This is why the concerns around Web3 are so significant. It could fuel the transfer of power from one set of technocrats to another. Another rumour that floats is that they consume large amounts of electricity to run technologies such as blockchain that make the theory of decentralization possible. Prior to a large socio-economic buy-in, handicaps must be corrected.
2023 will be a crucial year. Web3 is either going to see tremendous progress or the idea may be rejected. Here are a few trends that could influence the future of Web3:
1. Decentralized Metaverse:-
The Metaverse is the hottest buzzword trending across the web. Tech conglomerates like Facebook and Microsoft are collaborating together to build the "next level" of the internet. However, the advocates of Web3 and its future are keeping their own wagers in abeyance of the platforms controlled by the Silicon Valley behemoths.
Decentralized virtual environments, the fundamental building blocks of Web3, will propel us into the future by laying the groundwork for future innovations that will unfold throughout the next decade.
Data that makes up these digital environments is stored on the Ethereum blockchain. In simple words, it means that data can only be edited/changed/or deleted by only those who have the access and requisite permissions to do so & the server where the data is stored doesn't have a single owner who could censor/change anything that is not in accordance with their views/ business propositions or their political leanings.
The Sandbox and Decentraland are a few prominent decentralized metaverse platforms that are widely adopted. In 2023, these innovative platforms will continue to innovate and pave the way for more pioneering work that the digital world will be able to reckon with.
2. Non-fungible Tokens (aka NFTs) are distinct tokens that exist on a blockchain. In comparison to cryptocurrencies, which have millions of identical tokens existing on the chain. NFTs are used to represent something unique.
NFTs have several unique use case possibilities. NFTs can be maximized by blending the digital and physical domains by tokenizing items, data as well as exclusive pieces of art, memorabilia, etc. In the world of the decentralized internet, NFTs are the pathways used to interact with the digital products and services we buy. Smart contracts between parties (buyers and sellers) or keys to our virtual metaverse mansions.
In 2023, the emphasis could shift to "UTILITY NFTs" aka NFTs that "do something" meaningful instead of simply representing virtual/digital art. With the introduction of "Utility NFTs," perceptions of this disruptive technology will change considerably and they will fit into the overall Web3 landscape.
3. Social networks are decentralized."
The Web3 revolution is driven by another key goal, creating a decentralized social network. Tesla's Elon Musk wants to create a social network, and in this type of network, customers will pay every time they post messages. It is speculated that the introduction of a paid account would enable a considerable reduction in spam bots and trolling bots. Elon Musk moved ahead and bought Twitter with this objective. He even introduced a small fee for verified accounts. This resulted in the rise of more fake and spammed accounts and this version had to be suspended within a few days of its introduction. A tweaked version of this will be re-introduced after a rigorous measure of checks and balances to reduce bots and trolls on the platform.
Web3 advocates are of the opinion that the biggest USP of a decentralized social network would be its resistance to censorship. This could eliminate the possibility of global behemoths like Facebook, WhatsApp, Instagram, and Twitter having a final say on what will be published on the platforms. Instead, a decentralized social network will allow users the ability to say whatever they want, without censorship. This will enable a wider society including the judiciary and those in government to work together more efficiently and answer the people at large.
4. Green Web3:
The proponents of Web3 need to realize that every technology has issues when it comes to demonstrating green credentials. The amount of energy consumed by the cryptocurrency blockchain network was equivalent or much higher than the energy consumption levels of most countries in South East Asia & Southern America. Carbon emissions of 772 kilograms were generated in a single transaction on a cryptocurrency network.
Concerted efforts are being made to reduce energy consumption and still retain the essential usefulness of blockchain and other associated technologies. This is an extremely critical task for preserving the environment. A massive 98% reduction in overall energy consumption has recently been achieved by the Ethereum network. This is after it completed its switchover from the proof of work to the proof of stake algorithm.
In 2023, an increased effort will be given to reducing the amount of energy consumed in order to reduce carbon footprints and create a greener Web3. The potential of technology has the ability to enable organizations to not only curate but also collaborate together and build something meaningful for the environment at large. This will also enable them to combat climate change more effectively.
ReFi also known as regenerative finance is currently being explored which seeks financial incentives for projects that preserve and restore resources essential for environmental well being.
5. Incremental Government Intervention & Regulations in Web3:
The tremendous impact of this emerging yet disruptive technology has prompted governments to oversee and regulate its impact on society, economies, etc. Increased interest by a few states across the United States of America in positioning them as "Web3 friendly States" similarly many countries are now emphasizing their own economic initiatives designed to attract companies involved in "Web3 activity."
2023 is likely to see a spike in interest from other countries moving to position themselves as Web3 investment friendly. There are a few large economies that could launch an official virtual currency through their central bank. This would make it legal tender in the future, making it even more fascinating and exciting.
Comments