Before we get into what Web3 is, it’s important to remember that using the ethernet wasn’t always an easy task. For years, people needed to have a landline phone connection, deal with unstable connections and try to find alternative hours to get a cheaper, more stable connection.
People were still required to work with enormous computer towers sitting on the table and install software using floppy disks or CD-Roms, among other laborious and now alien-seeming tasks to the internet users of our current time.
Today, we can access the same service in a much faster and simpler way, using a smartphone, notebook, or even other kinds of devices like smartwatches and cars. All that with no need for a landline or wireless.
This brief throwback will help us understand how the internet came to be as it is and keeps on evolving and transforming, counting with users’ engagement and new functionalities. And can also grasp a better idea of the concept of Web3 – its examples of practical operation, among which we can find the crypto assets.
Web3, known to be the current phase of the internet, is especially highlighted by its decentralization of information and deals with greater user agency, either owning or distributing data.
While what was known as Web1 was limited to reading and mostly contained static websites with little interactiveness, Web2 became known for opening spaces for social media and allowing deeper interaction among the users.
It was also during the Web2 time that apps were developed and portability became a major asset for the use we attribute to it.
Furthermore, Web2 also had the aspect of centralization of information under the power of big tech companies, which became a point of tension and dislike related to the Internet.
Considering that, we understand that Web3 tries to unite the best from each of the two prior phases while correcting the problem of information centralization in the hands of a few big companies.
In this way, Web3 represents an important paradigm shift in relation to previous generations, which increasingly deepens.
This information decentralization is so intrinsic to Web3, that it paved the way for the creation of blockchain technology.
This is a type of decentralized database containing a permanent record and, at the same time, provides security and transparency about the information contained therein. This is because it is practically impossible to make any changes to the data recorded on this network in a hidden way, without it being noticed by its participants.
You have probably heard of blockchain, initially because of Bitcoin. Yes, the biggest and most famous of the crypto coins is one of the major players responsible for making this technology well-known, and becoming the first public example of blockchain usage.
All operations related to Bitcoin, like adding new information and exchanges between users, are all registered in the blockchain – data connected in a chain that is interconnected and interdependent -, preventing false entries or other types of fraud.
While being overly associated with financial services, blockchain is ever more present in our daily lives, working as a foundation for an array of products and services.
In a network like this, information from medical files, academic records, ID documents, as well as real-estate and automobile documents can be registered. Being so diverse helps expand its concept.
It’s worth reinforcing that there are other types of blockchains, such as public, private and hybrid.
One of them is Ethereum, a public blockchain in which both the crypto coin, by the same name, and other applications work. These applications are known as “smart contracts”, contracts that are executed automatically in the network once their criteria are met by all parties involved.
Another well-known blockchain is Ripple, which encompasses a feature allowing quick and low to no-cost payments to be made across the world.
In summary, the use of cryptoactives on Web3 has been one of the main reasons for its growth and popularization. They are used in this new ecosystem as operational tokens, functioning with the information necessary to carry out various operations that were previously carried out in the traditional, generally slower and more bureaucratic way.
Although Web3 itself is an important paradigm shift in the internet and allows the creation of services and products hardly imaginable previously, it still has challenges to overcome. The three main ones are:
- Scalability: transactions are slower because they are decentralized. Payments, for example, need to be processed by a miner and propagated in the entire network;
- User experience (UX): interacting with dapps (decentralized apps) can demand extra steps, powerful software, and experience;
- Accessibility: the lack of integration with modern browsers makes Web3 less excessive for most users.
This situation paints an accurate picture of the current challenges of Web3, specifically regarding the crypto universe, referring to the wallets in which these cryptocurrencies and tokens are stored. In case the access key is lost, by any means, or the device shows any problem, the owner loses all access to the content, causing great loss.
It’s important to highlight how hard it is for public and private institutions of all segments to hire qualified professionals to understand and develop projects using Web3.
Aside from these challenges, Web3 shows potential for creating innovation, both in the financial market and in other areas with greater presence in our daily lives, or less.
The constant evolution of tools developed from Web3 makes it possible to design at least one improvement in these points to improve user experience.
At the same time, in understanding what Web3 is, we also see the ever-growing demand from such users and the participation one has in the process to help accelerate the learning curve and thus improve the technology.
