What is Web3?

Web 3.0, frequently abbreviated as Web3, is often recognized as the upcoming or third generation of the internet. It builds upon Web 1.0, characterized primarily as read-only, and Web 2.0, which introduced interactive user-generated content and sharing capabilities.

Key components of Web3 include:

Decentralization: In a departure from the single-server model owned by one entity, data and operations in Web3 are distributed across a network, enhancing both fairness and resilience.

Blockchain: Functioning as the backbone of Web3, blockchain provides decentralized data storage and operations. It enables asset transfers that are more efficient than traditional methods, which typically depend on third-party trust. Blockchain technologies become even more important with the pervasive influence of AI in Web3, serving as a safeguard against potential AI missteps. Blockchain is currently the only technology known to guarantee immutability, making it critical in the creation of a constitution that governs AI behavior.

Smart Contracts: These are autonomous contracts coded to execute specific actions when predefined conditions are met.

Interoperability: This attribute ensures a smooth interaction between different systems and resources within the Web3 ecosystem, encouraging effective synergy among various platforms and systems.

Data and Privacy: Contrary to the traditional model where data is stored on a central server owned by a single entity, Web3 aims to scatter data across a network using blockchain technology. This offers users greater control over their data and enhances the system's resilience to failures or attacks. This framework also fosters stronger privacy protection. In the Web3 era, users will likely own their data, and companies wishing to use it may need to compensate the users. Moreover, decentralized or blockchain identities could become commonplace, making it virtually impossible to fake identities. This is particularly relevant in the era of AI like ChatGPT, where the line between AI and human is blurring. Initiatives like Sam Altman's Worldcoin are examples of efforts towards blockchain identity.

Trustless System: The decentralized nature of Web3 eliminates the need to trust a single authority. The transparency and immutability of blockchain make this a reality.

New Monetary and Financial System: Web3 introduces a new monetary paradigm, with Bitcoin being the prime example of a cryptocurrency created through computational power, moving beyond the traditional fiat money system backed by national credit.

Web3 is a vision for the future of the internet, and strides are being made to make it a reality. Examples of web3 technologies or projects include Ethereum, Polkadot, Filecoin, and IPFS, which are being further developed as the foundational elements for this new internet.