What Does Web3 Mean for Everyday Internet Users?

As Web 3.0 is gaining popularity, there is much talk about what it holds for the future of Internet consumption.

Even with Web 3.0 familiarity, a 2022 Harvard poll revealed nearly 70% of respondents didn’t know what Web 3.0 entails. Going back to the 1990s, static and read-only web was prominent. It was called Web 1.0. The year 2000 introduced Web 2.0 which is more interactive and also came with the use of social media, where users can post and interact with each other. Something Web 1.0 didn’t possess.

With Web 3 coming on board, It promises something fundamentally different: decentralization, user ownership, and the democratization of the digital world. But what does this mean for the billions of people who use the internet daily?

Breaking Down Web3: What Is It, Exactly?

Web3 uses blockchain technology to create systems that allow for direct peer-to-peer interactions. So what does this mean? Let’s take the current Web 2.0 which the internet uses, as an example. It’s in control of top Fortune 500 companies like Google, Facebook, and Amazon. They hold your data. A good example is accepting cookies. When you do that, you’re giving the website permission to use your data for advertisement and other purposes. When you make payments on a website, there is an intermediary that controls your data. With Web 3.0 this is not obtainable as the internet is decentralized, allowing users more control of their data. It uses blockchain technology to create systems that allow for direct peer-to-peer interactions.

What does Web 3.0 emphasize

• Decentralization: Traditional platforms like Facebook or Google rely on centralized data storage and control. Web3 disrupts this method by allowing users control of their data and privacy.

• Blockchain Technology: In a traditional system, a bank or company maintains a ledger to track transactions.

However, blockchain uses a network of computers to maintain a shared, secure ledger. When people send money, share information, or make a digital agreement, these transactions are bundled into a block. Every change made is visible to everyone. This is not possible in traditional banks. Put simply, if you make a purchase in a shop and make payments in cryptocurrency, the transaction is between you and the seller. There is no intermediary involved like PayPal or a bank.

• Smart Contracts: Smart contracts are like digital agreements that also run on blockchain. It removes the need for intermediaries like lawyers, banks, or agents. When a contract is made, it automatically executes itself when the conditions are met, without needing an intermediary like a lawyer, bank, etc. For example, renting an apartment and the contract says if you pay by a certain period, the keys to the apartment will be released. The smart contract will give you the key upon payment within the agreed timeframe but non-payment will cause the smart contract not to release the key. Everything happens automatically, with no need for a landlord or tenant to follow up manually.

• Token-Based Economics:

Web 3.0 is based on cryptocurrencies and tokens. Rather than hard currency which is used in Web 2.0, cryptocurrencies are used which puts users in charge of their money. Even play-to-earn games utilize cryptocurrency.

Taking Back Privacy Control and Ownership

In the current Web 2.0 landscape, users are often required to hand over their data to use services. Every time you sign up for an app, post a photo, or click on an ad, you’re giving companies your info. For example, when you accept cookies on websites, you are permitting them to use your data.

Web 3.0 promises decentralization. Where users can hold onto their data and decide how and when to share it. Also, users can store their information in crypto wallets.  

Economic Opportunities

With decentralized finance (DeFi), users can access lending, borrowing, and other financial services without needing a bank to step in. This could be life-changing for the billions of people around the world who don’t have access to traditional financial systems. For instance, a small business owner in rural Kenya could take out a microloan through a decentralized platform, bypassing the hurdles of the traditional banking system.

Web3 also changes the way creators and freelancers earn money online. With token-based economies, artists, musicians, and even gamers can cut out the middleman like Instagram, Spotify, etc, and connect directly with their audiences. Platforms like Axie Infinity, a play-to-earn game, have already shown how users can make a living by earning digital assets that hold real-world value.

Challenges of Web3

While Web3 brings exciting possibilities, it makes it difficult to grasp if you’re not tech-savvy. The technologies behind Web3—blockchain networks, cryptographic wallets, and smart contracts can be hard to wrap your head around for nontech enthusiasts.

Then there’s the issue of scaling up. Popular blockchains like Ethereum often struggle with processing large numbers of transactions at once. When demand increases, transaction fees, known as gas fees—can skyrocket, making it harder for regular users to jump in.

Another major challenge is dealing with regulatory uncertainty. Governments worldwide are still working out how to oversee decentralized platforms. Questions around taxes, consumer protection, and anti-money laundering laws continue to be a big issue in Web 3.0.

Finally, there’s the issue of fraud and scams. Without central authorities to step in, users are left to protect themselves, which means educating themselves about potential risks.

How Soon Will Web3 Catch On?

Even with its potential, Web3 is still in its early days. Most people have only scratched the surface of what it can do, and for now, it remains more popular among tech enthusiasts than the general public.

However, major companies like Twitter and Reddit are already testing Web3 features, such as integrating cryptocurrencies and offering community tokens. As these technologies roll out, adoption is likely to pick up speed.

For now, bridging the gap between Web2 and Web3 will require more user-friendly tools and better education to help people get on board.

Why Web 3 Matters for Everyone

One of the most exciting aspects of Web3 is how it gives users a say in how platforms are run. Unlike Fortune 500 companies like Google which call the shots without much input from users.

For example, on a decentralized social media platform, users might vote on what kinds of content moderation policies to implement. This is made possible because of Decentralized Autonomous Organizations (DAOs). Users have more influence and visibility into how decisions are made.

However, in Web 2.0, there will be centralized decision-making by the platform’s owners or executives and users have little or no effect on how decisions are made or policies are enforced.

Final Thoughts

For the average internet user, Web3 might sound like an abstract concept reserved for tech enthusiasts. However, it has the potential to redefine the way we use the internet as we know it.

Imagine an internet where you control your data, your identity, and your digital assets. Also, online communities where users have more autonomy in the use of their data.

While Web 3.0 is still a work in progress, there are expectations around it to be a welcome development from Web 2.0.